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The Influence of Housing Investment on Urban Innovation: An Empirical Analysis Based on City-Level Panel Data in China

Author

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  • Xiaojie Wang

    (School of Management, Ocean University of China, Qingdao 266100, China)

  • Yi Duan

    (Department of Finance, Economics, and International Business, Marshall University, Huntington, WV 25755, USA)

  • Pengcheng Liu

    (School of Economics, Qingdao University, Qingdao 266061, China)

  • Guixin Han

    (School of Management, Ocean University of China, Qingdao 266100, China)

Abstract

The reasonable control of housing investment and the encouragement of innovation are two major tasks for the Chinese government. This article uses city-level urban panel data over 2001-2015 to study the effect of housing investment on urban innovation in China. The full-sample regression result shows that housing investment inhibits urban innovation. Housing investment can curb urban capital flow and reduce the gross profits of enterprises, which can hinder the improvement of urban innovation. As for different regions, the eastern region has been more obviously influenced by housing investment, while it has led to less influence on the middle and western regions in China. The conclusions of this study can help to clarify the internal relationship between housing investment and urban innovation, identify how to promote the current transformation and upgrading of China’s real estate investment, and improve the vitality of the real economy.

Suggested Citation

  • Xiaojie Wang & Yi Duan & Pengcheng Liu & Guixin Han, 2020. "The Influence of Housing Investment on Urban Innovation: An Empirical Analysis Based on City-Level Panel Data in China," Sustainability, MDPI, vol. 12(7), pages 1-15, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2968-:d:342790
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    Cited by:

    1. Ge Gao & Jichang Dong & Xiuting Li, 2022. "Local Government Debt, Real Estate Investment and Corporate Investment: Evidence from China," Sustainability, MDPI, vol. 14(19), pages 1-21, September.
    2. Yu, Liangliang & Cai, Yinying, 2021. "Do rising housing prices restrict urban innovation vitality? Evidence from 288 cities in China," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 276-288.
    3. Aihui Ma & Yaya He & Peng Tang, 2021. "Understanding the Impact of Land Resource Misallocation on Carbon Emissions in China," Land, MDPI, vol. 10(11), pages 1-15, November.

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