Direction Of The Causal Relationship Between Construction And The National Economy Of Sri Lanka

Causal relationships between construction and national economies have received considerable attention in the past. However, the results of research on this topic provide contrasting views about the nature of the relationship. This paper investigates the direction of the causal relationship betwee...

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Main Authors: Ramachandra, Thanuja, Rotimi, James Olabode Bamidele, Rameezdeen, Raufdeen
Format: Article
Language:English
Published: Penerbit Universiti Sains Malaysia 2013
Subjects:
Online Access:http://eprints.usm.my/42069/
http://eprints.usm.my/42069/1/JCDC_18%282%29_2013-Art._4_%2849-63%29.pdf
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author Ramachandra, Thanuja
Rotimi, James Olabode Bamidele
Rameezdeen, Raufdeen
author_facet Ramachandra, Thanuja
Rotimi, James Olabode Bamidele
Rameezdeen, Raufdeen
author_sort Ramachandra, Thanuja
building USM Institutional Repository
collection Online Access
description Causal relationships between construction and national economies have received considerable attention in the past. However, the results of research on this topic provide contrasting views about the nature of the relationship. This paper investigates the direction of the causal relationship between construction and the economy of a developing country, Sri Lanka, using empirical data for selected economic and construction indicators for the period 1990 to 2009. The pattern of the causal relationship was determined using the Granger causality test. The findings reveal that national economic activities precede construction activities for all indicators except construction investment. The study therefore concludes and strengthens the body of knowledge concerning the causal relationship between the construction sector in Sri Lanka and the national economy tending towards a uni-directional relationship, with the national economy inducing growth in the construction sector and not vice versa.
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spelling usm-420692018-09-25T01:17:11Z http://eprints.usm.my/42069/ Direction Of The Causal Relationship Between Construction And The National Economy Of Sri Lanka Ramachandra, Thanuja Rotimi, James Olabode Bamidele Rameezdeen, Raufdeen TH1-9745 Building construction Causal relationships between construction and national economies have received considerable attention in the past. However, the results of research on this topic provide contrasting views about the nature of the relationship. This paper investigates the direction of the causal relationship between construction and the economy of a developing country, Sri Lanka, using empirical data for selected economic and construction indicators for the period 1990 to 2009. The pattern of the causal relationship was determined using the Granger causality test. The findings reveal that national economic activities precede construction activities for all indicators except construction investment. The study therefore concludes and strengthens the body of knowledge concerning the causal relationship between the construction sector in Sri Lanka and the national economy tending towards a uni-directional relationship, with the national economy inducing growth in the construction sector and not vice versa. Penerbit Universiti Sains Malaysia 2013 Article PeerReviewed application/pdf en http://eprints.usm.my/42069/1/JCDC_18%282%29_2013-Art._4_%2849-63%29.pdf Ramachandra, Thanuja and Rotimi, James Olabode Bamidele and Rameezdeen, Raufdeen (2013) Direction Of The Causal Relationship Between Construction And The National Economy Of Sri Lanka. Journal of Construction in Developing Countries , 18 (2). pp. 49-63. ISSN 1823-6499 http://web.usm.my/jcdc/vol18_2_2013/JCDC%2018(2)%202013-Art.%204%20(49-63).pdf
spellingShingle TH1-9745 Building construction
Ramachandra, Thanuja
Rotimi, James Olabode Bamidele
Rameezdeen, Raufdeen
Direction Of The Causal Relationship Between Construction And The National Economy Of Sri Lanka
title Direction Of The Causal Relationship Between Construction And The National Economy Of Sri Lanka
title_full Direction Of The Causal Relationship Between Construction And The National Economy Of Sri Lanka
title_fullStr Direction Of The Causal Relationship Between Construction And The National Economy Of Sri Lanka
title_full_unstemmed Direction Of The Causal Relationship Between Construction And The National Economy Of Sri Lanka
title_short Direction Of The Causal Relationship Between Construction And The National Economy Of Sri Lanka
title_sort direction of the causal relationship between construction and the national economy of sri lanka
topic TH1-9745 Building construction
url http://eprints.usm.my/42069/
http://eprints.usm.my/42069/
http://eprints.usm.my/42069/1/JCDC_18%282%29_2013-Art._4_%2849-63%29.pdf