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The long-run impact of remittances on house prices in Kenya

Fredrick Chege (School of Business, Western Sydney University, Sydney, Australia)
Hassan F. Gholipour (School of Business, Western Sydney University, Sydney, Australia)
Sharon Yam (School of Business, Western Sydney University, Sydney, Australia)

International Journal of Housing Markets and Analysis

ISSN: 1753-8270

Article publication date: 16 June 2023

196

Abstract

Purpose

Given the coincidental and sustained rise in house prices and foreign capital flows in Kenya, this study aims to understand whether a long-run relationship exists between real diaspora remittances and real house prices.

Design/methodology/approach

This study uses data from 2004-Q1 to 2020-Q4 and applies an autoregressive distributed lag model for estimation.

Findings

The results indicate that a positive and significant relationship exists between real remittances and real house prices in Kenya in the long run.

Originality/value

To the best of the authors’ knowledge, there is no study exploring the relationship between real remittance inflows and house prices in Kenya, after controlling for other key macroeconomic determinants of house prices. This study addresses this research gap.

Keywords

Acknowledgements

The authors appreciate the helpful comments and suggestions of two anonymous referees.

Citation

Chege, F., Gholipour, H.F. and Yam, S. (2023), "The long-run impact of remittances on house prices in Kenya", International Journal of Housing Markets and Analysis, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJHMA-04-2023-0047

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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