Araştırma Makalesi
BibTex RIS Kaynak Göster

Foreign Direct Investment, Foreign Portfolio Investment and House Prices: The Case of European Union Countries

Yıl 2021, Cilt: 19 Sayı: 42, 911 - 926, 22.10.2021
https://doi.org/10.35408/comuybd.806723

Öz

In the literature, there are few studies analyzing the impacts of foreign direct investment and foreign portfolio investments on house prices. We employed quarterly data for 20 EU countries over the 2007-2013 period in order to examine the separate impacts of foreign direct investment and portfolio investment on the house prices for the period of post-financial crisis. The results of Panel Vector Auto Regression indicate that foreign direct investment negatively affects house prices, and foreign portfolio investment positively affects house prices. Also, the results indicate that increase in house prices lead to decrease both foreign direct investment and foreign portfolio investment. Moreover, results also indicate that foreign direct investment and portfolio investments are substitutes rather than complements.

Kaynakça

  • Abrigo, M. R., & Love, I. (2016). Estimation of panel vector autoregression in Stata. Stata Journal, 16(3), 778-804.
  • Ahearne, A. G., Ammer, J., Doyle, B. M., Kole, L. S., & Martin, R. F. (2005). House prices and monetary policy: A cross-country study. International finance discussion papers, 841.
  • Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2004). FDI and economic growth: the role of local financial markets. Journal of international economics, 64(1), 89-112.
  • Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2010). Does foreign direct investment promote growth? Exploring the role of financial markets on linkages. Journal of Development Economics, 91(2), 242-256.
  • Babecky, Jan, Philip Du Caju, Theodora Kosma, Martina Lawless and Julián Messina (2008), “Downward Wage Rigidity and Alternative Margins of Adjust- ment: Survey Evidence from European Firms,” unpublished manuscript, Wage Dynamics Network.
  • Bailey, D., & Driffield, N. (2007). Industrial policy, FDI and employment: still ‘missing a strategy’. Journal of industry, competition and trade, 7(3-4), 189-211.
  • Blomström, M., & Sjöholm, F. (1999). Technology transfer and spillovers: Does local participation with multinationals matter? 1. European economic review, 43(4-6), 915-923.
  • Borensztein, E., De Gregorio, J., & Lee, J. W. (1998). How does foreign direct investment affect economic growth? 1. Journal of international Economics, 45(1), 115-135.
  • Caballero, R. J., & Krishnamurthy, A. (2006). Bubbles and capital flow volatility: Causes and risk management. Journal of monetary Economics, 53(1), 35-53.
  • Calvo, G. A. (1998). Capital flows and capital-market crises: the simple economics of sudden stops. Journal of applied Economics, 1(1), 35-54.
  • Capozza, D. R., Hendershott, P. H., Mack, C., & Mayer, C. J. (2002). Determinants of real house price dynamics (No. w9262). National Bureau of Economic Research
  • Choy, L. H., Ho, W. K., & Mak, S. W. (2015). On FDI-led growth and the price of residential properties in Guangdong. Journal of housing and the built environment, 30(1), 39-51.
  • Droes, M., & van de Minne, A. (2016). Do the Determinants of House Prices Change over Time? Evidence from 200 Years of Transactions Data (No. eres2016_227). European Real Estate Society (ERES).
  • Durham, J. B. (2004). Absorptive capacity and the effects of foreign direct investment and equity foreign portfolio investment on economic growth. European economic review, 48(2), 285-306.
  • Eurostat (2018). Database. http://ec.europa.eu/eurostat/data/database (Accessed on April, 18, 2018)
  • Feng, L., Lin, C. Y., & Wang, C. (2017). Do Capital Flows Matter to Stock and House Prices? Evidence from China. Emerging Markets Finance and Trade, 53(10), 2215-2232.
  • Fortanier, F. (2007). Foreign direct investment and host country economic growth: Does the investor’s country of origin play a role. Transnational Corporations, 16(2), 41-76.
  • Girouard, N., & Blöndal, S. (2001). House prices and economic activity, OECD Working Paper.
  • Gozgor, G.& Erzurumlu,Y. O. (2010): Causality relations between foreign direct investment and portfolio investment volatility, Middle Eastern Finance and Economics No. 8 , pp. 172-178.
  • Guest, R., & Rohde, N. (2017). The Contribution of Foreign Real Estate Investment to Housing Price Growth in Australian Capital Cities. Abacus, 53(3), 304-318.
  • Huang, J. T., Hwang, Y. N., & Lo, K. T. (2014). The Role of Foreign Direct Investment in Shanghai’s Real Estate Price—Culprit or Scapegoat? (No. 2014-02). Asian Growth Research Institute.
  • Jara, A., & Olaberría, E. (2013). Are All Capital Inflows Associated with Booms in House Prices?: An Empirical Evaluation. Central Bank of Chile.
  • Kim, S., & Yang, D. Y. (2009). Do capital inflows matter to asset prices? The case of Korea. Asian Economic Journal, 23(3), 323-348.
  • Levchenko, A. A., & Mauro, P. (2007). Do some forms of financial flows help protect against “sudden stops”?. The World Bank Economic Review, 21(3), 389-411.
  • Love, I., & Zicchino, L. (2006). Financial development and dynamic investment behavior: Evidence from panel VAR. The Quarterly Review of Economics and Finance, 46(2), 190-210.
  • OECD (2018). Statistics. http://stats.oecd.org (Accessed on April 18, 2018) Ostry, J. D., Ghosh, A. R., Habermeier, K., Chamon, M., Qureshi, M. S., & Reinhardt, D. (2010). Capital inflows: The role of controls. Revista de Economia Institucional, 12(23), 135-164.
  • Poterba, J. M., Weil, D. N., & Shiller, R. (1991). House price dynamics: the role of tax policy and demography. Brookings Papers on Economic Activity, 1991(2), 143-203.
  • Rodríguez, C., & Bustillo, R. (2010). Modelling foreign real estate investment: The Spanish case. The Journal of Real Estate Finance and Economics, 41(3), 354-367
  • Sachs, J. D., & Woo, W. T. (2000). Understanding the Asian financial crisis. The Asian financial crisis: Lessons for a resilient Asia, 13-43.
  • Stiglitz, J. E. (2000). Capital market liberalization, economic growth, and instability. World development, 28(6), 1075-1086.
  • Takáts, E. (2012). Aging and house prices. Journal of Housing Economics, 21(2), 131-141.
  • Tillman, P (2013). Capital inflows and asset prices: Evidence from emerging Asia. Journal of Banking and Finance, 37, 717–729.
  • Tomura, H. (2010). International capital flows and expectation-driven boom–bust cycles in the housing market. Journal of Economic Dynamics and Control, 34(10), 1993-2009.
  • Yiu, M. S., & Sahminan, S. (2015). Global liquidity, capital inflows and house prices in ASEAN economies. HKIMR Working Paper No. 14/2015
  • Waldkirch, A., Nunnenkamp, P., & Alatorre Bremont, J. E. (2009). Employment effects of FDI in Mexico's non-maquiladora manufacturing. The Journal of Development Studies, 45(7), 1165-1183.

