Towards a System of Open Cities in China: Home Prices, FDI Flows and Air Quality in 35 Major Cities

33 Pages Posted: 26 Feb 2009 Last revised: 19 Mar 2010

See all articles by Siqi Zheng

Siqi Zheng

Hang Lung Center for Real Estate, Tsinghua University

Matthew E. Kahn

University of Southern California; National Bureau of Economic Research (NBER)

Hongyu Liu

Tsinghua University - Institute of Real Estate Studies

Date Written: February 2009

Abstract

Over the last thirty years, China's major cities have experienced significant income and population growth. Much of this growth has been fueled by urban production spurred by world demand. Using a unique cross-city panel data set, we test several hypotheses concerning the relationship between home prices, wages, foreign direct investment and ambient air pollution across major Chinese cities. Home prices are lower in cities with higher ambient pollution levels. Cities featuring higher per-capita FDI flows have lower pollution levels.

Suggested Citation

Zheng, Siqi and Kahn, Matthew E. and Liu, Hongyu, Towards a System of Open Cities in China: Home Prices, FDI Flows and Air Quality in 35 Major Cities (February 2009). NBER Working Paper No. w14751. Available at SSRN: https://ssrn.com/abstract=1349584

Siqi Zheng (Contact Author)

Hang Lung Center for Real Estate, Tsinghua University ( email )

HeShanHeng Building
Beijing, 100084
China

HOME PAGE: http://www.siqizheng.cn

Matthew E. Kahn

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Hongyu Liu

Tsinghua University - Institute of Real Estate Studies ( email )

School of Civil Engineering
Beijing, 100084
China
8610-62795115 (Phone)
8610-62788678 (Fax)

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