Advanced Search
MyIDEAS: Login

Housing and Housing Finance—A Review of the Links to Economic Development and Poverty Reduction

Contents:

Author Info

  • Doling, John

    (University of Birmingham)

  • Vandenberg, Paul

    (Asian Development Bank)

  • Tolentino, Jade

    (Institute for Development and Econometric Analysis, Inc.)

Registered author(s):

    Abstract

    The paper provides a review of the literature that links housing, housing finance, and economic development. The housing sector may support poverty reduction and inclusive growth in two general ways. First, housing construction contributes to economic output, creates employment, and generates a demand for materials and related services. Second, improved housing raises the standard of living of occupants. At the same time, housing purchases are costly for individuals, constituting the most valuable asset owned by most households and often requiring housing finance (mortgages) to allow for purchase. These links—between housing and the economy and between housing and housing finance—are explored in this review paper. It finds that the benefits of housing for individuals accrue in large part indirectly through better health, based on improved water and sanitation. Housing also generates large multiplier effects in terms of employment and output. Employment is created for both skilled and poorer, unskilled workers. The evidence also suggests that there is a symbiotic relationship between housing finance and financial sector development. Housing finance helps to develop the financial sector (contributing to economic growth) and is also helped by financial sector development.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.adb.org/sites/default/files/pub/2013/ewp-362.pdf
    File Function: Full text
    Download Restriction: no

    Bibliographic Info

    Paper provided by Asian Development Bank in its series ADB Economics Working Paper Series with number 362.

    as in new window
    Length: 40 pages
    Date of creation: 30 Jul 2013
    Date of revision:
    Handle: RePEc:ris:adbewp:0362

    Note: http://www.adb.org/sites/default/files/pub/2013/ewp-362.pdf
    Contact details of provider:
    Web page: http://www.adb.org
    More information through EDIRC

    Related research

    Keywords: housing; finance; mortgages; inclusive growth;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Oyeshola Femi Kofoworola & Shabbir Gheewala, 2008. "An input-output analysis of Thailand's construction sector," Construction Management and Economics, Taylor & Francis Journals, vol. 26(11), pages 1227-1240.
    2. Denise DiPasquale & Edward L. Glaeser, 1998. "Incentives and Social Capital: Are Homeowners Better Citizens?," NBER Working Papers 6363, National Bureau of Economic Research, Inc.
    3. Roberto Pietroforte & Tullio Gregori, 2003. "An input-output analysis of the construction sector in highly developed economies," Construction Management and Economics, Taylor & Francis Journals, vol. 21(3), pages 319-327.
    4. Robert M. Buckley & Jerry Kalarickal, 2005. "Housing Policy in Developing Countries: Conjectures and Refutations," World Bank Research Observer, World Bank Group, vol. 20(2), pages 233-257.
    5. Richard K. Green & Michelle J. White, 1994. "Measuring the Benefits of Homeowning: Effects on Children," University of Chicago - George G. Stigler Center for Study of Economy and State 93, Chicago - Center for Study of Economy and State.
    6. Prince Christian R. Cruz, 2008. "Transaction Costs and Housing Affordability in Asia," International Real Estate Review, Asian Real Estate Society, vol. 11(1), pages 128-150.
    7. Daniel Aaronson, 1999. "A note on the benefits of homeownership," Working Paper Series WP-99-23, Federal Reserve Bank of Chicago.
    8. Zhuang, Juzhong & Gunatilake, Herath & Niimi, Yoko & Ehsan Khan, Muhammad & Jiang, Yi & Hasan, Rana & Khor, Niny & S. Lagman-Martin, Anneli & Bracey, Pamela & Huang, Biao, 2009. "Financial Sector Development, Economic Growth, and Poverty Reduction: A Literature Review," ADB Economics Working Paper Series 173, Asian Development Bank.
    9. Robert Holzmann & Joseph E. Stiglitz, 2001. "New Ideas about Old Age Security : Toward Sustainable Pension Systems in the 21st Century," World Bank Publications, The World Bank, number 13857, October.
    10. Jappelli, Tullio & Pagano, Marco, 1992. "Saving, Growth and Liquidity Constraints," CEPR Discussion Papers 662, C.E.P.R. Discussion Papers.
    11. Chan, Thomas Sai-fan, 1999. "Residential Construction and Credit Market Imperfection," The Journal of Real Estate Finance and Economics, Springer, vol. 18(1), pages 125-39, January.
    12. Beck, H.T.L. & Demirgüç-Kunt , A. & Peria, M.M, 2007. "Reaching out: Access to and use of banking services across countries," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3125425, Tilburg University.
    13. Willmore, Larry, 2007. "Universal Pensions for Developing Countries," World Development, Elsevier, vol. 35(1), pages 24-51, January.
    14. Holzmann, Robert & Packard, Truman & Cuesta, Jose, 2000. "Extending coverage in multi-pillar pension systems : constraints and hypotheses, preliminary evidence and future research agenda," Social Protection Discussion Papers 21303, The World Bank.
    15. Loic Chiquier & Michael Lea, 2009. "Housing Finance Policy in Emerging Markets," World Bank Publications, The World Bank, number 2641, October.
    16. Park, Se-Hark, 1989. "Linkages between industry and services and their implications for urban employment generation in developing countries," Journal of Development Economics, Elsevier, vol. 30(2), pages 359-379, April.
    17. Vladimir Klyuev & Paul S. Mills, 2006. "Is Housing Wealth An 'ATM'? the Relationship Between Household Wealth, Home Equity withdrawal, and Saving Rates," IMF Working Papers 06/162, International Monetary Fund.
    18. Ben C. Arimah, 1992. "An Empirical Analysis of the Demand for Housing Attributes in a Third World City," Land Economics, University of Wisconsin Press, vol. 68(4), pages 366-379.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ris:adbewp:0362. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Guia S. de Guzman) The email address of this maintainer does not seem to be valid anymore. Please ask Maria Guia S. de Guzman to update the entry or send us the correct address.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.