The Nexus Between Real Estate Industry and Economy Growth: Case study of Shanghai

Abstract

In the 1970s, the theory circle of China put forward the idea of housing commercialization for the first time. After the 1990s, the housing monetization policy began to be implemented. After China opened the door of reform and opening up and the door of urbanization process, the real estate industry also continuously seized the opportunity brought by the reform and opening up to make its own growth. In addition, the real estate industry not only promotes the growth of national economy, but also plays an significant role in improving residents' living quality and seeking benefits for residents. So far, the real estate industry has become the bellwether and main force of China's economic development. The outbreak of the global financial crisis in 2008, followed by 2013, China began to advocate the "new normal" trend of economic development, explore new ways of economic growth and improve the structure of economic growth, which hindered the development of the real estate industry to varying degrees. However, under the macro-background of a series of policies and controls, the real estate industry still plays an immeasurable role in China's economic growth. Therefore, this chapter attempts to carry on a further elaboration in the current macroeconomic background, to clarify the purpose and significance of the research。 In this context, this paper will analyze the relevant data of Shanghai real estate from 1991 to 2021 as the basis. Through the process of data analysis to explain the real estate industry to Shanghai's economic contribution. It also determines whether the relationship between Shanghai real estate industry and economic growth is negative or positive and fills the literature gap between Shanghai real estate industry and economic growth. Provide strong support for future research or policy decision.