Abstract
ABSTRACT Using 10 countries’ data set spanning from 1995 to 2018, we examined the non-linearity existing between financial development and mortgage financing in Africa. We invoke the Hansen (2000. “Sample Splitting and Threshold Estimation.” Econometrica 68 (3): 575–603. doi:10.1111/1468–0262. 00124.) sample-splitting estimation approach. We observed that more financial development (private credit) impedes mortgage finance when measured against construction but enhanced when measured against GFCF. The same effect is present when domestic credit is used against construction. With GFCF, countries must operate above the threshold point to gain maximum advantage while with Broad money, spending below the threshold estimate is good for mortgage financing. Trade also has positive effect on mortgage finance as this will help the continent’s mortgage development given member countries decisions to adopt the continental free trade policy. This further indicates that, countries involved should work in order not to exceed the threshold point estimate as operating above the threshold would become disincentive for mortgage financing on the continent.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
