An Empirical Assessment of Linkage between the Construction Sector and Economic Growth (GDP) of Malaysia (2000-2010)

• Main Authors: Raza, Ali Khan, Zawawi, Noor Amila, Khamidi, M. Faris
• Format: Conference or Workshop Item
• Published: 2012
• Subjects: TA Engineering (General). Civil engineering (General)
• Online Access: http://eprints.utp.edu.my/8167/1/Empirical_assessment_khamidi.pdf; http://eprints.utp.edu.my/8167/

Construction sector plays a significant role in aggregate economy of a country in term of its contribution to revenue generation, capital formation and employment creation which ultimately support to gross domestic product (GDP) of the country. The industry is backed to economic development through the share of its own value-added output and moreover by playing the important role as an employer of the large work force. This study scrutinizes the linkage and relationship between construction sector and economic growth of (GDP) Malaysia. Through Engel Granger econometric technique, examines the Causal relationship between Construction output value and economic expansion (GDP). The results exhibit that there is strong causal bi-directional relationship between construction sector and economic growth (GDP) of Malaysia during the period (2000-2010), which implies that economic expansion is necessary for the development of construction sector of Malaysia.