The Impact Of Regional Liquidity To Real Estate Development

With the rapid development of China’s financial system,the number of various non-depository financial institutions is increasing,whose business is innovating,and the number of various financial instruments is also increasing,which makes the diversification of the sources of enterprise funds in economic activities.In the past,as a traditional link between finance and economy,banks were the main channel for financial system to provide financial support to economic activities.However,in the current development situation,the way of capital flowing from the banking system to the economic system has become diversified,so asset-liable activity is no longer the only way to providing liquidity support to economic development.Specifically,the scale of off-balance-sheet business of banks is gradually expanding,which has a certain substitution effect on bank credit.The traditional liquidity measurement and its flow channel analysis based on money supply,bank credit scale and other indicators can no longer adapt to today’s form.If we continue to use the traditional measurement methods,it will inevitably produce large errors.In addition,from the data in recent years,we can find that there are huge regional differences in liquidity,and this gap has a trend of further expansion.As a pillar industry of the national economy,real estate has a huge upstream and downstream industrial chain.When economic growth is under pressure or economic recession,promoting the development of the real estate industry has an obvious driving effect on other industries,thus promoting economic growth or getting rid of the economic downturn.The real estate industry has obvious characteristics of capital-intensive,and the regional differences in liquidity will inevitably have a significant impact on the real estate industry.For the reason that real estate can not be moved,it is more likely to be affected by regional factors,so it is particularly necessary to explore the impact of regional differences in liquidity on the real estate industry.The driving role of the real estate industry to the economy is mainly reflected in its development process,so it is necessary to focus on the development activities of the real estate industry.On the basis of the previous literature on liquidity and combining with the current development form,this paper puts forward the measurement index and transmission path of regional liquidity,then used the bank loan balance,the bank loan part of social financing scale index,and other indicators to measure regional liquidity comprehensively,and explored the characteristics of the impact of regional liquidity on real estate development activities.In this paper,we constructed models based on City panel data above prefecture level and provincial panel data respectively,taking into account the impact of regional fixed effects.We control heteroscedasticity by logarithmic processing of data and robust standard errors.We also process endogeneity by means of instrumental variables and lag terms,so as to obtain unbiased estimates and reliable statistical inferences.Through the above empirical research,it is found that the liquidity of the traditional bank loans injected into the region has a significant impact on the Central and Western regions,but not on the real estate development activities in the eastern region.The emerging sources of liquidity,such as capital market,have a significant impact on real estate development activities in the eastern region,but not in the central and Western regions.