An Analysis On The Impact Of Urban Housing Price Differences On Industrial Structure In China

In the background of economic development into the "New Normal",in order to make our economy growth still maintain high speed and ride out the economic restructuring period smoothly,"industrial structure adjustment and upgrading" has become one of the important issues for government and enterprises to face.There are many factors that can affect the adjustment of industrial structure,such as technological progress,changes in consumption structure,labor and capital endowment changes,etc.And perspective of this paper will focus on the situation of China’s real estate industry development.Since the housing reform in 1998,the real estate industry has always been a basic industry of China’s national economy.On the one hand,the wealth effect of rising house prices will stimulate consumption and generate positive role to stimulate domestic demand in China.On the other hand,the prosperity of the real estate market led a large number of its upstream and downstream related industries to develop and gave birth to a large number of market demands.At the same time,the development of the local real estate market has also made tremendous contributions for regional economic growth.While the change in house prices affects China’s economic growth and fluctuations,it also has a profound direct or indirect impact on China’s industrial structure.Before the 2008 financial crisis,China’s rapid growth GDP is largely dependent on the rapid development of real estate market.But because China’s real estate market is not mature,too fast development spawned a series of problems,such as China’s real estate market development imbalance,serious regional differentiation,the high housing prices in the first-tier cities and some second-tier cities,but so many real estate stocks in the three or four line cities and so on.These phenomena also accelerated the imbalance problem in China’s industrial restructuring.In the current economic context,whether the government is able to adjust and upgrade the industrial structure through to adjust the real estate market? Further,in the face of serious regional differentiation of the China’s real estate market and the initial endowment of the different areas,how to formulate housing policies,adjust and balance the industrial structure of the different regions according to local distinct conditions? The solution of these problems is undoubtedly one of the new perspectives to help China to carry out industrial structure reform efficiently and rationally.Therefore,according to the current situation of China’s real estate and the status quo of industrial structure,this paper analyzes the impact mechanism of urban housing price difference on industrial structure adjustment,clarifies the affect path of regional housing prices on industrial structure,and empirically analyzes the similarities and differences in that impact of these 60 large and medium-sized cities in China with a view to the corresponding recommendations of China’s industrial restructuring and upgrading.In this paper,the housing price factor is introduced in the traditional center-edge model of Krugman to take a theoretical derivation,and the proposition of "urban house price difference will affect the industrial structure" is obtained.Then the static panel data model is set up to analyze empirically,based on the relevant data from 2001 to 2014 of 60 large and medium-sized cities in China,studying the impact of urban housing price differences on the industrial structure.Further,the selected 60 cities were divided into first-line,second-tier and third-tier cities according to the level of economic development,and then the different panel data models were established to analyze the similarities and differences of the impact between different economic regions.The conclusion is that the difference of urban housing prices will promote the transfer of labor force from the primary industry to the secondary and tertiary industries,and the share of output value will be transferred from the secondary industry to the tertiary industry,the urban industrial structure shifts toward a more advanced and more reasonable direction.At the same time,the more advanced the regional economy is,the weaker the impact of differences in urban housing prices on industrial structure upgrading is.The effect of urban house price difference on the upgrading of industrial structure in areas with lower economic development level is more significant.Finally,for the cities in different economic regions,according to local distinct conditions it puts forward the recommendations of the real estate industry regulation and control policy,in order to further promote the industrial structure adjustment and optimization.In the areas of high economic development level,it should curb housing prices rise and vigorously develop new industries;in the areas of middle economic development level,it should enhance the level of house prices slightly,introduce high-quality talent and support in the high-end industry;in the areas of relatively low economic development level,it should strengthen the construction of city,promote the growth of house prices,and at the same time do a good job of undertaking foreign enterprises.These all are in order to promote industrial structure adjustment and upgrading by guiding the urban housing prices and then promote the stable and healthy development of regional economy.