Chang, TsangyaoSimo-Kengne, Beatrice DesireeGupta, Rangan2015-07-042015-07-042014-04Chang, T, Simo-Kengne, BD & Gupta, R 2014, 'The causal relationship between house prices and growth in the nine provinces of South Africa : evidence from panel Granger causality tests', International Journal of Sustainable Economy, vol. 6, no. 4, pp. 345-358.1756-5804 (print)1756-5812 (online)10.1504/IJSE.2014.065389http://hdl.handle.net/2263/46294This paper analyses the causal relationship between housing activity and growth in nine provinces of South Africa for the period 1995-2011, using panel causality analysis, which accounts for cross-section dependency and heterogeneity across provinces. Our empirical results support unidirectional causality running from housing activity to economic growth for most of the provinces studied; bi-directional causality between housing activity and economic growth for Gauteng; and no causality in any direction between housing activity to economic growth in Eastern Cape and KwaZulu-Natal. Our findings provide important insights for housing policies and strategies for South Africa. Specifically, housing sector might be an efficient growth-led instrument for all the provinces except Eastern Cape and KwaZulu-Natal.en© 2014 Inderscience Enterprises Ltd.House pricesEconomic growthDependency and heterogeneityPanel causality testSouth Africa (SA)Postprint Article