Resource Opportunity in China’s Market Transition and Governance: Time Factor in Urban Housing Inequality

Jiawen Zhou,Jing Xiong

doi:10.3390/land10121331

Jiawen Zhou, Jing Xiong

Open Access

https://doi.org/10.3390/land10121331

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Abstract

Since China’s reform and opening up, the country’s rapid marketization process has been accompanied by the rapid growth of inequality, which has been significant for all classes of society. In terms of its impact, housing inequality is particularly noticeable. In this paper, we discuss the influence of real-estate purchase time, organization, human capital, and political capital on the value of real estate and the appreciation of real estate in China by using a conditional mean model and a quantile regression model. The differences in the degree of influence of these factors on different quantile levels are also investigated. We found that, after adding the time factor, the prior possession of resources in the early stage of market transformation will benefit the long-term marketization process. Organizations that can penetrate “market-redistribution” and professions that directly participate in the distribution of real-estate resources also have significant advantages in this regard.

Highlights

Factor in Urban Housing Inequality.Since China’s reform and opening up in 1978, the country’s high-speed process of marketization has resulted in unprecedented advancements
Regarding the two variables—housing value and housing added value—two of the same sets of independent variables were put into two respective models: an ordinary least squares (OLS) model based on mean estimation and a QR model based on 19 quantiles
We found that political capital exe less influence

Summary

Introduction

Factor in Urban Housing Inequality.Since China’s reform and opening up in 1978, the country’s high-speed process of marketization has resulted in unprecedented advancements. Despite official statistics indicating a drop in the Gini coefficient in China during these years—0.49 in 2008 to 0.46 in 2015 [2]—the nation has undeniably transformed from one of the most equal countries in the world into one of the world’s most unequal countries over the last 40 years. This transition has exerted a profound influence on every stratum of society, and housing inequality is the most remarkable problem

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