The Role of Affordable Mortgages in Improving Living Standards and Stimulating Growth: A Survey of Selected MENA Countries

Erbas, S. Nuri; Nothaft, Frank E.

doi:10.2139/ssrn.879351

Cited by 4 publications

(4 citation statements)

References 6 publications

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“…Indeed, our results imply that for every 100 dollars spent on housing finance activities in Africa, 225% of this amount positively impacts GDP growth, whereas for the same amount, 36.5% only will positively impact GDP per capita growth. This result confirms the findings of Hongyu et al (2002), Erbas and Nothaft (2002), Uy (2006), andFreire et al (2006) in other regions and is another reason why African countries should consider expanding their mortgage markets. In addition, the population at the working-age (indexed by the 15-64 age cohort of the population), investment stock, human capital, and infrastructure present a positive impact on workforce productivity growth in Africa.…”

Section: 22supporting

confidence: 91%

“…Second, our results suggest that a 1 percentage point increase of housing finance depth could lead to a 0.37 percentage point increase in the growth of GDP per capita. This result is in line with Hongyu et al (2002), Erbas and Nothaft (2002), Uy (2006), and Freire et al (2006) as well as findings from other regions. Controlling for countries' income levels revealed that upper-middle-income countries perform better on housing finance indicators.…”

Section: Introductionsupporting

confidence: 92%

“…Chen and Zhu (2008) found that the relationship between housing investment and economic growth in China is different depending on which provinces are analyzed. Moreover, Erbas and Nothaft (2002) found that low‐income housing has a lower import component in the production and higher labor intensity. This implies that the construction of low‐income housing will lead to greater employment and growth than the construction of middle‐ or high‐income housing.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

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On threshold effect of housing finance on shared prosperity: Evidence from sub‐Saharan Africa

Nguena

Tchana

Zeufack

2023

Bulletin of Econ Res

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Applying panel threshold regression technics along with alternative econometric investigation on a panel database of 48 sub‐Saharan African (SSA) countries over the period 2000–2012, this paper analyzes the structure of housing finance in SSA countries and mainly verifies if there is a threshold effect on shared prosperity. Independently of the method used, our findings offer strong evidence of an inverted U‐shaped relationship between housing finance and inequality. The current level of development of housing finance in SSA, which is at its very early stage, is not yet an effective tool for reducing economic inequality; however, beyond a given threshold, housing finance becomes effective in reducing inequality. Indeed, higher values of housing finance depth above a certain threshold of 6.35% reduce inequality, whereas values below 6.35% and very high values have no significant impact. In addition, there is a slightly positive relationship between housing finance and labor productivity growth in SSA. Results also show that the way housing finance impact inequality is highly dependent on their ability to implement effective crisis fight policies. Controlling for countries’ income levels, legal origin, and regional proximity revealed relative benchmarking, typology, and characteristics of SSA housing finance. These findings suggest some policies to stimulate the development of housing finance in SSA. As a bonus, this paper also highlights several other pillars that can be used to support shared prosperity in SSA.

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Section: 22supporting

confidence: 91%

Section: Introductionsupporting

confidence: 92%

Section: Empirical Literature Reviewmentioning

confidence: 99%

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On threshold effect of housing finance on shared prosperity: Evidence from sub‐Saharan Africa

Nguena

Tchana

Zeufack

2023

Bulletin of Econ Res

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“…These include state mortgage banks , various subsidy systems, and private mortgage lendin g systems. The issu e is relevant for economic growth an d well-being because the construction secto r ca n b e a powerfu l engin e o f economic growt h an d housing ownershi p ma y be a source of other desirabl e effects, suc h as reduced poverty an d improved civi c behavior (Erbas an d Nothaft 2002) . I n addition, a smoothly functionin g housing financ e system can contribute t o the development of the financial system and the capital market.…”

Section: Foundations Of Housing Financementioning

confidence: 99%

Unlocking Credit: The Quest for Deep and Stable Bank Lending. Economic and Social Progress in Latin America. 2005 Report

Kiguel,

Levy Yeyati,

Galindo

et al. 2005

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Credit supplied by the banking sector is the most important funding source for firms and households in Latin America and the Caribbean. Unfortunately, credit is scarce, costly and volatile. Without deep and stable credit markets, the region will be hard pressed to achieve high and sustainable growth rates and combat poverty. Given the importance of banking to growth and prosperity, the Inter-American Development Bank has made this sector the focus of its 2005 Report on Economic and Social Progress in Latin America. The Report analyzes the three main characteristics of bank credit--scarcity, expense and volatility--and makes policy recommendations.

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Analysis of cross-country variations in the depth of European mortgage markets

Kutlukaya¹,

Erol

2015

J Hous and the Built Environ

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Due to copyright restrictions, the access to the full text of this article is only available via subscription.To date, quantitative analysis on the depth of mortgage markets across a broad set of countries has been very limited. This paper uses a rich and balanced data set on 31 European countries to investigate the cross-country variations in the depth of mortgage markets during the period 2005–2012. The present paper might be accepted as the updated and enriched version of existing research for the European region in terms of the coverage of countries, historical data and the empirical analyses. Our empirical findings reveal that developed countries have sizeable residential mortgage markets and this is mainly associated with higher urbanization rates and stronger legal rights. One of the most notable results of this study is that, statistical significance of explanatory variables in modeling the depth of the mortgage markets depends heavily on both the variables, countries (regions) included in the models and the regression methodology used. Hence, we argue that strong conclusions based on such analyses should be avoided and the findings of previous research on the variations of the depth of mortgage markets should be carefully evaluated

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The Role of Affordable Mortgages in Improving Living Standards and Stimulating Growth: A Survey of Selected MENA Countries

Cited by 4 publications

References 6 publications

On threshold effect of housing finance on shared prosperity: Evidence from sub‐Saharan Africa

On threshold effect of housing finance on shared prosperity: Evidence from sub‐Saharan Africa

Unlocking Credit: The Quest for Deep and Stable Bank Lending. Economic and Social Progress in Latin America. 2005 Report

Analysis of cross-country variations in the depth of European mortgage markets

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