Abstract
Does new residential development cause new commercial development, or does the inverse hold true? Are residential and commercial developments dependent on each other? This paper investigates the causal links between residential and commercial development for a given city. Using information on assessment roles, a backward construction of the city of Montmagny, a small-medium city located in the province of Quebec (Canada), is conducted to build time-series data of construction of new buildings and the Granger causality test is performed for the city. The results for the period ranging from 1900–2014 underline the important role played by residential constructions in the expansion of the city under study.
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