The Study On The Correlation Between Estate Investment And Economic Growth Of Wuhan

The macroeconomics has demonstrated the relation between investment and economical growth. Investment affects the general demand and GDP via multiplicator. On the other hand, the fluctuation of GDP affects investment via accelerated vector. There exists a relation between GDP and investment. A macroeconomical seasonal fluctuation represents a slack or climax under the effect of GDP and investment. Chronically, investment and GDP growth will arrive at equilibrium, and GDP shows disciplinarian fluctuation. The west scholars always keep their attention to the important role to which the investment exerts GDP. They emphasize the relation of GDP and investment in their masterpieces, and refer to series of political suggestions to the governments according to their conclusions that economical levers would affect gross domestic product. This was widely adopted by west countries after World War II.According to macroeconomical theory, not only is there a relation between investment and gross domestic product, but among financial and monetary policy. Financial policy directly affects the investment and GDP by changing general demand, and monetary policy indirectly affects investment by changing interest rate. So the effective vectors that affect the investment include government demand, customer demand, investor demand and monetary policy.Relatively to the other industries, the estate industry has its particularity, that is, it has a dualism reflects consumable and asset. First as a consumable, it pulls the social demands. Second as an asset, its effect to GDP will last. Thirdly, it has strong affiliation to the other industries and become one of the most important supportindustries of our country.In chapter one, this discourse illuminates the theory background, present development and the history of real estate market of Wuhan. Furthermore, it gives brief analyses for the factors that lead to the economic growth. In chapter two, it explains a question that if there is a status of unbalance about the estate investment in Wuhan during these years by the analyses of the equilibrium of estate investment, and a long-term hominy relationship between real estate investment and economic growth.As the most important section of this discourse, the chapter three digs a dynamic relationship of real estate investment and economic growth by the vector auto regressive model, Impulse response function and Variance decomposition. And then, it verifies a relationship via Granger causality function.In the last chapter, this discourse draws a meaningful conclusion including enlarging effective supply, cultivating effective demand and keeping a balance between real estate investment and economic growth, based on the magnitude relation between them.