The Property Market and the Macroeconomy of the Mainland: A Cross Region Study
This paper studies the nexus between the property market and the macroeconomy of Mainland China in 1998-2004, using panel data models covering 31 provinces and major cities. The estimates suggest three main conclusions. First, there seemed to be a two-way linkage between property price and GDP growth. In particular, property price increase had a significant positive impact on investment, but no evidence of a wealth effect on consumption is obtained. Second, bank credit expansion did not seem to play an 'accelerating' role in property price inflation, although the latter is found to have contributed to bank credit increase in recent years. Third, property price growth may have deviated from fundamentals in coastal areas, as evidenced by a negative relationship between housing and rental prices.
|Date of creation:||Mar 2007|
|Contact details of provider:|| Postal: 55th Floor , Two International Finance Centre , 8 Finance Street , Central, Hong Kong|
Phone: (852)2878 1978
Fax: (852)2878 7006
Web page: http://www.hkimr.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Leung, Charles, 2004.
"Macroeconomics and housing: a review of the literature,"
Journal of Housing Economics,
Elsevier, vol. 13(4), pages 249-267, December.
- Charles Ka-Yui Leung, 2004. "Macroeconomics and Housing: A Review of the Literature," Departmental Working Papers _164, Chinese University of Hong Kong, Department of Economics.
- Charles Ka Yui Leung, 2004. "Macroeconomics and Housing: A Review of the Literature," Discussion Papers 00004, Chinese University of Hong Kong, Department of Economics.
- Charles Goodhart & Boris Hofmann, 2003. "Deflation, Credit and Asset Prices," Working Papers 132003, Hong Kong Institute for Monetary Research.
- Liu Hongyu & Yun W. Park & Zheng Siqi, 2002. "The Interaction between Housing Investment and Economic Growth in China," International Real Estate Review, Asian Real Estate Society, vol. 5(1), pages 40-60.
- International Monetary Fund, 1999.
"Neglected Heterogeneity and Dynamics in Cross-Country Savings Regressions,"
IMF Working Papers
99/128, International Monetary Fund.
- Haque, N. U. & Pesaran, M. H. & Sharma, Sunil, 1999. "Neglected Heterogeneity and Dynamics in Cross-country Savings Regressions," Cambridge Working Papers in Economics 9904, Faculty of Economics, University of Cambridge.
- Hwang, Min & Quigley, John M., 2003.
"Selectivity, Quality Adjustment and Mean Reversion in the Measurement of House Values,"
Berkeley Program on Housing and Urban Policy, Working Paper Series
qt4045q0v3, Berkeley Program on Housing and Urban Policy.
- Min Hwang & John M. Quigley, 2004. "Selectivity, Quality Adjustment and Mean Reversion in the Measurement of House Values," The Journal of Real Estate Finance and Economics, Springer, vol. 28(2_3), pages 161-178, 03.
- G. Donald Jud & Dan T. Winkler, 2002. "The Dynamics of Metropolitan Housing Prices," Journal of Real Estate Research, American Real Estate Society, vol. 23(1/2), pages 29-46.
- Youqin Huang, 2004. "Housing markets, government behaviors, and housing choice: a case study of three cities in China," Environment and Planning A, Pion Ltd, London, vol. 36(1), pages 45-68, January.
- Kimhi, Ayal & Rekah, Hila, 2005. "The Simultaneous Evolution Of Farm Size And Specialization: Dynamic Panel Data Evidence From Israeli Farm Communities," Discussion Papers 7170, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
- Charles Ka Yui Leung, 2003. "Economic Growth And Increasing House Prices," Pacific Economic Review, Wiley Blackwell, vol. 8(2), pages 183-190, 06.
When requesting a correction, please mention this item's handle: RePEc:hkm:wpaper:052007. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (HKIMR)
If references are entirely missing, you can add them using this form.