Deakin University
Browse

Convergence among the sub-markets in Australian regional building and construction sector

journal contribution
posted on 2010-01-01, 00:00 authored by Henry Liu, Kerry London
Studies on market convergence are well considered in the literature. However, the majority of the previous research focused on housing markets and few studies have concentrated on construction markets. Owing to a simultaneously dramatic increase in the construction prices of the sub-markets in the building construction sector in Australia, this paper aims to identify the convergence among these markets, involving house construction market, other-residential building construction market, and non-residential building construction market. To achieve it the Granger causality test and generalized response function depending on the vector error correction model with the quarterly data of Australia’s eight states from 1998 to 2010 will be applied. Based upon the econometric tests, the price diffusion patterns among these construction markets have been identified. Research on the convergences of construction markets not only helps construction firms perform well in business operations and arbitrage activities, but also provides policy makers with useful information for enacting effective construction policies for national perspectives and approaches to infrastructure planning.

History

Journal

Australasian journal of construction economics and building

Volume

10

Issue

4

Pagination

11 - 33

Publisher

Australian Institute of Quantity Surveyors

Location

Deakin West, A.C.T.

ISSN

1835-6354

eISSN

1837-9133

Language

eng

Publication classification

C1 Refereed article in a scholarly journal

Copyright notice

2010, Australian Institute of Quantity Surveyors

Usage metrics

    Research Publications

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC