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External Dependent Economy and Structural Real Estate Bubbles in China
Author(s) -
Sun Lijian,
Zhang Shengxing
Publication year - 2008
Publication title -
china and world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.815
H-Index - 28
eISSN - 1749-124X
pISSN - 1671-2234
DOI - 10.1111/j.1749-124x.2008.00098.x
Subject(s) - real estate , market liquidity , economics , monetary economics , china , index (typography) , monetary policy , real estate investment trust , finance , geography , archaeology , world wide web , computer science
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.