IDEAS home Printed from https://ideas.repec.org/a/taf/conmgt/v26y2008i8p815-826.html
   My bibliography  Save this article

Construction and economic development: the case of Hong Kong

Author

Listed:
  • James Wong
  • Y. H. Chiang
  • Thomas Ng

Abstract

The role of construction in economic development is an important issue facing the construction research community, government and international development agencies. Based on empirical analyses, the complexities of the relationship between construction activity and stage of economic development in Hong Kong were examined. With time series data, Granger causality test results show that the construction output particularly the infrastructure sector drives the economic growth of Hong Kong, and not vice versa. Findings further indicate that the role of the local construction industry changes as the economy matures from newly industrializing country (NIC) to advanced industrialized country (AIC) status, as revealed by the diminishing rate of capacity addition by construction as well as the growing maintenance and repair sector. This complies with Bon's inverted U-shaped relationship between construction activity and gross domestic product (GDP). However, the proposition of 'volume follows share' is not supported since the indigenous construction investments still sustain for the service-oriented economy which inevitably needs commercial development and logistics infrastructure to provide the services. The results may be significant for policy makers in NICs, in the long run, to formulate corporate and industrial policies to chart out a viable and sustainable course to revive the vigour of the industry.

Suggested Citation

  • James Wong & Y. H. Chiang & Thomas Ng, 2008. "Construction and economic development: the case of Hong Kong," Construction Management and Economics, Taylor & Francis Journals, vol. 26(8), pages 815-826.
    • Handle: RePEc:taf:conmgt:v:26:y:2008:i:8:p:815-826
    DOI: 10.1080/01446190802189927
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/01446190802189927
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01446190802189927?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Patricia M. Hillebrandt, 2000. "Economic Theory and the Construction Industry," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-0-230-37248-1, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. José Luis Fuentes-Bargues & Mª Carmen González-Cruz & Cristina González-Gaya, 2017. "Environmental Criteria in the Spanish Public Works Procurement Process," IJERPH, MDPI, vol. 14(2), pages 1-18, February.
    2. Sheilla Nyasha & Yvonne Gwenhure & Nicholas M Odhiambo, 2018. "Energy consumption and economic growth in Ethiopia: A dynamic causal linkage," Energy & Environment, , vol. 29(8), pages 1393-1412, December.
    3. Preenithi Aksorn & Bupavech Phansri, 2023. "The influencing factors of area-based infrastructure project sustainability in Thailand," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 13521-13539, November.
    4. Saboori, Behnaz & Soleymani, Abdorreza, 2011. "Environmental Kuznets curve in Indonesia, the role of energy consumption and foreign trade," MPRA Paper 31534, University Library of Munich, Germany.
    5. Jose Luis Fuentes-Bargues & Pablo Sebastian Ferrer-Gisbert & Mª. Carmen González-Cruz, 2018. "Analysis of Green Public Procurement of Works by Spanish Public Universities," IJERPH, MDPI, vol. 15(9), pages 1-20, August.
    6. Marian Siminicã & Marioara Avram & Luminita Popescu & Roxana Loredana Avram, 2020. "The Adoption of National Green Procurement Plans from the Perspective of Circular Economy," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(53), pages 1-15, February.
    7. José Luis Fuentes-Bargues & Mª José Bastante-Ceca & Pablo Sebastián Ferrer-Gisbert & Mª Carmen González-Cruz, 2020. "Analysis of the Situation of Social Public Procurement of Works at the Valencian Region (Spain)," Sustainability, MDPI, vol. 13(1), pages 1-23, December.
    8. Erol, Isil & Unal, Umut, 2015. "Role of Construction Sector in Economic Growth: New Evidence from Turkey," MPRA Paper 68263, University Library of Munich, Germany.
    9. Akpan, Usenobong F. & Chuku, Agbai, 2011. "Economic Growth and Environmental Degradation in Nigeria: Beyond the Environmental Kuznets Curve," MPRA Paper 31241, University Library of Munich, Germany.
    10. Jose Luis Fuentes-Bargues & Pablo Sebastian Ferrer-Gisbert & Mª Carmen González-Cruz & María Jose Bastante-Ceca, 2019. "Green Public Procurement at a Regional Level. Case Study: The Valencia Region of Spain," IJERPH, MDPI, vol. 16(16), pages 1-24, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ferda Halicioglu, 2007. "The demand for new housing in Turkey: an application of ARDL model," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 9(1), pages 62-74.
