Abstract:The Australian construction industry continues to play an important role in the national economy. Analysis using input–output tables makes it possible to understand the role of the construction industry in Australia’s economy and its relationships to other major industries over years. This study applies several economic indicators to investigate the construction industry’s contributions to gross national product and gross national income, as well as its backward and forward linkage indicators, and its output a… Show more
“…The Construction sector generally exhibits a higher economic pull (backward) than push (forward) effect. This is due to the nature of the construction operations that need many different inputs from a large number of economic sectors and due to the nature of the demand for the construction outputs that are considered derived demand from other economic activities (Pietroforte and Gregori 2003 ; Liu and He 2016 ). Specifically, the Construction sector cannot itself create demand for its output, thus if other sectors cannot absorb the construction outputs or the sector expands beyond the adaptive capacity of the economy, it negatively impacts the economy (Pietroforte and Gregori 2003 ; Song and Liu 2006 ).…”
This paper conceptualizes and empirically explores the resilience of European Union regional labour markets in terms of labour productivity growth. We assess the effect of pre-crisis region-specific factors on regional labour markets resilience controlling for the effect of exogenous technological change and substitution between capital and labour. Regional input–output models are developed to estimate supplies and sales linkages across the European Union NUTS-2 regional economies. Spatial Durbin Error Model estimates suggest that regional labour markets characterised by a higher level of economic pull capabilities of the Construction sector and a higher level of industrial concentration can better withstand the effects of the negative shock and recover faster. Place-based policies building on regions’ competitive strengths can smooth out the negative effect of the economic shock and accelerate the recovery of regional labour markets, while policy interventions promoting capital investment can further enhance labour productivity in European Union regions.
“…The Construction sector generally exhibits a higher economic pull (backward) than push (forward) effect. This is due to the nature of the construction operations that need many different inputs from a large number of economic sectors and due to the nature of the demand for the construction outputs that are considered derived demand from other economic activities (Pietroforte and Gregori 2003 ; Liu and He 2016 ). Specifically, the Construction sector cannot itself create demand for its output, thus if other sectors cannot absorb the construction outputs or the sector expands beyond the adaptive capacity of the economy, it negatively impacts the economy (Pietroforte and Gregori 2003 ; Song and Liu 2006 ).…”
This paper conceptualizes and empirically explores the resilience of European Union regional labour markets in terms of labour productivity growth. We assess the effect of pre-crisis region-specific factors on regional labour markets resilience controlling for the effect of exogenous technological change and substitution between capital and labour. Regional input–output models are developed to estimate supplies and sales linkages across the European Union NUTS-2 regional economies. Spatial Durbin Error Model estimates suggest that regional labour markets characterised by a higher level of economic pull capabilities of the Construction sector and a higher level of industrial concentration can better withstand the effects of the negative shock and recover faster. Place-based policies building on regions’ competitive strengths can smooth out the negative effect of the economic shock and accelerate the recovery of regional labour markets, while policy interventions promoting capital investment can further enhance labour productivity in European Union regions.
“…A matrix system in an input-output table means that the total input equals the total output of the whole economy (Kronenberg et al, 2018). The input-output table shows the production sector, intermediate output, final demand, and total output in the horizontal column; the rows include different economic production sectors, intermediate input, value-added, and total input (Liu & He, 2016), as shown in Table 1 as follows. From that table, the matrix equation system is then generated as X = AX+Y.…”
This research explores the role of the tourism sector in Indonesia, including its backward and forward linkages with other economic sectors. The tourism sector is represented by the hotel and restaurant (hospitality) industry. The study uses the input-output method and traces the econometric backward and forward shocks of the tourism sector with the Error Correction Model (ECM), using database from Statistics Indonesia from 2010 to 2019. The paper contributes to the existing literature by using multi-stage quantitative processes to observe backward and forward economic linkages. The result shows that manufacturing output contributes a significant and positive effect to the hotel and restaurant industry. At the same time, the tourism sector provides a significant and positive contribution to government retribution. Nonetheless, there is a negative relationship between the growth of the agriculture and tourism sector, which is assumed due to the tradeoff in the factor of production between the agricultural and tourism sector development. Consequently, backward and forward relationships suggest more holistic and prudent economic policies for observing interdependent tourism development in Indonesia's other economic sectors. ABSTRAKTujuan penelitian ini adalah menginvestigasi keterkaitan ke belakang dan ke depan antara sektor pariwisata dan sektor ekonomi lain di Indonesia. Pariwisata di sini di wakili sektor perhotelan dan restoran. Studi ini menggunakan metode input-output dengan data berasal dari database input output Bank Pembangunan Asia (ADB). Kedua, studi menelusuri keterkaitan ekonometrik ke depan dan ke belakang pariwisata dengan model koreksi kesalahan (ECM), menggunakan data triwulan dari PDB riil di database BPS dari tahun 2010 hingga 2019. Kontribusi makalah ini adalah proses multi-asesment untuk mengamati keterkaitan ekonomi ke belakang dan ke depan antara pariwisata dengan sektor ekonomi lainnya. Dari ekonometri tersebut, diketahui bahwa kontribusi output industry manufaktur berpengaruh signifikan dan positif terhadap industri hotel dan restoran. Selain itu, pariwisata memberikan kontribusi yang signifikan dan positif untuk retribusi pemerintah. Meskipun demikian, peningkatan output pariwisata datang dengan pengorbanan pengurangan output sektor pertanian. Hal ini dipengaruhi oleh kompetisi akses faktor produksi di antara kedua sektor tersebut. Hasil ini menekankan perlunya kebijakan ekonomi yang lebih holistik dan hati-hati terhadap saling ketergantungan antara pembangunan pariwisata dengan sektor ekonomi lain di Indonesia.
“…Moreover, the scale of construction in an economy extends up to new contracts offered in new building construction and maintenance while the remainder is accounted under services and manufacturing for production (Ashworth and Perera, 2015). Liu and He (2016) highlight the input-output relationship and discrepancies between the two industries; construction and manufacturing. Ginigaddara et al (2019) refer to this relationship to argue that understanding of the emerging nexus between the two industries is essential to excel in OSC.…”
Purpose
The construction industry is currently responding to pressures of industrialisation happening across all sectors. Consequently, offsite construction (OSC) has become a vehicle to achieve industrialisation. This requires changes in traditional construction processes resulting in possible changes in construction skill requirements. Accordingly, the purpose of this study is to identify and review prevailing OSC practices and skills in the Australian construction industry. This study aims to critically analyse the existing skill profile classifications through a single case study and identify the need for an OSC specific skill classification.
Design/methodology/approach
This study follows a case study design, with an in-depth analysis of a single construction project. Only one case study was studied because scientifically, one example was enough to prove that the prevailing skill classifications do not represent OSC skills in a modern context. Data was retrospectively collected through semi-structured interviews of project stakeholders representing design, manufacture and assembly. Content analysis was conducted to analyse the collected data and produce findings.
Findings
This study identifies the inadequacy of the existing classification system, unavailability and the need of OSC specific skill categorisation. It highlights new skills that enter OSC; building information modelling engineer, three-dimensional draftsperson, OSC project manager and project coordinator, which are not identified in the available Australian skill classifications. These, together with existing skills need to be carved in to create a new skill classification.
Originality/value
This study is the first of its kind where a comprehensive OSC project is evaluated as a case study to determine OSC skill classification requirements in Australia.
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