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Structures Investment and Economic Growth: A Long-term International Comparison

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Listed:
  • Michael Ball

    (School of Urban Development and Planning, South Bank University, Wandsworth Road, London, SW8 2JZ, UK)

  • Tanya Morrison

    (School of Construction, South Bank University, Wandsworth Road, London, SW8 2JZ, UK)

  • Andrew Wood

    (Department of Economics, London Guildhall University, 84 Moorgate, London, EC2M 5SQ, UK)

Abstract

Interest has grown again in recent years about the long-term and cyclical nature of building investment and its effect on the macroeconomy. This paper investigates the nature of building trends and cycles from the 19th century to the present day for eight major OECD economies. Focusing predominantly on non-housing structures, the Kalman filter is used to decompose the series into trends and cycles. It was found that building cycles exist in all countries, though with considerable variation. Comparisons of volatility between countries and between the different types of fixed investment are made. The long-run share of fixed investment in structures as a proportion of national income is investigated. Consideration is given to whether international building investment trends are coincident, and an analysis made of the long-term correlation between structures investment cycles.

Suggested Citation

  • Michael Ball & Tanya Morrison & Andrew Wood, 1996. "Structures Investment and Economic Growth: A Long-term International Comparison," Urban Studies, Urban Studies Journal Limited, vol. 33(9), pages 1687-1706, November.
    • Handle: RePEc:sae:urbstu:v:33:y:1996:i:9:p:1687-1706
    DOI: 10.1080/0042098966565
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    References listed on IDEAS

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    Cited by:

    1. Qin, Duo & Cagas, Marie Anne & Quising, Pilipinas & He, Xin-Hua, 2006. "How much does investment drive economic growth in China?," Journal of Policy Modeling, Elsevier, vol. 28(7), pages 751-774, October.
    2. Charles Ka Yui Leung & Nan-Kuang Chen, 2006. "Intrinsic Cycles of Land Price: A Simple Model," Journal of Real Estate Research, American Real Estate Society, vol. 28(3), pages 293-320.
    3. Jacob Oluwoye & R.S Small, 2001. "Asset Management: Forecasting office cbd capital values," ERES eres2001_249, European Real Estate Society (ERES).
    4. Leung, Charles, 2004. "Macroeconomics and housing: a review of the literature," Journal of Housing Economics, Elsevier, vol. 13(4), pages 249-267, December.
    5. Qin, Duo & Cagas, Marie Anne & Quising, Pilipinas & He, Xin-Hua, 2006. "How much does investment drive economic growth in China?," Journal of Policy Modeling, Elsevier, vol. 28(7), pages 751-774, October.
    6. Sethi, Amarjit Singh & Kaur, Supreet, 2013. "Physical Capital Formation And Income Relationships: A Temporal Analysis For Punjab And Haryana," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 2(2), pages 109-130.
    7. Igal Charney, 2003. "Unpacking and Repackaging Regional Diversity: Office-Building Trajectories in Canada," Environment and Planning A, , vol. 35(2), pages 231-248, February.
    8. Colin Lizieri & Andrew Baum & Peter Scott, 2000. "Ownership, Occupation and Risk: A View of the City of London Office Market," Urban Studies, Urban Studies Journal Limited, vol. 37(7), pages 1109-1129, June.
    9. Xavier Tafunell & Cristián Ducoing, 2015. "Non-residential capital stock in Latin America. 1875-2008," Economics Working Papers 1472, Department of Economics and Business, Universitat Pompeu Fabra.

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