The impact of foreign direct investment in real estate activities on housing price index: Evidence from Thailand / Jeerawan Sangkha-Ong
33 leaves: tables
This paper studies the impact of foreign direct Investment in real estate activities on various housing price indices in Thailand. We divide the model into 4 separate models, as the housing prices indices, which are Single-detached house including land price index, Town house including land price index, condominium price index, and land price index, are different in characteristics and features. According to the vector error correction model and cointegration results, we find the positive long run relationship between foreign direct investment in real estate activities and housing prices indies. The increases in foreign direct investment in real estate activities significantly lead to the appreciation of all housing prices indies. As a result, foreign direct investment plays an important role in indicating the housing price movement. Economic conditions and monetary policy can affect the direction of foreign direct investment in real estate.