Impact of the Irrational Rise of Housing Prices on the Mechanism of Advanced Industrial Structure
Publication: Journal of Urban Planning and Development
Volume 148, Issue 1
Abstract
During the last 30 years, housing prices in China have increased dramatically, and yet very little empirical research has been carried out to explore the effectiveness of urban housing prices on advanced industrial structures. Based on the analysis framework of the core–periphery model (CP model), this study examined the mechanism of high housing prices affecting the advancement of the industrial structure from two perspectives which are blood-sucking effect and crowding effect. Using the dynamic panel data of 35 large and medium-sized cities in China from 2007 to 2018, this study aims to explore the effects of the influence of urban housing prices on the advancement of the industrial structure. The results illustrated that the relationship between housing prices and the output value of the tertiary industry showed a relationship of first rising and then falling in the eastern region, a relationship of falling first and then rising in the central region, and a positive correlation in the western region. The policy implication of this study is that the formulation of policies should not only make full use of the inducing effect of regional housing price differences on the advancement of the industrial structure but also prevent the irrational rise of housing prices from inhibiting the upgrading of the industrial structure. This research benefits both academics and practitioners by contributing to cumulative theoretical developments related to regional coordination, and by offering corresponding urban planning policy recommendations to achieve a fit between house prices and advanced industrial structure.
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Acknowledgments
This work was supported by Humanities and Social Sciences Research Projects of Hebei Universities (Project No. SD191047).
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Published In
Journal of Urban Planning and Development
Volume 148 • Issue 1 • March 2022
Copyright
© 2021 American Society of Civil Engineers.
History
Received: Jul 10, 2020
Accepted: Sep 23, 2021
Published online: Dec 6, 2021
Published in print: Mar 1, 2022
Discussion open until: May 6, 2022
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