Effects of the Implementation of the Broadband China Policy (BCP) on House Prices: Evidence from a Quasi-Natural Experiment in China

Peng Wang, Yihui He and Kengcheng Zheng ()
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Peng Wang: The First Tax Branch of Kunming Taxation Bureau, State Administration of Taxation, Kunming 650100, China
Yihui He: International Business College, South China Normal University, Guangzhou 511436, China
Kengcheng Zheng: School of Finance and Taxation, Zhongnan University of Economics and Law, Wuhan 430073, China

Land, 2023, vol. 12, issue 5, 1-15

Abstract: With the rapid development of digital finance, the implementation of digital infrastructure is becoming increasingly significant. Broadband construction is an important part of the communication network, and can promote urban infrastructure in cities. However, whether the development of broadband can affect housing prices by affecting the urban infrastructure and the convenience of residents is a question worth addressing. In this study, using panel data regarding cities in China, we used the spatial multi-period difference-in-differences (SDID) model to investigate the utility of the Broadband China Policy (BCP) on urban house prices and the mechanism of impact. We found that the BCP can increase house prices, and that this impact has a positive spatial spillover effect. This conclusion still held after a series of tests such as parallel trend tests, placebo tests, and the exclusion of other policy effects. The BCP can increase house prices by improving urban infrastructure, promoting urbanization, and optimizing urban industrial structure. In addition, we conducted a heterogeneity analysis by taking into consideration the administrative level, economic development level, and location of cities. The findings of this paper not only enrich the research on the BCP and housing prices, they also provide policy recommendations in terms of urban land use and sustainable development.

Keywords: Broadband China Policy; house price; space multiphase DID (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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