Research On The Influence Of Real Estate Investment On Economic Growth In Beijing

Investment makes a positive effect to economic growth. Although consume,investment and net export all play important roles in pushing up the economic growth,the fact is investment has a leading function now. With the deepening of the reform ofhousing allocation, the real estate industry was developing forward at anunprecedented speed and the real estate investment was also growing rapidly duringthese years. As real estate investment occupied a big part of the investment, it coulddirectly make an effect on economic growth. Since the reform of the real estateindustry in1998, Beijing had gone through a period of fast economic growth. The realestate industry in Beijing was also getting prosperous with every passing day.Between1998and2010, the average annual growth of real estate investment hit18.5%. As the capital and the centre of political and economic, Beijing’s real estateindustry is very representative. Under this background, it is meaningful to make aresearch on the influence of real estate investment on economic growth in Beijing.The conclusion of the study will help us to recognize the role of real estate investmentin the process of Beijing’s economic growth and then guide rational real estateinvestment.This paper systematically deals with the historical traces and development ofBeijing’s real estate industry since1949and applies descriptive statistic analysis ofthe situation of Beijing’s real estate investment and economic growth. In addition,Cointegrated Test and Granger Causality Test also have been used to study on therelationship between real estate investment and economic growth. What’s more, takeinto consideration of the regional difference of real estate investment, the whole citywould be divided into16parts by administrative division. By making a study on theinfluence of real estate investment on economic growth in those different regions, theconclusion will have more positive practical meanings.