Analysis On The Multiplier Effect Of Chongqing Real Estate Investment On Economic Development

During the 19 th CPC National Congress of the year,real estate,as a key sector,was repeatedly mentioned in the report on this Congress,and the development orientation of this sector was also been discussed in the report.It is true that housing is a leading driver for economic expansion while it is also a big part of people's daily life.All walks of life keep a close eye on the property industry for the development of real estate is related to the operation of the entire national economy.Located in the southwestern frontier,Chongqing is a landlocked region with less dependence on foreign trade.No doubt,investment makes a big difference in the fluctuation of Chongqing's GDP and its output value through investment multiplier.Therefore,with focus on the real estate industry and the multiplier principle,this study intends to use the industry output value,a relevant index,to split the multiplier on the basis of the original multiplier.With the help of correlation test,stability test,cointegration test and error correction model,empirical research will be conducted to explore the multiplier effect of real estate investment in Chongqing on economic development.Chongqing's real estate investment elasticity coefficient and output value elasticity coefficient were 0.78 and 0.83.Then,it is found that Chongqing's real estate investment has a relatively strong driving effect on economic growth by comparing and predicting the real estate investment multiplier,and its multiplier effect exceeds the average of the 19 major industries in the city.At the same time,it is expected that the real estate investment will be at the median level in the next five years.Finally,based on analysis,with a combination of the results and the current economic situation,this study aims to offer input to the government for its macro regulation and decision-making practices in terms of investment,consumption,and risk prevention.