EconPapers    
Economics at your fingertips  
 

Promoting or inhibiting: The role of housing price in entrepreneurship

Mingzhi Hu, Yinxin Su and Wenping Ye

Technological Forecasting and Social Change, 2019, vol. 148, issue C

Abstract: Housing prices have been soaring in China since the past decade. Rising housing prices indicate good opportunities in the labor and housing markets, which can discourage the entrepreneurial investment decisions of would-be entrepreneurs. However, high appreciation in housing prices can also relax credit constraints in setting up nascent businesses and thereby encourage entrepreneurship. This study investigates whether rising housing prices have a pulling or pushing effect on entrepreneurial activities. We find that housing price has a diminishingly negative effect on entrepreneurial activities using data from China's Urban Household Survey and China Statistical Yearbook for Regional Economy for the period 2002–2009. The mechanisms underlying why housing price affects entrepreneurship—labor market opportunities, relaxation of credit constraints, and housing market opportunities—are also investigated. Overall, this study offers new insights into entrepreneurial activities and highlights the negative externalities of overheated housing market to entrepreneurship in developing countries.

Keywords: Housing price; Entrepreneurship; Labor market; Housing market; China (search for similar items in EconPapers)
JEL-codes: J23 R21 O18 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0040162519304950
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:148:y:2019:i:c:s0040162519304950

DOI: 10.1016/j.techfore.2019.119732

Access Statistics for this article

Technological Forecasting and Social Change is currently edited by Fred Phillips

More articles in Technological Forecasting and Social Change from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-05-02
Handle: RePEc:eee:tefoso:v:148:y:2019:i:c:s0040162519304950