The relationships between the macroeconomic situation and European skyscrapers

Abstract

Objective: The aim of this paper is to verify if economic prosperity is related to the number of skyscrapers built and their average height. It was done by examining the dependencies between GDP growth rate, unemployment rate, the Gini coefficient and the skyscrapers variables mentioned.Research Design & Methods: In order to investigate the relationship between the number of completed skyscrapers, their average height, and year, a correlation was used. Linear regression was used to verify the relationship between macroeconomic variables and those relating to skyscrapers. The macroeconomic data were obtained from the World Bank, IMF, and WTO databases, and the data referring to skyscrapers – from Emporis.com.Findings: The time variable (year) was positively correlated with the analyzed variables linked to skyscrapers. The research showed a negative impact of the unemployment rate and a positive impact of the Gini coefficient, on the number of completed skyscrapers. Further, the economic growth was negatively and Gini coefficient values were positively related to the average height of skyscrapers.Implications & Recommendations: This study allows determining the periods in which an increased construction of skyscrapers could be expected. It may be useful for investors, global corporations or potential developers.Contribution & Value Added: The analysis provided empirical confirmation of the hypotheses about the positive correlation between the number and average height of skyscrapers and the degree of economic inequality. Also, the negative dependencies between the number of these structures and the unemployment rate and between the average height of completed skyscrapers and the GDP growth rates, based on the example of European countries, were found.