Measuring the Construction Industry’s Productivity Performance: Critique of International Productivity Comparisons at Industry Level

Abstract

AbstractThe authors review work on international comparisons of construction productivity performance by providing an in-depth critique of the existing literature and highlighting the existing methodological challenges. Using studies and data on the United Kingdom’s relative construction productivity performance as an exemplar, it is suggested that any investigation of international productivity differences in construction at the industry level is highly problematic because these productivity estimates do not compare like for like. Data definitions and coverage differ substantially across countries. In addition, deflators and exchange rates used to convert output into a common currency are unreliable. While the new standard industrial classifications 2007 could provide a better basis of cross-country productivity comparisons and further research on deflators, conversion rates, labor inputs, and capital stock estimates could improve the robustness of international comparisons, there are conceptual limitati...