Research On Real Estate Industry In Zhejiang Base On The Input-Output Method

As the leading industry, the real estate industry is an important component of thenational economy. Since the period of reform and opening-up, real estate developmenthas entered a rapid growth phase. Generally believed that the real estate industry hasthe characteristics of high-finance, high-consumption, high-development. Recentyears,real estate industry has rapidly developed, but there are a lot of problems.Zhejiang Province is one of most economically provinces in China, its real estatedevelopment also continues to rise. It has great value on zhejiang economicdevelopment, correct understanding its real estate development, the associated effectson other industries and the impact of local governments. Therefore, further study of thereal estate industry in Zhejiang Province has important theoretical and practicalsignificance by means of the input-output method.Firstly, this paper describes the study object and the method. According to thebasic data analyzing the real estate development in Zhejiang Province, pointed out thepossible problems. Moreover, it’s introduced for input-output method.And based onthe input-output table in2007Zhejiang province and the application of industrialclassification, separating the real estate industry, compiling out of the new input-outputtable that mainly to the real estate industries in2007zhejiang province.Secondly, using the new table and42sectors of input-output table data to analyzethe industry structure and related industries. The results show that: the first, Real estateis a highly capital-intensive, high-risk, high-tax, non-labor-intensive industry. Thesecond, the development of the real estate industry in Zhejiang Province will promotethe development of its agriculture and services better. Meanwhile, the development ofreal estate industry in Zhejiang Province mainly depends on the consumption of theservice industries, other industries consume little. The third, real estate is limited forthe pulling other departments. Because of its low-influence, real estate does not belongto the national supporting and developing industry.Thirdly, in this paper, we use input-output price model, and the model can beextended to achieve the purpose of using quantitative methods to study the relationshipbetween real estate prices and the government. As can be seen from the results, the realestate industry is the mainly financial industry of Zhejiang province, there is a clearinteraction between real estate prices and government tax. Dealing with localgovernment revenues is also key to control real estate industry. Finally, on the basis of the above analysis, against the current problems of the realestate industry in Zhejiang Province, suggests that to Re-positioning for the real estateindustry, promote the real estate industry upgrade, optimize the real estate industry andother industrial structure, establish and improve the tax system, strengthen cooperationwith the local and the central government, restructure local financial system and so on.According to these police, we can provide protection for the healthy development ofthe real estate industry in Zhejiang Province.