Research On The Conduction Effect Of Tianjin’s Economic Openness On Real Estate Price

In recent years,Tianjin’s economy has been remainning a steady continuous rising with the increasing economic openness.Tianjin’s real estate prices at the same period has been rising quickly. So it’s worth studying that whether the increasing of Tianj in’s economic openness promotes it’s real estate prices.Balassa-Samuelson theory suggests that under the condition of open economy,the rapid growth of economy will inevitably cause the difference of the labor rate between trading department’s and untrading department,which will raise the untrading department’s cost and its goods’price.This paper introducts Cobb-Douglas Production Function and total factor productivity index model on the base of Balassa-Samuelson theory,deriving a double logarithmic model between real estate prices and economic openness.Economic openness is weighted by trade openness and investment openness,at the same time some variables will be used in the model is added to the influncing factors of real estate prices.In this paper, quarterly data from 2000 to 2012 in tianjin is used to estimate the model,verifing that the relationship between Tianj in’s real estate prices and economic openness is in line with the Balassa-Samuelson theory. The empirical study conclusion shows that per one unit’s change of Tianjin’s economic openness will case real estate prices changing by 0.01% in the same direction,what’s more,trade openness plays a more important role in the influncing factors.At the same time,other variables in the modle are also be significant,PCDI’s per 1% change will cause Real estate prices changing by0.7443%;The Real estate investment per 1% change will cause Real estate prices changing by0.2%;The result of the study suggests that The conduction effect between Tianjin’s economic openness and real estate prices obey the Balassa-Samuelson theory,and economic openness should be introduced into the influncing factors of real estate, the paper also give some policies stabilize the real estate market such as preventing overheating investment and curbing speculative demand.