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

Research output: Journal PublicationsJournal Article (refereed)peer-review

16 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)223-239
Number of pages17
JournalPacific Economic Review
Volume13
Issue number2
DOIs
Publication statusPublished - 1 May 2008

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