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An analysis of construction productivity in Malaysia

Author

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  • Fah Choy Chia
  • Martin Skitmore
  • Goran Runeson
  • Adrian Bridge

Abstract

The construction industry is an industry of major strategic importance. Its level of productivity has a significant effect on national economic growth. Productivity indicators are examined. The indicators consist of labour productivity, capital productivity, labour competitiveness, capital intensity and added value content of data, which are obtained from the published census/biannual surveys of the construction industry between the years 1999 and 2011 from the Department of Statistics of Malaysia. The results indicated that there is an improvement in the labour productivity, but the value-added content is declining. The civil engineering and special trades subsectors are more productive than the residential and non-residential subsectors in terms of labour productivity because machine-for-labour substitution is a more important process in those subsectors. The capital-intensive characteristics of civil engineering and special trade works enable these subsectors to achieve higher added value per labour cost but not the capital productivity. The added value per labour cost is lower in larger organizations despite higher capital productivity. However, the capital intensity is lower and unit labour cost is higher in the larger organizations.

Suggested Citation

  • Fah Choy Chia & Martin Skitmore & Goran Runeson & Adrian Bridge, 2012. "An analysis of construction productivity in Malaysia," Construction Management and Economics, Taylor & Francis Journals, vol. 30(12), pages 1055-1069, December.
    • Handle: RePEc:taf:conmgt:v:30:y:2012:i:12:p:1055-1069
    DOI: 10.1080/01446193.2012.711910
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    References listed on IDEAS

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    1. Patricia M. Hillebrandt, 2000. "Economic Theory and the Construction Industry," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-0-230-37248-1, September.
    2. Thorsten Beck & Asli Demirgüç-Kunt, 2004. "SMEs, Growth, and Poverty," World Bank Publications - Reports 11278, The World Bank Group.
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    1. 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.
    2. Ma, Le & Hosseini, M. Reza & Jiang, Weiling & Martek, Igor & Mills, Anthony, 2018. "Energy productivity convergence within the Australian construction industry: A panel data study," Energy Economics, Elsevier, vol. 72(C), pages 313-320.

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