Research On The Relationship Between The Level Of Urbanization And Real Estate Investment In The Central And Western Regions Of China

As an irreversible trend, urbanization will bring significant opportunities in realestate investment. The level of urbanization and integration of urban agglomeration inthe eastern regions of China is significantly higher than it in the central and westernregions, thus the urbanization and urban agglomeration in the central and westernregions has become important growth poles to promote the coordinated developmentof regional. The article discusses the relationship between the level of urbanizationand real estate investment, which provide useful suggestions for the healthydevelopment of the urbanization and real estate investments in the central and westernregions of China.Based on the collation and analysis of literature review and theoretical about therelationship between the level of urbanization and real estate investment, this paperanalyzes the situation of the level of urbanization and the development of real estateinvestment from2000to2013in the central and western regions. In addition, thispaper selects the annual data of the19provinces （municipalities, autonomousregions） in the central and western regions of China from2000to2013whichmeasuring the level of urbanization （the proportion of the resident population of thetown, the proportion of non-agricultural population, built-up area, this year newconstruction area） and measuring the real estate investment （real estateinvestments）. The paper uses econometric method to establish panel data model toanalyze the causal relationship between the level of urbanization and real estateinvestment deeply after panel unit root tests, co integration test, panel analysis ofco-variance, and the Hausman test.The results show that, the level of the urbanization and the development of realestate investment in the central and western regions of China as a whole show asteady upward trend, different paces from2000to2013, and the differences in variousregions is large at the present stage. In addition, compared to the eastern regions, thelevel of urbanization and real estate development in the central and western regions isfar behind. There is a significant correlation between the real estate investment and the level of urbanization in the middle region of China, the level of urbanization indifferent regions has different pull effect to the real estate investment.This paper has enriched and improved the theoretical study of urbanization andreal estate investment in China, and provided guidance to steadily promoteurbanization and the real estate industry of China’s central and western regions in thebackground of the new urbanization to promote the coordinated development of theboth.