The impact of housing prices and land financing on economic growth: Evidence from Chinese 277 cities at the prefecture level and above.

ABSTRACT: With the rapid progress of urbanization in China, the real estate industry, characterized by a long industrial chain, has become a pillar industry for economic development. Therefore, we inspect the nexus between land finance, housing prices, and economic growth. For this purpose, we use the panel data of 277 cities at the prefecture level or above in China from 2011 to 2019, and empirically examine it by using the Panel Vector Auto Regression (PVAR) model. The results show that there is a causal relationship between housing prices and economic growth. Housing prices promote economic growth in the short term and inhibit it in the long term. Both economic growth and housing prices have a significant impact on land finance. The economic growth show a significantly positive impact, while hous

SUBMITTER: Sun Q 

PROVIDER: S-EPMC11060597 | biostudies-literature | 2024

REPOSITORIES: biostudies-literature