A casual [causal] relationship between building maintenance market and GDP: Hong Kong study
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Purpose: The purpose of this paper is to examine the causal relationship between the building maintenance market and GDP in Hong Kong.
Design/methodology/approach: The Granger causality test is used to investigate the lead-lag relationships between the maintenance and repair work and GDP in Hong Kong. With regression analysis, the future trend of the maintenance market is forecasted.
Findings: The results show that the growth of the economy will lead to the growth of the maintenance market, not vice-versa. And the building maintenance market in Hong Kong will keep increasing with the economy growth.
Originality/value: This paper shows that the growth of the economy in Hong Kong Granger-causes the growth of the maintenance market. Plus there are other factors affecting the maintenance market, including the increasing number of ageing buildings, obsolescence and adaptive reuse, legislation, sustainability and social responsibility. The results of this paper provide a valuable reference for the Hong Kong Government to formulate new policies. More importantly, these findings will help contractors have a better understanding of the maintenance market in Hong Kong, both current and future.
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