Housing Investment, Housing Credit and Economic Growth in China

Using the dataset of 35 large and medium cities in China from 1996 through 2007, this paper examines the interaction relationship between housing investment, housing credit and economic growth in China. First of all, the results show that the economic growth has a greater impact on the housing investment than the housing investment. Second, the housing purchase has a greater influence on the economic growth than the housing development. Third, the economic growth has a greater impact on housing credit than that of housing credit on economic growth. Fourth, the housing investment has the greater impact on economic growth than the housing credit, while the economic growth has a greater impact on the housing credit than the housing investment. Finally, the housing price has a greater impact on the housing credit than the economic growth and interest rate.