Abstract
This study applied input-output analysis to determine the
changes in the demand and relative shares of different
types of construction as well as its indirect impacts.
The study examined separately the impacts of fluctuations
in domestic construction and exports on building
contracting and the construction products industry and
the money flow they create between the economic units of
the national economy. Several studies conducted in the
1990s and official statistical material produced by
Statistics Finland were used as input data for the study.
The official national accounts and related input-output
statistics regard construction as a separate industry.
Construction costs include costs incurred at the
construction site. The builder s costs are not included
in site costs. In this study, the scope of the official
industry concept was expanded by taking into account the
builder s costs and the value-added and capital-transfer
taxes paid by the clients of the construction sector. The
broader approach had a significant impact on the
distribution of the costs of construction, and the income
produced by it, between economic units. Naturally, the
mentioned cost items had no impact on the demand for
construction products.
Building construction was dealt with as 26 system units
while civil engineering was divided into 10 system units.
System units allowed taking into account construction's
internal technological and market-share changes. The
study showed that the construction products industry as
whole came through the drastic fall in demand in the
early 1990s in better shape than building contracting.
The metal industry was the subsector of the construction
products industry that had most export success and
benefited from the emphasis on renovation in building
construction.
The study also showed that higher taxes and tax-like
charges had increased the public sector's share of income
while households' share had decreased. Mechanization of
civil engineering reduced the share of wages paid to
households and increased the costs of operating
machinery.
Original language | English |
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Qualification | Licentiate Degree |
Awarding Institution |
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Place of Publication | Tampere |
Publisher | |
Publication status | Published - 2001 |
MoE publication type | G3 Licentiate thesis |
Keywords
- construction
- input-output
- societal impact