Research On Factors Affecting The Economic Growth Of The Construction Industry In Henan Province

Henan regarded as one of the Kyushu world is an important economic region,transport hub and logistics center. Also,the development of construction industry isbecoming increasingly prominent in China. However, according to the reserach,theproportion of the construction industry output value in Henan remains at around5%,and even experiences a decline trend. Meanwhile, the technical equipment rate andpower equipment rate of construction industry are higher than the national average,while its production value profit margins and labor productivity are lower than that inHenan. In the “Twelfth Five-Year Plan”, the critical period is to accelerate thetransformation of economic growth mode, which is extremely important to researchon factors affected the status of construction output growth and methods to improvetechnical efficiency.Firstly, this thesis elaborates on researches at home and abroad on factorsaffecting the economic growth of construction industry and defines the concepts ofconstruction and economic growth. Secondly, this thesis carries on characteristics andthe mechanism affecting the economic growth of the construction industry, analyzesits economic growth from both vertical and horizontal directions and evaluates itsefficiency and mode of economic growth in Henan. Besides, this thesis empiricallyanalyzes internal and external factors influencing the economic growth ofconstruction industry by improved C-D production function and Granger CausalityTest.This thesis finally brings forward to effective policy recommendations toaccelerate economic growth of construction industry in Henan.The results of this study indicate as follows:Although Henan constructionindustry retains a bigger scale, its industrial growth and economic contribution rateare lower; And the situation of the low and loss of technical efficiency is existing;The contribution rate of technological advances in Henan is extremely lower, with ahighly extensive growth; GDP, investment in construction and installation projects,added value of the real estate are the granger causality of the economic growth ofconstruction industry in Henan;The output of construction industry is the granger causality of the personnel changes in the tertiary industry and its output growth couldpromote the optimization and upgrading of industrial structure in the tertiary industry.