Quantifying the Linkages and Leakages of Construction Activities in an Open Economy Using Multiregional Input–Output Analysis

Abstract

This study proposes an analytical framework to evaluate the economic influence and leakage of the construction sector in a small and open economy, using Hong Kong as a case study. Input-output analysis (IOA) is used to capture the domestic intersectoral linkages, and multiregional IOA is used to measure the leakages resulting from international trade. In the absence of Hong Kong official inputoutput tables (IOTs), five IOTs during 1995-2013 and three multiregional IOTs from 2004, 2007, and 2011 are compiled using the Global Trade Analysis Project (GTAP) database in conjunction with official statistics. Comparisons with other economies are included to disclose the relative economic influences of Hong Kong's construction sector. The results reveal the declining economic importance of Hong Kong's construction sector in stimulating economic growth, along with increased leakage to the manufacturing sectors abroad. The domestic backward linkage has dropped from 1.74 in 1995 to 1.55 in 2013 per unit of final demand. In 2011, 40.55% of the economic contribution has leaked out through international trade.The outcomes provide a rational basis with which to inform the decision-making of the Hong Kong government in infrastructure planning, regarding resource utilization, and benefit optimization. Import substitution policy is recommended to ease foreign dependence through local production of construction products.

Quantifying city-scale carbon emissions of the construction sector based on multi-regional input-output analysis

“…Hong Kong is recognized as a small open economy with few physical resources. The economy relies on significant quantities of imported goods and services to operate (Hung et al, 2019), but its GHG mitigation policies are based on the conventional PBA approach. The government is committed to reducing per capita emissions from 6.2 tonnes CO2-e in 2014 down to 3.3-3.8 tonnes CO2-e in 2030 (Environment Bureau, 2017).…”

Tracking Control of the Dynamic Input-Output Economic System Based on Data Fusion

“…Regarding the research on the input and output economic system, many scholars have explored it from multiple angles. For example, Acemoglu studied the microscopic origin of macroeconomic tail risk [9]; from the perspective of input and output, Wu studied the current situation of China's economic energy use [10]; Wiebe studied the global circular economy scenario under the multiregional inputoutput framework [11]; Hung analyzed the links between economic opening construction activities through multiregional input-output [12]; He took the Australian economic system and waste management as the research object and studied the input-output relationship between the two [13].…”

An assessment of the linkages between the construction and other sectors of the Nigerian economy

“…Many other studies have also researched on different countries across many continents, including the USA (Park, 1989), Japan (Bon and Yashiro, 1996), Turkey (Bon et al , 1999) and Italy (Pietroforte et al , 2000). Other countries that have been studied this aspect include Mozambique (Wethal, 2018); Kazakhstan (Temursho, 2016), Ghana (Osei, 2013), Nigeria (Saka and Lowe, 2010) and multi-regions (Hung et al , 2019).…”

“…Leading Nigeria’s industrial hub is the Lagos area (Okonji, 2013; Onuba, 2014; Clement, 2014; Agande, 2014; Vanguard Nigeria, 2013; Daily News Watch, 2013; Online Nigeria News, 2012). By increasing tax on goods, it discourages importation and improves local manufactures (Hafez et al , 2020; Hung et al , 2019; Fasanya and Olayemi, 2018; Médici and Panigo, 2015).…”