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The Effect of Housing Prices on the Quality of Export Products: Evidence from China

Author

Listed:
  • Yousen Jin

    (School of Economics and Management, Nanjing University of Science and Technology)

  • Helian Xu

    (School of Business Administration, Zhongnan University of Economics and Law)

  • Haitao Mao

    (School of Business Administration, Zhongnan University of Economics and Law)

  • Sam Hak Kan Tang

    (Business School, The University of Western Australia)

Abstract

This paper studies the effect of rising housing prices on the quality of export products. It employs a model of endogenous quality choice to show that rising housing prices can exert both positive and negative effects on export quality. We test the model’s predictions by using Chinese firm-level data matched with customs and city-level data from 2000 to 2013. Results show that rising housing prices significantly reduce the quality of export products: the negative effect of speculative investment is found to outweigh the positive effect of easing of financing constraints. High-productivity firms and industries with a greater scope for quality differentiation are more affected by the rising housing prices. Furthermore, government controls on home purchasing help reduce the negative effect of rising housing prices on the quality of export products.

Suggested Citation

  • Yousen Jin & Helian Xu & Haitao Mao & Sam Hak Kan Tang, 2022. "The Effect of Housing Prices on the Quality of Export Products: Evidence from China," Economics Discussion / Working Papers 22-08, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:22-08
    Note: MD5 = e2d045ece001b468cb7de637aa94d046
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Housing prices; quality of export products; home purchase restriction policy;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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