Abstract: Theoretically, the investments of non-real estate enterprises in the real estate industry would harm the development of the real economy, because their investments in the real estate industry would reduce their R&D input in their main business, which would in turn reduce the growth rate of the enterprises’ TFP. Based on the data of China’s A-share listed companies from 2003 to 2015, this paper makes an empirical study, of which the results have verified it. This paper adopts three kinds of methods to measure their TFP and conducts a regression analysis respectively. The results all show that the investments of the non-real estate enterprises in the real estate industry have reduced their TFP. When the endogeneity is controlled, the results remain valid. Finally, the counterfactual analysis also shows that if the enterprises that have invested in the real estate industry choose not to invest in the real estate industry, their TFP would increase significantly. If the enterprises that have no actual investments in the real estate industry choose to invest in the real estate industry, the changes of their TFP would be not significant. This shows that to curb the housing bubble will be conducive to the development of the real economy.

Key words: housing price; non-real estate enterprises; investments in real estate industry; TFP