The Role of the Real Estate Sector in the Economy: Cross-National Disparities and Their Determinants

A scientific understanding of the real estate sector's role in the national economy is essential for facilitating reasonable and effective regulation and promoting economic development. By analyzing panel data from a sample of 67 countries between 2010 and 2018, we examine the role of the real estate sector in different countries and its determinants. This empirical study yields three main findings. Firstly, there is a strong correlation between the real estate sector and the financial services sector, the construction industry, as well as wholesale and retail trade. Notably, China's real estate sector exhibits relatively high direct consumption of financial service activities compared to other major countries. Secondly, there is a transition trend in both the input and output of the real estate sector from primary and secondary industries towards service-oriented industries. Lastly, key determinants influencing the economic effects of the real estate sector in a country include economic growth, current national income level, expense structure of the economy, aging population, as well as urbanization speed.