The Effect of Labor Input, Construction Cost, and Building Permits on Production Construction With Structural Equation Modeling, Evidence from Europe

Abstract

Purpose : This study examines the impact of labor input, construction costs, and building permits on production construction. Theoritical Framework : Nowadays, construction projects are growing. Construction projects require serious management because the larger the project, the more complex the dependence on one job to another in order to achieve the desired results. Design/Methodology/Approach : The secondary data explore from European data obtained from Eurostat from 2016 to 2019. Analyzing and proving hypotheses using Smart PLS software. Findings : The labor input has impact on production construction. The Construction Cost and Building Permits are not impcat to the Production Construction. Efforts to increase business creation should be a development priority in Europe. This is not only related to efforts to achieve the demographic bonus, but also efforts to achieve increased welfare for the Europe community. Research implication : Regional revenue is money that goes into the regional treasury. In implementation of decentralization, regional revenues consist of revenue and financing. Regional income is a recognized right of local government as in the period concerned, while regional financing is all revenues that need to be paid back and/or expenses that will be received back, either in the relevant fiscal year as well as in other fiscal years next. Practical implication : There is potential for the development and energy sources, increasing mastery of technology and quality of human resources, development of strategic industries, increasing sector between European and non-European countries. Social implication : The construction sector is one sector that can create jobs and encourage the transfer of technology that is useful for social aspects. Originality/Value : Enhancement productivity and quality of human resources to be important factor in the effort to reach the potential bonus demographics in Europe. In an effort to achieve demographic bonus opportunities, then in European countries it is expected focus on improving job creation and business for the population young age due to the number of young people which is relatively less. If this population group has the ability increase revenue and productivity, then the country's economy can be improved which in turn can promote growth economy in achieving the demographic bonus in future.

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