The Analysis About The Relationship Of Real Estate Investment And Growth Of National Economy

Generally speaking, the three factors that can promote the growth of national economy are investment, consumption and net export. In recent30years, the rapid economic growth of China is mainly investing driven growth. As one of the investment in fixed assets, real estate investment occupies a very important position, and its promoting effects on economy growth are the most obvious. As is known to all, China has maintained a rapid development since the reform and development. On this background, it could be said that the real estate industry has become a pillar industry of the national economy. Being an important force in driving the development of relevant industries, the real estate industry has already been the focus of all kinds of people. In recent years, due to China’s economic system is not perfect enough, the real estate market presents some negative phenomenon. Theoverheating and overpriced phenomenon in the real estate market investment brings about many negative impacts to stabilize development of the national economy. The year of2011is called "The most severe in the property market regulation". In order to contain the high house purchasing prices, severe policy indeed is produced and has its results. On this condition, the analysis about the relationship of real estate investment and growth of national economy can provide some positive reasonable proposal and it has very important practical significance.The first chapter of this paper mainly explains thepurpose and significance ofstudying real estate investment and national economy growth andsystematically summarizesthe domestic and foreign scholars’achievements. The research ideas and methods are introduced in the end of this chapter. The second chapter first discusses the relevant concepts in the real estate industry and draws the collected data into the chart.Using these charts, we can review the real estate development investment in Chinaand analyze the present situation of real estate investment. The related theories ofstudying the relationship between real estate investment and national economy growth are introduced inthe third chapter of this paper, including the theory of investment and economic growth theory. Chapter4firstly analyzes the promoting effect on national economy growthand analyzes the adverse effect onthe real estate investment. On the one hand, real estate investment has a promoting effect on economic growth; on the other hand, the economy growth has a leading roleon the real estate investment.The economy growth and the real estate investment can affect each other and can promote each other; Secondly using the input-output analysis in the mathematics model, this paper studies the real estate investment’s leading roleon national economic growth.Using the integration test and granger causality test shows that the real estate industry and national economic growth does not exist long-term stable relationship, but both of them are the causal relations. In view of the problems that exist in the current real estate investment, the fifth chapter of this papergives some suggestions.