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A Study on the Relationship Between Land Finance and Housing Price in Urbanization Process: An Empirical Analysis of 182 Cities in China Based on Threshold Panel Models

Author

Listed:
  • Hu Meiting

    (School of Economics and Management, University of Chinese Academy of Sciences, Beijing100190, China)

  • Dong Jichang

    (School of Economics and Management, University of Chinese Academy of Sciences, Beijing100190, China)

  • Yin Lijun

    (School of Economics and Management, University of Chinese Academy of Sciences, Beijing100190, China)

  • Meng Chun

    (Development Research Centre of the State Council, Beijing100010, China)

  • Li Xiuting

    (School of Economics and Management, University of Chinese Academy of Sciences, Beijing100190, China)

Abstract

Scholars have a variety of theoretical explanations for housing price growth. However, few scholars have studied the internal influence mechanism among urbanization, land finance, and housing price. Based on the data of 182 prefecture-level cities from 2009 to 2016, this paper studies the influence of land finance on housing price under different urbanization rate levels. The study finds that with the increase of urbanization rate, the effect of land finance on housing price presents a “U” shape. Specifically, an increase in land finance by 1% results in a corresponding increase in average housing price by 0.18%, with relatively low urbanization rate, 0.06% with medium level of urbanization rate, and 0.38% with high level of urbanization rate.

Suggested Citation

  • Hu Meiting & Dong Jichang & Yin Lijun & Meng Chun & Li Xiuting, 2021. "A Study on the Relationship Between Land Finance and Housing Price in Urbanization Process: An Empirical Analysis of 182 Cities in China Based on Threshold Panel Models," Journal of Systems Science and Information, De Gruyter, vol. 9(1), pages 74-94, February.
    • Handle: RePEc:bpj:jossai:v:9:y:2021:i:1:p:74-94:n:5
    DOI: 10.21078/JSSI-2021-074-21
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    References listed on IDEAS

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