    2. S. Thomas Ng & Ryan Fan & James Wong & Albert Chan & Y. H. Chiang & Patrick Lam & Mohan Kumaraswamy, 2009. "Coping with structural change in construction: experiences gained from advanced economies," Construction Management and Economics, Taylor & Francis Journals, vol. 27(2), pages 165-180.
    3. Chan Swee Lean, 2001. "Empirical tests to discern linkages between construction and other economic sectors in Singapore," Construction Management and Economics, Taylor & Francis Journals, vol. 19(4), pages 355-363.
    4. Elena IONAȘCU, 2019. "The Dynamic Relationship Between The Residential Real Estate Markets, Macro – Economy And Institutional Development: Evidence From Eu Countries," EURINT, Centre for European Studies, Alexandru Ioan Cuza University, vol. 6, pages 75-107.
    5. S. Thomas Ng & Ryan Fan & James Wong, 2011. "An econometric model for forecasting private construction investment in Hong Kong," Construction Management and Economics, Taylor & Francis Journals, vol. 29(5), pages 519-534.
    6. Yuepeng Cui & Daan Liang & Bradley T. Ewing & Ali Nejat, 2016. "Development, specification and validation of Hurricane Resiliency Index," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 82(3), pages 2149-2165, July.
    7. Tirataci Hakan & Yaman Hakan, 2023. "Estimation of ideal construction duration in tender preparation stage for housing projects," Organization, Technology and Management in Construction, Sciendo, vol. 15(1), pages 192-212, January.
    8. Kargi, Bilal, 2013. "Interaction between the economic growth and the construction industry: A time series analysis on Turkey (2000-2012)," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 3, pages 20-34.
    9. Martin Skitmore, 2008. "First and second price independent values sealed bid procurement auctions: some scalar equilibrium results," Construction Management and Economics, Taylor & Francis Journals, vol. 26(8), pages 787-803.
    10. Vergara, Judith & Serna, Maribel, 2018. "Factor Analysis to Evaluate the Financial Performance of the Construction Industry in an Emerging Market: The Case of Colombia || Análisis factorial para evaluar el rendimiento financiero de la indust," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 26(1), pages 52-70, Diciembre.
    11. George Ofori, 2023. "Get Construction Project Performance Parameters Right to Attain Sustainable Development Goals," Sustainability, MDPI, vol. 15(18), pages 1-21, September.
    12. Erol, Isil & Unal, Umut, 2015. "Role of Construction Sector in Economic Growth: New Evidence from Turkey," MPRA Paper 68263, University Library of Munich, Germany.
    13. Gerard De Valence, 2006. "Guest Editorial," Construction Management and Economics, Taylor & Francis Journals, vol. 24(7), pages 661-668.
    14. Danny Myers, 2003. "The future of construction economics as an academic discipline," Construction Management and Economics, Taylor & Francis Journals, vol. 21(2), pages 103-106.
    15. Alexander Styhre, 2011. "In the circuit of credibility: construction workers and the norms of 'a good job'," Construction Management and Economics, Taylor & Francis Journals, vol. 29(2), pages 199-209.
    16. Seli-super-˙n Gundes, 2011. "Exploring the dynamics of the Turkish construction industry using input-output analysis," Construction Management and Economics, Taylor & Francis Journals, vol. 29(1), pages 59-68.
    17. Rafaela Martinez Mendez, 2011. "Analisis De La Industria De La Construccion Estado De Puebla Mexico," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 4(2), pages 21-33.
    18. Min-Ren Yan, 2015. "Project-Based Market Competition and Policy Implications for Sustainable Developments in Building and Construction Sectors," Sustainability, MDPI, vol. 7(11), pages 1-26, November.
    19. Ang Yee Kwan & George Ofori, 2001. "Chinese culture and successful implementation of partnering in Singapore's construction industry," Construction Management and Economics, Taylor & Francis Journals, vol. 19(6), pages 619-632.
    20. George Ofori, 2003. "Frameworks for analysing international construction," Construction Management and Economics, Taylor & Francis Journals, vol. 21(4), pages 379-391.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:conmgt:v:26:y:2008:i:8:p:815-826. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RCME20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.