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Extending construction linkage measures by the consideration of the impact of capital

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  • Yu Song
  • Chunlu Liu
  • Craig Langston
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    Abstract

    Construction linkage is a well-established research field. However, a significant limitation in previous linkage research is that the flow of capital goods is not addressed. Using the OECD input-output tables, this research first generates a new input-output model considering capital as an intermediate factor. Using the new model, the construction linkages are recalculated and investigated in order to evaluate further the role of construction in national economies. The findings verify that traditional construction linkages were extremely underestimated in previous research. Furthermore, the effect of capital on construction shows a declining trend over the examined period. After considering the effect of capital, most values and rankings of backward and forward linkages show a decreasing trend, which confirms the declining role of the construction sector with economic maturity.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/01446190600599152
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Construction Management and Economics.

    Volume (Year): 24 (2006)
    Issue (Month): 11 ()
    Pages: 1207-1216

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    Handle: RePEc:taf:conmgt:v:24:y:2006:i:11:p:1207-1216

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    Web page: http://www.tandfonline.com/RCME20

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    Related research

    Keywords: Construction sector; input-output analysis; capital; linkages;

    References

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    1. Wolff, Edward N, 1991. "Capital Formation and Productivity Convergence over the Long Term," American Economic Review, American Economic Association, vol. 81(3), pages 565-79, June.
    2. C. Y. Yiu & X. H. Lu & M. Y. Leung & W. X. Jin, 2004. "A longitudinal analysis on the relationship between construction output and GDP in Hong Kong," Construction Management and Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 22(4), pages 339-345.
    3. Xing Wu & Zhihui Zhang, 2005. "Input-output analysis of the Chinese construction sector," Construction Management and Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 23(9), pages 905-912.
    4. Alex Hoen, 2002. "Identifying Linkages with a Cluster-based Methodology," Economic Systems Research, Taylor & Francis Journals, vol. 14(2), pages 131-146.
    5. Junning Cai & Pingsun Leung, 2004. "Linkage Measures: a Revisit and a Suggested Alternative," Economic Systems Research, Taylor & Francis Journals, vol. 16(1), pages 63-83.
    6. Wolff, Edward N., 1994. "Productivity measurement within an input-output framework," Regional Science and Urban Economics, Elsevier, vol. 24(1), pages 75-92, February.
    7. Polenske, Karen R & Sivitanides, Petros, 1990. "Linkages in the Construction Sector," The Annals of Regional Science, Springer, vol. 24(2), pages 147-61.
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