IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i8p1445-d108516.html

Spatiotemporal Agglomeration of Real-Estate Industry in Guangzhou, China

Author

Listed:
  • Peng Wang

    (College of Economics, Jinan University, 601 Huangpu Avenue West, Guangzhou 510632, China)

  • Xiaoyan Lin

    (College of Economics, Jinan University, 601 Huangpu Avenue West, Guangzhou 510632, China)

  • Dajun Dai

    (Department of Geosciences, Georgia State University, 24 Peachtree Center Avenue SE, Atlanta, GA 30303, USA)

Abstract

Real estate development is critical to healthy economic growth and regional development. Using real-estate data in Guangzhou, China from the 1970s to 2015, we examined the spatiotemporal agglomeration and evolution of Guangzhou’s real estate industry with spatial and spatiotemporal techniques. This study shows that real estate businesses were initially agglomerated in the city center with socioeconomic advantages, and later spread into suburbs as new growth foundations. We also found that different business types, depending on their functions, evolved and agglomerated in different time periods. The findings provide valuable support to the formulation of effective government policy and the management of real estate enterprises in China.

Suggested Citation

  • Peng Wang & Xiaoyan Lin & Dajun Dai, 2017. "Spatiotemporal Agglomeration of Real-Estate Industry in Guangzhou, China," Sustainability, MDPI, vol. 9(8), pages 1-15, August.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:8:p:1445-:d:108516
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/8/1445/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/8/1445/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Philip McCann, 1995. "Rethinking the Economics of Location and Agglomeration," Urban Studies, Urban Studies Journal Limited, vol. 32(3), pages 563-577, April.
    2. Kummerow, Max & Chan Lun, Joëlle, 0. "Information and communication technology in the real estate industry: productivity, industry structure and market efficiency," Telecommunications Policy, Elsevier, vol. 29(2-3), pages 173-190, March.
    3. Zhang, Yanbing & Hua, Xiuping & Zhao, Liang, 2012. "Exploring determinants of housing prices: A case study of Chinese experience in 1999–2010," Economic Modelling, Elsevier, vol. 29(6), pages 2349-2361.
    4. Tillmann, Peter, 2013. "Capital inflows and asset prices: Evidence from emerging Asia," Journal of Banking & Finance, Elsevier, vol. 37(3), pages 717-729.
    5. André K. Anundsen & Karsten Gerdrup & Frank Hansen & Kasper Kragh‐Sørensen, 2016. "Bubbles and Crises: The Role of House Prices and Credit," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(7), pages 1291-1311, November.
    6. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1077-1106.
    7. Elisa Barbieri & Marco R. Di Tommaso & Manli Huang, 2009. "Industrial Development Policy and Innovation in Southern China: Government Targets and Firms' Behaviour," European Planning Studies, Taylor & Francis Journals, vol. 18(1), pages 83-105, September.
    8. Holly, Sean & Hashem Pesaran, M. & Yamagata, Takashi, 2011. "The spatial and temporal diffusion of house prices in the UK," Journal of Urban Economics, Elsevier, vol. 69(1), pages 2-23, January.
    9. Fangfang Cheng & Luc Boerboom & Stan Geertman & Pieter Hooimeijer, 2013. "Changing Spatial Concentration of Sectoral Employment in China's Pearl River Delta 1990–2005," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(3), pages 261-277, July.
    10. Yuzhuo Cai & Cui Liu, 2015. "The roles of universities in fostering knowledge-intensive clusters in Chinese regional innovation systems," Science and Public Policy, Oxford University Press, vol. 42(1), pages 15-29.
    11. An-Pin Wei & Wei-Ling Huang & Chih-Yuan Yang & Ming-Chi Chen, 2013. "The role of market imperfections in the relationship between housing prices and household credit: Evidence from Taiwan," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(2), pages 131-143, November.
    12. Bing Zhu & Roland Füss & Nico B. Rottke, 2013. "Spatial Linkages in Returns and Volatilities among U.S. Regional Housing Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 41(1), pages 29-64, March.
