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Does public investment spur the land market?: evidence from transport improvement in Beijing

Wu, Wenjie (2012) Does public investment spur the land market?: evidence from transport improvement in Beijing. SERC Discussion Papers, Wu, Wenjie (ed.) (SERCDP0116). Spatial Economics Research Centre (SERC), London School of Economics and Political Science, London, UK.

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Abstract

Over 140 billion CNY (1GBP=10CNY) has been spent between 2000 and 2012 in Beijing on the construction of new rail transit lines. This massive public investment allows me to examine the consequences of transport improvements for land prices near rail stations. Using unique vacant parcel-specific data, I estimate the significant heterogeneity in the capitalization effects of rail transit development for multiple land uses in Beijing urbanised area. The results show that these transport improvements, identified by the parcel-station distance reductions, give rise to sizeable price premiums in the local residential and commercial land markets. Strikingly, the difference between the increase in the value of residential and commercial land parcels are not distributed evenly. These findings lend to support the evidence that public investment has an essential role to play in spurring the spatially targeted land market and provide implications for further land and transport policy making in China.

Item Type: Monograph (Discussion Paper)
Official URL: http://www.spatialeconomics.ac.uk/SERC/publication...
Additional Information: © 2012 The Author
Divisions: Spatial Economics Research Centre
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HE Transportation and Communications
H Social Sciences > HN Social history and conditions. Social problems. Social reform
JEL classification: H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects
R - Urban, Rural, and Regional Economics > R4 - Transportation Systems > R41 - Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise
Sets: Research centres and groups > Spatial Economics Research Centre
Date Deposited: 16 Jul 2014 12:08
Last Modified: 16 Feb 2020 00:40
Funders: Economic and Social Research Council, Department for Business, Innovation & Skills (BIS), Welsh Assembly Government
URI: http://eprints.lse.ac.uk/id/eprint/57918

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