Ramachandra, T; Rotimi, J O B and Rameezdeen, R (2013) Direction of the causal relationship between construction and the national economy of Sri Lanka. Journal of Construction in Developing Countries, 18(2), pp. 49-63. ISSN 1823-6499
Abstract
Causal relationships between construction and national economies have received considerable attention in the past. However, the results of research on this topic provide contrasting views about the nature of the relationship. This paper investigates the direction of the causal relationship between construction and the economy of a developing country, Sri Lanka, using empirical data for selected economic and construction indicators for the period 1990 to 2009. The pattern of the causal relationship was determined using the Granger causality test. The findings reveal that national economic activities precede construction activities for all indicators except construction investment. The study therefore concludes and strengthens the body of knowledge concerning the causal relationship between the construction sector in Sri Lanka and the national economy tending towards a uni-directional relationship, with the national economy inducing growth in the construction sector and not vice versa.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction; economy; Granger causality; Sri Lanka |
| Index terms: | construction sector, body of knowledge, Granger causality test, developing country, national economy, Sri Lanka, economic activity, construction activity |
| Subjects: | factor and component analysis, Geography, development economics, industry analysis, construction operations, knowledge management, economic analysis |
| Topics: | Information Management, Geographical Context, Research Practice, Business Strategy, Site Management, International Construction |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here