Author(s)

Shanwen Tan, Wenzhe Zheng, Yehui Wang

Corresponding Author

Shanwen Tan

ABSTRACT

China’s urbanization has made rapid development in the past few decades, but with the rapid development of cities and the increasing gap between urban and rural areas, how to achieve rural revitalization and rural modernization has become an urgent problem. This paper takes the provincial panel data of China’s 2009-2017 urban house price and agricultural production related indicators as the research object, uses the fixed reference SBM model of the Malmquist index window to measure the agricultural total factor productivity, and uses the tool variable method to study the inhibition effect of urban house price rise on the growth of agricultural total factor productivity from the perspective of urbanization. The results show that the rising housing prices distort the allocation of agricultural production factors, affect the rural development and frustrate the development momentum of agricultural total factor productivity by influencing the citizenization of migrant workers and the “crowding out effect” on the transfer of rural surplus labor. Further research shows that the area of commercial housing has a significant impact on urban housing prices, so we should coordinate the urbanization process and the mechanism of housing price rise, take the road of urban development, and solve the problem of rapid housing price rise by fully providing residential land.

KEYWORDS

Rising house price, Total factor productivity of agriculture, Dea malmquist index