Social Sciences in China (Chinese Edition)

No.1, 2015

On the Role Played by Real Estate in the Growth of China’s National Economy

(Abstract)

Xu Xianchun, Jia Hai, Li Jiao et al

We use statistics and the theory and methods of national accounting to provide a scientific definition of the scale and implications of the real estate economy. On this basis, we undertake a comprehensive quantitative analysis of the effect of real estate on the growth of the national economy in the three systemic fields of real estate investment, production, and consumption. The results show that reasonable growth in real estate is of great significance for the healthy development of the national economy. However, if real estate grows either too fast or too slowly, it will affect the steady growth of the national economy. To keep the national economy growing steadily, we need to maintain reasonable growth in the real estate economy.