The impact of construction industry on the Palestinian economy

Other Title(s)

أثر صناعة التشييد على الاقتصاد الفلسطيني

Dissertant

Radwan, Khaldan Radwan

Thesis advisor

Shaat, Kamalain M.

University

Islamic University

Faculty

Faculty of Engineering

Department

Department of Civil Engineering

University Country

Palestine (Gaza Strip)

Degree

Master

Degree Date

2010

English Abstract

The construction sector has a significant impact on Palestinian economy, but its impact is not yet quantified, so there is a need to determine such impact due to its importance in understanding the relation between construction sector and economy.

The main aim of this study is to determine and document the impact of the construction industry on the economy of Palestine by assessing the weight of construction industry in the economy, its correlation with other economic sectors and GDP, its impact on job creation, its value added impact on GDP and trade balance, the impact of investment on construction on job creation and quantify the return of investment on it.

The objectives of the study have been approached through compiling data about value added, employment, payroll, intermediate consumption, number of enterprise and gross fixed capital formation for the Palestinian construction industry and other industries from the Palestinian Central Bureau of Statistics (PCBS).

Then the researcher compares the data of construction with total activity in Palestine to determine the construction industry volume.

Also regression analyses applied using time series data to calculate the impact of construction expenditure on job creation, the impact of value added of construction sector on GDP and trade balance, the impact of investment on construction on job creation and the return of investment on construction.

This study assumed the previous results of positive correlation between construction and GDP; it is found that if the value added of construction industry increases by one unit the GDP will increase by 1.416 units and the deficit in trade balance will be reduced by 2.021units.

Also the increasing of construction intermediate consumption by one million dollars generates $0.951million in business activity and creates 36 additional jobs.

Also it is found that for each million dollars invested in the construction industry it will create 50.03 new jobs and has a return equal to 1.411 million dollars.

The income tax from construction industry in the West Bank and Gaza in the year 2007 was $22.391.

Finally the study shows that the enterprises with high volume of employees contribute high percentage of the production of construction industry.

It is recommended that the construction industry should be planned in line with wider national development criteria; and, within this framework, the development of an efficient indigenous construction capacity should be allocated a high priority.

Policy makers should not accept a ‘model process’ imported from or imposed by the industrialized countries.

They can adjust the organization of the process to satisfy their key development criteria.

The study also put some recommendations to develop the construction sector including law proposals and, establishing of professional association.

Main Subjects

Economy and Commerce
Civil Engineering

Topics

• Industries
• Palestine
• Gaza Strip
• Economic aspects
• Construction

No. of Pages

121

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-301456