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The financial development and the real estate market in Vietnam: a study in case of the global financial crisis

Author

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  • My-Linh Thi Nguyen

    (University of Finance - Marketing, Vietnam)

  • Toan Ngoc Bui

    (Industrial University of Ho Chi Minh City, Vietnam)

Abstract

This paper is the first empirical evidence for the impact of financial development on the real estate market (REM) in Vietnam. The researchers utilize time series data in Vietnam in the period from 2004:Q3 to 2018:Q4. By using the autoregressive distributed lag (ARDL) model, the paper analyzes the impact of financial development through the banking system development and the stock market development on the REM in the short and long term. The research results are consistent with some previous studies as the impact of financial development on REM is found in the short and long term, and the impact is mainly positive. In particular, the impact of the banking system development on the REM is stronger than the impact of the stock market development on the REM. In addition, the paper also achieves great success in discovering the negative impact of the global financial crisis on the In particular, the impact of the banking system development on the REM is stronger than the impact of the stock market development on the REM in the short and long term, which is a new discovery compared to the previous studies. These findings are significant for the In particular, the impact of the banking system development on the REM is stronger than the impact of the stock market development on the REM in the economies all over the world, especially for a developing country like Vietnam.

Suggested Citation

  • My-Linh Thi Nguyen & Toan Ngoc Bui, 2020. "The financial development and the real estate market in Vietnam: a study in case of the global financial crisis," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(2), pages 960-971, December.
    • Handle: RePEc:ssi:jouesi:v:8:y:2020:i:2:p:960-971
    DOI: 10.9770/jesi.2020.8.2(58)
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    References listed on IDEAS

    as
    1. Francisco J. Buera & Yongseok Shin, 2013. "Financial Frictions and the Persistence of History: A Quantitative Exploration," Journal of Political Economy, University of Chicago Press, vol. 121(2), pages 221-272.
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    More about this item

    Keywords

    ARDL; financial development; financial crisis; real estate; Vietnam;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • 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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