Theoretical and Empirical Study on the Effect of Real Estate Price on Urban Economic Growth

摘要

This paper analyzes the influence path of real estate price on urban economic growth through comparatively static model. According to it, the opinion that the study on the effect of real estate price on urban economic growth can be realized by analyzing the relationship between real estate price and local goods price is presented. Based on this, this paper conducts a case study on Xiamen. This paper respectively analyses the causality relationship between real estate sale price index and consumption price index, and relationship between real estate rent price index and consumer price index which include 33 successive quarter data from 1999 to 2007 in terms of Granger causality test. The results show that both real estate sale price and real estate rent price didn’t influence output price, therefore, real estate price had no effects on economic growth in Xiamen. The reasons large as fellows: firstly, goods cost is in weak relation to the price of factories, offices; then, labor wages doesn’t link to residential costs; finally, goods sale price is rigid and remains the same in spite of the flexibility of producing cost.