摘要: We examine the effect of booming housing price in China on manufacturing

investment using a combined firm- and city-level panel data set for the period 2003-2007.

Our results show that there was a significant negative association between local housing

prices and the investment ratio of manufacturing firms in the corresponding cities. The effect

is robust in controlling for heterogeneities at firm, sector, and city levels, and in dealing with

the potential endogeneity of housing price. The negative relationship is strongest for firms

which are labor intensive, non-state owned, and have few linkages with real estate sectors.