Correlation model analysis on the land price fluctuations in Beijing and Tianjin City in China

Correlation model analysis on the land price fluctuations in Beijing and Tianjin City in China

Zhaoxia Si1, 2, Shaoliang Zhang1, Ningli Chen2

COMPUTER MODELLING & NEW TECHNOLOGIES 2014 18(5) 201-207

1School of Environment and Spatial Informatics, China University of Mining and Technology, Xuzhou, 221116, China
2Henan Polytechnic University, Jiaozuo, 454000, China

According to the indexes of the city land price, the co-integration analysis, the Granger causality test, the impulse response function and the variance decomposition method were used in this paper to analyse the correlation model of the land price fluctuations in Beijing and Tianjin city in China. The results showed that the land prices in Beijing and Tianjin city had a long-term co-integration relationship. The Granger test model showed that the land prices in Beijing and Tianjin city was in line with positive correlation bidirectional causality. In addition, the raise of 1% land price in Beijing city caused a raise of 0.96% in Tianjin city. Conversely, a raise of 1% in Tianjin city caused a raise of 1.03% in Beijing city. By comparing the mutual influence degree, the land price fluctuations in Beijing city had a greater influence on that in Tianjin city.