A Study on Coordination Relationship of Construction Industry and Economic Growth in Shaanxi Province

Construction industry is the pillar industry of national economy in our country. Sichuan construction industry also has achieved fruitful results, but the promotion of science and technology is far from enough. This paper uses Cobb-Douglas production function to analyze the contribution rate of science and technology progress during the period from 2006 to 2015. The result shows that the contribution of capital input, labor input and science and technology progress are 68.54, 30.51 and 0.95%, indicating that the increase of Sichuan construction industry mainly relies on capital and labor input growth in the stage of diminishing scale. Therefore, construction industry must use scientific and technological means to improve the productivity level and change the growth model to enhance the international competitiveness and ability to resist risks.

Although standards have a significant effect on economic growth in the construction industry, the effect of engineering construction standards on construction industry economics remains a relatively unexplored subject. In theory, standards as a technology indicator have an impact on economic growth. Therefore, we investigate the relationships between engineering construction standards and economic growth in the construction industry. A Cobb-Douglas production function and a VAR model are established to explore relationships between engineering construction standards and economic growth in the construction industry. Our results suggest that co-integration relationships are evidenced between engineering construction standards and economic growth in the construction industry, and engineering construction standards have a positive effect on economic growth in the construction industry.

Publisher Summary This chapter discusses the financial development and economic growth in underdeveloped countries. An observed characteristic of the process of economic development over time, in a market-oriented economy using the price mechanism to allocate resources, is an increase in the number and variety of financial institutions and a substantial rise in the proportion not only of money but also of the total of all financial assets relative to GNP and to tangible wealth. Typical statements indicate that the financial system somehow accommodates—or, to the extent that it malfunctions, it restricts—growth of real per capita output. Such an approach places emphasis on the demand side for financial services; as the economy grows it generates additional and new demands for these services, which bring about a supply response in the growth of the financial system. In this view, the lack of financial institutions in underdeveloped countries is simply an indication of the lack of demand for their services.

It is widely recognised that the construction industry has a positive role to accelerate the wheel of economic growth in any country. This research is concerned with the Libyan construction industry (LCI). Libya is a developing country which suffered from a big loss in its infrastructures and its unemployment rate increased to 30% in the middle of 2013. Regarding the importance of the construction industry through the role it has in providing infrastructure and creating employment and the poor economic condition of Libya, the rationale of this research follows the example of other nations such as Turkey, Singapore, Malaysia , and Middle East countries where the construction industry was evolved with a target to further boost up the process of economic development. The case of Libya in this regard is valid for the financial stability in the country given its oil reserves and the capacity of the country to absorb migrated skilled labour. This situation is expected to follow the fall of Gaddafi’s regime. The approach of selecting construction as providing input to economic growth follows the strong evidence of the significant role that the construction industry plays in economic growth of the country. The construction industry contributes to economic growth from the demand side and in the traditional Keynesian economy, sustainable short-run economic growth is dependent on the increased demand. For example, in the UK, construction’s 2.5% growth in the third quarter of 2013 helped the overall economy grow by 0.8% over the same period. In comparison with the other industries that contribute to the economic growth of developing countries, the construction industry is more labour-intensive while the developing countries are mostly labour-abundant. The main aim of this research is to investigate the contribution of the construction industry to economic development in order to establish a comprehensive list of recommendations and a guideline for achieving an efficient construction industry to accelerate the process of economic growth. For this aim, the first objective is to examine the causal relationship between the construction industry and gross domestic product (GDP) as a measure of the economic growth and between the construction industry and other economic sectors. To achieve the aim of this research, Granger causality tests have been conducted. The financial data about the expenditure on the construction industry in Libya and its share in the GDP of the country and the share of the other economic sectors in the GDP during 1986-2009 was provided by an authority from the Libyan construction industry. First, The Augmented Dickey Fuller (ADF) and the Philip Perron (PP) unit root tests were conducted to confirm that the tested time series are stationary. After that, to determine the existence of the long-run causal relationship between the CI and GDP, Engle-Granger co-integration test was used and, finally, vector error correction (VER) model was employed to detect the direction of the causal relationship between the two variables. The study found that in Libya, like in other countries, the relationship between the construction industry and GDP is bi-directional: GDP produces a short-term impact on the investment in the construction industry while investment in the construction industry produces a long-term impact on GDP. However, except for trade, no economic sector was found to have a causal relationship with the construction industry. According to these findings, another objective was established in this research: to identify safety and total quality management (TQM) which can play an important role in growing the efficiency of the Libyan construction industry. To achieve this objective, telephone conversations were conducted with the officials of the largest construction company in the city of Benghazi. The findings indicated that the TQM does not exist in the construction company and, although the safety department does exist, it works via strict procedures. Thus, opportunity to increase the performance of the CI in order to increase its contribution to economic growth does exist through implementation of the safety and TQM implementation in Licccbyan construction companies. The previous studies used the causal relationship just to prove specific hypotheses. The novelty of this research is to obtain benefits from the existence of the causal relationship from the CI to GDP in the long term through suggesting major issues as safety and TQM implementation to raise the performance of the CI in the current period in order to increase its contribution to the economic growth in the future.

