Lopes, J; Ruddock, L and Ribeiro, F L (2002) Investment in construction and economic growth in developing countries. Building Research & Information, 30(3), pp. 152-159. ISSN 0961-3218
Abstract
The development of a model of interdependence between investment in construction and gross domestic product (GDP) per capita, based on a long-term trend, for the developing countries of Sub-Sahara Africa (SSA) is presented. The study follows previous research undertaken by others who have investigated the relationship between investment in construction and economic development and found a positive correlation between the share of construction in GDP and the level of national income. The hypothesis tested is: there is a minimum level of investment in construction in developing countries (measured in terms of construction value added [CVA] as a percentage of GDP) to achieve sustainable growth in the economy. The study is based on data acquired on 15 of the countries in SSA over 22 years and the sample is split into two groups: one in which GDP per capita is rising, the other in which GDP per capita is falling. This research puts forward evidence that there is a critical level of CVA/GDP (at 4-5%) below which a relative decrease in construction volume corresponds directly to a decreasing growth in GDP per capita. The converse does not appear to be true. Implications and recommendations for public policy for the concerned countries are discussed.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | developing countries; economic development; economic growth; growth theory; investment; public policy; sub-saharan Africa |
| Index terms: | public policy, economic growth, interdependence, income, evidence, Sub-Saharan Africa, developing country, economic development, Africa, gross domestic product |
| Subjects: | regions and continents, economic analysis, public policy, evaluation and assessment methods, organizational analysis, development economics, physical geography and landforms, economic development |
| Topics: | Organizational Design, International Construction, Governance, Sustainability, Business Strategy, Geographical Context, Research Practice |
| Descriptive scope: | 3 PCA |
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