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Authors
Advisor(s)
Abstract(s)
The role of construction in economic growth and development has been addressed by
various writers and international bodies, many of whom have focused in developing
countries (Turin, 1973; World Bank, 1984; Wells, 1986; Bon, 1990). Bon (1992),
analysed the changing role of the construction sector at various stages of economic
development and presented a development pattern for the industry based on the stage
of development of a country’s economy. The main aspects of the proposition were
that, in the early stages of the economic development, the share of construction in
gross domestic product (GDP) increases but ultimately decreases in industrially
advanced countries. Turin and Wells, using cross-country comparisons, both found an
association between construction investment and economic growth. That finding was
consistent with the classical approach in growth theory in which physical capital
formation is the main engine of economic growth and development. In the aftermath
of the !979-980 oil-shock and the international financial crisis that followed in 1981,
most of Sub- Saharan African countries experienced until the mid-1990s a decreasing
growth in per capita national income, despite heavy investment in construction and
other physical capital over the preceding decade.
Description
Keywords
Construction economic growth
Citation
Lopes, Jorge (2009). Investment in construction and economic growth: a long-term perspective. In les Ruddock (ed.) Economics for the Modern Built Environment. [S.l.]: Taylor & Francis. p. 94-112. ISBN 978-0-415-45425-4