Shantytown Redevelopment and Housing Prices: Empirical Evidence from Chinese Cities

Caixia Liu ()
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Caixia Liu: Development Economics Group, Wageningen University & Research, 6706 KN Wageningen, The Netherlands

Land, 2023, vol. 12, issue 4, 1-12

Abstract: China has been undergoing urban regeneration and reconstruction over the past few decades. To improve the housing conditions of the poor and better achieve the goal of new urbanization, the Chinese government launched top-down shantytown redevelopment nationwide in 2008. Little is known about the economic effectiveness of shantytown redevelopment. Based on city-level data from 2014–2018, this study examined the impact of shantytown redevelopment on housing prices by using the fixed effects regression analysis and instrumental variables (IV) methods. The results show that shantytown redevelopment significantly increases the housing prices at the city level, and each 10% increase in the size of redeveloped shantytowns is associated with an average increase of 1.4% in housing prices. There is regional heterogeneity, with shantytown redevelopment in the central and western regions having a greater effect on housing prices. The rising home prices imposed by shantytown redevelopment negatively decrease housing affordability for those households not included in the redevelopment projects; thus, a more inclusive urban redevelopment policy should be considered.

Keywords: shantytown; urban redevelopment; new urbanization; housing prices; instrumental variables (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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