Ertuğrul, H M and Pirgaip, B (2021) The nexus between construction investment and economic development: Evidence from mena countries. Construction Management and Economics, 39(11), pp. 932-947. ISSN 01446193
Abstract
Although the literature is replete with studies that signify the role of the construction industry in economic development, the complexity of the relationship still deserves attention and calls for a regional perspective as well as more robust empirical evidence. To fill this gap, we scrutinise the nexus between construction investment and economic development for the Middle East and North Africa (MENA) region by employing second generation panel data modelling tools. We do so with a focus on top ten developing economies in the region, namely, Saudi Arabia, Turkey, Iran, United Arab Emirates, Egypt, Iraq, Qatar, Algeria, Kuwait, and Morocco, between 1970 and 2019. We find that there is an inverted U-shaped pattern, in line with Bon’s proposition, implying that the share of construction investments started to decline at some point in time as the economic growth reached a certain threshold. We argue that MENA countries should reconsider their construction-induced growth policies and incorporate alternative options supported by innovative and environmental-friendly technologies to attach much more importance to the role of construction in future economic development plans.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | bon curve; c33; construction; economic development; l74; mena; o10; panel data |
| Index terms: | Qatar, economic growth, Egypt, construction industry, data modelling, option, Turkey, Saudi Arabia, North Africa, Algeria, Kuwait, evidence, United Arab Emirates, complexity, economic development, Middle East, Morocco, developing economy |
| Subjects: | economic development, physical geography and landforms, Geography, decision analysis, systems engineering, industry analysis, evaluation and assessment methods, data science |
| Topics: | Digital Applications, International Construction, Research Practice, Geographical Context, Engineering Principles, Risk Management, Sustainability |
| 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