Foreign Direct Investment, Foreign Portfolio Investment and House Prices: The Case of European Union Countries

Yıl 2021, Cilt: 19 Sayı: 42, 911 - 926, 22.10.2021
https://doi.org/10.35408/comuybd.806723

Öz

In the literature, there are few studies analyzing the impacts of foreign direct investment and foreign portfolio investments on house prices. We employed quarterly data for 20 EU countries over the 2007-2013 period in order to examine the separate impacts of foreign direct investment and portfolio investment on the house prices for the period of post-financial crisis. The results of Panel Vector Auto Regression indicate that foreign direct investment negatively affects house prices, and foreign portfolio investment positively affects house prices. Also, the results indicate that increase in house prices lead to decrease both foreign direct investment and foreign portfolio investment. Moreover, results also indicate that foreign direct investment and portfolio investments are substitutes rather than complements.

Kaynakça

  • Abrigo, M. R., & Love, I. (2016). Estimation of panel vector autoregression in Stata. Stata Journal, 16(3), 778-804.
  • Ahearne, A. G., Ammer, J., Doyle, B. M., Kole, L. S., & Martin, R. F. (2005). House prices and monetary policy: A cross-country study. International finance discussion papers, 841.
  • Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2004). FDI and economic growth: the role of local financial markets. Journal of international economics, 64(1), 89-112.
  • Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2010). Does foreign direct investment promote growth? Exploring the role of financial markets on linkages. Journal of Development Economics, 91(2), 242-256.
  • Babecky, Jan, Philip Du Caju, Theodora Kosma, Martina Lawless and Julián Messina (2008), “Downward Wage Rigidity and Alternative Margins of Adjust- ment: Survey Evidence from European Firms,” unpublished manuscript, Wage Dynamics Network.
  • Bailey, D., & Driffield, N. (2007). Industrial policy, FDI and employment: still ‘missing a strategy’. Journal of industry, competition and trade, 7(3-4), 189-211.
  • Blomström, M., & Sjöholm, F. (1999). Technology transfer and spillovers: Does local participation with multinationals matter? 1. European economic review, 43(4-6), 915-923.
  • Borensztein, E., De Gregorio, J., & Lee, J. W. (1998). How does foreign direct investment affect economic growth? 1. Journal of international Economics, 45(1), 115-135.
  • Caballero, R. J., & Krishnamurthy, A. (2006). Bubbles and capital flow volatility: Causes and risk management. Journal of monetary Economics, 53(1), 35-53.
  • Calvo, G. A. (1998). Capital flows and capital-market crises: the simple economics of sudden stops. Journal of applied Economics, 1(1), 35-54.
  • Capozza, D. R., Hendershott, P. H., Mack, C., & Mayer, C. J. (2002). Determinants of real house price dynamics (No. w9262). National Bureau of Economic Research
  • Choy, L. H., Ho, W. K., & Mak, S. W. (2015). On FDI-led growth and the price of residential properties in Guangdong. Journal of housing and the built environment, 30(1), 39-51.
  • Droes, M., & van de Minne, A. (2016). Do the Determinants of House Prices Change over Time? Evidence from 200 Years of Transactions Data (No. eres2016_227). European Real Estate Society (ERES).
  • Durham, J. B. (2004). Absorptive capacity and the effects of foreign direct investment and equity foreign portfolio investment on economic growth. European economic review, 48(2), 285-306.
