The Research On Housing Price, Labor Migration And Regional Industry Division And Coordination

The rapid development of China’s economy is based on making the most of the comparative advantages. There are developed commodity economy, rich subsidiary agricultural products and strengthened international status in The Yangtze River Delta, which rely on its favorable location advantages. Due to the scarcity of land and the process of acceleration of our country urbanization, rent and housing-price rise.The cost of production goes up and the way of traditional economic development encounters bottleneck. Labor migration and industrial division are an important way to break through the bottleneck and to promote the coordinated development of the Yangtze River Delta. The paper mainly discusses the effect mechanism of housing-price on labor mobility and the regional industry division, to provide a theoretical guidance for determining a scientific control target of housing-price, strengthening labor mobility and coordinating regional industry division.Regarding housing-price as a breakthrough point, this paper puts it into core-periphery model in the new economic geography and combines with market potential function. This paper finds that the higher price, the greater crowding-out effect on labor and enterprises. This paper divides the16core cities into three parts and divides manufacturing industries into high value-added manufacture and low value-added manufacture in The Yangtze River Delta. Making use of27four-digit manufacturing industries data in2000-2010in16core cities, we establish a dynamic panel model. Through the analysis of effect mechanism of housing-price on manufacturing workers and the number of high and low valued-added manufacturing, we discuss how housing-price affect the labor migration and regional industry division.The results show that:first, there is a significant negative relationship between housing-price and the number of labor in first-tier cities. The rising price leads to labor migration. But there exists a significant positive relationship between housing-price and the number of labor in the second and third-tier city. Therefore, housing-price movement makes labor transfer in different directions. Second. housing-price and the number of the low value-added industries have obvious negative relationship and the relationship between price and the number of high value-added industries is not obvious in the first-tier city. In the second-tier city, housing-price has a little effect on the number of companies. In the lower-tier city, housing-price positively correlates with the number of low value-added companies, negatively correlating with the number of high value-added companies. So the rising price makes the low value added industries spread to second or third-tier city and high value-added industries gather in the first-tier city. Regional industry division and the structure system of cities are changing. Third, compared with the first or second-tier city, the lower-tier city more depends on the construction of infrastructure and the improvement of living condition, which can be able to attract labor and industries better.