Housing and Economic Growth Nexus: Data-Based Evidence

Housing and Economic Growth Nexus: Data-Based Evidence

Author by Dr. Andy Okwu

Journal/Publisher: Transylvanian Review Of Administrative Sciences

Volume/Edition: 13

Language: English

Pages: 70 - 88

Abstract

Housing is considered as one of the cardinal measures of the state of an economy. This paper employed data-based evidence to explore housing sector-economic growth relationship in Nigeria during 1980-2015. Choice variables were real estate business services (REBS), building construction investments (BCI), property rights index (PRI) and human labor (L) engaged in the sector. Anchored on perceived interactions among the variables, articulated conceptual model preceded an analytic model modified from the endogenous growth model of economic theory. Graphical and econometric techniques were employed to analyze the data sets on the variables for trends in time series values of the variables; and the effects of the housing sector variables on growth of the economy. The results showed that housing services delivery had long-run relationship and significantly spurred growth of the economy. Further, housing services delivery and growth of the economy had high speed adjustment coefficient to long-run equilibrium growth path under stable structural housing sector services delivery and appropriate human labor mix participation. Therefore, the paper concluded housing services enhanced growth of the economy, and emphasized the need for appropriate human, capital and financial policies for the sector to engender sustainable growth and development of the Nigerian economy.


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