Construction Economics - 2366 Words

1|P ag e Introduction World Construction Industry is one of the biggest industries in the whole world. The contribution of this industry towards the global GDP revolves around one-tenth of the total amount. World Construction Industry is also a potential employment generator and provides work to almost seven percent of the total employed person in the whole world. The extent of this industry has become so vast that the energy, in the form of electricity or fuel, consumed by it hovers around two-fifth of the total energy consumed all over the globe. The resources that are utilized in World Construction Industry is also staggeringly high and itself consumes fifty percent of the total world resources. Macroeconomics Literature review†¦show more content†¦He finds that residential investment shocks are more important in the determination of GDP than non-residential investment shocks. These are the summery of previous analyses of the relationship between the construction business and macr oeconomic variables. Most of these studies have analyzed the manner in which macroeconomic variables influence comprehensive indexes of the construction business, such as residential investment, non-residential investment, and construction investment. 3|P ag e THE CONTRIBUTION OF THE CONSTRUCTION INDUSTRY TO THE ECONOMY Various writers and international bodies (Turin, 1973; World Bank; 1984, Wells, 1986; Bon, 1992) have addressed the role of construction in economic growth and development. One of the main features drawn from these works is the common assumption that directly relates the measures of the construction output with a country s stage of economic development. Furthermore, in this view, construction as a major component of a country s capital formation plays a determinant role in the process of economic growth Wibowo, Agung (2009) figured that the Output from the construction industry is a major and integral part of the national output, accounting for a sizeable proportion in the Gross Domestic Product (GDP) of both developed and underdeveloped countries. He further stated that for highly developed economies the value added of construction is in the range of 7% to 10%Show MoreRelatedConstruction Economics And Procurement : Assignm ent Essay2261 Words   |  10 PagesGary Russo - 20071900 - Construction Economics and Procurement - Assignment 1 We are dealing with an adapting building industry with increasingly new technologies and ways of working. And with these introductions challenging the national framework for the construction industry as well as the research which underpins it, Ever new challenges and opportunities are shaping the form and content of our buildings The British Research Establishment (bre) stated that now buildings will need to reflect andRead MoreTransaction Cost Economics in Construction Industry2299 Words   |  10 Pagesif the transaction fail. Such situations are rare in construction, and are probably limited to the more demanding civil engineering projects (Reve and Levitt, 1984) and high performance specifications in areas such as building services. 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This word in referenceRead MoreThe Importance Of Architecture1512 Words   |  7 Pages In everyday life, most people experience the work of Architects in many forms, like a school, or perhaps a house. However, architecture is much more than just the design of buildings and houses. It is a vital part of the construction process, which is a main component of the Gross Domestic Product, and can effect or be effected by local or national economies. Its importance is undervalued in the workforce, and its effect on the economy is underrated. Architecture is effected by the amount ofRead MoreEconomic, Social And Environmental Change Essay1457 Words   |  6 PagesIntroduction Economic, social and environmental change is inherent to development. Whilst development aims to bring about positive change it can lead to conflicts. In the past, the promotion of economic growth as the motor for increased well-being was the main development thrust with little sensitivity to adverse social or environmental impacts. The need to avoid adverse impacts and to ensure long term benefits led to the concept of sustainability. This has become accepted as an essential featureRead More1.1 General Construction labour productivity has become big problem in construction industry. In700 Words   |  3 Pages1.1 General Construction labour productivity has become big problem in construction industry. In many countries, labour cost comprises 30 to 50% of the overall project’s cost (Yates and Guhathakurta, 1993), and thus is regarded as a true reflection of the economic success. Because construction is labour-intensive industry, significance of this effect not only justifies the concern over its labour productivity, but it can also be argued that labour power is the only productive resource. There areRead MoreA Report On New Zealand Essay829 Words   |  4 Pagescountry with a population of 4.4 million. Auckland is the country’s largest city with a population of 1.4 million people. It is one of the fastest-growing cities in Asia-Pacific, the on-going population growth in the region will continuously generate economic growth over the short-/medium term. Statistics suggest that Auckland requires between 9000 and 11000 new dwellings every year to meet the latent demand due to population growth. Auckland has a particularly significant issue on housing affordability