Nexus Between Tourism and House Prices

Abstract

This work aims to examine the relationship between tourism activities and house prices (HP) in first-tier cities (i.e., Beijing, Shanghai, and Guangzhou) of China using a quantile-on-quantile approach. This approach provides an ideal framework with which to capture the overall dependence structure between tourism activities and HP. The empirical results show that there is a positive and negative relationship between tourism and HP for the first-tier cities considered, with substantial variations across cities and across quantiles within each city. Important city-specific policy implications may be drawn from these findings.