Spatial heterogeneity analysis of biased land resource supply policies on housing prices and innovation efficiency

Abstract

To rationally allocate land resources, the government has formulated biased land resource supply policies. However, this policy will promote the fluctuation of regional housing prices, thereby affecting regional innovation efficiency. To elucidate the intrinsic logical relationship among these factors, this study investigates the influence of biased land resource supply policies on housing prices and innovation across 31 Chinese provinces over a 16-year period. It places particular emphasis on probing into the spatial disparities in this impact. The innovation of this paper lies in the development of a theoretical analysis model, which creatively utilizes the regional land supply status as an instrumental variable to address the endogeneity problem. At the same time, a double robustness test was conducted by substituting the explanatory variables and employing the fixed effects model. The results of the TSLS regression indicate: (1) The land resource supply policy, which prioritizes the central and western regions, has resulted in an increase in housing prices across the majority of regions in China, with the eastern region experiencing a more rapid rise compared to the central and western regions. (2) The accelerated growth of housing prices in the eastern region is likely to exert a more pronounced inhibitory effect on innovation compared to the central and western regions. In summary, China’s land resource supply policy, which favors the central and western regions, has exacerbated the rise in housing prices in the eastern region, and rising housing prices will inhibit the innovation efficiency of the region. Hence, it is imperative for the government to continuously optimize and adjust land resource supply policies, ensuring their alignment with population migration patterns, stabilizing the real estate market, while also considering the innovation efficiency of regional development.