The Impact of Economic Policy Uncertainty on Real Estate Development in China

Miao Li and Gaoqiang Wu

Journal of Applied Finance & Banking, 2020, vol. 10, issue 4, 2

Abstract: This paper analyzes the impact of economic policy uncertainty on real estate development at the macro level in China. Using the Economic Policy Uncertainty (EPU) Index released by Baker et al. (2016), we find that EPU has a leading and negative effect on real estate development investment. And there is a positive relationship between EPU innovations and the growth rate of real estate development investment. Moreover, the restraining effect of EPU is more pronounced in the state-owned enterprises’ investment and the part of construction and installation investment. Based on the empirical evidences, we suggest that government should pay attention to the negative impact of economic policy uncertainty and maintain consistency and stability of economic policies.  JEL classification numbers: D81, R31, R38, G31

Keywords: Economic policy uncertainty; Real estate development; Real option theory (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.scienpress.com/Upload/JAFB%2fVol%2010_4_2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spt:apfiba:v:10:y:2020:i:4:f:10_4_2

Access Statistics for this article

More articles in Journal of Applied Finance & Banking from SCIENPRESS Ltd
Bibliographic data for series maintained by Eleftherios Spyromitros-Xioufis ().