The Correlation Research On Real Estate And Manufacturing In China

In modern society, Manufacturing is not only the main force of economic growth but alsothe important embodiment of regional stability. As a real economy industry, Manufacturing is adrive force to promote the development of many industries, such as Finance, Insurance, RealEstate, Integrated Technical Services and other service industries.In addition, Manufacturingplays a key role on regional economy. With service era coming, Real Estate Industry hasbecome the leading industry and the people’s livelihood industry in regional economy.Manufacturing industry belongs to real economy industry, but Real Estate industry hascharacteristics of virtual economy. Manufacturing industry and the Real Estate industrydevelopment in region make real economy factors interact with virtual economy factors, whichhas a major impact on regional economic stable and sustained development. Therefore, in orderto make the regional economy to get better development, it is necessary to conduct acomprehensive investigation of correlation between Real Estate and Manufacturing in China.This paper applies the theoretical and empirical point of view to analyze the industriescorrelation and spatial correlation between Real Estate and Manufacturing in China. It usesSpatial Economics, Economic Geography and Real Estate Economics to construct the theory ontwo industries correlation mechanism. The empirical test of the industry association and spatialassociation is based on the constructed theory. In terms of industry association, the paperapplies panel data measurement to conduct empirical test on the derived two sectors economicinteraction model. The spatial association of the empirical analysis is based on the spatial lagmodel and the spatial error model. The empirical analysis shows that China’s Real Estate andManufacturing generally have industry and the spatial interaction. However in the concept ofthe provinces, interaction between two industries is not very benign. Based on this, we shouldput forward the policies about promoting industrial upgrading in the manufacturing, stimulatingin the agglomeration effect and avoiding overheating of real estate development.