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Performance trends in the construction industry worldwide: an overview of the turn of the century

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  • I. Horta
  • A. Camanho
  • Jill Johnes
  • Geraint Johnes

Abstract

This paper presents an exploratory study to assess the efficiency level of construction companies worldwide, exploring in particular the effect of location and activity in the efficiency levels. This paper also provides insights concerning the convergence in efficiency across regions. The companies are divided in three regions (Europe, Asia and North America), and in the three main construction activities (Buildings, Heavy Civil and Specialty Trade). We analyze a sample of 118 companies worldwide between 1995 and 2003. Data envelopment analysis is used to estimate efficiency, and the Malmquist index is applied for the evaluation of productivity change. Both methods were complemented by bootstrapping to refine the estimates obtained. A panel data truncated regression with categorical regressors is used to explore the impact of location and activity in the efficiency levels. The results reveal that the efficiency of North American companies is higher than the European and Asian counterparts. Other important conclusion points to a convergence in efficiency levels across regions as in North America productivity remains stable, whereas in Asia and Europe productivity improves. Copyright Springer Science+Business Media, LLC 2013

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  • I. Horta & A. Camanho & Jill Johnes & Geraint Johnes, 2013. "Performance trends in the construction industry worldwide: an overview of the turn of the century," Journal of Productivity Analysis, Springer, vol. 39(1), pages 89-99, February.
    • Handle: RePEc:kap:jproda:v:39:y:2013:i:1:p:89-99
    DOI: 10.1007/s11123-012-0276-0
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    Cited by:

    1. Horta, Isabel M. & Camanho, Ana S., 2015. "A nonparametric methodology for evaluating convergence in a multi-input multi-output setting," European Journal of Operational Research, Elsevier, vol. 246(2), pages 554-561.
    2. Benjamin Wagner & Andreas Pfnür, 2022. "Veränderungen für Projektentwickler in der immobilienwirtschaftlichen Transformation – Netzwerkanalyse und Stakeholder-Interviews zur Bestimmung handlungsrelevanter Einflüsse und strategischer Anpassu," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 8(1), pages 35-78, April.
    3. Segundo Camino‐Mogro & Natalia Bermudez‐Barrezueta, 2021. "Productivity determinants in the construction sector in emerging country: New evidence from Ecuadorian firms," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2391-2413, November.
    4. Kapelko, M. & Horta, I.M. & Camanho, A.S. & Oude Lansink, A., 2015. "Measurement of input-specific productivity growth with an application to the construction industry in Spain and Portugal," International Journal of Production Economics, Elsevier, vol. 166(C), pages 64-71.
    5. Syed Mujeeb & Manideep Samudrala & Bhagyashri A. Lanjewar & Ravijanya Chippagiri & Muralidhar Kamath & Rahul V. Ralegaonkar, 2023. "Development of Alkali-Activated 3D Printable Concrete: A Review," Energies, MDPI, vol. 16(10), pages 1-21, May.
    6. Anwar Khitab & Muhammad Saqib Riaz & Affan Jalil & Raja Bilal Nasar Khan & Waqas Anwar & Riaz Akhtar Khan & Muhammad Tausif Arshad & Mehmet Serkan Kirgiz & Zeesshan Tariq & Seemab Tayyab, 2021. "Manufacturing of Clayey Bricks by Synergistic Use of Waste Brick and Ceramic Powders as Partial Replacement of Clay," Sustainability, MDPI, vol. 13(18), pages 1-16, September.

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    More about this item

    Keywords

    Construction industry; DEA; Malmquist index; Cross-country analysis; C23; C61; D24; L74; N60;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction
    • N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative

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