PUBLICATIONS & REPORTS
PUBLICATIONS & REPORTS
From Kitakyushu to the world: AGI, a research institute that studies Asia's economy and society
The Role of Foreign Direct Investment in Shanghai’s Real Estate Price—Culprit or Scapegoat?
| Author | Jr-Tsung Huang, Yu-Ning Hwang, Kuang-Ta Lo |
|---|---|
| Date of Publication | 2014. 3 |
| No. | 2014-02 |
| Download | 421KB |
Contents Introduction
The objective of this study is to investigate whether or not real estate FDI has a significant effect on real estate prices in Shanghai, the most open and fastest-growing city in China. The study uses monthly data for Shanghai from 2003 to 2010 with the Autoregressive Distributed Lag (ARDL) approach to cointegration. The primary finding is that real estate FDI does not have a significant effect on real estate prices, both housing prices and office prices, in Shanghai in the short run. It only affects Shanghai’s office price in the long run. Therefore, this study concludes that real estate FDI is a scapegoat in this matter, even though many people and the media treat it as a culprit and believe that it is responsible for the surges in housing and office prices in Shanghai.