The Empirical Study of the Impact of FDI in Real Estate on Price of Real Estate

摘要

Foreign investment,as one of major fund sources of the market of real estate in China,also plays an important role in generating the real estate market bubble.This paper analyzes the relationship between the hot money and the price of real estate quantificationally by establishing Panel Data Model to work out the elasticity coefficient of the hot money to the price of real estate.The result of the model indicates that the hot money has significantly contribution to the price change of real estate,and the expansion of the former could boost the latter to rise correspondingly.The study suggests the policy should be made aiming to adjust the real estate to the excessive inflow of FDI in China.To stop the over fast rise of the price of real estate,a crucial step is to control the hot money.