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With the rapid progress of urbanization in China, the real estate industry, characterized by a long industrial chain, has become a pillar industry for economic development. Therefore, we inspect the nexus between land finance, housing prices, and economic growth. For this purpose, we use the panel data of 277 cities at the prefecture level or above in China from 2011 to 2019, and empirically examine it by using the Panel Vector Auto Regression (PVAR) model. The results show that there is a causal relationship between housing prices and economic growth. Housing prices promote economic growth in the short term and inhibit it in the long term. Both economic growth and housing prices have a significant impact on land finance. The economic growth show a significantly positive impact, while housing prices promote land finance in the short term with a long-term trend from positive to negative. This is the first study that tries to probe the relationship between urban housing prices, land finance, and economic growth by considering 277 prefecture-level and above cities in China. To promote the stable development of the regional economy, local governments need to overcome their dependence on the housing market and land finance and promote the healthy development of the housing market. [ABSTRACT FROM AUTHOR]

Taking cities at prefecture-level and above in China as the research object, we theoretically analyze the e􀀀ects of land finance on housing prices and economic growth as well as the e􀀀ects of housing prices on economic growth, consider themediating role of housing prices, and construct a random-e􀀀ects model of land finance a􀀀ecting economic growth. It is of great significance to make rational use of land finance to promote the economic development and formulate the "city specific policies" plan for the real estate market. The 278 resource-based cities with relatively well-developed land and real estate markets in China are selected to test the mediating e􀀀ect of housing prices on land finance a􀀀ecting economic growth in resource-based cities by type based on panel data from 2011-2019. The results show that (1) land finance significantly and positively a􀀀ects economic growth and housing prices in cities at the prefecture-level and above nationwide, but there is some variability in the degree of influence. The central region has the smallest impact on economic growth but the largest impact on housing prices; the eastern region has the deepest impact on economic growth; and the western region has the smallest impact on housing prices. (2) In the national sample cities and cities in the northeast region, housing prices have a significant partial mediating e􀀀ect at the 1% level on economic growth a􀀀ected by land finance, accounting for 22.03 and 2.84%, respectively. The mediating e􀀀ect of urban housing prices on land finance a􀀀ects economic growth in the eastern, central, and western regions is not significant. [ABSTRACT FROM AUTHOR]

The published funding statement is inaccurate. The correct funding statement is as follows: This work was supported by grants from the National Natural Science Foundation of China General Program (72373037), Social Science Foundation of Hunan Province Key Program (22ZDB080), Provincial Natural Science Foundation of Hunan (2022JJ30116).By Qian Sun; Sohail Ahmad Javeed; Yong Tang and Yan FengReported by Author; Author; Author; Author [Extracted from the article]