Performance Trends in the Construction Industry Worldwide: An Overview of the Turn of the Century

Journal of Productivity Analysis (Impact Factor: 0.87). 01/2013; 39(1):89-99

Posted: 10 Jan 2015

See all articles by Isabel Horta

Isabel Horta

Universidade do Porto

A. S. Camanho

Universidade do Porto

Jill Johnes

University of Huddersfield

Geraint Johnes

Lancaster University - Management School; Lancaster University

Date Written: 2013

Abstract

This paper presents an exploratory study to assess the efficiency level of construction companies worldwide, exploring in particular the effect of location and activity in the efficiency levels. This paper also provides insights concerning the convergence in efficiency across regions. The companies are divided in three regions (Europe, Asia and North America), and in the three main construction activities (Buildings, Heavy Civil and Specialty Trade). We analyze a sample of 118 companies worldwide between 1995 and 2003. Data envelopment analysis is used to estimate efficiency, and the Malmquist index is applied for the evaluation of productivity change. Both methods were complemented by bootstrapping to refine the estimates obtained. A panel data truncated regression with categorical regressors is used to explore the impact of location and activity in the efficiency levels. The results reveal that the efficiency of North American companies is higher than the European and Asian counterparts. Other important conclusion points to a convergence in efficiency levels across regions as in North America productivity remains stable, whereas in Asia and Europe productivity improves.

Keywords: Construction industry,  DEA, Malmquist

JEL Classification: C23, C61, D24, L74, N60

Suggested Citation

Horta, Isabel and Camanho, A. S. and Johnes, Jill and Johnes, Geraint, Performance Trends in the Construction Industry Worldwide: An Overview of the Turn of the Century (2013). Journal of Productivity Analysis (Impact Factor: 0.87). 01/2013; 39(1):89-99. Available at SSRN: https://ssrn.com/abstract=2546746

Isabel Horta

Universidade do Porto ( email )

Rua Dr. Roberto Frias
4200-464 Porto
Portugal

A. S. Camanho

Universidade do Porto

Rua Dr. Roberto Frias
4200-464 Porto
Portugal

Jill Johnes (Contact Author)

University of Huddersfield ( email )

Queensgate
Huddersfield HD1 3DH
United Kingdom

Geraint Johnes

Lancaster University - Management School ( email )

Bailrigg
Lancaster, LA1 4YX
United Kingdom
+44 1524 594215 (Phone)
+44 1524 594244 (Fax)

Lancaster University ( email )

Lancaster LA1 4YX
United Kingdom

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