Document Type : Research Paper
Authors
Abstract
Since the housing investment is used as a political tool with intended effects on other areas of the economy than the housing market, in hence, this study try to investigate the relationship between housing investment and economic growth using econometrics techniques and using auto regressive distributed Lag. (ARDL), approach and quarterly data from 1371:1-1385:4 for Iran. Following this, using granger causality analysis, this paper examines the interaction between housing investment and economic growth. Therefore, this research finds significant and positive relationship between housing investment and economic growth in short run and long run in Iran. Result of granger causality approach showed bidirectional causality between housing investment and economic growth. The result of CUSUM and CUSUMSQ test also indicate that the long run relationship is stable.
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