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The Role of Foreign Direct Investment in Shanghai's Real Estate Price - Culprit or Scapegoat?

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Listed:
  • Huang, Jr-Tsung
  • Hwang, Yu-Ning
  • Lo, Kuang-Ta

Abstract

The objective of this study is to investigate whether or not real estate FD I has a significant effect on real estate prices in Shanghai, the most open and fastest-growing city in China. The study uses monthly data for Shanghai from 2003 to 2010 with the Autoregressive Distributed Lag (ARDL) approach to cointegration. The primary finding is that real estate FDI does not have a significant effect on real estate prices, both housing prices and office prices, in Shanghai in the short run. It only affect s Shanghai's office price in the long run. Therefore, this study concludes that rea l estate FDI is a scapegoat in this matter, even though many people and the media treat it as a culprit and believe that it is responsible for the surges in housing and office prices in Shanghai.

Suggested Citation

  • Huang, Jr-Tsung & Hwang, Yu-Ning & Lo, Kuang-Ta, 2014. "The Role of Foreign Direct Investment in Shanghai's Real Estate Price - Culprit or Scapegoat?," AGI Working Paper Series 2014-02, Asian Growth Research Institute.
    • Handle: RePEc:agi:wpaper:00000050
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    References listed on IDEAS

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    More about this item

    Keywords

    ARDL; Housing price; Office price; Real estate; Shanghai;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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