Abstract: Factors to affect housing security are more complicated than those to other issues. According to the empirical results from the spatial econometric model, it is indicated that China’s big scale of GDP and the rapid growth of government’s revenues resulting from China’s successfully economic development do not effectively support government’s fiscal spending in housing security. In addition, the accelerating process of urbanization brings about greater pressure to government in addressing the problem of housing security. The competition of financial investment in housing security among regional governments promotes the housing financial investment in China. In the future, the government should increase the proportion of public investment in the construction of affordable houses and establish an effective mechanism of security to gradually shift the financial effort in housing security from the political incentive to economic aspects. Using the overall plan mentioned above, government might be able to tackle the housing security problem brought by urbanization more efficiently. It is also suggested that the housing security policy should correspond with policies of land requisition and housing demolition. Moreover, the dynamic mechanism of moving in and out of affordable housing should be established and the link between policies of minimum living guarantee and housing security should be constructed.
Keywords: Economic Development, Urbanization, Housing Security, Fiscal Supply
source:Finance & Trade Economics ,No6,2014