Understanding how developing economies build housing, and how housing contributes to the growth of developing economies, is a key requirement for implementing evidence-based economic, housing, and housing finance policy. Yet, in many developing nations, insufficient macroeconomic and housing sector data exists to quantify how, where and to what extent housing influences economic growth.
This paper outlines the findings from a pioneering methodology (an economic value chain study) developed by CAHF that has been used to describe, quantify and compare the impact of housing on the economy of Côte d’Ivoire. An economic value chain framework is used to quantify the direct impact of the construction and rental of housing on the gross domestic product of a country. The Housing Economic Value Chain (HEVC) analysis quantifies intermediate inputs into housing construction and rental from ‘upstream’ primary, secondary and tertiary economic sectors, and disaggregates this into Standard Industry Classification (SIC) sectors. Further, the value-added components of residential construction and rental (labor remuneration, gross operating surplus, and net indirect taxes less subsidies) are quantified. Therefore, this paper analyses the impact that housing construction and housing rental have on the Ivorian economy, and which sectors of the national economy are most impacted by these activities.
To access the full report, please click below. A separate blog on the data landscape of Côte d’Ivoire during the preparation of this HEVC is available to emphasize the critical role of developing and accessing more housing and housing finance data in Africa.Download PDF