An Empirical Study On The Impact Of Real Estate Investment In China On Economic Growth

Since the reform and opening up,China's real estate industry has achieved rapid development.In the past three decades,the real estate industry has quickly become a pillar industry in China's economy.After 1978,with the reform of China's land system and the reform of the housing system,people's investment in real estate continued to increase,and various provinces and cities set off a real estate boom.In 1998,China eliminated the system of welfare housing distribution.The real estate industry has achieved real marketization,and real estate has become the growth point of China's economy.After 2003,investment in real estate throughout the country continued to increase,housing prices continued to rise,and the real estate issue became a highly publicized issue.In recent years,the government has continuously introduced various measures to regulate house prices in order to maintain the healthy development of the real estate industry and economic stability.The effect of the control measures has begun to appear,but it should also continue to explore better ways of control.In this context,this article will study the impact of real estate investment on economic growth in China,discuss the relationship between them,provide theoretical and empirical basis for the macro-control of the real estate industry in China,and provide long-term effective real estate regulation policies for the country.The basis is very realistic.This article is divided into five parts,which are introduction,literature review,analysis of the status quo of China's real estate investment and economic growth,empirical analysis and conclusions of China's real estate investment impact on economic growth,and policy recommendations.This is a more comprehensive analysis of the impact of real estate investment in China on economic growth.This article first analyzes the current status of the relationship between real estate investment and economic growth in China.The article summarizes the development history of China's real estate investment and the status quo of commercial housing development,and conducts a preliminary analysis of the status quo of the real estate industry.Then this article analyzes the relationship between real estate investment and fixed asset investment,real estate investment and GDP,and discusses the changes in the proportion of real estate investment in fixed asset investment and the proportion of real estate investment in GDP.In the empirical analysis section,the article collected data from 30 provinces,autonomous regions and municipalities,from 1998 to 2015,and the investment is divided into real estate investment and non-real estate investment,and then a new model is obtained by taking logarithm of each part.Because there are many factors affecting economic growth,this paper selects the degree of industrialization,the scale of government expenditure,the degree of economic openness,and the level of urbanization as the new control variables according to the study of Xiaojing Chao and Kunrong Shen(2014)and Ma Yong and Yulu Chen(2017).This paper first adjusts the data of each variable,and then carries out the correlation test and model selection,and finally selects the fixed effect model to analyze it.Considering that there may be endogenous problems,the article intentionally discusses it and finds that after controlling for endogeneity,the conclusion is still significant.Then,the panel data was divided into three parts:east,middle,and west for robustness test.It was found that the results of the model in the article were still significant.This study finds that China's real estate investment has a significant positive effect on economic growth.This paper concludes with a summary of the research results and proposes relevant policy recommendations from three perspectives.