|GDP per capita|0.0002|0.0001|0.0002|0.0002|0.0003|
|---|---|---|---|---|---|
||(0.002)|(0.002)|(0.002)|(0.002)|(0.002)|
|Voice accountability|-0.00003|-0.00006|-0.00004|0.00004|0.00001|
||(0.0001)|(0.0001)|(0.0001)|(0.00008)|(0.0001)|
|Domestic credit to private sector|-0.0002|-0.0001|-0.0002|**0.0002****|-0.0002|
||(0.0001)|(0.0001)|(0.0001)|**(0.0001)**|(0.0001)|
|Trade openness|-0.00004|-0.00004|-0.0003|-0.00003|-0.00003|
||(0.00003)|(0.00003)|(0.00003)|(0.00002)|(0.00003)|
|Inflation|0.00005|0.0001|0.00005|0.0001|-0.00001|
||(0.0002)|(0.0002)|(0.0002)|(0.0001)|(0.0002)|
|Interest rate|0.0001|0.0002|0.0001|0.00003|0.0001|
||(0.0001)|(0.0001)|(0.0001)|(0.0001)|(0.0001)|
|Transfers|8.95e-20|1.03e-19|8.9e-20|8.9e-21|4.9e-20|
||(1.15e-19)|(1.1e-19)|(1.1e-19)|(9.3e-20)|(1.1e-19)|
|Kaolegal|---|**-0.007****<br>**(0.002)**|---|---|**---**|
|Kaosahel|---|---|-0.001<br>(0.005)|---|---|
|Kaomac|---|---|---|**-0.0004*****<br>**(0.00004)**|---|
|Kaofcbf|---|---|---|---|**0.003*****<br>**(0.0009)**|
|Constant|-0.004|-0.02|-0.005|-0.027|0.04|
||(0.063)|(0.061)|(0.062)|(0.05)|(0.062)|
|Countries|45|45|45|45|45|
|Observations|223|223|233|223|223|

_Source_ : Authors estimates _Note_ : Kaolegal (Financial openness*Legal- _dummy_ : Legal-based decomposition-); Kaosahel (Financial openness*Sahel- _dummy_ : Sahel-based decomposition-); Kaowealth (Financial openness*Wealth- _dummy_ : wealth-based decomposition-); Kaotrop (Financial openness*Trade openness); Kaomac (Financial openness*Market capitalization); Kaofbcf (Financial openness*Investment stock). *,**,**: significance levels of 10%, 5% and 1% respectively. Values in bracket are standard errors.

Stock market capitalization is a key determinant of housing finance in SSA. In fact, it is significant in all specifications of our empirical model. This result is coherent with the theoretical prediction and the empirical finding of Badev et al. (2014) at a global level. As a matter of fact, financial and stock markets are less developed in almost all African countries. A study by Beck et al. (2011) shows that more banking and less stock market are the key features of the financial structure; this could be the reason why SSA has a weak housing finance market, since its financial structure is more bank based than market based.

Indeed, we can see that this financial structure failed to improve housing finance depth in SSA. This could be explained by the fact that the banking sector usually does not offer specific and acceptable housing loans, which are generally long-term loans. For almost all these countries, there are several government and private banks, but mortgage depth remains low, stable, and sometimes tends to decrease.

Therefore, policy makers who wish to boost housing finance in SSA countries should consider strengthening the development of stock markets. Moreover, credit to the private sector is non-significant and negatively correlated to housing finance in some countries while it is significant and positively correlated to housing finance in others. This ambiguous empirical result might mean that the assumption that banking development is a catalyzer of housing finance should be reconsidered since it seems to be detrimental. Indeed, the country case studies in the appendix show that in Africa the banking sector is more developed than the financial sector—however, the region still has a low depth of housing finance. Developing mortgage markets is imperative and should be encouraged by a clear state policy.

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