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What comes first, residential or commercial development? Measuring the causal links for a Canadian city over a century

Author

Listed:
  • Jean Dubé

    (Université Laval)

  • Charles-David Babin

    (Université Laval)

  • Jean-Christophe Dubé

    (Université Laval)

  • Hemza Lekkat

    (Université Laval)

  • Alexandre Potvin

    (Université Laval)

  • Olivier Ringue

    (Université Laval)

Abstract

Does new residential development cause new commercial development, or does the inverse hold true? Are residential and commercial developments dependent on each other? This paper investigates the causal links between residential and commercial development for a given city. Using information on assessment roles, a backward construction of the city of Montmagny, a small-medium city located in the province of Québec (Canada), is conducted to build time-series data of construction of new buildings and the Granger causality test is performed for the city. The results for the period ranging from 1900–2014 underline the important role played by residential constructions in the expansion of the city under study.

Suggested Citation

  • Jean Dubé & Charles-David Babin & Jean-Christophe Dubé & Hemza Lekkat & Alexandre Potvin & Olivier Ringue, 2017. "What comes first, residential or commercial development? Measuring the causal links for a Canadian city over a century," Letters in Spatial and Resource Sciences, Springer, vol. 10(1), pages 57-74, March.
    • Handle: RePEc:spr:lsprsc:v:10:y:2017:i:1:d:10.1007_s12076-016-0171-9
    DOI: 10.1007/s12076-016-0171-9
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    Cited by:

    1. Champagne, Marie-Pier & Dubé, Jean & Barla, Philippe, 2022. "Build it and they will come: How does a new public transit station influence building construction?," Journal of Transport Geography, Elsevier, vol. 100(C).

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    More about this item

    Keywords

    Local development; Spatial microdata; Granger causality; Vector autoregressive model;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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