Research On The Interaction Between Financial Agglomeration And Real Estate Prices

Financial agglomeration is the phenomenon that financial resources will become more and more intensive in a certain region under the influence of various factors such as region,market conditions,government orientation,financial innovation and enterprise strategy.The real estate industry is a capital-intensive industry.The development of the real estate industry cannot do without the support of the financial industry.After the reform of China’s real estate market in 1998,the real estate price began to rise continuously.Since the 21 st century,China’s financial industry has developed steadily,and gradually formed a number of financial gathering centers.Studies at home and abroad show that there is a certain interaction between financial support,financial development and real estate prices,and there are few studies on the interaction between financial agglomeration and real estate prices.In addition,most of the researches on China are based on the samples of the whole country,regions and provinces.Based on this,this paper attempts to explore the interaction between financial agglomeration and real estate prices by taking provincial capitals and comparable prefecture-level cities as research objects.Taking the data of 20 provincial capitals and their comparable cities from 2006 to 2017 as the research samples,this paper firstly constructed the index system of financial agglomeration and calculated the financial agglomeration level of each city in each year by using the principal component analysis method.Then,through the empirical analysis of static panel model and panel vector autoregressive model,the interaction between financial agglomeration and real estate price is verified,but the interaction between urban financial agglomeration and housing price is greater.Finally,combined with the research conclusions,this paper provides relevant Suggestions from the perspectives of governments at all levels,real estate developers and financial groups,and points out the direction for further research.