Lu Ming, the professor of Fudan University and Distinguished Professor of Shanghai Jiaotong University reported in GUCP

OnMarch 24^th 2014, Lu Ming, the professor of Fudan University andDistinguished Professor of Shanghai Jiaotong University, did an academic reporton invitation to GUCP with nearly 20 audiences who are full-time or part-timeresearchers in GUCP. Professor Lu introduced the new research findings by theiracademic team: “housing price pushes up salary levels—how did the land policiesafter 2003 affect labor costs”.

Basedon the framework by Roback(1982) and valuable idea of Morerri(2011), ProfessorLu constructed a spatial equilibrium model of two cities, studied the effectsof land policies after 2003 on China’s economic growth model and reviewed aswell as examined these land policies. Professor Lu indicated that the rapidgrowth of China’s labor costs does not necessarily mean the China’s economicdevelopment reaches the “Lewis Turning Point”, but rather caused by the roaringhousing price, which generates from the middle and western-inclined landpolicies, in other words, the middle and western-inclined land policiescompromise the competitiveness of China’s economy.

Bothprofessor Kuang Weida from Renmin University and Researcher Jiang Xuemei FromGUCP, CASS did valuable comments on his report.