Analysis Of The Correlation Effects Between Real Estate Industry And Finance Industry In Shanghai

The real estate industry needs to raise large amount of funds, operate for a long time, and bring slow returns on capital. Due to these inherent features, it requires a massive influx of funding in each development step. The development and booming of the real estate industry will become impossible but for enough financial support. At the same time, due to the high safety factor and good profit, real estate is recognized as the excellent asset and"gold business"in the financial field. For these reasons, they are attached to each another, and stand together through thick and thin. However, if they rely on each other too much, it would prompt a real estate bubble which is promoted by financing, and then become the blasting fuse of economic crisis, so it will affect the sound harmony and stable development of society.Shanghai, which is the emergent international financial and economic center in the east, has a significant effect on economy in our country. Real estate and finance industry are both pillar industry in its economic development planning, and they have the intricate direct and indirect contact with each department of national economy, so they will play a vital role in Shanghai's development. Therefore, the study on the two industries in Shanghai, not only can reveal the quantitative relations between each other and work out more targeted and scientific industry development plan, but also promote coordinated development of the economy and society and guarantee the healthy and steady national economic growth.The article is divided into seven chapters as follow:The first chapter is introduction. This chapter contains the background, purposes and significance of the research, and dynamically describes the research trends and major research approach in this field at home and abroad. Then, after locating strengths and weaknesses among these theories and methods, and combining the revelation, this paper proposed research thinking ways and research methods, in addition, the innovation.The ChapterⅡdescribes the identification of related concepts and basic theories. This chapter respectively defines the concept of input-output theory, real estate industry and finance industry, and then elaborates the input-output model and main measurement index which is referred in the model, providing a theoretical basis for the empirical analysis. The ChapterⅢillustrates the development situation of real estate and finance industry in Shanghai. This chapter introduces the development course and current situation of real estate and finance industry in Shanghai. Basing on above conditions, the role of these two industries played in national economic system are introduced.The Chapter IV qualitatively analyses the incidence relation between real estate industry and finance industry of Shanghai. Considered the practical situation, this chapter qualitatively describes the incidence relation between two industries: real estate can not develop without financial support, meanwhile, real estate will continuously lead finance to self-innovation and improvement as well.The ChapterⅣis about the input-output analysis between real estate industry and finance industry in Shanghai. Based on three year's input-output tables, this chapter accurately calculates the direct consumption coefficient, direct distribution coefficient, complete consumption coefficient and complete distribution coefficient between Shanghai's real estate and finance industry, and then quantizes the correlation between two industries in terms of forward linkage and backward linkage. The result shows that: the forward and backward correlation coefficients have a tendency toward too high. But what is gratifying, as time goes on, this condition is gradually improving. It shows that the structure and property relation between two industries are progressively developing toward rationalization. The result also provides the quantitative basis for further research.The ChapterⅥcompares the industrial correlation of real estate and finance between Beijing and Shanghai. This chapter selects Beijing and Shanghai as the representatives of first-tier cities in our country, and analyzes the industrial correlation of these two industries between Beijing and Shanghai from the perspective of input-output theory. Through dynamically analyzing the strengths and weaknesses of two industries in Shanghai, the result shows that the Shanghai's real estate is more related to finance industry than Beijing. However, this situation has taken a turn for the better. In addition, the finance industry of Shanghai develops more perfect than Beijing.The ChapterⅦis about the main conclusion and policy recommendations. Based on the analysis of above chapters, this chapter summarizes the qualitative description and quantitative analysis between real estate and finance industry in Shanghai, after that reaches the main conclusion of my research. At last, combining with the concrete condition in Shanghai, I put forward the corresponding countermeasures and suggestions to the remaining problems.