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Original Research Article
Conditions and limitations for growth in construction industry: The empirical evidence from Belarus
Aliaksei Bykau1* and Tatiana Khvalko2
1Head of the Department of Economics and Management of the educational establishment Belarusian State Economic University»,Minsk, Republic of Belarus.
2The chief Economist of Management Science and Innovation Policy of the Ministry of Economy of Belarus, Minsk, Republic of Belarus
*Corresponding Author E-mail: aliaksei.bykau(at)yandex.ru
Article Number: | Pages: | | DOI:
Received: February 9, 2017 Accepted: March 21, 2017 Published: April 18, 2017
Abstract
The aim of this study is to determine the main factors influencing construction industry taking into consideration the Thirlwall’s balance of payments constraint. Belarusian experience has demonstrated that a small open economy has a very limited ability to stimulate economic growth by investing in the construction of housing, social facilities and infrastructure. Such investments lead to trade imbalance and growth of foreign debt because construction industry in a small open economy generates imports. Only those construction projects that contribute to the increase in exports should be priority.
Keywords: Construction industry, economic stimulation, Thirlwall’s balance of payments constraint