  • Eurostat (2018). Database. http://ec.europa.eu/eurostat/data/database (Accessed on April, 18, 2018)
  • Feng, L., Lin, C. Y., & Wang, C. (2017). Do Capital Flows Matter to Stock and House Prices? Evidence from China. Emerging Markets Finance and Trade, 53(10), 2215-2232.
  • Fortanier, F. (2007). Foreign direct investment and host country economic growth: Does the investor’s country of origin play a role. Transnational Corporations, 16(2), 41-76.
  • Girouard, N., & Blöndal, S. (2001). House prices and economic activity, OECD Working Paper.
  • Gozgor, G.& Erzurumlu,Y. O. (2010): Causality relations between foreign direct investment and portfolio investment volatility, Middle Eastern Finance and Economics No. 8 , pp. 172-178.
  • Guest, R., & Rohde, N. (2017). The Contribution of Foreign Real Estate Investment to Housing Price Growth in Australian Capital Cities. Abacus, 53(3), 304-318.
  • Huang, J. T., Hwang, Y. N., & Lo, K. T. (2014). The Role of Foreign Direct Investment in Shanghai’s Real Estate Price—Culprit or Scapegoat? (No. 2014-02). Asian Growth Research Institute.
  • Jara, A., & Olaberría, E. (2013). Are All Capital Inflows Associated with Booms in House Prices?: An Empirical Evaluation. Central Bank of Chile.
  • Kim, S., & Yang, D. Y. (2009). Do capital inflows matter to asset prices? The case of Korea. Asian Economic Journal, 23(3), 323-348.
  • Levchenko, A. A., & Mauro, P. (2007). Do some forms of financial flows help protect against “sudden stops”?. The World Bank Economic Review, 21(3), 389-411.
  • Love, I., & Zicchino, L. (2006). Financial development and dynamic investment behavior: Evidence from panel VAR. The Quarterly Review of Economics and Finance, 46(2), 190-210.
  • OECD (2018). Statistics. http://stats.oecd.org (Accessed on April 18, 2018) Ostry, J. D., Ghosh, A. R., Habermeier, K., Chamon, M., Qureshi, M. S., & Reinhardt, D. (2010). Capital inflows: The role of controls. Revista de Economia Institucional, 12(23), 135-164.
  • Poterba, J. M., Weil, D. N., & Shiller, R. (1991). House price dynamics: the role of tax policy and demography. Brookings Papers on Economic Activity, 1991(2), 143-203.
  • Rodríguez, C., & Bustillo, R. (2010). Modelling foreign real estate investment: The Spanish case. The Journal of Real Estate Finance and Economics, 41(3), 354-367
  • Sachs, J. D., & Woo, W. T. (2000). Understanding the Asian financial crisis. The Asian financial crisis: Lessons for a resilient Asia, 13-43.
  • Stiglitz, J. E. (2000). Capital market liberalization, economic growth, and instability. World development, 28(6), 1075-1086.
  • Takáts, E. (2012). Aging and house prices. Journal of Housing Economics, 21(2), 131-141.
  • Tillman, P (2013). Capital inflows and asset prices: Evidence from emerging Asia. Journal of Banking and Finance, 37, 717–729.
  • Tomura, H. (2010). International capital flows and expectation-driven boom–bust cycles in the housing market. Journal of Economic Dynamics and Control, 34(10), 1993-2009.
  • Yiu, M. S., & Sahminan, S. (2015). Global liquidity, capital inflows and house prices in ASEAN economies. HKIMR Working Paper No. 14/2015
  • Waldkirch, A., Nunnenkamp, P., & Alatorre Bremont, J. E. (2009). Employment effects of FDI in Mexico's non-maquiladora manufacturing. The Journal of Development Studies, 45(7), 1165-1183.
Toplam 35 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Bölüm Araştırma Makalesi
Yazarlar

