EconPapers    
Economics at your fingertips  
 

Short and Long-Term Relationships among the Surety Bond Market, the Building Sector, and Relevant Nominal Variables Related to the Construction Industry: The Mexican Case (2006-2014)

Marco Antonio Alejo-García, Francisco Venegas-Martínez () and Salvador Cruz-Aké
Additional contact information
Marco Antonio Alejo-García: Erasmus University Rotterdam, Holland,
Salvador Cruz-Aké: Mexico, Instituto Politécnico Nacional, Mexico.

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 5, 485-497

Abstract: This paper is aimed at examining the relationship among the surety bond market, the building sector, and several important nominal variables related to the construction industry en México during 2006-2014. To do this, we use Vector Autoregressive (VAR) and cointegration models in order to find short- and long-run relationships. We also perform a Granger causality analysis and an impulse-response examination, as well as variance decomposition. The main finding is that the surety industry responds to changes in: GDP from construction, credits for the construction sector, revenues of the private construction, and credit defaults. We also find empirical evidence that in the long run the surety industry reacts to: the government investment, the default in this industry, and the interest rate.

Keywords: Surety Markets; Building Sector; Nominal Variables; Time Series Analysis (search for similar items in EconPapers)
JEL-codes: G22 E44 C32 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/5646/pdf (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/5646/pdf (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:eco:journ1:2017-05-57

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().

 
Page updated 2019-07-21
Handle: RePEc:eco:journ1:2017-05-57