The causal relationship between house prices and growth in the nine provinces of South Africa: evidence from panel - Granger causality tests
This paper analyses the causal relationship between housing activity and growth in nine provinces of South Africa for the period 1995-2011, using panel causality analysis, which accounts for cross-section dependency and heterogeneity across provinces. Our empirical results support unidirectional causality running from housing activity to economic growth for most of the provinces studied; bi-directional causality between housing activity and economic growth for Gauteng; and no causality in any direction between housing activity to economic growth in Eastern Cape and KwaZulu-Natal. Our findings provide important insights for housing policies and strategies for South Africa. Specifically, housing sector might be an efficient growth-led instrument for all the provinces except Eastern Cape and KwaZulu-Natal.
Year of publication: |
2014
|
---|---|
Authors: | Chang, Tsangyao ; Simo-Kengne, Beatrice D. ; Gupta, Rangan |
Published in: |
International Journal of Sustainable Economy. - Inderscience Enterprises Ltd, ISSN 1756-5804. - Vol. 6.2014, 4, p. 345-358
|
Publisher: |
Inderscience Enterprises Ltd |
Subject: | house prices | economic growth | cross-sectional dependency | cross-sectional heterogeneity | panel causality analysis | sustainability | sustainable development | sustainable economies | South Africa | Granger causality tests | housing activity | housing policies | housing strategies | housing sector |
Saved in:
Online Resource