Impact of China's real estate industry on the fixed investment growth of the furniture industry based on VEC Structural Breakpoint Model

Abstract

The fluctuations in the real estate industry often directly affect the furniture industry. With the completion of new residential and commercial buildings, consumers and businesses need to purchase furniture for decoration, and the prosperity of the real estate market usually increases the demand for furniture; Relatively speaking, the downturn in the real estate industry will also have an impact on the furniture industry. The furniture industry, logistics transportation, wood processing, and real estate industry have formed an interdependent industrial chain, in which logistics is the link connecting all links, ensuring the efficient circulation of materials and products. As one of the important indicators of economic growth, fixed assets investment (FAI), especially in the field of real estate and infrastructure, not only promotes the demand of furniture manufacturing industry, but also drives the development of related upstream and downstream industries, forming a complete supply chain and value chain. The VECM model provides a short-term to long-term analytical perspective, and through the structural breakpoint model, it can identify the interaction between variables in different periods and economic cycles, further explore the impact of real estate industry fluctuations on furniture demand, and provide a clearer analytical framework for understanding the volatility of the industry chain.