Spatial linkages among Australian construction markets

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AJCEB Cover Vol 14 No 2 2014
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Published: 2014-06-18
DOI: https://doi.org/10.5130/AJCEB.v14i2.3759
Keywords:
Spatial linkages, construction prices, regional markets, autocorrelation, convergence

Main Article Content

Heng Jiang
Deakin University, Australia
Chunlu Liu
Deakin University, Australia

Abstract

The linkages among different construction markets have recently attracted much attention from construction economists. The interactions among regional construction markets have been discussed in a few studies, most of which have been carried out by using input-output methods, and none of them investigated spatial effects on the regional construction markets. This study employed spatial econometric techniques, including spatial autocorrelation and convergence tests, to analyse interactions and linkages among construction price indices in Australian six states and two territories. The empirical results indicate the presence of significant positive spatial correlation among the construction prices in Australian eight construction markets and the degree of dependence decreasing sufficiently quickly as the space between regions increases. The results of convergence test further provide evidence of existence of a ripple effect in construction prices among the Australian regional markets and the changes in construction prices in a state would first positively influence neighbouring states, and then spread out into other non-neighbouring states or territories.

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Vol. 14 No. 2 (2014): AJCEB

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Articles (Peer reviewed)

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How to Cite

Spatial linkages among Australian construction markets. (2014). Construction Economics and Building, 14(2), 18-30. https://doi.org/10.5130/AJCEB.v14i2.3759

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