Construction purchasing power parities: potential roles and limitations

Gruneberg, S. and Fraser, B. 2012. Construction purchasing power parities: potential roles and limitations. Building Research and Information. 40 (3), pp. 348-356. https://doi.org/10.1080/09613218.2012.683953

TitleConstruction purchasing power parities: potential roles and limitations
AuthorsGruneberg, S. and Fraser, B.
Abstract

Before comparing or aggregating the output of construction industries in different countries, a common unit of measurement is needed. Two approaches to finding a suitable means of measuring construction internationally are considered: exchange rates and construction purchasing power parities (PPPs). A specific construction industry PPP (CPPP) is required, as a general PPP based on consumer goods prices is not necessarily appropriate as a measure of an industry. To establish CPPPs, a basket of inputs is required. Steel is examined as an example of an input. Steel prices and exchange rate data were collected from the European Union, Southern China and the United States. Six forms of steel were compared. Plate steel was found to have a PPP mean value closest to the exchange rates, but no one type of steel was found to be the most appropriate to use in calculating CPPPs. Although the arguments in favour of CPPPs over the use of exchange rates are strong, from the analysis it is not possible to establish a clear superiority of CPPPs. This makes it necessary to check the suitability of CPPPs compared with exchange rates before comparing or aggregating the construction industries of different countries.

JournalBuilding Research and Information
Journal citation40 (3), pp. 348-356
ISSN0961-3218
YearJun 2012
PublisherTaylor & Francis
Digital Object Identifier (DOI)https://doi.org/10.1080/09613218.2012.683953
Publication dates
PublishedJun 2012

Related outputs

Workers' compensation in construction: workers' benefits under alternative dispute resolution systems
Emerson, R.D., Minchin, R.E. and Gruneberg, S. 2013. Workers' compensation in construction: workers' benefits under alternative dispute resolution systems. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction. 5 (3), pp. 113-121. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000116

The use of gross fixed capital formation as a measure of construction output
Gruneberg, S. and Folwell, K. 2013. The use of gross fixed capital formation as a measure of construction output. Construction Management and Economics. 31 (4), pp. 359-368. https://doi.org/10.1080/01446193.2013.790555

Programme Procurement in Construction: Learning From London 2012
Gruneberg, S. and Mead, J.M. 2013. Programme Procurement in Construction: Learning From London 2012. Oxford Wiley-Blackwell.

Programme procurement in construction: learning from London 2012
Mead, J.M. and Gruneberg, S. 2013. Programme procurement in construction: learning from London 2012. Oxford Wiley.

The London Interbank Offered Rate (LIBOR) and UK construction industry output 1990 to 2008
Gruneberg, S. and Bickerton, M. 2013. The London Interbank Offered Rate (LIBOR) and UK construction industry output 1990 to 2008. Journal of Financial Management of Property and Construction. 18 (3), pp. 268-281. https://doi.org/10.1108/JFMPC-03-2012-0004

Construction Markets in a Changing World Economy
Gruneberg, S. 2008. Construction Markets in a Changing World Economy. in: Ruddock, L. (ed.) Economics for the Modern Built Environment Abingdon, Oxon Taylor & Francis. pp. 153-167

Risk under performance-based contracting in the UK construction sector
Gruneberg, S., Hughes, W.P. and Ancell, D. 2007. Risk under performance-based contracting in the UK construction sector. Construction Management and Economics. 25 (7), pp. 691-699. https://doi.org/10.1080/01446190601164097

Site management training: an attitude survey of training providers and contractors' staff
Gruneberg, S. 2006. Site management training: an attitude survey of training providers and contractors' staff. Construction Information Quarterly. 8 (3), pp. 138-143.

Construction orders and output : A comparison of Government and commercially available data 1995-2001
Gruneberg, S. and Hughes, W.P. 2005. Construction orders and output : A comparison of Government and commercially available data 1995-2001. ournal of Financial Management of Property and Construction. 10 (2), pp. 83-94.

Analysing the types of procurement used in the UK: a comparison of two data sets
Gruneberg, S. and Hughes, W.P. 2004. Analysing the types of procurement used in the UK: a comparison of two data sets. Journal of Financial Management of Property and Construction. 9 (2), pp. 65-74.

Exposing the myth of the 1:5:200 ratio relating initial cost, maintenance and staffing costs of office buildings
Hughes, W.P., Ancell, D., Gruneberg, S. and Hirst, L. 2004. Exposing the myth of the 1:5:200 ratio relating initial cost, maintenance and staffing costs of office buildings. in: Khosrowshahi, F. (ed.) Proceedings 20th ARCOM Conference, 1-3 September 2004, Heriott Watt University, Edinburgh ARCOM.

Permalink - https://westminsterresearch.westminster.ac.uk/item/8z390/construction-purchasing-power-parities-potential-roles-and-limitations


Share this

Usage statistics

208 total views
0 total downloads
These values cover views and downloads from WestminsterResearch and are for the period from September 2nd 2018, when this repository was created.