Determinants of foreign and domestic non-listed real estate fund flows in India

IF 1.6 Q3 BUSINESS, FINANCE Journal of Property Investment & Finance Pub Date : 2020-07-17 DOI:10.1108/jpif-08-2019-0107
A. Gupta, G. Newell, D. Bajaj, S. Mandal
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引用次数: 7

Abstract

Purpose - Real estate forms an important part of any economy and the investment in real estate, in turn, is impacted by the macroeconomic environment of that country. The purpose of the present research is to examine macroeconomic determinants of foreign and domestic non-listed real estate fund (NREF) flows and to examine whether they are similar or different for an emerging economy like India. Design/methodology/approach - The long and short-run cointegration between the time-series variables is estimated using the autoregressive distributed lag (ARDL) bounds test and error correction model (ECM) using quarterly data across the 2005–2017 period. ARDL is a suitable method for short time-series data. Findings - The empirical results indicate that domestic NREF flows are positively and significantly impacted by real GDP and performance of listed real estate stocks (i.e. BSE realty index). Whereas, foreign NREF flows are positively and significantly impacted by the exchange rate, performance of listed real estate stocks and domestic NREF flows. Practical implications - The empirical results have significant implications for academicians, policy makers and real estate market practitioners. In the context of these results, some interesting insights are gained that would help in the implementation of the policies aimed toward increasing the fund flows in the real estate sector, which in turn would have a significant trickle-down effect on the Indian economy. Originality/value - The existing literature looks at macroeconomic and other drivers of foreign investment in international real estate investments. However, there are very few studies on the determinants of domestic real estate investment flows and on determinants of NREFs' investment flows; particularly in emerging markets. The present study, in contrast, evaluates simultaneously the macroeconomic determinants of the domestic and foreign NREFs' investment flows in India. The ARDL and ECM method used has been applied for the first time to the study of NREFs.
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国外和国内非上市房地产资金在印度流动的决定因素
目的-房地产是任何经济的重要组成部分,房地产投资反过来也会受到该国宏观经济环境的影响。本研究的目的是检验国内外非上市房地产基金流动的宏观经济决定因素,并检验它们对于印度这样的新兴经济体来说是相似还是不同。设计/方法/方法-使用自回归分布滞后(ARDL)边界检验和误差校正模型(ECM),使用2005-2017年期间的季度数据,估计时间序列变量之间的长期和短期协整。ARDL是一种适用于短时间序列数据的方法。研究结果-实证结果表明,国内NREF流量受到实际GDP和上市房地产股业绩(即BSE房地产指数)的积极和显著影响。然而,外国NREF流动受到汇率、上市房地产股票表现和国内NREF流动的积极和显著影响。实际意义——实证结果对学者、政策制定者和房地产市场从业者具有重要意义。在这些结果的背景下,我们获得了一些有趣的见解,这些见解将有助于实施旨在增加房地产行业资金流动的政策,这反过来将对印度经济产生重大的涓滴效应。原创性/价值-现有文献着眼于国际房地产投资中外国投资的宏观经济和其他驱动因素。然而,关于国内房地产投资流动的决定因素和NREF投资流动的影响因素的研究很少;尤其是在新兴市场。相比之下,本研究同时评估了国内外NREF在印度投资流动的宏观经济决定因素。ARDL和ECM方法首次应用于NREF的研究。
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来源期刊
CiteScore
3.50
自引率
23.10%
发文量
33
期刊介绍: Fully refereed papers on practice and methodology in the UK, continental Western Europe, emerging markets of Eastern Europe, China, Australasia, Africa and the USA, in the following areas: ■Academic papers on the latest research, thinking and developments ■Law reports assessing new legislation ■Market data for a comprehensive review of current research ■Practice papers - a forum for the exchange of ideas and experiences
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