This paper is aimed at exploring whether high housing prices constitute a boon or a bane for entrepreneurship in Chinese cities. Drawing upon a panel dataset for Chinese cities at the prefectural level and above for the period 2003 to 2016, this paper identifies an inverted U-shape pattern of association between housing price and urban entrepreneurship. It also finds significant inter-city housing price spillovers in first-tier urban agglomerations in which a housing price surge in first-tier cities has an inverted U-shape relationship with entrepreneurship in surrounding cities. The empirical results of this study act as a reminder to Chinese policy makers to adopt a cautious and balanced attitude towards the development of the real estate market and have important policy implications for the planning and governance of mega urban agglomerations in China. Copyright © 2021 Informa UK Limited, trading as Taylor & Francis Group.
CitationWang, Y., & Hu, F. Z. Y. (2021). Housing market booms in Chinese cities: Boon or bane for urban entrepreneurship? Journal of Asian Public Policy. Advance online publication. doi: 10.1080/17516234.2021.1976984
- Housing price
- Spillover effect
- Urban agglomeration