Analysis The Influence Of The Investment In Real Estate Industry Upon The Economic Growth In China

The purpose of this thesis is analyzing the impacts of the real estate investment on the economic growth. We can clearly understand that the real estate investment can promote or hinder the economic growth. In order to improve the economic growth by the real estate investing, we must put forward countermeasures.Firstly, we analyze the theoretical relations between the real estate investment and the economic growth by the literature searching and the reviews.Secondly, we analyze the effects of real estate investment on promoting or obstructing the economic growth by qualitative and quantitative analysis. The qualitative data reveal that the real estate investment plays an important role on the economic growth. Additionally, we quantitatively analyze of the causal relationship between the real estate investment and the economic growth using the Granger causality test function model.Analyzing the data of1999-2009China’s GDP and real estate investment using the econometric models, we find that the real estate investment plays an important role in the economic growth. The empirical results show that:there exist a stable causal relationship between real estate investment and economic growth, namely, the real estate investment can promote the economic growth and the economic growth can contribute to the increase of the real estate investment.By analyzing the reasons of the negative impact of the real estate investment on the economic growth, we can conclude that there are a series of negative effects on the economic growth. For example, the rapid growth rate of real estate investment, the real estate investment accounted for a large proportion of investment in fixed assets, house prices increase faster than income growth and the real estate investment overheating causes land price increase, housing prices rise and residents for the purchase of a decline in the ability of other commodities.Finally, in order to avoid the negative impacts of the China’s real estate investment on economic growth, this thesis gives several solutions:First, adjusting the quantity and price of the land supplying. Second, speeding up the construction of affordable housing. Third, reasonably controlling the proportion of real estate investment loan in the bank loans. Finally, controlling the proportion of real estate investment in fixed assets investment.