    13. Gregory C. Chow & Linlin Niu, 2015. "Housing Prices in Urban China as Determined by Demand and Supply," Pacific Economic Review, Wiley Blackwell, vol. 20(1), pages 1-16, February.
    14. Jerker Moodysson & Lionel Sack, 2016. "Institutional stability and industry renewal: diverging trajectories in the Cognac beverage cluster," Industry and Innovation, Taylor & Francis Journals, vol. 23(5), pages 448-464, July.
    15. He, Zheng & Rayman-Bacchus, Lez & Wu, Yiming, 2011. "Self-organization of industrial clustering in a transition economy: A proposed framework and case study evidence from China," Research Policy, Elsevier, vol. 40(9), pages 1280-1294.
    16. Ian R. Gordon & Philip McCann, 2000. "Industrial Clusters: Complexes, Agglomeration and/or Social Networks?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 513-532, March.
    17. Wu, Jing & Gyourko, Joseph & Deng, Yongheng, 2012. "Evaluating conditions in major Chinese housing markets," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 531-543.
    18. Andrea Morrison & Roberta Rabellotti & Lorenzo Zirulia, 2013. "When Do Global Pipelines Enhance the Diffusion of Knowledge in Clusters?," Economic Geography, Taylor & Francis Journals, vol. 89(1), pages 77-96, January.
    19. Dianchun Jiang & Jean Jinghan Chen & David Isaac, 1998. "The Effect of Foreign Investment on the Real Estate Industry in China," Urban Studies, Urban Studies Journal Limited, vol. 35(11), pages 2101-2110, November.
    20. Anders Malmberg & Bo Malmberg & Per Lundequist, 2000. "Agglomeration and Firm Performance: Economies of Scale, Localisation, and Urbanisation among Swedish Export Firms," Environment and Planning A, , vol. 32(2), pages 305-321, February.
    21. Peter Van Diermen, 2006. "Local Enterprises in the Global Economy: Issues of Governance and Upgrading – Edited by Hubert Schmitz," Growth and Change, Wiley Blackwell, vol. 37(2), pages 320-322, June.
    22. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    23. Christian Sellar & Maksimiliana Emilova & Chrastina Dimitrova Petkova‐Tancheva & Kathleen Mcneil, 2011. "Cluster Policies in Bulgaria: European Integration, Postsocialist Dynamics and Local Level Initiatives," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 35(2), pages 358-378, March.
    24. Chris Egeraat & Declan Curran, 2013. "Spatial Concentration in the Irish Pharmaceutical Industry: The Role of Spatial Planning and Agglomeration Economies," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(3), pages 338-358, July.
    25. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 577-598.
    26. Hershberg, Eric & Nabeshima, Kaoru & Yusuf, Shahid, 2007. "Opening the Ivory Tower to Business: University-Industry Linkages and the Development of Knowledge-Intensive Clusters in Asian Cities," World Development, Elsevier, vol. 35(6), pages 931-940, June.
    27. Lung-Fei Lee, 2004. "Asymptotic Distributions of Quasi-Maximum Likelihood Estimators for Spatial Autoregressive Models," Econometrica, Econometric Society, vol. 72(6), pages 1899-1925, November.
    28. Casper, Steven, 2007. "How do technology clusters emerge and become sustainable?: Social network formation and inter-firm mobility within the San Diego biotechnology cluster," Research Policy, Elsevier, vol. 36(4), pages 438-455, May.
    29. Beardsell, Mark & Henderson, Vernon, 1999. "Spatial evolution of the computer industry in the USA," European Economic Review, Elsevier, vol. 43(2), pages 431-456, February.
    30. Aiqi Wu & Cassandra C. Wang & Shengxiao Li, 2015. "Geographical knowledge search, internal R&D intensity and product innovation of clustering firms in Zhejiang, China," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 553-572, August.
    31. Pontus Braunerhjelm & Maryann Feldman, 2008. "Cluster Genesis: Technology-Based Industrial Development," Economic Geography, Clark University, vol. 84(2), pages 245-246, April.
