Impact Of The Real Estate Development On The Economic Growth Of Romania

In this paper, the author intends to emphasize the impact of supply in response to real estate demand (measured through the statistical data regarding constructions intended for residential purposes) and the economic growth, measured through the Gross Domestic Product. The type of influence studied is Granger causality, evaluated according to the Toda-Yamamoto procedure. Most significant outputs achieved during the analysis are presented as tables and figures, to contribute, as the author hopes, to a better understanding of the research. The variables were tested in their nominal values and in the form of elasticity, based on natural logarithms. Statistically significant values have been achieved only in the tests involving elasticities, which are described in detail in the results section. Even if the development of the residential constructions sector does have an influence on economic growth, this cannot be qualified as a Granger causality than in a limited number of cases. The limitations of the research are incurred, mainly, by the values captured in the datasets, which lead to a certain behavior of the vector autoregressive models that form the core of the applied methodology. The originality of the research is represented by the fact that the author aims to evaluate whether the analyzed sector, through the selected indicators, exerts a Granger causality-type influence on the economic growth.