Relationships between output of construction sector and economic growth

Abstract

The goal of this thesis is to analyse relationships between construction sector and economic growth in European Union (highlighting results of Lithuania). To achieve this goal authors review scientific literature, select relevant statistical data and perform statistical analysis by creating linear regression model and calculating linear and monotonic correlation between GDP change and construction sector size in GDP. Results indicate low – medium linear and monotonic correlation between GDP change and construction sector size in Lithuania, whereas there is no statically significant linear correlation but low monotonic correlation in European Union. Analysis of statistical relationships between economic growth and construction sector’s size in economy will help construction business to predict business results and change strategies by trying to adapt to coming macroeconomic change.