Are Housing and Ship Demolition Markets Integrated? Evidence From Turkey

The purpose of this study is to investigate the impact of the demand for new houses to ship demolition prices in Turkey through new house sales statistics and Turkish ship demolition prices. In this direction, asymmetric causality test is used which allows to separate the shocks contained in the variables and to determine the causal relationships between these shocks. According to test results, causality relations are determined from positive shocks in house sales to positive shocks in demolition price and from negative shocks in house sales to negative shocks in demolition price. On the other hand, any significant causality from demolition prices to new house sales cannot be determined. This situation shows that changes in the new house sales are determinative for ship demolition prices in Turkey.