HOUSING AND ECONOMIC GROWTH NEXUS IN NIGERIA: DATA-BASED EVIDENCE

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, the 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 a long-run relationship and significantly spurred the 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 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