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The dynamic nexus of crop production and population growth: housing market sustainability pathway

Abstract

The urban poor residents in South Africa are over time known for imbalance and inadequate housing amidst recent concern of shock in food production. In studying this peculiar problem, this study investigates the cointegration and long-run equilibrium relationship of population growth, crop production, and the housing price in the country. Empirically, a quarterly data from 1975:Q1 to 2015:Q4 is employed using the conventional Autoregressive Distributed Lag. The investigation shows strong significant evidence of cointegration and a quarterly speed of adjustment of 17.2% to long run in the system. Also, as the population grows, a decline in house price index is experienced in the long run. Although unusual, adequate and sustainable housing plan, demand-supply dynamics, in respect to a country’s population expansion could posit observation. But, in the short run, a strongly significant positive association is observed. It shows further that positively short-run and long-run relationships significantly exist between crop production and house price index. In reality, caution is essential in the introduction of land redistribution policy to avoid hampering the housing policies and 2030 housing target of the government.

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Fig. 1

Notes

  1. Time series unit root tests described by Dickey and Fuller (1979), Phillips and Perron (1988), and Kwiatkowski et al. (1992) were fully employed to ascertain the suitability of ARDL model.

  2. Detail of the testing with hypothesis illustration that there exist no level and long-run relationship between the variables and estimation of ECT (− 1) is contained in Pesaran et al. (2001).

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Acknowledgments

Authors’ gratitude is extended to the prospective editor(s) and reviewers that will/have spared time to guide toward a successful publication.

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Correspondence to Andrew Adewale Alola.

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Appendix

Appendix

Table 5 The unit root tests

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Alola, A.A., Alola, U.V. The dynamic nexus of crop production and population growth: housing market sustainability pathway. Environ Sci Pollut Res 26, 6472–6480 (2019). https://doi.org/10.1007/s11356-018-04074-1

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Keywords

  • Housing market
  • Crop production
  • Population growth
  • South Africa

JEL

  • C22
  • N57
  • R31