Capital Inflows and Property Prices: Ethnicity, Education, and Spillovers

78 Pages Posted: 14 May 2021

See all articles by Yuk Ying (Candie) Chang

Yuk Ying (Candie) Chang

Massey University

Sudipto Dasgupta

Chinese University of Hong Kong, ABFER, CEPR, and ECGI

Multiple version iconThere are 2 versions of this paper

Date Written: May 2021

Abstract

China has experienced significant capital flight over the last two decades. Despite anecdotal evidence that some of this capital has been invested in foreign residential markets, not much is known from academic research about its destination and impact. We examine the effects of capital inflows from China on residential property prices and the real economy in the U.S. and global metropolitan areas. We show that inflows had significant effects on residential property markets and employment in regions that (a) have strong ethnic ties to China and (b) are destinations of Chinese students. We document spillover effects to other regions.

JEL Classification: F20, F21, G12, G15, R00

Suggested Citation

Chang, Yuk Ying and Dasgupta, Sudipto, Capital Inflows and Property Prices: Ethnicity, Education, and Spillovers (May 2021). CEPR Discussion Paper No. DP16146, Available at SSRN: https://ssrn.com/abstract=3846261

Yuk Ying Chang (Contact Author)

Massey University ( email )

Palmerston North
New Zealand

Sudipto Dasgupta

Chinese University of Hong Kong, ABFER, CEPR, and ECGI ( email )

CUHK, Cheng Yu Tung Building, Room 1224
Shatin, NT
Hong Kong
Hong Kong

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