Production-related industrial zones, super structures and infrastructures are constructed by the construction industry. Nearly all industries and their environmental emissions are influenced by the construction industry including its sub-industries, companies and their supply chains. Furthermore, cities play an important role in economic growth. Cities are hubs for productivity, production, supply and demand, and innovation with the help of their human capital and built environment (e.g. offices, factories, industrial zones, infrastructures, etc.).Industrial growth fosters urbanisation which is vital for the supply side in the economy to reach to the human resources. Urbanisation which supports industrial growth obstacles industries’ efficiency due to urbanisation problems (e.g. traffic, air and water pollution, health problems).Construction industry and its sub-industries affect total factor productivity growth in nearly all industries. Construction industry can be a facilitator industry for economic growth and industrial growth considering total factor productivity growth and environment aspects. All industries’ green and sustainable total factor productivity growth can be supported by rethinking construction industry, its sub-industries and their outputs (e.g. construction materials, built environment, cities) as well as construction project management processes.This chapter aims to introduce carbon capturing smart construction industry model to foster green and sustainable total factor productivity growth of industries. This chapter emphasises current and potential roles of construction industry, its sub-industries and their outputs in fostering other industries’ growth through green and sustainable total factor productivity growth. It focusses on carbon capturing technologies and design at different levels. Furthermore, this chapter emphasises cities’ role in green and sustainable total factor productivity growth. This chapter provides recommendations for construction industry policies and carbon capturing cities/built environment model to solve urbanisation problems and to foster industrial growth and green and sustainable total factor productivity growth. This chapter is expected to be useful to all stakeholders of the construction industry, policy makers, and researchers in the relevant field.

Based on relevant data of the Guangxi construction industry from 2008 to 2016, including the regional GDP, the construction industry GDP, the energy consumption in the construction industry, and other indicators, this study analysed the relationship between the energy consumption in the construction industry and economic growth. The Tapio decoupling model and ecological efficiency evaluation model were applied to analyse the above data. Empirical tests revealed that there exists a weak decoupling relationship between the energy consumption and economic growth in the construction industry of Guangxi. Despite the weak decoupling relationship, the ecological efficiency value is only 0.1012. This result proves that the development level of the circular economy in the construction industry of Guanxi is below the average level, and the sustainable utilization of energy is insufficient. At the end of this article, based on the decoupling effect and production efficiency from 2009 to 2016, suggestions are formulated, including prioritizing the development of the construction industry and increasing the economic input to promote industrial upgrading.

