Measuring the developing trends of international construction industries in global value chains based on value added

Abstract

ABSTRACT The construction sector is an indispensable element of social economies. The international trade activities for the local construction sectors have been stimulated by the demands of globalization, which accelerates the transfer of value added in the global value chains. This study constructs a measurement framework for the developing trends in the global value chains based on value added and picks up the international construction industries at the sectoral level. Based on the participation index, the position index, and the connection index, the developing trend is measured in order to comprehensively identify the ability of the national construction sectors due to value added in the global value chain. The study results show that the influence on the global value chain derived from technical advantage decreased with the improvement of the construction sectors in emerging economies. The international construction sectors were reallocated based on geographical distribution and competitive advantage after 2008. This paper will prove useful for policymakers by providing a clear method for identifying the precise location in the global value chain of a specific country. Governments can consider sectoral planning at regional and global levels based on a map of advantages and disadvantages.