Research On The Spatial Agglomeration Mechanism And Influencing Factors Of China's Real Estate Investment

With China's industrial structure reform promotion and new-type urbanization construction,real estate is playing an ever-important role in national economy,and it has developed into the pillar industry of China's national economy.Following surge in housing price in recent years,housing problem has become a core issue of national economy and the people's livelihood,and research on real estate remains a hot topic of academic study.As Paul Krugman putting forward New Economic Geography,an increasing number of scholars have studied spatial agglomeration phenomenon of regional economy and industry development.On the one hand,economic agglomeration development will generate positive externality,neighboring development will increase spatial spillover effect,reduce transportation cost and transaction cost,thus boost economic development.On the other hand,limited space of industry agglomeration will result in overcrowding effect and negative externality that restrain economic development.In the perspective of real state investment,by quoting linear free capital model put forward by Ottaviano and referring to new classical economics and urban economics correlation theory,the paper conducted research on spatial agglomeration mechanism and influencing factor of Chinese real estate investment.The real estate industry in China is capital-based,real estate development and investment go hand in hand with each other,so the paper analyzed the spatial agglomeration mechanism of China's real estate investment with reference to linear free capital model theoretical mechanism.According to theoretical analysis,it can be figure out that capital return plays a pivotal role in capital circulation,and capital return is co-determined by “market scale effect” and “market crowding effect”.On the basis of theoretical analysis,four variables(urban population scale,manufacturing scale,income per capita and market potential)which can reflect market scale effect and market crowding effect are chosen to conduct qualitative analysis and empirical test over real estate investment influencing factors.First of all,the paper made an board data model test to 259 prefecture-level above cities' sample data,the empirical result turned out the four explanatory variables' influence on China's real estate investment has passed significance test,and at the present stage,each explanatory variable holds positive correlation with China's real estate investment.Secondly,the paper divided the 259 cities into eastern,central and western regions and made empirical test respectively,the result indicates that average income level exerts the greatest influence on eastern region cities' real estate investment,urban population scale expansion and income per capita improvement have a remarkable driving effect on China's central region real estate investment,while urban market potential serves as the pivotal influencing factor in western China.By utilizing spatial econometrics model to do empirical test on China's real estate investment space agglomeration mechanism,the paper has proved linear free capital model's interpretation on real estate investment agglomeration mechanism,market effect play a decisive role in real estate investment agglomeration,local market scale expansion is bound to attract more real estate investment.