The Shadow of Eurozone Sovereign Debt Crisis Kept the Eastern Dragon´s Property Away from Sunshine? Time Series Analysis on the Impact of Negative Externality in China´s Property Market by EView 7 Software

This article examines the impact of European sovereign debt crisis on China´s real estate market with the software EView. It begins with an analysis on the causes of the Euro zone crisis. A multivariate regression analysis is used to determine the effect of the European sovereign debt crisis on China´s real estate market. By using the Thomson Reuters´ database and other databases, investment and the related exogenous variables in the real estate market from 2005 to 2011 were obtained. The result of Chow Test indicates that there is a structural breakpoint when the crisis occurred, confirming the impact of negative externality on China´s property market.