The convergence of regional house price in Korea: Evidence from a pair-wise approach

• Main Authors: Wei-Fan, Yeh, 葉維凡
• Format: Others
• Language: en_US
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/53232174027260707122

碩士 === 國立高雄應用科技大學 === 金融資訊研究所 === 99 === This paper investigates whether the long-run convergence of regional house prices in Korea will exist over the period 2003m9-2010m2 or not. The pair-wise approach, of Pesaran (2007) and Pesaran et al. (2009) is employed. The results show that there is long-run convergence of regional house price in Korea, but the existence of convergence of the different regional house prices depends on different factors, including transport infrastructure, urbanization and population density. The transport infrastructure such as subway does not cause whether the different regional house prices will be convergent or not. As to the modernization of facilities, high-speed railway could cause less convergence between different regional house prices. Second, comparing with the regional house prices between different provinces, the regional house prices between different metropolitan cities are more convergent. Besides, the results do not support that more population cause more convergence of regional house prices. Furthermore, the degree of economic development could affect the convergence of regional house prices. Comparing with the regional house price in Korea, United States and the United Kingdom, there is more convergence of regional house prices.