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
Publisher
Wiley-Blackwell Publishing Asia
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
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
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