Housing and economic growth Nexus in Nigeria: data-based evidence
Okwu, Andy Titus; Ngoepe-Ntsoane, Mokgadi Julia; Tochukwu, Obiakor Rowland; Obiwuru, Timothy Chidi
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 modifi ed 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 signifi cantly spurred growth of the
economy. Further, housing services delivery and
growth of the economy had high speed adjustment
coeffi cient to long-run equilibrium growth
path under stable structural housing sector services
delivery and appropriate human labor mix
participation. Therefore, the paper concluded
that housing services enhanced growth of the
economy, and emphasized the need for appropriate
human, capital and fi nancial policies for
the sector to engender sustainable growth and
development of the Nigerian economy.
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