Title

Nexus between housing and the macro economy : the Hong Kong case

Document Type

Journal article

Source Publication

Pacific Economic Review

Publication Date

5-1-2008

Volume

13

Issue

2

First Page

223

Last Page

239

Abstract

This paper shows that, consistent with the ‘economic base’ theory, exports drive domestic consumption and domestic investment, but housing appears to serve as an important link between exports and domestic expenditures. Focusing on the Hong Kong economy, which is a small open economy with a big population, we found that exports and interest rates drive housing prices over a long period, while housing prices in turn drive domestic expenditures.

DOI

10.1111/j.1468-0106.2008.00398.x

Print ISSN

1361374X

E-ISSN

14680106

Publisher Statement

Copyright © 2008 The Authors. Pacific Economic Review © 2008 Blackwell Publishing Asia Pty Ltd

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Full-text Version

Publisher’s Version

Recommended Citation

Ho, L. S., & Wong, W. C. G. (2008). Nexus between housing and the macro economy: The Hong Kong case. Pacific Economic Review, 13(2), 223-239. doi: 10.1111/j.1468-0106.2008.00398.x