    32. Anping Chen & Marlon Boarnet & Mark Partridge & Siqi Zheng & Weizeng Sun & Rui Wang, 2014. "Land Supply And Capitalization Of Public Goods In Housing Prices: Evidence From Beijing," Journal of Regional Science, Wiley Blackwell, vol. 54(4), pages 550-568, September.
    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. Evert Meijers & Martijn Burger & Michiel Meeteren & Zachary Neal & Ben Derudder, 2016. "Disentangling agglomeration and network externalities: A conceptual typology," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 61-80, March.
    2. Mercedes Delgado & Michael E. Porter & Scott Stern, 2016. "Defining clusters of related industries," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 1-38.
    3. William R. Kerr & Scott Duke Kominers, 2015. "Agglomerative Forces and Cluster Shapes," The Review of Economics and Statistics, MIT Press, vol. 97(4), pages 877-899, October.
    4. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    5. Chris Egeraat & Declan Curran, 2013. "Spatial Concentration in the Irish Pharmaceutical Industry: The Role of Spatial Planning and Agglomeration Economies," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(3), pages 338-358, July.
    6. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    7. Liang Wang & Justin Tan, 2019. "Social Structure of Regional Entrepreneurship: The Impacts of Collective Action of Incumbents on De Novo Entrants," Entrepreneurship Theory and Practice, , vol. 43(5), pages 855-879, September.
    8. Sugam Agarwal & Smruti Ranjan Behera, 2022. "Geographical concentration of knowledge and technology-intensive industries in India: empirical evidence from establishment-level analysis," Indian Economic Review, Springer, vol. 57(2), pages 513-552, December.
    9. Miguel Ángel García & Ivan Muñiz, 2005. "El impacto espacial de las economías de aglomeración y su efecto sobre la estructura urbana.El caso de la industria en Barcelona, 1986-1996," Working Papers wpdea0509, Department of Applied Economics at Universitat Autonoma of Barcelona.
    10. Edward L. Glaeser & William R. Kerr, 2009. "Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 623-663, September.
    11. Iammarino, Simona & McCann, Philip, 2006. "The structure and evolution of industrial clusters: Transactions, technology and knowledge spillovers," Research Policy, Elsevier, vol. 35(7), pages 1018-1036, September.
    12. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
    13. repec:bof:bofrdp:urn:nbn:fi:bof-201512111472 is not listed on IDEAS
    14. Kristy Buzard & Gerald A. Carlino & Jake Carr & Robert M. Hunt & Tony E. Smith, 2015. "Localized Knowledge Spillovers: Evidence from the Agglomeration of American R&D Labs and Patent Data," Working Papers 15-3, Federal Reserve Bank of Philadelphia.
    15. Anders Malmberg & Peter Maskell, 2002. "The Elusive Concept of Localization Economies: Towards a Knowledge-Based Theory of Spatial Clustering," Environment and Planning A, , vol. 34(3), pages 429-449, March.
    16. Feng, Qu & Wu, Guiying Laura, 2015. "Bubble or riddle? An asset-pricing approach evaluation on China's housing market," Economic Modelling, Elsevier, vol. 46(C), pages 376-383.
    17. Stephen J. Redding, 2013. "Economic Geography: A Review of the Theoretical and Empirical Literature," Palgrave Macmillan Books, in: Daniel Bernhofen & Rod Falvey & David Greenaway & Udo Kreickemeier (ed.), Palgrave Handbook of International Trade, chapter 16, pages 497-531, Palgrave Macmillan.
    18. J. Vernon Henderson, Zmarak Shalizi, and Anthony J. Venables, 2001. "Geography and development," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 81-105, January.
    19. Arbia, Giuseppe & Espa, Giuseppe & Giuliani, Diego & Mazzitelli, Andrea, 2010. "Detecting the existence of space-time clustering of firms," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 311-323, September.
    20. Mao, Guangyu & Shen, Yan, 2019. "Bubbles or fundamentals? Modeling provincial house prices in China allowing for cross-sectional dependence," China Economic Review, Elsevier, vol. 53(C), pages 53-64.
    21. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:gam:jsusta:v:9:y:2017:i:8:p:1445-:d:108516. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.