Study On The Relationships Between Guangdong's Real Estate And Economic Blooming

Guangdong is one of the developed provinces in the south of China, and real estate has always been the focus of debate. This article attempts to provide recommendations for the coordinated development of real estate and economic growth in Guangdong Province by analyzing the deep relationship between the real estate development and the economic growth in Guangdong Province and researching the interrelations between them. This paper includes the following sections:ChapterⅠ, IntroductionChapterⅡ, foreign research and related theoretical analysis of the status quo ChapterⅢ, development of Real Estate in GuangdongChapterⅣ, empirical analysis on real estate development and economic growth ChapterⅤ, research findings and countermeasuresFirst of all, a conclusion of this paper is obtained from the qualitative point of view that there is a relationship between Guangdong Real Estate development and economic growth. Before 1998, Guangdong Province fluctuations in the real estate are more volatile than economic growth and both showed the same growth rate trends. All these phenomenons were lack of rationality. After 1998, the amplitude of GDP growth rate and real estate investment growth rate is relatively flat and has an opposite changing direction. The main reason for this phenomenon based on the national macro-control policy, and the reason of that real estate development has become one of the important industries of Guangdong Province.Empirical analysis indicates that there is a long and stable relationship between Guangdong Province real estate investment and economic growth. The GDP and disposable income of urban residents in Guangdong area exert a positive effect on real-estate investment respectively by factors 0.04 and 0.08. As one of the bulk goods, real-estate is stimulated by both rigid consumer market and potential demand of investors. Income of urban residents has more significant effects on real-state in Guangdong province than regional GDP. Causality test shows, the relation between Guangdong GDP and real-estate investment are mutually causal relations. The income of urban residents is the reason of fluctuation in real-estate investment, but the fluctuation of real-estate investment is not the reason of fluctuation in income of urban residents. This phenomenon points that wealth effect brought by real-estate investment is not obvious. The real-estate investment has no significant influence on the improvement of the income of urban residents.