Construction activity and real estate market trend: evidence from Albania

Delina Ibrahimaj and Gianluca Mattarocci

ERES from European Real Estate Society (ERES)

Abstract: PurposeThe aim is to identify the main macro-economic drivers of construction in an Eastern European country that is experiencing significant changes in the real estate sector.Design/methodology/approachUsing a proprietary database provided by Bank of Albania, the paper evaluate the relationship between macro-economic determinants and a set of macro-economic drivers using the granger causality test and the impulse response function.FindingsResults show that in Albania, as in other new developed economies, the credit market and the amounts of remittances are the main sources of construction changes. Real estate sector characteristics are more relevant in explaining the construction development in the short and in the long run.Research limitationsThe paper is based only on a detailed dataset on the Albanian economy but results cannot be generalized for all Eastern European countries.Practical implicationsResults obtained are useful for policy market and macro-economists interested to evaluate the dynamics of the construction sector and evaluate the effect of any macro-economic change on the size and growth of the sectorOriginality/valueThe paper is the only one available for the Albanian market and the methodology adopted is never used before for any European country.

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2014-01-01
New Economics Papers: this item is included in nep-tra
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://eres.architexturez.net/doc/oai-eres-id-eres2014-11 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2014_11

Access Statistics for this paper

More papers in ERES from European Real Estate Society (ERES) Contact information at EDIRC.
Bibliographic data for series maintained by Architexturez Imprints (interface.services@architexturez.net).