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

Author

Listed:
  • Yu Song
  • Chunlu Liu
  • Craig Langston

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.

Suggested Citation

  • Yu Song & Chunlu Liu & Craig Langston, 2006. "Extending construction linkage measures by the consideration of the impact of capital," Construction Management and Economics, Taylor & Francis Journals, vol. 24(11), pages 1207-1216.
  • Handle: RePEc:taf:conmgt:v:24:y:2006:i:11:p:1207-1216
    DOI: 10.1080/01446190600599152
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    References listed on IDEAS

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    1. Xing Wu & Zhihui Zhang, 2005. "Input-output analysis of the Chinese construction sector," Construction Management and Economics, Taylor & Francis Journals, vol. 23(9), pages 905-912.
    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, vol. 22(4), pages 339-345.
    3. Wolff, Edward N, 1991. "Capital Formation and Productivity Convergence over the Long Term," American Economic Review, American Economic Association, vol. 81(3), pages 565-579, June.
    4. Polenske, Karen R & Sivitanides, Petros, 1990. "Linkages in the Construction Sector," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 24(2), pages 147-161.
    5. Alex R. Hoen, 2002. "Identifying Linkages with a Cluster-based Methodology," Economic Systems Research, Taylor & Francis Journals, vol. 14(2), pages 131-146, June.
    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. 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.
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    Cited by:

    1. Ceren Gündoğdu & Dürdane Şirin Saracoğlu, 2016. "Participation of Turkey in Global Value Chains: An Analysis Based on World Input Output Database," ERC Working Papers 1610, ERC - Economic Research Center, Middle East Technical University, revised Sep 2016.

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