The Analysis Of Regional Differences Of Chinese Real Estate Investment Affecting Economic Growth

Since the reform and opening up,along with Chinese rapid urbanization and the deep reform of the urban housing system,the real estate industry has developed rapidly.This has greatly improved the housing welfare of the residents and has significantly promoted the growth of Chinese national economy.Since then,the real estate industry has become one of the pillar industries of Chinese national economy has become the main driver of economic growth.On the one hand,the wealth effect brought by the rise in house prices has positively boosted domestic demand in China,increased household consumption,and promoted economic growth to a certain extent.On the other hand,the real estate industry has strong linkage before and after the development of the real estate industry.The prosperity of an industrial chain provides a lot of jobs,attracts more labor and increases market demand.It can be said that the development of the real estate market has greatly promoted the sustainable growth of the regional economy.Real estate investment is an important component of the real estate market,which effectively promotes the development of the real estate market.At present,Chinese economic development has entered a “new normal” and is facing a series of challenges and risks.In order to ensure the steady growth of Chinese economy,we must effectively develop the real estate market,especially the role of real estate investment in driving and promoting the economy.Under this background,this article analyzes the impact of Chinese real estate investment on economic growth based on the current real estate investment in China,expounds the transmission mechanism of the impact,and compares the impact of real estate investment on economic growth in65 large and medium-sized cities in China through empirical analysis.The similarities and differences,with a view to promoting the development of Chinese national economy made recommendations.This paper uses the Cobb-Douglas function as a base and GDP as a dependent variable to introduce real estate investment,capital stock,labor input,human capital,and foreign trade volume as independent variables,and establishes a static panel data model,using 2006-2015.The panel data of 65 large and medium-sized cities in China are tested empirically to examine the impact of real estate investment in China on economic growth in different scale cities.Among them,the selected 65 cities are divided into first-tier,second-tier and third-tier cities according to indicators such as economic development level and city scale.Four panel data models are established for regression analysis across the country and these three subregions to explore real estate investment impact on economic growth.Regional differences.The conclusion is that real estate investment has a more obvious role in promoting economic growth,but its pull rate is relatively lower than before.The role of real estate investment in promoting economic growth is most significant in first-tier cities,followed by third-tier cities,and second-tier cities.The driving effect is weaker than the other two types of cities.Finally,the following policy recommendations are proposed for empirical conclusions:For first-tier cities,real estate investment should be reduced,house prices should be curbed,and policies such as purchase restriction and taxation should be implemented;for second-tier cities,while real estate investment should be reduced,other industries should be vigorously promoted to promote the industry.The rational allocation of structure,optimization of the economic market,and the introduction of a large number of talents;for the third-tier cities,should be appropriate to relax the real estate policy,the implementation of down payment preferences,buy house subsidies and other welfare policies.