Local Effects of Global Capital Flows: A China Shock in the U.S. Housing Market

作者：Zhimin Li, Leslie Sheng Shen, Calvin Zhang · 发表于：Review of Financial Studies · 年份：2023 · DOI：10.1093/rfs/hhad067 · 被引用次数：24 · 研究领域：Housing Market and Economics、Fiscal Policy and Economic Growth、Regional Economics and Spatial Analysis

Abstract 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.