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The role of the construction sector

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  • Martina Kirchberger

Abstract

The construction sector plays a key role in providing structures for economies. This paper surveys the literature on key issues pertaining to the construction sector. It starts by summarizing our knowledge about differences in unit costs across time and space. It then discusses key bottlenecks in the sector related to organization and capabilities, institutional constraints, critical inputs, and governance and corruption. It concludes by outlining policy options related to institutional and regulatory reforms as well as procurement and local content.

Suggested Citation

  • Martina Kirchberger, 2018. "The role of the construction sector," WIDER Working Paper Series wp-2018-146, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2018-146
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2018-146.pdf
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    References listed on IDEAS

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    1. Francesco Decarolis, 2014. "Awarding Price, Contract Performance, and Bids Screening: Evidence from Procurement Auctions," American Economic Journal: Applied Economics, American Economic Association, vol. 6(1), pages 108-132, January.
    2. Presbitero, Andrea F., 2016. "Too much and too fast? Public investment scaling-up and absorptive capacity," Journal of Development Economics, Elsevier, vol. 120(C), pages 17-31.
    3. David McKenzie & Christopher Woodruff, 2014. "What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?," The World Bank Research Observer, World Bank, vol. 29(1), pages 48-82.
    4. Nkechi Owoo & Monica P. Lambon-Quayefio, 2018. "The role of the construction sector in Ghana," WIDER Working Paper Series wp-2018-119, World Institute for Development Economic Research (UNU-WIDER).
    5. Moavenzadeh, Fred, 1978. "Construction industry in developing countries," World Development, Elsevier, vol. 6(1), pages 97-116, January.
    6. Charles Kenny, 2009. "Measuring Corruption in Infrastructure: Evidence from Transition and Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 45(3), pages 314-332.
    7. Paul Collier & Martina Kirchberger & Måns Söderbom, 2016. "The Cost of Road Infrastructure in Low- and Middle-Income Countries," The World Bank Economic Review, World Bank, vol. 30(3), pages 522-548.
    8. Sean Lewis-Faupel & Yusuf Neggers & Benjamin A. Olken & Rohini Pande, 2016. "Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia," American Economic Journal: Economic Policy, American Economic Association, vol. 8(3), pages 258-283, August.
    9. Pomeranz, Dina & Gerardino, Maria Paula & Litschig, Stephan, 2017. "Distortion by Audit: Evidence from Public Procurement," CEPR Discussion Papers 12529, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Nyoni, Thabani, 2019. "Cost overrun factors in construction industry: a case of Zimbabwe," MPRA Paper 96788, University Library of Munich, Germany.
    2. Etheldreder Trecia Koppa & Innocent Musonda & Sambo Lyson Zulu, 2023. "A Systematic Literature Review on Local Sustainability Assessment Processes for Infrastructure Development Projects in Africa," Sustainability, MDPI, vol. 15(2), pages 1-37, January.

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