An Input--Output Approach for Measuring Real Estate Sector Linkages

This research aims to measure and compare the total, backward, forward, internal and sectoral linkages of the real estate sector using the hypothetical extraction method over 30 years and explore the role of this sector in national economies and the quantitative interdependence between the real estate sector and the remaining sectors from a new angle. Empirical results show an increasing trend of these linkages, which confirms the increasing role of the real estate sector with economic maturity over the examined period. On the other hand, the significant rank correlations in the linkages imply that the importance of real estate remained fairly stable among highly developed economies over the examined period. This may supply a tool to signal the maturity of an entire economy. Furthermore, the findings can aid both governments making relative policies and businesses choosing strategic partners and location strategies.