Effect Of The Urbanization Level, FDI On The Housing Price

With the advantage of its resources and policy, the extended Yangtze River deltaregion gradually becomes one of the most developing economic areas in China.Meanwhile, the housing price in the region increases sharply. Among all the factorsaffecting the housing price, the urbanization level and FDI are worth receiving attention.In this paper, we take the extended Yangtze River delta region as an example toexplore the relationship between FDI, urbanization level and the housing price. To dothis, we firstly introduce the development of the housing price, urbanization level andFDI by reviewing relevant literature. Then the spatial economics method is employed tothe region, based on the spatial dynamic data of31cities from2000to2011and adistance-weighted matrix. Results show that the spatial autocorrelation is an importantfactor affecting the housing price in the region. The speeding up of the urbanization inthe whole region will promote the rising of the housing price, while the actual FDIamong the investigated provinces exhibits significant difference. Specifically, the FDIfor Zhejiang and Anhui provinces exhibits significant positive correlation with theirhousing price. For Jiangsu province, however, the actual FDI slightly correlates with itshousing price positively. Finally, on the basis of empirical analysis, the correspondingsuggestions are made.