| Title |
Comparative Analysis of Economic Contribution and Spillover Effects by Construction Investment |
| DOI |
https://dx.doi.org/10.6106/KJCEM.2024.25.6.057 |
| Keywords |
Construction Investment; Economic Contribution; Inducement Coefficient; Influence Coefficient; Direct Investment |
| Abstract |
This study analyzes the contribution of construction investment to the national economy using the approaches of contribution ratio and contribution degree. Based on the input-output table of the Bank of Korea, the study examines the economic effects of investments in specific construction sectors through coefficients of production, value-added, and employment inducement. The effects of construction investment on various industries were analyzed using influence coefficients and sensitivity coefficients. The main findings of this study are as follows: First, the degree to which construction investment contributes to national economic growth is decreasing. However, this is due to a reduction in the scale of construction investment. Second, the inducement effects of construction investment?namely, production, value-added, and employment inducement coefficients?though subject to slight variations, consistently remain at a significant level and are higher than those of the manufacturing sector. Third, the economic contribution of residential construction investment is substantial. The production inducement is prominent in the building construction sector, while employment inducement is notably high in the civil engineering sector. Particularly, the repair and maintenance sector shows significantly high inducement and influence coefficients. Fourth, construction investment has an influence coefficient greater than 1, indicating that it has a strong effect in promoting the growth of other industries. The impact of construction investment on other industrial activities is greater than the influence of other industries on the construction sector, highlighting the importance of direct construction investment. Fifth, in conclusion, the effect of construction investment remains significant. However, the decreasing economic contribution is due to the fact that the increase in construction investment is not as large as the growth in the overall economy. |