NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Towards a System of Open Cities in China: Home Prices, FDI Flows and Air Quality in 35 Major Cities

Siqi Zheng, Matthew E. Kahn, Hongyu Liu

NBER Working Paper No. 14751
Issued in February 2009
NBER Program(s):   EEE   ITI

Over the last thirty years, China's major cities have experienced significant income and population growth. Much of this growth has been fueled by urban production spurred by world demand. Using a unique cross-city panel data set, we test several hypotheses concerning the relationship between home prices, wages, foreign direct investment and ambient air pollution across major Chinese cities. Home prices are lower in cities with higher ambient pollution levels. Cities featuring higher per-capita FDI flows have lower pollution levels.

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Document Object Identifier (DOI): 10.3386/w14751

Published: Zheng, Siqi & Kahn, Matthew E. & Liu, Hongyu, 2010. "Towards a system of open cities in China: Home prices, FDI flows and air quality in 35 major cities," Regional Science and Urban Economics, Elsevier, vol. 40(1), pages 1-10, January. citation courtesy of

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