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Did the late-2000s financial crisis influence construction labour productivity?

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  • Le Ma
  • Chunlu Liu

Abstract

The late-2000s global financial crisis has wrought dramatic impacts on the construction industry. However, the issue of whether the crisis influenced the behaviours of the construction industry has not been addressed yet. This research presents an econometric approach to investigating the effects of the recent global financial crisis on construction labour productivity. By employing the error correction model and panel regression methods, the direct and indirect effects of the financial crisis on the changes in Australian construction labour productivity are explored at national and state levels. Neither the direct nor the indirect effects appear statistically significant. The results indicate that the direct effect of the financial crisis drives up construction labour productivity at the national level, while the indirect effect diminishes productivity. The effects of the financial crisis on the state construction labour productivity vary from state to state. The financial crisis influenced construction labour productivity directly and significantly in the northern and eastern regions, while the direct effects appear not significant in the other states and territories. The indirect effects of the financial crisis on productivity are statistically significant in three regions: the Australian Capital Territory, the Northern Territory and Western Australia. By comparison, the model with the financial effects fails to provide more accurate simulating results. As such, this research concludes that the influence of the late-2000s financial crisis on Australian national and state construction labour productivity is limited.

Suggested Citation

  • Le Ma & Chunlu Liu, 2014. "Did the late-2000s financial crisis influence construction labour productivity?," Construction Management and Economics, Taylor & Francis Journals, vol. 32(10), pages 1030-1047, October.
    • Handle: RePEc:taf:conmgt:v:32:y:2014:i:10:p:1030-1047
    DOI: 10.1080/01446193.2014.944927
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    Cited by:

    1. Dixit Saurav, 2021. "Impact of management practices on construction productivity in Indian building construction projects: an empirical study," Organization, Technology and Management in Construction, Sciendo, vol. 13(1), pages 2383-2390, January.
    2. Ma, Le & Liu, Henry J. & Edwards, David J. & Sing, Michael C.P., 2021. "Housing price dynamics on residential construction: A case study of the Australian property sector," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 525-532.

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