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The Path of Housing Prices in Promoting the Upgrading of Industrial Structure: Bank Credit Funds, Land Finance, and Consumer Demand

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  • Bibo Yin

    (College of Economics and Trade, Hunan University of Technology and Business, Changsha 410205, China)

  • Yining Pang

    (The School of Finance, Hunan University of Technology and Business, Changsha 410205, China)

  • Xiaocang Xu

    (School of Economics and Management, Huzhou University, Huzhou 313000, China)

Abstract

The impact path of housing prices on the upgrading of the industrial structure is an important part of realizing the high-quality operation of the national economy in China. In order to discuss the mechanism of different influencing paths to upgrading industrial structure, this paper introduces three different intermediary variables from the levels of supply, demand, and government, and further subdivides and compares them to empirically test the specific impact path of housing prices on industrial structure upgrading by constructing multi-dimensional industrial structure upgrading indicators. It obtains some meaningful results. Firstly, there is a significant U-shaped relationship between housing prices and industrial structure upgrading; secondly, rising house prices will exacerbate the real estate industry’s occupation of bank credit funds, hindering the upgrading of the whole industrial structure; thirdly, the negative impact of the land’s financial dependence on the upgrading of the industrial structure was underestimated; and, finally, the rise in housing prices can improve the consumption level and promote the upgrading of regional industrial structures. By studying the impact path of house prices on the upgrading of different industrial structures, it will help local governments regulate house prices and give full play to the role of house prices in promoting the upgrading of industrial structure through multiple channels.

Suggested Citation

  • Bibo Yin & Yining Pang & Xiaocang Xu, 2022. "The Path of Housing Prices in Promoting the Upgrading of Industrial Structure: Bank Credit Funds, Land Finance, and Consumer Demand," Sustainability, MDPI, vol. 14(9), pages 1-22, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5731-:d:811616
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    References listed on IDEAS

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    1. Thomas Chaney & David Sraer & David Thesmar, 2012. "The Collateral Channel: How Real Estate Shocks Affect Corporate Investment," American Economic Review, American Economic Association, vol. 102(6), pages 2381-2409, October.
    2. Matteo Iacoviello & Stefano Neri, 2010. "Housing Market Spillovers: Evidence from an Estimated DSGE Model," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 125-164, April.
    3. Aoki, Kosuke & Proudman, James & Vlieghe, Gertjan, 2004. "House prices, consumption, and monetary policy: a financial accelerator approach," Journal of Financial Intermediation, Elsevier, vol. 13(4), pages 414-435, October.
    4. repec:hal:spmain:info:hdl:2441/75koqefued8i7pihbrl9u84p4u is not listed on IDEAS
    5. Tabuchi, Takatoshi, 1998. "Urban Agglomeration and Dispersion: A Synthesis of Alonso and Krugman," Journal of Urban Economics, Elsevier, vol. 44(3), pages 333-351, November.
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    Cited by:

    1. Jingyun Zhang & Ling Zhang, 2025. "The rising of house prices and the global value chain position of China’s manufacturing sector," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(7), pages 17051-17076, July.
    2. Wu, Zixi & Wang, Yiqin, 2023. "Consumer finance and consumption upgrading: An empirical study of CHFS," Finance Research Letters, Elsevier, vol. 54(C).

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