The Impact Of Housing Prices On Manufacturing Upgrades

The manufacturing industry is our country economy prop,the inexpensive labor force caused various countries' multinational corporation to move the factory to China,because of the huge population dividend,Chinese economy obtained the rapid growth.In recent years,due to the level of house prices,manufacturing labor costs and the rise in the price of factors of production,the manufacturing industry relying on low-cost has been overwhelmed,they have chosen to transfer and move away,on the other hand,due to talent and infrastructure,some manufacturing companies have gathered in large cities,these companies are producing high value-added products,then is the price level of the manufacturing upgrade not beneficial? Firstly,through the derivation of the core-marginal model,the theoretical relationship between the relative amount of the manufacturing enterprises and the income of the residents is obtained.The other variables are constant,and the increase of the relative house prices in the region will lead to the improvement of the manufacturing productivity,but high prices will suppress the upgrade and development of the manufacturing sector,it will increase the income level of residents in favor of upgrading the manufacturing sector,it will also raise income levels which can lead to relative rise in house prices.Then we analyze the development status of the Yangtze River Delta house prices,manufacturing and wage income residents,the Yangtze River Delta provinces and one city housing prices significantly higher than the national average,because of the huge economic aggregate Yangtze River Delta region,population density and urbanization high level.After the Yangtze River Delta,the per capita income of the two provinces and one city is higher than that of the whole country,and the gap between the rich and the poor is large.The number of high value-added manufacturing enterprises in the Yangtze River Delta provinces and one city has been in a rising stage.The reason is that most of the low value-added manufacturing industry is labor-intensive,if the output value is low,it is easy to cause the rise of unemployment rate.Finally,this paper analyzes the panel data of 16 core cities in the Yangtze River Delta.The results show that the rise of the price level is beneficial to the increase of the number of high value-added manufacturing enterprises,and the number of low value-added manufacturing enterprises is reduced.Which is conducive to the optimization of the upgrading of the manufacturing industry.The increase in the wage level of the residents makes the demand for the low value-added manufacturing goods smaller,the residents seeking higher quality consumption,so that the demand for high value-added manufacturing goods increases,which is conducive to the manufacturing industry.The rise of house prices will not lead to the rise in the wage level of residents,on the contrary,the rise in the level of the residents is conducive to the rise in house prices,because the real estate prices,the price of housing prices.With the development of the real estate,the real estate development did not make a substantial increase in the wage income of the residents,and the increase in the wage level of the residents will push up the rise in house prices,partly because the increase in the salaries of the residents makes the purchasing power of the residents rise,house,raised the price;On the other hand the residents wages Improve the level of increased gap between rich and poor,the rich,and many suites appeared,a poor distribution of resources is not irrational state,so that the upper surface of the housing is scarce,resulting in a rise in house prices.Finally,through the examination of the Kuznets curve relationship between the logarithm of the price level in Shanghai city in recent ten years and high value-added manufacturing enterprises the number of changes in the price level in Shanghai and found that high added value "Kuznets curve inverted U" the number of manufacturing enterprises in Shanghai before the log prices reached 9.2 when,produce housing prices will be a positive impact on the upgrading of the manufacturing industry,after the log when Shanghai's housing prices in Shanghai reached 9.2,it has a certain inhibitory effect on the upgrading of the manufacturing industry,high prices have a negative impact on the upgrading of the manufacturing industry.