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An economic analysis of construction industries producer prices in Australia

Version 2 2024-06-03, 09:52
Version 1 2014-10-28, 09:14
journal contribution
posted on 2024-06-03, 09:52 authored by C Fu, Chunlu LiuChunlu Liu
Research on construction prices is significant for contractors and traders. A comprehensive understanding of construction prices may influence crucial decisions in business operation and arbitrage activities. This study focuses on the cointegration relationships of regional construction prices in Australia by using a range of econometric techniques including the stationarity test, the Engle-Granger cointegration approach and error correction model. The cointegration relationships amongst the regional construction prices are detected in this study. The application of the Engle-Granger cointegration approach examines the long run equilibrium relationships within the regional markets, and the error correction models explore the short run disequilibrium relationships. Results of this study suggest that the economic system in which construction industry participants operate is characterised by a highly competitive integrated marketplace. Furthermore, the causalities and diffusion patterns among the construction price indices in six states and two territories of Australia are drawn by the cointegration analysis. These outcomes reveal a pattern of diffusion paths and network linkages among the six states and two territories, and then expose the regional price linkages.

History

Journal

International journal of economics and finance

Volume

2

Pagination

3-14

Location

Toronto, Canada

ISSN

1059-0560

eISSN

1916-9728

Language

eng

Notes

Reproduced with the specific permission of the copyright owner.

Publication classification

C1 Refereed article in a scholarly journal

Copyright notice

2010, Canadian Center of Science and Education (CCSE)

Issue

3

Publisher

Canadian Center of Science and Education