Construction labor productivity convergence: a conditional frontier approach

Ma, Le, Liu, Chunlu and Mills, Anthony 2016, Construction labor productivity convergence: a conditional frontier approach, Engineering, construction and architectural management, vol. 23, no. 3, pp. 283-301, doi: 10.1108/ECAM-03-2015-0040.

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Title Construction labor productivity convergence: a conditional frontier approach
Author(s) Ma, Le
Liu, ChunluORCID iD for Liu, Chunlu
Mills, AnthonyORCID iD for Mills, Anthony
Journal name Engineering, construction and architectural management
Volume number 23
Issue number 3
Start page 283
End page 301
Total pages 19
Publisher Emerald
Place of publication Bingley, Eng.
Publication date 2016
ISSN 0969-9988
Summary Purpose-Understanding and simulating construction activities is a vital issue from a macro-perspective, since construction is an important contributor in economic development. Although the construction labor productivity frontier has attracted much research effort, the temporal and regional characteristics have not yet been explored. The purpose of this paper is to investigate the long-run equilibrium and dynamics within construction development under a conditional frontier context. Design/methodology/approach-Analogous to the simplified production function, this research adopts the conditional frontier theory to investigate the convergence of construction labor productivity across regions and over time. Error correction models are implemented to identify the long-run equilibrium and dynamics of construction labor productivity against three types of convergence hypotheses, while a panel regression method is used to capture the regional heterogeneity. The developed models are applied to investigate and simulate the construction labor productivity in the Australian states and territories. Findings-The results suggest that construction labor productivity in Australia should converge to stable frontiers in a long-run perspective. The dynamics of the productivity are mainly caused by the technology utilization efficiency levels of the local construction industry, while the influences of changes in technology level and capital depending appear limited. Five regional clusters of the Australian construction labor productivity are suggested by the simulation results, including New South Wales; Australian Capital Territory; Northern Territory, Queensland, and Western Australia; South Australia; and Tasmania and Victoria. Originality/value-Three types of frontier of construction labor productivity is proposed. An econometric approach is developed to identify the convergence frontier of construction labor productivity across regions over time. The specified model can provides accurate predictions of the construction labor productivity.
Language eng
DOI 10.1108/ECAM-03-2015-0040
Field of Research 120201 Building Construction Management and Project Planning
Socio Economic Objective 970112 Expanding Knowledge in Built Environment and Design
HERDC Research category C1 Refereed article in a scholarly journal
ERA Research output type C Journal article
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