The contribution of the construction industry to economic development in Libya - Dissertation Example

The Contribution of the Construction Industry to Economic Development in Libya Table of Contents Question 3 Question 2 3 Question 3 4 Question In 1986, GDP of Libyan construction industry was 492.6 Million L.D., whereas the country’s national GDP was 6960.7 Million L.D. Hence, the construction industry contributes almost 7% (7.07%) to the national GDP. Over the next five years this contribution was reduced to almost 3.88%. During the period of 1986-1991 the contributions of construction industry to the GDP of Lydia were 6.84, 6.20, 6.28, 5.55 and 3.

88 respectively. Over the next ten years i.e. 1991-2001 both GDP of construction industry and national GDP were increased significantly and the contribution of construction industry to Libya’s GDP was also increased significantly. In 2001 this contribution reached at 7.03%. However, since 2001 it again started to lower and quite surprisingly it came to almost 3.95% in the year 2006. In the next three years construction industry has contributed 4.52%, 5.13% and 8.78% respectively. Question 2 These percentage contributions of construction industry to the national GDP tells the way Libya’s construction industry has grown with the growth of the country’s economy.

During the period of 1986-1991 construction industry’s growth was quite volatile whereas the national economy has grown consistently. In other words construction industry failed to perform in a constant way with respect to Libya’s economy. Similar trend is also observed over the next ten years i.e. 1991-2001 and main reason behind such findings is the fact that there is lack of consistency in the growth of construction industry although the national economy has grown on a regular basis. However, data shows that during 2004-2009 this industry has grown constantly (from 2159.

2 Million Libyan Dollar to 7577.5 Million Libyan Dollar). As a result percentage contribution of the industry to the national GDP has also increased consistently over this period. Question 3 The input-output table for Libya for the year 1997 shows the value of inputs to different industry from different other industries. For instance, the inputs to agriculture sector have come mainly from manufacturing, finance and trading industries. The total value of input to this industry in 1997 was 692.6 Million L.D. Similarly oil industry got the inputs mainly from the manufacturing and transportation sector and the total input was of 492.

7 Million L.D. Manufacturing industry received maximum volume of inputs. It received huge volume of inputs from all the main sectors like agriculture, transportation and contraction. The total value of inputs was 1944.8 Million L.D. The total value of inputs that the construction industry received was almost 465.9 Million L.D. Sectors like oil and manufacturing have mainly contributed to this industry. The total output that it has given to other industries was of 1038 Million L.D. In 2006 the value of inputs and outputs from all the industries has grown significantly.

The construction industry has received large volume of inputs from mining and manufacturing sector. The total volume of inputs was of 3146.8 Million L.D. and the total output that this industry has given to other industry was of 4054.1 Million L.D.