Correlation Analysis between Financial Development Level and City Size Based on Mutual Information Algorithm

Abstract

Urbanization is the accompaniment of industrialization and modernization, a symbol of the progress of human civilization, and it has always been the focus of social attention. With the transfer of rural population to cities, the secondary and tertiary industries continue to produce agglomeration effects, and the urbanization process is accelerated. The level of urbanization has gradually become an important indicator to measure the degree of regional development, which has led to the exploration of the inner dynamics of urbanization. Finance is the core of modern economy, and urbanization is an important driving force for modern economic and social development. Research on the relationship between financial development and urban scale should also receive widespread attention. On the basis of reviewing and sorting out the related research results of urbanization and financial development, this paper makes an in-depth analysis of urbanization and financial development, respectively, aiming to have a systematic, comprehensive, and objective analysis of the interaction between urbanization and financial development. On this basis, combined with the current situation of our country’s financial development and urbanization, the internal relationship between the two is discussed. Based on the mutual information algorithm, this paper selects indicators that are representative of urbanization level, financial development, and economic development. By using the mutual information theory to analyze and rank the social and economic factors related to financial factors, it reveals the most relevant and accurate financial forecast. Then, it also discusses whether there is a cointegration relationship between urbanization and financial development and economic growth in our country and the causal relationship between them and analyzes the reasons on this basis.