We explore an empirical examination on the effects of industrial park openings on housing prices in Korea under under hedonic framework. First, the availability of multiple transactions within apartment complexes enables fixed-effects estimation and addresses unobserved heterogeneity across apartment complexes. Second, we trace the effect on housing values from the announcement stage to actual operation stage of industrial parks. Our results indicate housing prices positively respond to an announcement of industrial park opening, but less in areas close to the industrial park. Furthermore, housing prices in close proximity to industrial parks decline when industrial parks begin operation.
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Park et al. (2024) studied this question.
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