Positioning of China's Real Estate Industry Based on Input-Output Analysis

Abstract

Executive Summary. By way of input-output analysis, we express China's real estate industry position in terms of its industry linkage effect, industry spread effect, and industry clusters division. Using China's 42 sector input-output table, related economic indexes are quantitatively examined. From an industry linkage effect standpoint, the direct driving force from the real estate industry primarily acts on the tertiary industry and is the total driving force behind the secondary industry. Direct pulling power uniformly applies to both the secondary and tertiary industries, and total pulling power mainly acts on the secondary industry. As far as the industry spread effect is concerned, China's real estate industry shows a slight pulling effect and a promotional effect on the national economy. Based on an industry clusters divisional analysis, the real estate industry in China is a final demand and basic industry.