An Empirical Analysis On The Impact Of Regional Economic Disparity On Housing Price

In recent years,the central and local governments at all levels have introduced many market regulation measures,but the regulation is less desirable.This article is committed to research prices influencing factors to a more complete diagnosis release and to provide a reference for policy makers.Government regulation of real estate from the point of view to promote the balanced development of the regional economy,and maintain the stability of the national housing.This paper argues that regional economic disparities are the internal factors caused housing prices to rise in the long-term continually. Specifically,in order to study the problem,we further believe that a series of regional economic disparities led to the rising prices continuously.This paper first analyzes the influencing factors of regional economic disparities,disparities in regional economic impact on the prices mechanism to do theoretical research.The prices of the summarized impact factors and regional economic disparities influencing factors for comparison,we found disparities in regional economic impact factors are either included in the prices influencing factors,or factors caused by the disparities in regional economic impact factors. Accordingly,we can assume that the factors of regional economic affect housing prices,and have role in promoting regional economic disparityies on the eastern,central and western prices.The theoretical analysis is completed,into the empirical section of this article.First, this paper selects the labor force participation rate,the level of investment,the level of industrialization,dependence on foreign trade,urbanization level five indicators to indicate the impact factors of the regional economic disparities,and measure themAfter using panel data of31provinces in China from2002to2009,to be interpreted the variable average residential sales pvice(PHi,t)and five explanatory variables (labor force participation rate (LABi,t),the level of investment(INVi,t),level of industrialization(INDi,t),dependence on foreign trade(TRAi,t),the level of urbanization(URBi,t))to establish a panel data model,in order to eliminate heteroscedasticity and serial autocorrelation,we choose the GLS cross section weighted estimation method (Cross Section Weights) test method,regression found that almost all provinces and five variables are significant.And,therefore,our results on the measurement of the specific analysis of the following conclusions.Overall,the five regional economic disparities influencing factors have a significant impact on China’s eastern,central and western prices,indicating that regional economic disparities indeed explain the key influencing factors affecting China’s housing prices in recent years.Various disparities on a single indicator,the five regional economic disparities in factors indicators of China’s eastern,central and western prices.Specifically,the labor force participation rate affect the central housing prices most significantly;the level of investment in the most significant impact on house prices in the western region;the level of industrialization prices more significantly affect the eastern and western regions;dependence on foreign trade is more significant impact on the prices of the eastern and central regions;the level of urbanization significantly affect the prices of the western region.Therefore,in the formulation and implementation of real estate policy,regional economic disparities need to cause enough attention of government and industry;efforts to narrow the economic development gap between urban and rural areas and to promote the rational flow of factors of production and the development of regional positive interaction are the long-term plan to stabilize housing prices.