INTER-RELATIONSHIP BETWEEN THE HOUSING MARKET AND HOUSING FINANCE SYSTEM: EVIDENCE FROM MALAYSIA
The Malaysian housing market and associated housing finance system have expanded significantly as a result of rapid urbanisation since the late 1980s. The key aspect of this paper is to analyse the inter-relationship between the housing market and housing finance system in Malaysia. The paper employ...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Online Access: | View Fulltext in Publisher |
| Summary: | The Malaysian housing market and associated housing finance system have expanded significantly as a result of rapid urbanisation since the late 1980s. The key aspect of this paper is to analyse the inter-relationship between the housing market and housing finance system in Malaysia. The paper employs Vector Autoregressive approach and Granger Causality test to empirically investigate this inter-relationship. In Malaysia, no housing studies has actually looked into or used this approach to identify the inter-relationship between these two elements. The key findings show that there is a strong inter-relationship between the housing market and housing finance system. The direction of causality shows that there is a bi-directional relationship between the housing market and housing finance system. These inter-relationships provide evidence that sound performance of the sub-markets within the housing finance system is a determinant prerequisite of the robustness of the housing finance system, if a healthy performance of the housing market is to be achieved. |
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| ISBN: | 1648-715X 1648-9179 |
| DOI: | 10.3846/1648715X.2014.912691 |