Research on the Relationship between Chengdu Real Estate Investment and Regional Economic Development Based on Cointegration Model and Vector Error Correction Model

Abstract

This article comprehensively applies unit roots, cointegration analysis, vector error correction model theory and other methods, based on the time-series data of Chengdu real estate development investment (REI) and gross regional product (GDP) 1990 to 2019, in-depth research and investigation Their mutual relationship. Construct a cointegration model to describe the long-term equilibrium relationship between variables, and construct an error correction model to reflect the short-term unbalanced relationship between variables. Empirical analysis shows a significant cointegration relationship between Chengdu's real estate investment and economic growth. The vector error correction model's establishment shows that Chengdu's real estate investment and economic growths are short-term fluctuations and long-term equilibrium.