On FDI-led growth and the price of residential properties in Guangdong

Lennon Hung-Tat CHOY, Winky K.O. HO, Wing Kai Stephen MAK

Research output: Contribution to journalArticlespeer-review

1 Citation (Scopus)


Previous studies suggest that FDI inflows enhance economic growth in developing countries through spillover effects and more employment opportunities. This research attempts to go one step further by offering a theoretical framework for estimating the influence of FDI inflows on residential property prices through expanding the host country’s economy. Utilizing a panel of 21 Guangdong cities from 2001 through 2009, the current study indicates that although the estimated coefficient for FDI inflows is positive and significant, its impact on prices is only modest. Moreover, most foreign real estate developers, especially those from Hong Kong, Macao and Taiwan, who concentrate on investing in commercial and deluxe residential developments, help preserve open space and green areas in less developed parts of Guangdong Province. Given that FDI inflows will not drive up property prices significantly, this research proposes that Guangdong Province, especially its inner cities, should create better business environment to attract foreign investment to develop the economies of inner cities, in order to enjoy more balanced economic growth in Guangdong. Copyright © 2013 Springer Science+Business Media Dordrecht.
Original languageEnglish
Pages (from-to)39-51
JournalJournal of Housing and the Built Environment
Issue number1
Publication statusPublished - Mar 2015


Choy, L. H. T., Ho, W. K. O., & Mak, S. W. K. (2015). On FDI-led growth and the price of residential properties in Guangdong. Journal of Housing and the Built Environment, 30(1), 39-51.


  • FDI
  • Economic growth
  • Property prices
  • Guangdong Province


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