A Study On The Effect Of Regional Difference In Housing Price On Manufacturing Agglomeration

The rapid development of China's manufacturing industry is benefited from the low labor force in China and the huge demographic dividend.The agglomeration and development of manufacturing industry is the solid foundation for the sustained growth and stable operation of our economy.However,in the process of economic development,the low cost advantages of the factors of production gradually disappear,especially with the rising price of house prices,the cost of labor and other factors of production in manufacturing enterprises have also risen sharply,which leads to the relocation of some low value-added manufacturing enterprises.The house price level and the manufacturing agglomeration degree are different in different regions,but will the regional house price difference have an impact on the degree of manufacturing agglomeration and how to influence the effect? Therefore,this paper studies the effect of regional differences in housing price on manufacturing agglomeration.The article first combs the relevant theories and the existing literature,and then through the analysis of the regional difference in house prices and the present situation of the development of manufacturing industry,we can see that the price of the 31 provinces(cities and autonomous regions)in China is in a clear upward trend since 2004,and the growth rate is faster,while the overall level of the manufacturing industry is declining.There is a certain correlation between the spatial distribution of the five place bitmap of the average sales price and the density of manufacturing agglomeration.Then it analyzes the internal logic of the regional difference of house prices affecting the level of manufacturing industry,clearly affects the path.Based on the perspective of labor heterogeneity,this paper analyzes the effect of regional difference in housing price on manufacturing agglomeration,and uses the core edge model to show that the house price difference will affect the concentration level of the manufacturing industry.Then the empirical test of the relationship between the two,in the empirical analysis,the main use of China's mainland 31 provinces(cities,autonomous regions)for 2004-2015 years panel data,using the system GMM for regression analysis.Through the above theoretical and empirical analysis,the following conclusions can be drawn.First,the influence of regional differences in housing price on manufacturing agglomeration is regional difference.From the results of the study,the relative house price has a significant negative correlation with the degree of manufacturing agglomeration on the national level.The effect of relative house prices on the degree of manufacturing agglomeration in the eastern and central regions is the same as the national level.However,the relative house prices in the western region have a positive correlation with the degree of manufacturing agglomeration.Second,the rise of housing prices affects the level of agglomeration by influencing the production cost of manufacturing enterprises.Relative price rise means that the price of land and other factors,as well as the rise in the cost of plant use,will affect the site selection of the manufacturing enterprises which are more sensitive to the change of production costs,thus affecting the concentration level of the local manufacturing industry.Third,the regional differences in housing prices cause labor migration,which affects the level of manufacturing agglomeration.The factor of labor force is necessary for the production and development of the manufacturing enterprises.The rising price of the house price will increase the cost of the labor,which will affect the decision-making of the labor flow,and the decision of the flow of the heterogeneous labor will affect the concentration level of the local different types of manufacturing enterprises.Fourth,the agglomeration development of China's manufacturing industry has regional stickiness.From the empirical results,the first lag term of the manufacturing industry concentration has a positive correlation with the current manufacturing agglomeration degree,which indicates that the higher concentration level of the earlier manufacturing industry has a promoting effect on the development of the current manufacturing industry.According to the results of the study,combined with the actual situation of our country's economic and social development,this paper puts forward relevant policy suggestions to promote the more reasonable agglomeration of China's manufacturing enterprises,narrow the gap between East and West in China,and promote the economic balance in all regions.