The Impact Of China 's Economy On The World Art Market And Its Empirical Study

In this paper, we discuss the relationship between foreign art indices and China’s economic indicators to demonstrate the influence of Chinese economy to the world art market.Firstly, we compare the advantages and limitations of two methods of art index calculation (Hedonic Regression Model vs. Repeat-sales Regression Model),and conclude that the Hedonic Regression Model is superior to the Repeat-sales Regression Model.Through empirical research, this paper makes analysis of the correlation between total global index of Artprice Global Indices and the Shanghai Composite Index and the Chinese money supply M1 quarterly incremental amount, and concludes that the influence of Chinese economic indicators on the global art index is greater than that of the United States economic indicators. Then we analyze correlation between sub-indices and Chinese economic indicators, and find the conclusion that Chinese economic indicators are highly correlated with indices of paintings and sculptures, and are less relevant with indices of photography, prints and sketches. In addition, the early works of art has lower correlation with Chinese economic indicators.Secondly, this paper gets the equations of global art index and Chinese economic indicators by linear regression analysis, and estimates the hysteresis effect using the lagged independent variables. Finally, the Chow test proved that in the fourth quarter of 2002 to the first quarter of 2003 or so, there are substantial changes in the data before and after the period.