Research on relationship among chinese real estate economy, financial support and urbanization

Being a capital intensive industry, the development of real estate industry can't go without efficient financial support. While the continuous and stable urbanization speed and the absolute expanding scale of urbanization give a strong impetus to the development of real estate industry. It is proved that there is a kind of long balanced relationship among Chinese real estate economy, real estate finance and urbanization by using the method of co-integration analysis. So a regression equation is gained to show this kind of long term balanced relationship. Then an error correction regression model showing the short term dynamic change of Chinese real estate economic growth is gained based on the co-integration relationship. The result shows that the disturbance coming from short term factors have great influence on the long term balance, and proves empirically that the short run supply of real estate market has no elasticity and the production cycle is long.