Economic Factor Analysis of Value-added Growth for the Chinese Construction Industry

摘要

This paper studies the effect of the contribution that the construction industry is making to the GDP. It uses the Least squares to construct a equation, and finds that there is a correlation between GDP and the growth of the construction industry in China. When the total product of construction industry increases by 1%, the GDP increases about 6% correspondingly. In this relationship, the construction value added growth is regarded as the dependent variable, the total product of construction industry and GDP as the independent variable. The established equation further reveals that when the total product of construction industry increases by 1%, the vale-added product of construction industry will increase by at least 16%. If GDP increases by 1%, however, the vale-added product of construction industry just increases by about 0.5%. Based on the multiplication effect, further research shows that the GDP growth is the driving force for the rapid development of the Chinese construction industry. Finally, the paper finds that the year of 1997 is the break point for the construction industry between 1990 and 2005.