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

Fredrick Chege; Hassan F. Gholipour; Sharon Yam

doi:10.1108/IJHMA-04-2023-0047

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

Fredrick Chege, Hassan F. Gholipour, Sharon Yam

Western Sydney University

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

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.

Original language	English
Pages (from-to)	1540-1557
Number of pages	18
Journal	International Journal of Housing Markets and Analysis
Volume	17
Issue number	6
DOIs	https://doi.org/10.1108/IJHMA-04-2023-0047
Publication status	Published - 2 Dec 2024

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Publisher Copyright:
© 2023, Emerald Publishing Limited.

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10.1108/IJHMA-04-2023-0047

Cite this

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title = "The long-run impact of remittances on house prices in Kenya",

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{\textquoteright} 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.",

author = "Fredrick Chege and Gholipour, {Hassan F.} and Sharon Yam",

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T1 - The long-run impact of remittances on house prices in Kenya

AU - Chege, Fredrick

AU - Gholipour, Hassan F.

AU - Yam, Sharon

PY - 2024/12/2

Y1 - 2024/12/2

N2 - 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.

AB - 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.

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DO - 10.1108/IJHMA-04-2023-0047

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JO - International Journal of Housing Markets and Analysis

JF - International Journal of Housing Markets and Analysis

IS - 6

ER -

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

Abstract

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