For the purpose of productive research and management of the new quality economical growth potential building process in the construction industry, it is necessary to distinguish between quantitative and qualitative indicators of the growth of its economy, which entailed the necessity to search for a solution to the problem of justifying the measurement method and assessing the quality of its economy growth in correlation with the justification of a measurement method and assessing the potential for quality growth and economic development of the industry. To solve this problem, the principles and recommended attributes of identifying the processes of growth and development of the construction industry have been substantiated, which allowed substantiating methods for assessing the potential for economical growth in the construction industry and its economic development through the use of resources and structural methodological approaches. For the quantitative assessment of the economical quality growth potential in the economy of the construction industry and its economic entities, a resource approach has been recommended that allows to determine the magnitude of the change in the planned (actual) economic effect for the estimated period analyzed as a result of the effectiveness of employing labor, material and financial resources in the valuation for real cost and a structural approach was recommended to justify the assessment of the economic development potential of the industry. The developed methods for measuring and assessing the potential for growth in the economy of new quality and economic development of the construction industry are recommended to be applied in the process of measuring, planning, analyzing, assessing and monitoring the level of use of resource and innovation potential in the activities of construction organizations and their economic agents with similar parameters in terms of sector and region.

Both of construction industry's economic growth and environmental impact have recently been social hot-topics, while most researches about the relationship between them are qualitative or simply quantitative. In this paper, construction industry's gross product and CO 2 emission are selected to represent its economic growth and environmental impact respectively. Based on the collection of yearly construction industry's economic growth and environmental impact in Jiangsu Province of China from 1998 to 2007, the linear regression, unit root test, theory of co-integration are carried out in turn. Results show that Jiangsu construction industry's economic growth and environmental impact have a significantly positive correlation, and both of them are I(2). In addition, co-integration exists between Jiangsu construction industry's economic growth and environmental impact, and the long-run elasticity between them is about 1.21.

Studying the relationship between carbon emissions in the construction industry and economic growth in the construction industry is of great significance for the sustainable development of the industry and the country. This paper aims to analyze the decoupling status of various provinces, the spatial relationship between carbon emissions and economic growth, and provide targeted suggestions for promoting the green and sustainable development of the construction industry. The relevant panel data on CO2 emissions from the construction industry in 30 provinces and municipalities during China’s “Thirteenth Five-Year Plan” period was collected and organized in this paper. A Tapio decoupling model and a spatial econometric model which is combined with the STIRPAT model are used in the paper. The research indicates that as a whole, China’s construction industry is in a state of weak decoupling, and actions to reduce carbon dioxide emissions, bear fruit, and energy efficiency have been improved; the economic growth still promotes CO2 emissions and the relationship between the two is still in the rising phase of the CKC (Carbondioxide Kuznets Curve) curve; economic growth has significant spatial spillover effects, and economic growth in other regions will inhibit carbon dioxide emissions in the region, but its effect is lower than the promotion effect of direct effects. At this stage, the employee factor and technology development level also promote carbon dioxide emissions, and the spatial spillover effect is small. At the same time, the degree of influence of each influencing factor varies in different decoupling provinces.

This study investigated the impact of the people category of the Sustainable Development Goals (SDGs) on sustainable and conventional economic growth in Asia and the Pacific region, using a sample of 52 selected countries between 2000 and 2023. Employing two distinct models, model A1 for conventional economic growth and model A2 for sustainable economic growth, we explained the relationships between five SDG indicators: employed poverty rate, stunted children, expenditure on health, expenditure of education, and % of women MNAs on economic growth. This study employed a fixed-effect model and random-effect model to investigate the impact of the people category SDGs on traditional and sustainable economic growth. The comparative analysis of each SDG in both models revealed valuable insights. SDG 1, “employed poverty rate”, has a positive impact on economic growth in both models, while SDG 2, “percentage of stunted child”, did not significantly influence economic growth in either model. Moreover, SDG 3 and SDG 4, relating to “government’s health expenditure per capita” and “government’s Education education expenditure per capita”, respectively, exhibited a positive impact on traditional and sustainable economic growth. Conversely, SDG 5, “percentage of women members of national parliament”, displayed an insignificant impact on traditional and sustainable economic growth models. In conclusion, this study suggests that policymakers should prioritize targeted interventions to alleviate employed poverty, enhance healthcare, and boost education spending. Moreover, promoting women’s representation in national parliaments should be approached with context-specific strategies to maximize its impact on economic growth.

