| Over the past decades, the major cities of Guangdong province have experiencedsignificant real estate price increase which has been fueled by the sustained growth ofthe economic. It is well believed that deeper integration with the world market is oneof the major reasons for such high speed of growth.In the paper, it examined the linkage between urban economic openness whichcontain the ratio of trade volume and FDI as a percentage of GDP, and urban realestate prices as well as Balassa-Samuelson effects. Choosing panel data measurementmodel and adopt related economic variables which influence the real estate price asexplained variables into model. Using panel data of21large cities of Guangdongprovince from the year2001to2010, studying influence factors of real estate prices ofGuangdong province from open economy, city economy and real estate economywhich the three levels. And from the perspective of the open economies inspection totested the Balassa-Samuelson theory suitability on the real estate as non-tradeble goods.It empirically find that impact of urban economic openness on real estate prices ofGuangdong Province after controlling for other traditional demand and supply factorsthat affect the real estate price, for every1%increase in urban economic openness,urban real estate prices will increase significantly by0.02%.Urban economic opennessalone accounted for about3.30%appreciations of Guangdong real estate prices duringthe sample period, which is not neglect. In addition, through regression analysisclassification of real estate high prices and low prices, the result is that city with higheconomic openness high real estate price premium. The result implies that urban realestate price fluctuations are not only affected by the factors of city economicdimensions and real estate economic dimension but also potentially affected byinternational economic factors.The conclusions not only enrich the influence factors of real estate prices ofGuangdong province, but also help the government intervene in the real estate market. |
