Towards the Establishment of Relationship between Macroeconomic Indicators and Cost of Public Educational Buildings in Ghana

Abstract

Cost of building is usually influenced by several factors; one of such is frequent changes in macroeconomic variables. The purpose of this study is to establish the need to conduct further research on the impact of changes in macroeconomic components on the cost of public educational buildings. The study adopted the qualitative research approach; purposive and snowballing techniques were used in selecting respondents. Questionnaire survey was used to obtain primary data from respondents who were Quantity Surveyors and Estimators. The questionnaires were analyzed through descriptive analysis. Secondary data was obtained through literature review. The study revealed that respondents were satisfied with cost management procedures and practices and mainly relied on cash flow, progress reporting, and project cost control methods as means of monitoring and managing project cost. Relative important index, prime rate, interest rate, and inflation were some of the macroeconomic components that professionals considered having impact on cost. The respondents also recommended further studies on the impact of macroeconomic variability on cost of public buildings.

Economic Variables as an Early Warning Sign for Monitoring Construction Cost Indices – “An Empirical Study on Egypt”

“…Several macroeconomic variables were present, like GDP, exchange rate, inflation, interest rate, consumer price index, unemployment, employment, crude oil price, producer price index, money supply, population, real house prices, labor costs, and monetary policy, which were the most prevalent. According to Asamoah et al (2019b), several factors, such as frequent changes in macroeconomic variables and the relative importance index, typically affect the cost of a building. Professionals considered the prime rate, interest rate, and inflation as macroeconomic components that impacted costs.…”

The Effects of Unstable Macroeconomic Indicators on Stock Price Behavior of Banking Sector in the Nigerian Stock Market

“…An efficient and stable capital market depended mostly on the macroeconomic environment within its spheres of operation. Similarly, Omankhanlen, Senibi, and Senibi (2016), Gilbert, Scotti, Strasser, and Vega (2017), Pal and Garg (2019), Asamoah, Baiden, and Nani (2019), and Mbulawa (2015) agreed that the capital market often reacted to the macroeconomic environment such as political and economic climates (exchange rate, interest rate, gross domestic product, and others). It was due to the interactions between the surplus unit and the productive sector of the economy.…”