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External Dependent Economy and Structural Real Estate Bubbles in China

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  • Lijian Sun
  • Shengxing Zhang

Abstract

This study explores the relationship between external dependent economic structure, surplus monetary liquidity and real estate bubbles in China. Employing monthly data from 28 Chinese provinces over the period 2004‐2005, we test whether real estate bubbles are caused by structural surplus monetary liquidity, controlling other possible factors. Our empirical findings show that the growth of private savings in the banking sector, as an index of surplus monetary liquidity, ferments real estate bubbles regardless of the different development level across the 28 provinces.

Suggested Citation

  • Lijian Sun & Shengxing Zhang, 2008. "External Dependent Economy and Structural Real Estate Bubbles in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(1), pages 34-50, January.
    • Handle: RePEc:bla:chinae:v:16:y:2008:i:1:p:34-50
    DOI: 10.1111/j.1749-124X.2008.00098.x
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    References listed on IDEAS

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    Cited by:

    1. Sidong Zhao & Weiwei Li & Kaixu Zhao & Ping Zhang, 2021. "Change Characteristics and Multilevel Influencing Factors of Real Estate Inventory—Case Studies from 35 Key Cities in China," Land, MDPI, vol. 10(9), pages 1-29, September.
    2. Fengyun Liu & Deqiang Liu & Reza Malekian & Zhixiong Li & Deqing Wang, 2017. "A measurement model for real estate bubble size based on the panel data analysis: An empirical case study," PLOS ONE, Public Library of Science, vol. 12(3), pages 1-26, March.
    3. Sidong Zhao & Kaixu Zhao & Ping Zhang, 2021. "Spatial Inequality in China’s Housing Market and the Driving Mechanism," Land, MDPI, vol. 10(8), pages 1-33, August.

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