The Impact of Economic Development on Land Mortgage Financing in Nigeria
[1]
Nwamara, C. C., Department of Petroleum Marketing & Business Studies, Petroleum Training Institute, Effurun, Nigeria.
[2]
Aronu, C. O., Department of Statistics, Anambra State University, Uli, Nigeria.
This study examined the impact of economic development on land mortgage financing in Nigeria using Delta State as a case. The main aim is to ascertain the contributions of predictor variables such as Year, Gross Domestic Product (GDP), Money in Circulation (MC), Lending Rate (LR), Headline inflation rate (HI) and Core inflation rate (CI) on the variations on land mortgage transactions in Delta State. Secondary source of data collection was employed in this study and the multiple regression analysis was used to fit the model assuming a 95% confidence level. The result of the study revealed that the independent variables were able to explain most behavior of the dependent variable (number of land mortgage transaction) within the observed period. It was also found that the explanatory factors contributed to the model significantly. In addition, it was observed that the factors responsible for the significant contribution were variable Year and lending rate. However, variables such as Gross domestic product (GDP), volume of Money in circulation (MC), Headline Inflation (HI) and Core Inflation (CI) did not contribute significantly to the characteristics of land mortgage transaction in Delta state. The model obtained has strong reliability since the coefficient of determination of the model obtained was about 91.2% which validates strong prediction power of the model. It was observed that as land mortgage transaction increases lending rate decreases by 20.76 coefficient measure.
Gross Domestic Product, Inflation, Lending Rate, Model, Money in Circulation, Reliability
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