This study examines the impact of Chinese outward foreign direct investment (COFDI) on economic and industrial growth across 35 African Belt and Road Initiative (BRI) economies from 2005 to 2020, utilizing panel data and econometric methods such as a two-step system generalized method of moments (SGMM) and difference-in-differences (DID). The findings confirm that COFDI stock positively influences economic and industrial growth, although its impact varies significantly across regions. A comparative analysis of pre- and post-BRI periods highlights the initiative’s role in enhancing COFDI’s effectiveness, reinforcing its contribution to Africa’s development. Subregional analysis further reveals diverse effects, emphasizing the need for tailored policy approaches. The study underscores COFDI’s crucial role in Africa’s economic transformation, demonstrating that BRI participation amplifies its benefits. Given the complexity of these impacts, region-specific policies are essential to maximize the advantages of foreign investments and ensure sustainable economic and industrial growth. JEL Classification F21, O55, F63, O40

In the 13th Five-Year plan, promoting Low-carbon cycle development is proposed. Low-carbon economy has become the key direction. As the pillar industry of national economy, the construction industry contributes obviously to the economic development. And the consumption of energy and the pollution of the environment can not be ignored. Accurately grasping the carbon emission level of the provincial construction industry is critical to making the future development strategy. In the paper, carbon emissions, energy consumption and economic growth of the provincial construction industry are analyzed firstly., then low carbon evaluation index is built to measure low-carbon level of provincial construction industry, at last relevant policy suggestions are put forward accordingly.

A vibrant construction industry in a developing country, that mobilizes human and local material resources in the development and maintenance of buildings, housing and physical infrastructure, is an important means to promote increased local employment and accelerate economic growth. Ghana, a country of about 22 million people, currently has one of the fastest growing economies in West Africa. The Government of Ghana (GOG) has recently set a target of annual economic growth rate of 8% and above, up from annual growth rates of 5–6% in the past five years (2001–05). It intends to use the agricultural sector as the major vehicle for achieving such high growth rates in order for the country to reach the status of a middle income country by 2015. Surprisingly, the construction industry was left out from the list of major growth drivers of the economy. We contend that with the construction industry currently making up the third largest sector of the economy, special attention should be given to this industry as one of the main drivers of economic growth in Ghana. Therefore we conducted a study to analyse the causality links between the growth in the construction industry and the growth in the macro‐economy of Ghana, measured by the gross domestic product (GDP), to ascertain whether the construction industry can be used to lead the entire economy on a growth path. The analysis was based on a simple Granger causality test using time series data from 1968 to 2004. We showed that growth in the construction industry Granger‐caused growth in GDP, with a three‐year lag. The construction industry needs to be considered as one of the major drivers of economic growth in Ghana.

Relationship of carbon emissions and economic growth in China's construction industry

In this paper the contribution of scientific and technological progress (STP) in economic growth in Anhui province’s construction industry from year 1999 to year 2009 was analyzed by total factor productivity (TFP) method, and the role of TFP in the transformation of economic growth pattern in Anhui province’s construction industry and in corporations’ efforts to enhance industrial competitiveness was analyzed. It found that the key influencing factors in Anhui province’s construction industry’s economic development were capital input and labor input which its growth was driven by resource elements aggregation and its TFP played a poor role. To enhance TFP will be the only way to constructing industry’s sustainable development and to effectively increasing construction industry companies’ core industrial competitiveness.