Interdependence between the construction sector and the national economy in developing countries: a special focus on Angola and Mozambique

This research discusses and analyses the role of construction in economic development in Sub-Saharan Africa, with a special emphasis on Angola and Mozambique. This study follows research undertaken by previous writers who have investigated the relationship between the construction sector and economic development and found a direct relationship between the share of construction in gross domestic product (GDP) and GDP per capita in an increasing form of per capita income level. Data on construction and economic related sectors spanning generally 22 years are used to model the development pattern of the construction industry in Sub-Saharan African countries for the near future. The statistical sources used in this analysis are drawn from World Bank and United Nations publications. Additionally, field study data, including collection of secondary data, from Angola and Mozambique are used in detail to complement data provided by international sources. The construction sector operating environment including policy changes in the area of general economic policy of these countries are also addressed in this study. Studies on construction in developing countries have tended to approach the construction industry in the context of the process of industrialisation, towards a long-term economic growth. It is argued that the new approach should focus the construction industry in the general framework of the determinants of growth. This thesis puts forward evidence that a long-term decreasing growth in GDP per capita corresponds directly to a relative decrease in construction volume. The converse does not appear to be true. Some implications for public policy for the concerned countries are discussed.