An Empirical Study On The Impact Of FDI In China's Real Estate Industry

Since the reform and openness, foreign direct investment (FDI) floods in China, have promoted our country economic growth and upgraded the industrial structure optimization.Real estate industry is interrelated to people's livelihoods, have stronger estate correlation degree, already becomes one of the cornerstone industries in fueling our country's economic growth.As a industry still have high profit, it already becomes the foreign direct investment priority.For instance, in 2004, there are 1767 real estate business contract projects, contract value 13,490,000,000 dollars, reality uses an amount of money 5,950,000,000 dollars, accounts for 10% of all quantity FDI.But because of the real estate industry's characteristic and regional restricts, it has very big diversity of the manufacturing industry, and the effect to national economy is also different.So studys the FDI's effect in the real estate industry, finds out the problems in using foreign funds have important theory significance and practice significance.This paper starts with the analyses of the theory, on the basis of criticizing and drawing lessons from domestic and international relevant documents, carried academic studying on the relation between the FDI and economic growth and spillover-effect. The relationship between FDI and the real estate industry growth is analyzed by a sample of Shanghai real estate industry FDI during the period of 1980-2004. Based on the China provincial real estate industry panel data of 1999-2004, this paper analyzed the impact of FDI on technical efficiency in China's real estate industry. The main conclusions are as follows: (1) between the two variables has the long-term equilibrium relations ;in the short-term FDI usually exists 4 years lags to influence the real estate industry;and FDI is not the direct reason to causes the real estate industry growth. (2) the technical efficiency ofChina's real estate industry was steadily increasing in recent years, but the whole technical efficiency was very low. The regional disparity is very remarkable, the east area exceed other areas by 57.7%; the impact of FDI on technical efficiency in China's real estate industries is not remarkable; the impact of FDI on technical efficiency in China's real estate industry has remarkable regional disparity characteristic.FDI has improved the real estate technical efficiency significantly in the east area, but no essential influence for other areas. On basis of experiential analyzing, have drawn international experience, submitted corresponding policy suggestion finally.