Analyzing Interlinkages between Financial and Real Estate Sector in the aftermath of COVID-19's Second wave: An Econometric Approach using VECM model

Chetan Kumar G.K., Rangappa K.B. and Suchitra S.

MPRA Paper from University Library of Munich, Germany

Abstract: Entire global economy has been adversely affected by the demand and supply shocks which have been created due to consequent waves of Covid-19 pandemic. Indian Economy was none the better amidst the second wave. Due to the demand and supply shocks at both national and international level, Indian Economy witnessed an unprecedented contraction of its Gross Domestic Product by around twenty four percent. In this context one of the few prominent sectors which could assist in the recovery of Indian Economy is expected to be Real Estate. Due to its inherent forward and backward linkages with infrastructure, it could assist in faster recovery of economy through multiplier effect. In addition to that, Credit Policy is going to play a vital role in assisting the recovery of any prominent sector. In this backdrop, our study is an attempt to analyze as to whether Real Estate, Infrastructure and Financial sector are co-integrated or not. Further, provided they are co-integrated, our study tries to find out the speed of correction. Our paper through its empirical approach aims to suggest relevant credit policy measures.

Keywords: Real Estate Sector; Financial Sector; Co-integration; Vector Error Correction Model; normalcy; post-pandemic; Covid-19 (search for similar items in EconPapers)
JEL-codes: C15 C53 C58 G2 G21 M2 M21 (search for similar items in EconPapers)
Date: 2021-12-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Towards Excellence December 2021.13(2021): pp. 692-705

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/112440/1/MPRA_paper_112440.pdf original version (application/pdf)

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:pra:mprapa:112440

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().