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Investigation of the Linkage among China’s Macroeconomy, Stock Market and Real Estate Market

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  • Guo Jianhua

    (School of Mathematics and Computing Science; Hunan University of Science and Technology; Xiangtan 411201; P.R.China)

  • Long Huidian

    (School of Information; Guangdong Foreign Studies University; Guangzhou 510420; P.R.China)

Abstract

As two important constituents of China’s macro economy, there are a variety of relationships among China’sstock market, real estate market and its macro economy. In order to investigate these relationships, in this paper, especially with the Macroeconomic Boom Index reflecting China’s macro economy, we use cointegration theory and Granger analysis to demonstrate that there are long-term equilibriumrelationship and bidirectionalcausalitybetween the macro economy and the securities business, also between the macro economy and the real estate market, however, this kind of long-termEquilibrium relationship and bidirectional causalityappears very weak.

Suggested Citation

  • Guo Jianhua & Long Huidian, 2013. "Investigation of the Linkage among China’s Macroeconomy, Stock Market and Real Estate Market," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 2(2), pages 01-07, April.
    • Handle: RePEc:rbs:ijfbss:v:2:y:2013:i:2:p:01-07
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    References listed on IDEAS

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    3. Nieuwerburgh, Stijn Van & Buelens, Frans & Cuyvers, Ludo, 2006. "Stock market development and economic growth in Belgium," Explorations in Economic History, Elsevier, vol. 43(1), pages 13-38, January.
    4. Hondroyiannis, George & Lolos, Sarantis & Papapetrou, Evangelia, 2005. "Financial markets and economic growth in Greece, 1986-1999," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 15(2), pages 173-188, April.
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    Cited by:

    1. Sofoklis Vogiazas & Constantinos Alexiou, 2017. "Determinants of Housing Prices and Bubble Detection: Evidence from Seven Advanced Economies," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(1), pages 119-131, March.

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