Rule by Law, Law-Based Governance, and Housing Prices: The Case of China
Although some attempts have been made to elucidate the relationship between law-based governance and housing prices, the existing literature still provides limited knowledge about the mediating mechanisms through which law-based governance correlates with housing prices. This study specifically inve...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-06-01
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| Series: | Land |
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| Online Access: | https://www.mdpi.com/2073-445X/10/6/616 |
| _version_ | 1797530805957820416 |
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| author | Jie Chen Haiyong Zhang Qian Zhou |
| author_facet | Jie Chen Haiyong Zhang Qian Zhou |
| author_sort | Jie Chen |
| collection | DOAJ |
| description | Although some attempts have been made to elucidate the relationship between law-based governance and housing prices, the existing literature still provides limited knowledge about the mediating mechanisms through which law-based governance correlates with housing prices. This study specifically investigates how the association between the rule of law and housing prices is sensitive to public satisfaction, and how the connection is heterogeneous across geographic and socioeconomic groups. Using panel data of Chinese cities over the period 2014–2017, our econometric estimation results indicate that law-based governance may enlarge financial loans and foreign investment and then raise housing prices, which is robust to different specifications. Moreover, the relationship is heterogeneous across city groups and sensitive to the degree of satisfaction with the rule of law quality. Additionally, we demonstrate that the mediating role of financial loans is larger than that of foreign investment. In the stage of emerging economies’ pursuit of the rule of law, our findings have useful implications for local governments to control rapidly rising housing prices by reducing loans and foreign investment. |
| first_indexed | 2024-03-10T10:35:14Z |
| format | Article |
| id | doaj.art-7d4bc4ec9a2b4c24abe7daedd9aab90b |
| institution | Directory Open Access Journal |
| issn | 2073-445X |
| language | English |
| last_indexed | 2024-03-10T10:35:14Z |
| publishDate | 2021-06-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Land |
| spelling | doaj.art-7d4bc4ec9a2b4c24abe7daedd9aab90b2023-11-21T23:21:05ZengMDPI AGLand2073-445X2021-06-0110661610.3390/land10060616Rule by Law, Law-Based Governance, and Housing Prices: The Case of ChinaJie Chen0Haiyong Zhang1Qian Zhou2School of International and Public Affairs, Shanghai Jiao Tong University, Shanghai 200030, ChinaSchool of International and Public Affairs, Shanghai Jiao Tong University, Shanghai 200030, ChinaEconomics School, Zhongnan University of Economics and Law, Wuhan 430073, ChinaAlthough some attempts have been made to elucidate the relationship between law-based governance and housing prices, the existing literature still provides limited knowledge about the mediating mechanisms through which law-based governance correlates with housing prices. This study specifically investigates how the association between the rule of law and housing prices is sensitive to public satisfaction, and how the connection is heterogeneous across geographic and socioeconomic groups. Using panel data of Chinese cities over the period 2014–2017, our econometric estimation results indicate that law-based governance may enlarge financial loans and foreign investment and then raise housing prices, which is robust to different specifications. Moreover, the relationship is heterogeneous across city groups and sensitive to the degree of satisfaction with the rule of law quality. Additionally, we demonstrate that the mediating role of financial loans is larger than that of foreign investment. In the stage of emerging economies’ pursuit of the rule of law, our findings have useful implications for local governments to control rapidly rising housing prices by reducing loans and foreign investment.https://www.mdpi.com/2073-445X/10/6/616rule by lawlaw-based governancehousing pricesensitivityheterogeneitymediating mechanism |
| spellingShingle | Jie Chen Haiyong Zhang Qian Zhou Rule by Law, Law-Based Governance, and Housing Prices: The Case of China Land rule by law law-based governance housing price sensitivity heterogeneity mediating mechanism |
| title | Rule by Law, Law-Based Governance, and Housing Prices: The Case of China |
| title_full | Rule by Law, Law-Based Governance, and Housing Prices: The Case of China |
| title_fullStr | Rule by Law, Law-Based Governance, and Housing Prices: The Case of China |
| title_full_unstemmed | Rule by Law, Law-Based Governance, and Housing Prices: The Case of China |
| title_short | Rule by Law, Law-Based Governance, and Housing Prices: The Case of China |
| title_sort | rule by law law based governance and housing prices the case of china |
| topic | rule by law law-based governance housing price sensitivity heterogeneity mediating mechanism |
| url | https://www.mdpi.com/2073-445X/10/6/616 |
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