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Changing activity in the construction sector in selected states 2003-2012

Author

Listed:
  • Wolski Rafał

    (Department of Economics of Industry and Capital Markets, University of Lodz)

  • Załęczna Magdalena

    (Department of Investment and Real Estate, University of Lodz)

Abstract

Construction companies are important economic actors in every country. Their activity translates into employment levels, tax revenues, and the provision of new spaces that require further expenditure on equipment, thus stimulating consumer spending. The activity of construction companies depends on the demand for space, the state of the economy and the financial market. Undoubtedly economic disturbances in the form of a recession have a significant impact on construction activity. The authors were interested in whether the boom and recession in the selected countries were similarly reflected in the activity of construction companies. In particular, they were interested in residential construction activity, although it was not possible to select companies that would only deal with residential construction. The authors selected four post-socialist countries and two countries which are called winners of the integration process due to their enormous economic growth. The authors outline the residential construction and construction sector results and activity in the Czech Republic, Poland, Slovakia, Hungary, Spain and Ireland, and draw a wider picture for analyses of construction companies’ financial results for the years 2003-2012. This period was chosen because it covered periods of both boom and bust. All enterprises were part of the sector denoted in the Amadeus database as primary code: Eurostat NACE Rev. 2 with codes: 41 - Construction of buildings: 4110 - Development of building projects, 4120 - Construction of residential and non-residential buildings. Due to the specificity of the construction sector the authors divided the surveyed enterprises into two groups – all companies; and only large and very large companies. It was not possible to separate data specifically with respect to residential construction companies.

Suggested Citation

  • Wolski Rafał & Załęczna Magdalena, 2017. "Changing activity in the construction sector in selected states 2003-2012," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 13(4), pages 14-26, December.
  • Handle: RePEc:vrs:finiqu:v:13:y:2017:i:4:p:14-26:n:1
    DOI: 10.1515/fiqf-2016-0032
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    References listed on IDEAS

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    More about this item

    Keywords

    construction companies; residential real estate; profitability;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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