The Squeeze Effect Of Real Estate Investment And Its Impact On Economic Growth – Analysis Of Panel Data From 290 Prefecture-level Cities

In recent years,the real estate industry has developed rapidly and gradually become an important industry in the national economy.At the same time,the impact of real estate investment on economic growth is also a hot topic in academic circles.Too much real estate investment means the occupation of non real estate investment.This paper aims to analyze whether the crowding-out effect in China's real estate investment exists and how it impacts economic growth.Therefore,this paper combines theoretical and empirical research based on previous study and tries to offer some theoretical guidance for the government on regulating the real estate industry.This paper introduces the research background firstly.Excessive real estate investment may result in the crowding-out effect.Then,this paper analyzes the implication of crowding-out effect in real estate investment and how it inpacts the economic growth.Thirdly,this paper analyzes the status of real estate investment and economic growth in China from the perspective of statistical analysis and points out that there exists some problems in China's real estate investment.Next,based on the annual data from of real estate investment,non real estate investment and GDP from1995 to 2015,this paper tests the existence of crowding-out effect in China's real estate investment by modeling.Meanwhile,this paper uses the research approach by Agosin and Mayer to construct panel model of the crowding-out effect in real estate investment.In this chapter,this paper compares the differences among the east,middle and west and the results show that the crowding-out effect in the east is the strongest,which means that excessive real estate investment in the east has already resulted in large externality.In the end,based on panel data of 290 cities in China from2000 to 2015,this paper a panel model with the crowding-out effect based on the Feder Model to analyze the impact of real estate investment on economic growth and does a comparison by using ordinary panel regression.The results show that the influence coefficient of real estate investment on economic growth significantly decreases after considering the crowding-out effect.From the comparison among different regions,this paper gets the same results,which means that the crowding-outeffect in real estate investment has negative impacts on economic growth and has brought out some negative externalities.In conclusion,this paper combines theoretical and empirical research,which analyzes some problems in the crowding-out effect of China's real estate investment.Hence,the government needs to consider the impacts of the crowding-out effect when regulating real estate industry to avoid negative externalities from excess investment.This paper also provides some reference for governments and companies in different regions on real estate investment and it is significant for promoting the coordinated development of industrial investment?real estate industry and national economy.