Advanced

A Historical View of China’s Real Estate Industry

Zhang, Hu LU (2011) EKHR23 20111
Department of Economic History
Abstract
This study starts from the historical view of China’s real estate industry formation and development. It is evidenced that there were no real estate industry nor real estate market in China’s long past history. China’s real estate industry was firstly emerging since the early 1980s; its development to a large extent should be attributed to the national Housing System Reform. During the 30 years development, real estate industry has become a very important part of national economy. In the empirical research, we investigate the relationship between housing investment and the economic growth of China by using the yearly data from 1986 to 2010. The recent developed Co-integration, Error Correction Model, and Granger Causality test is employed.... (More)
This study starts from the historical view of China’s real estate industry formation and development. It is evidenced that there were no real estate industry nor real estate market in China’s long past history. China’s real estate industry was firstly emerging since the early 1980s; its development to a large extent should be attributed to the national Housing System Reform. During the 30 years development, real estate industry has become a very important part of national economy. In the empirical research, we investigate the relationship between housing investment and the economic growth of China by using the yearly data from 1986 to 2010. The recent developed Co-integration, Error Correction Model, and Granger Causality test is employed. Our result supports of the long-term and bidirectional relationship between housing investment and economic growth. For the short term, we found only housing investment has significant impact on economic growth. At last, we conclude that we should not over rely on housing investment and arbitrarily use it to pull GDP growth of China, whereas to stimulate consumption by using housing investment seems appropriate in short period. (Less)
Please use this url to cite or link to this publication:
author
Zhang, Hu LU
supervisor
organization
alternative title
Empirical study of the relationship between housing investment and economic growth in China
course
EKHR23 20111
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Economic Growth, Housing Investment, Granger Causality
language
English
id
2171926
date added to LUP
2011-11-11 11:37:23
date last changed
2011-11-11 11:37:23
@misc{2171926,
  abstract     = {This study starts from the historical view of China’s real estate industry formation and development. It is evidenced that there were no real estate industry nor real estate market in China’s long past history. China’s real estate industry was firstly emerging since the early 1980s; its development to a large extent should be attributed to the national Housing System Reform. During the 30 years development, real estate industry has become a very important part of national economy. In the empirical research, we investigate the relationship between housing investment and the economic growth of China by using the yearly data from 1986 to 2010. The recent developed Co-integration, Error Correction Model, and Granger Causality test is employed. Our result supports of the long-term and bidirectional relationship between housing investment and economic growth. For the short term, we found only housing investment has significant impact on economic growth. At last, we conclude that we should not over rely on housing investment and arbitrarily use it to pull GDP growth of China, whereas to stimulate consumption by using housing investment seems appropriate in short period.},
  author       = {Zhang, Hu},
  keyword      = {Economic Growth,Housing Investment,Granger Causality},
  language     = {eng},
  note         = {Student Paper},
  title        = {A Historical View of China’s Real Estate Industry},
  year         = {2011},
}