IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0228598.html
   My bibliography  Save this article

The transmission mechanism of the housing price fluctuations on the global value chain position of manufacturing-evidence from China

Author

Listed:
  • Jingyun Zhang
  • Guangping Liu
  • Xueyuan Li
  • Han Jiang

Abstract

Since the real estate market reform in 1998, China's house prices have been rising. High housing prices have exerted negative impacts on labour mobility, the investment environment and resident consumption, all of which may affect the overall resource allocation efficiency and the improvement of the global value chain position of China’s manufacturing industry. However, there is little research on the mechanism of the impact of housing prices on the status of manufacturing global value chain. Based on the matching data of China and the OECD-TiVA from 2005 to 2016, the parallel multiple mediator model is adopted to empirically test the transmission mechanism of housing price fluctuation on the global value chain position of China's manufacturing industry in this study using human capital level, resident consumption level, resident consumption structure, and R&D investment level as the mediating variables. This article finds that although housing price fluctuations do not have a direct impact on the global value chain position of the manufacturing industry, human capital level and resident consumption structure do have positive and negative mediating effects, respectively. Finally, we put forward some suggestions to promote the global value chain position of China's manufacturing industry, which provides useful reference for policy makers.

Suggested Citation

  • Jingyun Zhang & Guangping Liu & Xueyuan Li & Han Jiang, 2020. "The transmission mechanism of the housing price fluctuations on the global value chain position of manufacturing-evidence from China," PLOS ONE, Public Library of Science, vol. 15(2), pages 1-14, February.
    • Handle: RePEc:plo:pone00:0228598
    DOI: 10.1371/journal.pone.0228598
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0228598
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0228598&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0228598?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Mohan, Sarah, 2016. "Institutional Change in Value Chains: Evidence from Tea in Nepal," World Development, Elsevier, vol. 78(C), pages 52-65.
    3. Theodore H. Moran, 2011. "Foreign Manufacturing Multinationals and the Transformation of the Chinese Economy: New Measurements, New Perspectives," Working Paper Series WP11-11, Peterson Institute for International Economics.
    4. Christopher D. Carroll & Misuzu Otsuka & Jirka Slacalek, 2006. "How Large Is the Housing Wealth Effect? A New Approach," NBER Working Papers 12746, National Bureau of Economic Research, Inc.
    5. Kaplinsky, Raphael & Morris, Mike, 1999. "Trade Policy Reform and the Competitive Response in Kwazulu Natal Province, South Africa," World Development, Elsevier, vol. 27(4), pages 717-737, April.
    6. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    7. Rodrigo Costamagna, 2015. "Inflation and R&D investment," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 143-163.
    8. Peter K. Schott, 2008. "The relative sophistication of Chinese exports [‘Manufacturing Earnings and Compensation in China’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 23(53), pages 6-49.
    9. Jianjun Miao & Pengfei Wang, 2012. "Bubbles and Total Factor Productivity," American Economic Review, American Economic Association, vol. 102(3), pages 82-87, May.
    10. Francesco Caselli & Wilbur John Coleman II, 2006. "The World Technology Frontier," American Economic Review, American Economic Association, vol. 96(3), pages 499-522, June.
    11. Shang, Qingyan & Poon, Jessie P.H. & Yue, Qingtang, 2012. "The role of regional knowledge spillovers on China's innovation," China Economic Review, Elsevier, vol. 23(4), pages 1164-1175.
    12. Burger, Anže & Jindra, Björn & Marek, Philipp & Rojec, Matija, 2018. "Functional Upgrading and Value Capture of Multinational Subsidiaries," Journal of International Management, Elsevier, vol. 24(2), pages 108-122.
