The Effect of Housing Prices on the Quality of Export Products: Evidence from China

Yousen Jin, Helian Xu, Haitao Mao and Sam Tang
Additional contact information
Yousen Jin: School of Economics and Management, Nanjing University of Science and Technology
Helian Xu: School of Business Administration, Zhongnan University of Economics and Law
Haitao Mao: School of Business Administration, Zhongnan University of Economics and Law
Sam Tang: Business School, The University of Western Australia

No 22-08, Economics Discussion / Working Papers from The University of Western Australia, Department of Economics

Abstract: This paper studies the effect of rising housing prices on the quality of export products. It employs a model of endogenous quality choice to show that rising housing prices can exert both positive and negative effects on export quality. We test the model’s predictions by using Chinese firm-level data matched with customs and city-level data from 2000 to 2013. Results show that rising housing prices significantly reduce the quality of export products: the negative effect of speculative investment is found to outweigh the positive effect of easing of financing constraints. High-productivity firms and industries with a greater scope for quality differentiation are more affected by the rising housing prices. Furthermore, government controls on home purchasing help reduce the negative effect of rising housing prices on the quality of export products.

Keywords: Housing prices; quality of export products; home purchase restriction policy (search for similar items in EconPapers)
JEL-codes: F10 R31 (search for similar items in EconPapers)
Pages: 34
Date: 2022
New Economics Papers: this item is included in nep-cna, nep-int and nep-ure
Note: MD5 = e2d045ece001b468cb7de637aa94d046
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ecompapers.biz.uwa.edu.au/paper/PDF%20of%2 ... Mao%20and%20Tang.pdf (application/pdf)

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:uwa:wpaper:22-08

Access Statistics for this paper

More papers in Economics Discussion / Working Papers from The University of Western Australia, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sam Tang ().