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Role of construction in economic development (2013-09-27)
The importance of the construction sector is not only related to its size but also to its role in economic development NY. An industry sector this big could not but have an impact on the economy. In relation to the importance of the construction sector in both national and world economies, current knowledge of it is poor. As a result, policy-makers may be misguided or even destructive. Economic growth is currently an issue of global concern as most economies are finding it difficult to create the necessary employment opportunities and achieve meaningful growth. The construction sector responded positively to the developments that took place in political circles and in the overall structure of the economy.
The construction sector is envisaged to play a powerful role in economic growth, in addition to producing structures that add to productivity and quality of life. Since construction is labor-intensive, when the sector is working at full capacity, large sections of the nation’s work force are active. Economic development NY is about stimulating the economy. The government stimulates the economy to achieve economic growth so that this will help create jobs.
Increased economic activity requires a corresponding increase in the provision of roads, and other infrastructure. So, a double investment is needed if the jobs created are outside construction. In addition, international trade rules may obstruct direct subsidies to businesses, because that would create unfair market advantage.
There is evidence of the existence of a very strong relationship between construction activity and economic growth. As an investment sector, construction has the potential to impact positively on short-run growth. Construction can thus be regarded as a major component of investment programmers, particularly for developing economies.
Construction NY is an important part of the development and modernization process. While it is closely correlated with economic growth, it does not follow that providing incentives and increased spending on projects necessarily leads to economic growth.
The developer NY sector deals mainly with the provision of capital infrastructure, which has an impact on economic growth. The delivery of such infrastructure creates significant employment opportunities for the population, which generates further investment in other sectors of the economy through the multiplier effect.
Considering the fundamental significance of the construction NY sector in employment creation, capital formation and its aggregate spillover effects, it is clearly an important sector in the economy. That does not mean that it drives economic growth. This makes it all the more important to identify the minimum necessary and sufficient conditions for economic growth.
LeFrois Development is a leading construction and development firm. It specializes in exceptional design, planning and construction capabilities. We have our offices at Rochester and Florida. You can contact us at 585 334 1122.
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