An Empirical Study of the Relationship between Urbanization and the Real Estate Investment in China

As two of debatable social topics in China, urbanization and the real estate investment draw more and more attention. So research effort is worth making to clarify the relationship between them. The authors make an organizing and summarizing of china’s urbanization and the present state of real estate investment by referring the documents on the same topic to a better understanding of the relationship between them in China. To further analyze the relationship and interaction mechanism of the two economic variables, this paper conducts an empirical analysis on the causality between urbanization and real estate investment through econometrics models including unit root test, co-integration test and Granger causality test, and studies the relationship of real estate investment growth and urbanization level growth from 1986-2008.