TITLE:
The Effect of Housing Price on Industrial Agglomeration in China
AUTHORS:
Zhaohui Li, Xuemei Chen
KEYWORDS:
Housing Price, Agglomeration, Immigration
JOURNAL NAME:
Modern Economy,
Vol.7 No.12,
November
18,
2016
ABSTRACT: Based on the panel data of 268 prefecture-level
cities in China during 2001-2007, this paper examines the impact of housing
price on the agglomeration of manufacturing industries in China. Using
instrumental variable method to alleviate the endogeneity problem, after
controlling for a series of city characteristic variables, the IV regression
results show that: the housing price has a significant negative impact on the
manufacturing agglomeration. Further studies show that the negative effect mainly comes from the eastern
region after 2003 when China’s land policy has changed greatly. For the central
and western regions, the housing price has no significant effect on the agglomeration.