The Financial Accessibility and Cash Flow Movement Between the Stock Market and Real Estate Market: A Case Study of Vietnamese Markets

Research on cash flow movements between markets is vital for understanding the impact of capital allocation on economic growth. It helps identify leading and lagging sectors, guiding targeted policy interventions and ensuring effective resource allocation to achieve national goals such as sustainable development and job creation. This study employs an Autoregressive Distributed Lag (ARDL) model combined with a newly introduced variable to investigate the cash flow movements between markets in Vietnam from 2007 to 2021. The results show that when a real estate market grows, investors tend to withdraw capital from the stock market to invest in real estate, but conversely, when the stock market grows, there are no signs of cash flow from real estate to securities. In addition, financial accessibility is shown to have a positive impact on both the real estate market and the stock market. When investors can easily access capital sources, indicated through increases in issuing bonds, borrowing from commercial banks, or the density of bank branches per 100,000 adults, they will prefer real estate investment over securities. The research results are robust across different regression models, such as OLS, Fama-MacBeth, Weighted least squares, and Newey-West.