Abstract
Research works into the effect of economic factors on the construction industry are enormous. But finding the core economic factors is limited in the Ghanaian construction industry. In an attempt to address this research gap, this study articulates the aim of identifying exogenous economic factors influencing the construction industry through a qualitative literature review. The study used secondary data collected from over 50 published journals, conference papers, and dissertations on exogenous factors. Fifty‐nine exogenous factors were identified, and the most prevailing ones were GDP, exchange rate, inflation, interest rate, consumer price index, etc. It also revealed that black market is a factor affecting construction industry in Saudi Arabia. The study contributes to the literature by highlighting generic and specific exogenous factors that should be of concern to players in the construction industry including policy makers in their project planning. This will help to reduce the incidence of high failure rate of construction firms. Again, it establishes the need to further study the real impact of these exogenous factors as well as the strategies to mitigate the influence of exogenous factors on the construction industry as this study was limited to qualitative literature review.
Highlights
Construction firms are generally the bedrock of the industrial development in terms of infrastructure delivery [1]
E purpose of this study is to identify exogenous economic factors influencing the construction industry through a comprehensive literature review. e study will seek to establish exogenous economic factors that are fundamental and require further studies to determine their real impact on the construction industry and what exogenous factors that policy makers and players in the construction industry should be conscious of. e paper is structured in the background literature, methodological approach through which data were collected
E study identified some factors that were specific to some countries such as the existence of black market and corruption in the construction in Riyadh. e study recommends further research on how illegal trading can affect the construction industry, and further study is recommended to establish the strategies to mitigate the effects of exogenous economic factors
Summary
Construction firms are generally the bedrock of the industrial development in terms of infrastructure delivery [1]. Firms in the construction industry serve as training grounds for employees’ development and rely on the use of local raw materials which generate employment opportunities for the beneficiary communities [2]. Notwithstanding the significant progress in performance of construction firms, the situations in many of developing countries are less to be desired [4,5,6], industry’s ability to sustain profitability and growth and measures to minimize the impact of exogenous economic factors, as most Small construction firms do not survive within the first five years of establishment [7, 8]. E purpose of this study is to identify exogenous economic factors influencing the construction industry through a comprehensive literature review. Identification of exogenous factors is discussed in conclusions and recommendations
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