Ganesan, S; Lau, S S Y; Wong, K C and Chau, K W (2004) Growth of finance, insurance and real estate (FIRE) and office space absorption in Hong Kong. Journal of Financial Management of Property and Construction, 9(2), pp. 103-117. ISSN 1366-4387
Abstract
Using causality analysis based on co-integration and ECM, the study attempts to determine if there is a long-term equilibrium contemporaneous relationship between the growth of the FIRE and business service sector and private office space absorption in Hong Kong. The usage of office space absorption instead of office completion, as a dependent variable, leads to a stronger long-run relationship with the service sector expansion, especially the FIRE and business services sector. Using a bi-variate estimation procedure of the ECM, as expected, growth of FIRE sector leads to greater use of office space while increased supply of office has no statistical influence on the growth in FIRE firms. The findings from this study provide a more accurate base for forecasting office needs.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | absorption, completion, cointegration, error correction method, Hong Kong |
| Index terms: | integration, dependent variable, cointegration, insurance, real estate, Hong Kong, office space, forecasting, estimation |
| Subjects: | economic analysis, construction type, Geography, real estate economics, financial and cost management, prediction and forecasting, organizational analysis, statistical analysis |
| Topics: | Research Practice, Business Strategy, Cost Management, Construction Technology, Urban Studies, Organizational Design, Geographical Context |
| Descriptive scope: | 3 PCA |
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