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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front. Econ. China    2007, Vol. 2 Issue (4) : 520-531    https://doi.org/10.1007/s11459-007-0027-8
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Impact of international capital flows on real estate market: The empirical test in China from 1998 to 2006
SONG Bo, GAO Bo
Department of Economics, Nanjing University, Nanjing 210093, China
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Abstract Taking the inflation into consideration and making use of the quarter data of the actual foreign investment, housing and land prices in China from 1998 to 2006, this paper examines the relationship between housing prices and international capital flows using Error Correction Model (ECM) and Granger causality test. Results show that in the short run, the increase of housing prices attracts the inflow of foreign capitals; in the long run, foreign capitals help to boost the rise of housing prices. Therefore, at present, Chinese government must impose effective restrictions on the flow of foreign capital into the real estate market.
Issue Date: 05 December 2007
 Cite this article:   
SONG Bo,GAO Bo. Impact of international capital flows on real estate market: The empirical test in China from 1998 to 2006[J]. Front. Econ. China, 2007, 2(4): 520-531.
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http://academic.hep.com.cn/fec/EN/10.1007/s11459-007-0027-8
http://academic.hep.com.cn/fec/EN/Y2007/V2/I4/520
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