Remittances' Influence on Housing Construction Demand in Sub‐Saharan Africa: The Case of Kenya |
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| Authors: | John M Kagochi Maina Kiambigi |
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| Institution: | John M. Kagochi (corresponding author), University of Houston‐Victoria, 3007 N. Ben Wilson, Victoria, TX 77901, tel: +1 361 570 4235, fax: +1 361 580 5529, e‐mail: kagochij@uhv.edu. Maina Kiambigi, Jomo Kenyatta University College of Science and Technology, Juja, Kenya 62000, e‐mail: mkiambigi@sabs.jkuat.ac.ke |
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| Abstract: | Abstract: Although it is well documented that immigrants maintain economic and social ties with their communities of origin through remittances, the role of remittances in asset acquisition for most African countries is yet to be documented. This study provides empirical estimates for the impact of remittances from abroad on housing construction demand in Kenya using time series data for the period 1970–2008. An autoregressive distributed lag (ARDL) modelling process is employed to capture the effect of remittances and other variables on housing construction demand. The computed short‐ and long‐run elasticities indicate that inbound remittances are one of the determinants of housing construction demand in Kenya. Other significant determinants include income, interest rates and urbanization growth. |
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