Deniz Güvercin 0000-0001-6158-3877

Adem Gök 0000-0002-3786-2507

Yayımlanma Tarihi 22 Ekim 2021
Gönderilme Tarihi 6 Ekim 2020
Yayımlandığı Sayı Yıl 2021 Cilt: 19 Sayı: 42

Kaynak Göster

APA Güvercin, D., & Gök, A. (2021). Foreign Direct Investment, Foreign Portfolio Investment and House Prices: The Case of European Union Countries. Yönetim Bilimleri Dergisi, 19(42), 911-926. https://doi.org/10.35408/comuybd.806723

Sayın Araştırmacı;

Dergimize gelen yoğun talep nedeniyle Ekim 2024 sayısı için öngörülen kontenjan dolmuştur, gönderilen makaleler ilerleyen sayılarda değerlendirilebilecektir. Bu hususa dikkat ederek yeni makale gönderimi yapmanızı rica ederiz.

Yönetim Bilimler Dergisi Özel Sayı Çağrısı
Yönetim Bilimleri Dergisi 2024 yılının Eylül ayında “Endüstri 4.0 ve Dijitalleşmenin Sosyal Bilimlerde Yansımaları” başlıklı bir özel sayı yayınlayacaktır.
Çanakkale Onsekiz Mart Üniversitesi Biga İktisadi ve İdari Bilimler Fakültesi tarafından 5-6 Temmuz 2024 tarihlerinde çevrimiçi olarak düzenlenecek olan 4. Uluslararası Sosyal Bilimler Konferansı’nda sunum gerçekleştiren yazarların dergi için ücret yatırmasına gerek olmayıp, dekont yerine Konferans Katılım Belgesini sisteme yüklemeleri yeterli olacaktır.
Gönderilen makalelerin derginin yazım kurallarına uygun olması ve DergiPark sistemi üzerinden sisteme yüklenmesi gerekmektedir. Özel sayı ana başlığı ile ilgisiz makaleler değerlendirmeye alınmayacaktır. Özel sayı için gönderilen makalelerin "Makalemi özel sayıya göndermek istiyorum" kutucuğu işaretlenerek sisteme yüklenmesi gerekmektedir. Özel sayı için gönderilmemiş makalelerin bu sayıya eklenmesi mümkün olmayacaktır.
Özel Sayı Çalışma Takvimi
Gönderim Başlangıcı: 15 Nisan 2024
Son Gönderim Tarihi: 15 Temmuz 2024
Özel Sayı Yayınlanma Tarihi: Eylül 2024

Dergimize göndereceğiniz çalışmalar linkte yer alan taslak dikkate alınarak hazırlanmalıdır. Çalışmanızı aktaracağınız taslak dergi yazım kurallarına göre düzenlenmiştir. Bu yüzden biçimlendirmeyi ve ana başlıkları değiştirmeden çalışmanızı bu taslağa aktarmanız gerekmektedir.
İngilizce Makale Şablonu için tıklayınız...

Saygılarımızla,