Processes of economic development: case of Lithuanian real estate sector

The enlargement of the EU has impacted development of housing market in Lithuania as well as in other Central and Eastern countries. The country was significantly influenced by favorable landing and expansion of private sector credit. Hence, Lithuania experienced the period of the financial and asset price boom, which was followed by economic downturn, and consequently, the burst of price bubble. This paper aims to reveal relationships among demand and supply side determinants and housing prices. Hence, the question is being raised if fundamental determinants affect housing prices. The growing dependence of Lithuania on energy resources leads us towards another research question. We will test if housing prices are linked to energy prices. Regression analysis tool, we believe, allows revealing if fundamental determinants are equally important.

[1]  Manuela Tvaronavičienė,et al.  Economic growth, sustainable development and energy security interrelations , 2013 .

[2]  Haibin Zhu,et al.  Determinants of House Prices in Nine Asia-Pacific Economies , 2008 .

[3]  D. Miles,et al.  The Impact of Changing Demographics and Pensions on the Demand for Housing and Financial Assets , 2005 .

[4]  Modeling Housing Market Fundamentals: Empirical Evidence of Extreme Market Conditions , 2008 .

[5]  C. Himmelberg,et al.  Assessing High House Prices: Bubbles, Fundamentals, and Misperceptions , 2005 .

[6]  Manuela Tvaronavičienė,et al.  Contemporary perceptions of energy security: policy implications , 2012 .

[7]  Marija Burinskienė,et al.  Effects of quality of life on the price of real estate in vilnius city , 2011 .

[8]  G. Ambrasas,et al.  An analysis of dwelling market in Vilnius, Lithuania , 2007 .

[9]  Mirjana Radović-Marković.  Critical employment analysis: theory, methodology and research , 2011 .

[10]  M. Tvaronavičienė,et al.  Secure and sustainable development: Lithuania’s new role in taking the Presidency of the EU , 2013 .

[11]  B. Galiniene,et al.  Analysis of the housing market in Lithuania , 2008 .

[12]  Daniel Kosicki,et al.  Real estate price dynamics , housing finance and related macroprudential tools in the Baltics , 2013 .

[13]  Vidas Lekavičius,et al.  New Changes in Lithuanian Energy Sector , 2013 .

[14]  C. Purfield,et al.  Adjustment Under a Currency Peg: Estonia, Latvia and Lithuania During the Global Financial Crisis 2008-09 , 2010, SSRN Electronic Journal.

[15]  C. Goodhart,et al.  House Prices, Money, Credit and the Macroeconomy , 2008, SSRN Electronic Journal.

[16]  Audronė Balkytė,et al.  The Role of Migration for Sustainable Developing Economy: Lithuania in the EU Context , 2011 .

[17]  Manuela Tvaronavičienė,et al.  Security and sustainable development approaches and dimensions inn the globalization context , 2012 .

[18]  Edvins Karnitis.  STRATEGY AND EFFICIENT MECHANISMS TO IMPROVE SECURITY AND SUSTAINABILITY OF THE NATURAL GAS SUPPLY IN BALTIC STATES , 2011 .

[19]  Manuela Tvaronavičienė,et al.  If industrial sector development is sustainable: Lithuania compared to the EU , 2014 .

[20]  W. Maennig,et al.  Shrinking and Growing Metropolitan Areas - Asymmetric Real Estate Price Reactions? The Case of German Single-Family Houses , 2007 .

[21]  Haibin Zhu,et al.  What Drives Housing Price Dynamics: Cross-Country Evidence , 2004 .

[22]  Algis Šileika,et al.  The theoretical issues of unemployment, poverty and crime coherence in the terms of sustainable development , 2013 .

[23]  Gitana Dudzevičiūtė.  The research of the economic structural changes: energy consumption aspect , 2013 .

[24]  G. Dubauskas.  International Banks in the Baltic states: aspects of growth sustainability , 2011 .

[25]  C. Borio,et al.  Exploring aggregate asset price fluctuations across countries: measurement, determinants and monetary policy implications , 1994 .

[26]  Agnė Šimelytė,et al.  Economic development and its influence on state capital structure , 2013 .

[27]  Balázs Égert,et al.  Determinants of House Prices in Central and Eastern Europe , 2007 .

[28]  M. Tvaronavičienė,et al.  GLOBALIZATION DRIVERS IN DEVELOPED AND LESS DEVELOPED COUNTRIES: IF CONSISTENT PATTERNS CAN BE TRACED , 2013 .

[29]  M. Koetter,et al.  Real Estate Prices and Bank Stability , 2009 .