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

G.K., Chetan Kumar and K.B., Rangappa and S., Suchitra (2021): Analyzing Interlinkages between Financial and Real Estate Sector in the aftermath of COVID-19's Second wave: An Econometric Approach using VECM model. Published in: Towards Excellence , Vol. 13, No. December 2021 (1 December 2021): pp. 692-705.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Real Estate Sector, Financial Sector, Co-integration, Vector Error Correction Model, normalcy, post-pandemic, Covid-19
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C15 - Statistical Simulation Methods: General; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C53 - Forecasting and Prediction Methods ; Simulation Methods; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C58 - Financial Econometrics; G - Financial Economics > G2 - Financial Institutions and Services; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M2 - Business Economics; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M2 - Business Economics > M21 - Business Economics

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