Examining the Regional Spatial Spillover Effect of Housing Price in Taiwan –An application of Housing Panel Data
Following the economic booming in Taiwan since 1950’s, the housing prices increase in a fast pace, especially in the capital city area (Taipei) in northern region of Taiwan. However, there is an immense difference of rising degree by regions from north to south. The heterogeneity of regional spatial development forms the differences of housing environment attributes and results in different housing price distribution for local regions. In this study, we select three metropolitan municipalities regions in Taiwan, including Taipei, Taichung and Kaohsiung as the empirical areas to construct the so-called the Regional Housing Price Model (RHPM). The RHPM will be constructed empirically in Taiwan area to take into account of the spatial heterogeneity, spatial spillover effects, local environment attributes by metropolitan municipalities regions, and the Taiwan macro-economic factors as well. We investigate how national and regional elements impact on regional housing market by using spatial panel data model. Different from the past studies, this paper considers both spatial heterogeneity and dependency simultaneously. We found that the spatial spillover effect is positive in the northern region, negative in the central region, but insignificant in the southern region of Taiwan. It also shows that the three regions were in distinct stage of development, causing the characteristic of regional housing market to present differently.
Housing price, Region Spillover effect, Panel data, Taiwan