    13. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    14. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Iris Claus & Les Oxley & Peilei Fan, 2014. "Innovation In China," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 725-745, September.
    2. Camilla Mastromarco & Léopold Simar, 2021. "Latent heterogeneity to evaluate the effect of human capital on world technology frontier," Journal of Productivity Analysis, Springer, vol. 55(2), pages 71-89, April.
    3. Delera, Michele & Pietrobelli, Carlo & Calza, Elisa & Lavopa, Alejandro, 2022. "Does value chain participation facilitate the adoption of Industry 4.0 technologies in developing countries?," World Development, Elsevier, vol. 152(C).
    4. Caselli, Francesco & Ciccone, Antonio, 2013. "The contribution of schooling in development accounting: Results from a nonparametric upper bound," Journal of Development Economics, Elsevier, vol. 104(C), pages 199-211.
    5. Verónica Mies & Matías Tapia & Ignacio Loeser, "undated". "The Causal Impact of Human Capital on R&D and Productivity: Evidence from the United States," Documentos de Trabajo 466, Instituto de Economia. Pontificia Universidad Católica de Chile..
    6. Mastromarco, Camilla & Simar, Leopold, 2017. "Cross-Section Dependence and Latent Heterogeneity to Evaluate the Impact of Human Capital on Country Performance," LIDAM Discussion Papers ISBA 2017030, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    7. Marcella D'Uva & Rita De Siano, 2007. "Human capital and "club convergence" in Italian regions," Economics Bulletin, AccessEcon, vol. 18(1), pages 1-7.
    8. Yunfang Hu & Takuma Kunieda & Kazuo Nishimura & Ping Wang, 2023. "Flying or trapped?," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(2), pages 341-388, February.
    9. Jones, C.I., 2016. "The Facts of Economic Growth," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 3-69, Elsevier.
    10. Daron Acemoglu, 2007. "Equilibrium Bias of Technology," Econometrica, Econometric Society, vol. 75(5), pages 1371-1409, September.
    11. Zahra Sheidaei & Mohammadnabi Shahiki Tash, 2014. "The Cumulative Effect of Human Capital on Economic Growth: Using Panel Data Method," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 17(52), pages 95-115, June.
    12. Sucharita Ghosh & Camilla Mastromarco, 2013. "Cross-border Economic Activities, Human Capital and Efficiency: A Stochastic Frontier Analysis for OECD Countries," The World Economy, Wiley Blackwell, vol. 36(6), pages 761-785, June.
    13. Jianjun Miao & PENGFEI WANG, 2011. "Sectoral Bubbles and Endogenous Growth," Boston University - Department of Economics - Working Papers Series WP2011-032, Boston University - Department of Economics.
    14. Alexandre Berthe & Pascal Grouiez, 2020. "Small Farm Upgrading in GVC: a Strategic Perspective," Working Papers halshs-02953123, HAL.
    15. Scott, Allen J., 2006. "The Changing Global Geography of Low-Technology, Labor-Intensive Industry: Clothing, Footwear, and Furniture," World Development, Elsevier, vol. 34(9), pages 1517-1536, September.
    16. E. Tsanana & X. Chapsa & C. Katrakilidis, 2016. "Is growth corrupted or bureaucratic? Panel evidence from the enlarged EU," Applied Economics, Taylor & Francis Journals, vol. 48(33), pages 3131-3147, July.
    17. Peilei Fan, 2011. "Innovation capacity and economic development: China and India," Economic Change and Restructuring, Springer, vol. 44(1), pages 49-73, April.
    18. Kazuo Mino, 2016. "Fiscal Policy in a Growing Economy with Financial Frictions and Firm Heterogeneity," The Japanese Economic Review, Japanese Economic Association, vol. 67(1), pages 3-30, March.
    19. Yadav, Anil & McHale, John & O'Neill, Stephen, 2023. "How does co-authoring with a star affect scientists' productivity? Evidence from small open economies," Research Policy, Elsevier, vol. 52(1).
    20. Kluge, Jan & Lappoehn, Sarah & Plank, Kerstin, 2020. "The Determinants of Economic Competitiveness," IHS Working Paper Series 24, Institute for Advanced Studies.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0228598. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.