What role does the real estate–construction sector play in China’s regional economy?

Abstract

Urbanization, industrialization and real estate reform have led to a vast growth of the real estate-construction sector in China. Using the 2002 and 2007 provincial input-output tables, this paper examines the importance of the real estateconstruction sector in the Chinese economy by applying the hypothetical extraction method. The results show that for the 30 studied provinces, the weighted average impact of the real estate-construction sector accounts for 21 % of total output and for approximately 14 % of all jobs in 2002. For 2007, these figures are 23 and 22 %, respectively. The impact of the real estate-construction sector on total output and employment varies across regions. In 2007, the direct and indirect output and employment of real estate-construction sector accounted for around 15 % of total regional output and employment in Shandong and Henan, and for 40 % in Tianjin, Jilin, Shaanxi, Ningxia and Xinjiang. Our results also indicate that the real estate-construction sector is strongly own final demand oriented and regional economies which highly rely on it are particularly vulnerable to a fall in its demand.

Modelling cointegration and Granger causality network to detect long-term equilibrium and diffusion paths in the financial system

“…The results from table 4 are different from current studies [ 10 , 12 , 14 ]. As we mentioned above, microscopic factors are the basis of macroscopic phenomena.…”

“…Previous studies showed that there existed cointegration between industries from the macroscopic perspective [ 10 , 14 ], but the cointegration did not always exist from the microscopic perspective. Thus, sometimes, we are easily confused by superficial phenomena from the macro perspective.…”

“…Two approaches have been widely used in this issue from a systematic perspective: the input–output analysis method based on industry linkage theory and the computable general equilibrium (CGE) model. Researchers examined the role of the REI in the national economy based on input–output tables, and they found that real estate had a great impact on other sectors [ 14 , 16 ]. Based on CGE, researchers established a dynamic equilibrium model of urban housing for investigating the issue of taxes and allowances [ 17 ].…”

Alternativni model izoliranja sektora u input-output sustavu: metodološki pristup i primjena na hrvatski IKT sektor

“…Pregledom relevantne literature utvr eno je da je metoda hipotetskog izoliranja primjenjivana u analizi važnosti razli itih sektora svjetskih gospodarstava. Song et al (2005), Song et al (2006b), Song i Liu (2007) i Ren et al (2014) primjenom metode hipotetskog izoliranja analizirali su sektor poslovanja nekretninama. Utjecaj gra evinskog sektora testirao je Song et al (2006a).…”

Digital-related economy sectors and regional economy disruption

“…While the study on the regional economy and its factors has been wellresearched, see Guzman, Vassallo, and Hortelano (2016); Litvinenko et al (2016); Patrakeeva and Kryukov (2016); Prats and Ramirez (2018); Ren, Folmer, and Vlist, (2014), relatively less is known on the issue for the digital economy sectors affecting the regional economy. Compared to the previous papers that the researchers have reviewed in the literature rivew, this paper provides a research gap, which includes all digital-related sectors of economy with a regional perspective, instead of a one-by-one sector with a national perspective.…”