The effects of the late 2000s global financial crisis on Australia's construction demand

Jiang, Heng, Jin, Xiao-Hua and Liu, Chunlu 2013, The effects of the late 2000s global financial crisis on Australia's construction demand, Australasian journal of construction economics and building, vol. 13, no. 3, pp. 65-79.

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Title The effects of the late 2000s global financial crisis on Australia's construction demand
Author(s) Jiang, Heng
Jin, Xiao-Hua
Liu, Chunlu
Journal name Australasian journal of construction economics and building
Volume number 13
Issue number 3
Start page 65
End page 79
Total pages 15
Publisher University of Technology Sydney ePress
Place of publication Sydney, N.S.W.
Publication date 2013
ISSN 1835-6354
1837-9133
Keyword(s) vector error correction
intervention analysis
construction demand
the global financial crisis
Summary An accurate measurement of the impacts of external shocks on construction demand will enable construction industry policymakers and developers to make allowances for future occurrences and advance the construction industry in a sustainable manner. This paper aims to measurethe dynamic effects of the late 2000s global financial crisis on the level of demand in the Australian construction industry. The vector error correction (VEC) model with intervention indicators is employed to estimate the external impact from the crisis on a macro-level construction economic indicator, namely construction demand. The methodology comprises six main stages to produce appropriate VEC models that describe the characteristics of the underlying process. Research findings suggestthat overall residential and non-residential construction demand were affected significantly by the recent crisis and seasonality. Non-residentialconstruction demand was disrupted more than residential construction demand at the crisis onset. The residential constructionindustry is more reactive and is able to recover faster following the crisis in comparison with the non-residential industry. The VEC model with intervention indicators developed in this study can be used as an experiment for an advanced econometric method. This can be used to analyse the effects of special eventsand factors not only on construction but also on other industries.
Language eng
Field of Research 120201 Building Construction Management and Project Planning
Socio Economic Objective 870503 Residential Building Management and Services
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2013, University of Technology Sydney ePress
Persistent URL http://hdl.handle.net/10536/DRO/DU:30057665

Document type: Journal Article
Collection: School of Architecture and Built Environment
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