The impact of house prices on FDI inflows: Based on 35 large and medium sized cities in China

Abstract

In the context of economic globalization, with the deepening of China's economic openness, a large amount of foreign capital inflows have not only brought about technological and management innovations, but also filled the funding gap for China's economic development. Especially, as a pillar industry of the national economy, the rapid development of China's real estate market has attracted a large amount of foreign investment. This study is based on data from 35 large and medium-sized cities in China, and deeply analyzes the impact and mechanism of housing prices on FDI inflows, providing theoretical support for the government to formulate relevant foreign investment policies. Research has shown a significant positive correlation between Chinese housing prices and FDI inflows. This study not only enriches the empirical evidence of emerging market research, but also provides more specific and representative analysis by focusing on urban clusters. In addition, this study further explores the role of foreign direct investment in the real estate industry through empirical testing, providing a new perspective for research in related fields.