Positive analysis on the co-integration of urbanization rate and housing price of nanchang

Based on the existing findings,this paper investigates the relation between urbanization rate and the housing price. annual statistics of the urbanization rate and housing price from 1999 to 2012 in nanchang are used,and vector error correction model (vec) is built with the consideration of inflation. in addition,granger causality test is applied to analyze the relation between urbanization and housing price. the result shows that long-term equilibrium relation exists between the urbanization rate and housing price,and the relation can be explained as granger causation. suggestions are made to enhance the concerted development of urbanization and real estate with the analysis of current situation of nanchang. © 2014 pakistan journal of statistics.