Department of the Middle East Economics, Center for Near and Middle Eastern Studies (CNMS), Philipps-University of Marburg, Deutschhausstraße 12, D-35032 Marburg, Germany and Marburg Center for Institutional Economics (MACIE), Philipps-University of Marburg, Barfüßertor 2, D-35037 Marburg, Germany; CESifo GmbH (Munich Society for the Promotion of Economic Research), Poschinger 5, D-81679 München, Germany
Department of Accountancy, Economics and Finance, Swinburne Business School, Faculty of Business and Law, Swinburne University of Technology, Melbourne, Victoria 3122, Australia
The purpose of this paper is to examine the impact of real estate transparency (RET) on foreign real estate investments (FREI). Most of the previous studies have argued that the free flow of information and the fair and consistent application of local property laws could attract greater amounts of FREI. Using observations from 32 countries covering 2004, 2006, 2008 and 2010 and applying fixed-effect and the generalized method of moments (GMM) techniques, our empirical results reveal that RET is not a major determinant of FREI. However, we find that the effect of RET on FREI is dependent on its interaction with the level of income implying that the higher the level of income in the host country, the higher the effect of RET on FREI. Finally, the results show that foreign direct investment (FDI) in other sector, market size and property prices are important determinants of FREI.
Farzanegan, M. R., & Gholipour Fereidouni, H. (2014). Does real estate transparency matter for foreign real estate investments?. International Journal of Strategic Property Management, 18(4), 317-331. https://doi.org/10.3846/1648715X.2014.969793
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
