Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237364 
Year of Publication: 
2020
Series/Report no.: 
ETLA Working Papers No. 79
Publisher: 
The Research Institute of the Finnish Economy (ETLA), Helsinki
Abstract: 
The construction industry has suffered from low growth in recent decades. Motivated by the economic impor-tance of the industry, we revisit the construction produc-tivity puzzle by analyzing the construction value chains of 12 European countries with data from the World In-put-Output and EU KLEMS databases. We decompose construction-related value-added and productivity con-tributions to the construction industry and the rest of the value chain, and show that the traditional focus on the construction industry is restrictive. There is a substantial amount of construction-related value-add-ed generated in other industries, and the productivi-ty growth in the construction value chains has, for the most part, been seen in them. Furthermore, we show that there is a strong, long-term relationship between construction-related patents and the improvement of total factor productivity in the value chains, but the val-ue chains typically suffer from low efficiency in the use of information technology.
Subjects: 
Construction
Productivity
Global value chains
Organization of production
Production management
Industrial structure and structural chan
JEL: 
D24
L16
L23
M11
Document Type: 
Working Paper

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