Local Effects of Global Capital Flows: A China Shock in the US Housing Market

• 成果类型: Article
• 署名作者: Li, Zhimin; Shen, Leslie Sheng; Zhang, Calvin
• 署名单位: Peking University; Peking University Shenzhen Graduate School (PKU Shenzhen); Federal Reserve System - USA; Federal Reserve Bank - Boston; Federal Reserve System - USA; Federal Reserve Bank - Philadelphia
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad067
• 发表日期: 2024
• 页码: 761
• 关键词: import competition; real-estate; preferences; INVESTMENT; inflows

摘要

This paper studies the real effects of foreign real estate capital inflows. Using transaction-level data, we document (i) a China shock in the U.S. housing market characterized by surging foreign Chinese housing purchases after 2008, and (ii) home bias in these purchases, as they concentrate in neighborhoods historically populated by ethnic Chinese. Exploiting their temporal and spatial variation, we find that these capital inflows raise local employment, with the effect transmitted through a housing net worth channel. However, they displace local lower-income residents. Our results show that real estate capital inflows can both stimulate the real economy and induce gentrification.Received March 2, 2021; editorial decision June 30, 2023 by Editor . Authors have furnished an , which is available on the Oxford University Press Web site next to the link to the final published paper online