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Quantifying the linkages and leakages of construction activities in an open economy using multiregional input–output analysis

Hung, Cathy and Hsu, Shu-Chien and Pratt, Stephen and Chen, Pi-Cheng and Lee, Chia-Jung and Chan, Albert (2019) Quantifying the linkages and leakages of construction activities in an open economy using multiregional input–output analysis. Journal of Management in Engineering, 35 (1). NA. ISSN 0742-597X

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    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 input–output 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 dropped from 1.74 in 1995 to 1.55 in 2013 per unit of final demand. In 2011, 40.55% of the economic contribution 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, resource utilization, and benefit optimization. An import substitution policy is recommended to ease foreign dependence through local production of construction products.

    Item Type: Journal Article
    Subjects: H Social Sciences > H Social Sciences (General)
    H Social Sciences > HB Economic Theory
    Divisions: Faculty of Business and Economics (FBE) > School of Tourism and Hospitality Management
    Depositing User: Stephen Pratt
    Date Deposited: 01 Apr 2019 11:55
    Last Modified: 01 Apr 2019 11:55
    URI: http://repository.usp.ac.fj/id/eprint/11411
    UNSPECIFIED

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