LINKAGES IN THE CONSTRUCTION SECTOR

An important issue regarding the use of construction investment as a public policy tool is the magnitude of its contribution to growth and the nature of its interactions with the other sectors in the economy. Development planners have long used the concepts of backward and forward linkages to examine these interactions. None of the previous analysts, however, has concentrated on the construction sector. In this paper, we discuss the general nature of backward and forward linkages and their role in inducing economic development, present the most commonly used measures for quantifying and understanding the strength and nature of these linkages, and review estimates of backward linkages. In all countries for which estimates exist, we found that gross construction linkages are strong and that the economic impact of construction activities is relatively evenly dispersed over the sectors from which they obtain their inputs. © 1990 Springer-Verlag.