Question 2.
This question seeks to confirm the supposed relationship between the construction industry and the wider economy. In particular, the question is seeking to know whether it is true that the construction industry is an adequate barometer for measuring the ‘health and well-being’ of the economy. If it is, the construction industry should be the place where the first signs of economic recession and recovery are noticed.
Step 1.
- You need to define the construction industry and determine the characteristics, particularly how it links or functions with the wider economy
- How much employment the sector accounts for in total employment
- Which other sectors in the economy depends on the construction sector for survival
- What proportion of inputs that go into the construction industry are produced locally and how much are imported?
- You need to collect construction sector GDP Figures for your country of origin (2000 to 2017)
- You need to collect national GDP Figures for your country of origin (2000 to 2017)
Step 2.
- Produce a graph from these two figures and analyze the trends.
- Carry out a simple correlation to see the degree of association.
- Observe and analyze the trends to show the closeness between the two variables.
Step 3.
- Critically discuss whether your findings are sufficient to hinge the claim(s) that when the construction industry sneezes, the rest of the economy catches cold.
- Critically discuss why your findings may not be true for all economies. This may require you to reproduce step 2 for a developing country of your choosing (the one for which data is readily available) and analyze the trend.
Step 4.
- Remember to conclude your essay, please note that summary is not a conclusion. Endeavour to explain how you may have benefitted from the knowledge acquired from this exercise.
