An Investigation into Real Estate Investment and Economic Growth in China: A Dynamic Panel Data Approach

Yu, Kai‐Bei; Glascock, John L.; Lu‐Andrews, Ran

doi:10.3390/su8010066

Cited by 29 publications

(16 citation statements)

References 18 publications

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“…However, a comprehensive investigation of the impact of land supply on real estate investment in all prefecture-level cities has not been conducted. It is also worth noting that many studies focus on a small sample of cities or provincial-level data in studying China's real estate market (e.g., references [48][49][50][51][52][53]). Although these studies shed crucial light on the comprehension of the real estate market in China, they may offer an inadequate picture of China's real estate market given the varying socioeconomic conditions of Chinese cities.…”

Section: State Intervention In Land Supply and Its Impact On Real Estmentioning

confidence: 99%

State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities

Su¹,

Qian²

2020

Sustainability

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State intervention in land supply can be a powerful tool in shaping real estate investment. Yet, few studies have examined the effect of central state intervention on land supply at the municipal level and the impact of land supply on real estate investment with respect to different tiers of prefecture-level cities in China. Varying central–local dynamics of land supply in different tiers of cities, and the often taken-for-granted relationship between land supply and real estate investment, warrant further investigation. This study aims to fill these gaps. It is found that the multi-purposed central land policy and the varying land leasing strategies adopted by different tiers of cities contribute to the varying land supply trajectories, calling for more nuanced and better-tailored central land policies that focus on the socioeconomic conditions of cities. The general significant and positive correlation between land supply and real estate investment, revealed by a panel regression analysis incorporating 280 prefecture-level Chinese cities, suggests that land supply control can function as a critical tool in governing real estate investment in China, which also sheds light on the governance and promotion of sustainable real estate markets in other parts of the world. This study also reveals a higher possibility of land speculation in first- and second-tier cities than that of low-tier cities. The nuanced correlations between land supply and real estate investment and the varying land development strategies employed in different tiers of Chinese cities imply that the effectiveness of land supply intervention in shaping healthy real estate investment may depend on local contingencies, calling for meticulous and tailored governance on land supply and real estate investment behaviors.

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Section: State Intervention In Land Supply and Its Impact On Real Estmentioning

confidence: 99%

State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities

Su¹,

Qian²

2020

Sustainability

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“…Besides, China's reform and opening-up from the coastal to the inland presents a sequential feature, and there is an obvious spatial imbalance in the resource allocation and factor endowments in various regions, which will also make the impact of housing investment in different regions on urban innovation show a differentiated pattern. For example, the study of Kong et al [20] found that negative lagged effects of housing investment on economic growth in China, which are different among the three regions-the eastern region shows the most significant negative effects, while the western region shows relatively insignificant. From this, we can infer that the crowding-out effect of housing investment on urban innovation also decreases from east to west in turn.…”

Section: Analysis Of the Impact Of Housing Investment On Urban Innovamentioning

confidence: 99%

The Influence of Housing Investment on Urban Innovation: An Empirical Analysis Based on City-Level Panel Data in China

et al. 2020

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The reasonable control of housing investment and the encouragement of innovation are two major tasks for the Chinese government. This article uses city-level urban panel data over 2001-2015 to study the effect of housing investment on urban innovation in China. The full-sample regression result shows that housing investment inhibits urban innovation. Housing investment can curb urban capital flow and reduce the gross profits of enterprises, which can hinder the improvement of urban innovation. As for different regions, the eastern region has been more obviously influenced by housing investment, while it has led to less influence on the middle and western regions in China. The conclusions of this study can help to clarify the internal relationship between housing investment and urban innovation, identify how to promote the current transformation and upgrading of China’s real estate investment, and improve the vitality of the real economy.

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“…The historical data suggests that there is bi-directional causality between economic growth and residential construction. Kong et al (2016) studied how real estate investment affects Chinese economic growth. They found that real estate investment has significantly positive contemporaneous effects on economic growth on both national and regional levels by using a dynamic panel data approach to analyze country-level and province-level data in China from 2000 to 2012.…”

Section: Introductionmentioning

confidence: 99%

Efficient Use of Capital: Paradox of Real Estate and Industry in Turkey

Hepşen¹,

Asici

Aydın³

2017

IJEF

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In recent years, one of the hottest debates on Turkish economy is the conflict on resource allocation between real estate and industry sectors. The debate was so intense that ex-minister of Economy Mr. Ali Babacan declared his opinions. Mr. Babacan's statements about the creation of fixed capital by the private sector is not promising, and private sector fixed capital expenditures are not in the desired level. This situation is due to the limited economic growth and future economic growth. In this study, we have investigated whether Mr. Babacan's statement is right or not. We have discussed the reliability of the measurement of real estate output as Gruneberg and Folwell did in 2013 and Ruddock did in 2002. That could be concluded that we agree with ex-minister of Economy Mr. Babacan's comments regarding to imbalances among sectors are threatening Turkish economy's stability. The imbalances are favoring residential real estate investments and consequently the country is exposed to currency risk.

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An Investigation into Real Estate Investment and Economic Growth in China: A Dynamic Panel Data Approach

Cited by 29 publications

References 18 publications

State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities

State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities

The Influence of Housing Investment on Urban Innovation: An Empirical Analysis Based on City-Level Panel Data in China

Efficient Use of Capital: Paradox of Real Estate and Industry in Turkey

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