Inter-Type Investment Connectedness: A New Perspective on China's Booming Real Estate Market. Issue 2 (2nd April 2020)

• Record Type: Journal Article
• Authors: Peng, Zhiwei; Yu, Ziliang; Nong, Huifu
• Is Part Of: Global economic review. Volume 49:Issue 2(2020)
• Page Start: 186
• Page End: 204
• Publication Date: 2020-04-02
• Subjects: China's real estate market -- real estate types -- real estate investment -- connectedness -- network analysis -- government; E22 -- G11 -- R51; International economic relations -- Periodicals; Economic history -- 1990- -- Periodicals; East and West -- Periodicals; 337.05
• DOI: 10.1080/1226508X.2020.1744465
• Languages: English
• ISSNs: 1226-508X

Abstract

ABSTRACT: This study explores the inter-type real estate investment connectedness in China. We document that: (1) connectedness is strong and time-varying; (2) the residential investment is instrumental in the inter-type investment connectedness network; (3) the total connectedness has dropped since 2008; and (4) the November 2008 Chinese stimulus package has significantly enhanced the influence of the residential and the industrial and other real estate investments. These results reflect both the economic development strategy of Chinese local governments and the importance of central government intervention, therefore providing a new perspective to understand China's booming real estate market during the past two decades.