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Linkage measures of the construction sector using the hypothetical extraction method

Listed author(s):
  • Yu Song
  • Chunlu Liu
  • Craig Langston
Registered author(s):

    The hypothetical extraction method (HEM) is used to extract a sector hypothetically from an economic system and examine the influence of this extraction on other sectors in the economy. Linkage measures based on the HEM become increasingly prominent. However, little construction linkage research applies the HEM. Using the recently published Organisation for Economic Co-operation and Development input-output database at constant prices, this research applies the HEM to the construction sector in order to explore the role of this sector in national economies and the quantitative interdependence between the construction sector and the remaining sectors. The output differences before and after the hypothetical extraction reflect the linkages of the construction sector. Empirical results show a declining trend of the total, backward and forward linkages, which confirms the decreasing role of the construction sector with economic maturity over the examined period from a new angle. Analytical results reveal that the unique nature of the construction sector and multifold external factors are the main reasons for the linkage difference between countries. Moreover, hypothesis-testing results consider statistically that the extraction structures employed in this research are appropriate to analyse the linkages of the construction sector.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/01446190500435358
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    Article provided by Taylor & Francis Journals in its journal Construction Management and Economics.

    Volume (Year): 24 (2006)
    Issue (Month): 6 ()
    Pages: 579-589

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    Handle: RePEc:taf:conmgt:v:24:y:2006:i:6:p:579-589
    DOI: 10.1080/01446190500435358
    Contact details of provider: Web page: http://www.tandfonline.com/RCME20

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    1. Duarte, Rosa & Sanchez-Choliz, Julio & Bielsa, Jorge, 2002. "Water use in the Spanish economy: an input-output approach," Ecological Economics, Elsevier, vol. 43(1), pages 71-85, November.
    2. Cella, Guido, 1984. "The Input-Output Measurement of Interindustry Linkages," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 46(1), pages 73-84, February.
    3. Roberto Pietroforte & Ranko Bon, 1999. "The Italian residential construction sector: an input-output historical analysis," Construction Management and Economics, Taylor & Francis Journals, vol. 17(3), pages 297-303.
    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. Chan Swee Lean, 2001. "Empirical tests to discern linkages between construction and other economic sectors in Singapore," Construction Management and Economics, Taylor & Francis Journals, vol. 19(4), pages 355-363.
    6. Clements, Benedict J., 1990. "On the decomposition and normalization of interindustry linkages," Economics Letters, Elsevier, vol. 33(4), pages 337-340, August.
    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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