EconPapers    
Economics at your fingertips  
 

Analyzing the Role of the Real Estate Sector in the Sectoral Network of the Chinese Economy

Huifu Nong

Structural Change and Economic Dynamics, 2024, vol. 70, issue C, 567-580

Abstract: The real estate sector in China has strong connections with other sectors. By employing forecast error variance decompositions from least absolute shrinkage and selection operator vector autoregression (LASSO-VAR) model, this study explores the real estate sector's role in China's sectoral network between January 1, 2000, and June 30, 2023. Our analysis reveals that the total sectoral connectedness ranged between 80% and 90% before 2016, but fluctuated between 55% and 90% from 2016 to June 2023. We also identify that shocks primarily spread from the real estate sector to the financial sector from 2014 to 2019. However, this pattern was reversed, with shocks spreading from the financial sector to the real estate sector from early 2020 to June 2023. Furthermore, we observe that the government's long-term mechanisms for the real estate sector have a significant impact on the connection between the real estate sector and the other sectors.

Keywords: Real Estate; Sectoral Connectedness; Stock Market; Return Spillover; Variance Decomposition (search for similar items in EconPapers)
JEL-codes: C58 D53 E44 R3 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0954349X24000845
Full text for ScienceDirect subscribers only

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:eee:streco:v:70:y:2024:i:c:p:567-580

DOI: 10.1016/j.strueco.2024.05.022

Access Statistics for this article

Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen

More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-19
Handle: RePEc:eee:streco:v:70:y:2024:i:c:p:567-580