Construction and economic development:empirical evidence for the period 2000-2011

Daniele Girardi and Antonio Mura ()

Department of Economics University of Siena from Department of Economics, University of Siena

Abstract: This article provides evidence of an inverted U-shaped relationship between the share of construction in GDP and economic development, employing panel data for world countries for the period 2000-2011. The relationship holds only after logarithmic transformation of the data, implying that the curve is asymmetric with respect to its maximum. This means that the relative level of construction activity tends to increase in developing countries, to peak during industrialization and to decrease at a slowing pace in industrialized countries, approaching stabilization in mature economies. The ?tness of the model increases signi?cantly if we measure economic development by means of alternative indicators instead of per-capita GDP. The curve is robust to the inclusion of control variables and there is evidence of a linear relation between income distribution and construction activity level.

Keywords: Construction; Development; Investment; Measures of Development (search for similar items in EconPapers)
JEL-codes: L74 N60 O10 (search for similar items in EconPapers)
Date: 2013-09
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Related works:
Journal Article: The Construction-Development Curve: Evidence from a New International Dataset (2014)
Working Paper: The construction-development curve: evidence from a new international dataset (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:usi:wpaper:684

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