An Empirical Assessment of Linkage between the Construction Sector and Economic Growth (GDP) of Malaysia (2000-2010)

Construction sector plays a significant role in
aggregate economy of a country in term of its contribution to
revenue generation, capital formation and employment
creation which ultimately support to gross domestic product
(GDP) of the country. The industry is backed to economic
development through the share of its own value-added output
and moreover by playing the important role as an employer of
the large work force. This study scrutinizes the linkage and
relationship between construction sector and economic growth
of (GDP) Malaysia. Through Engel Granger econometric
technique, examines the Causal relationship between
Construction output value and economic expansion (GDP).
The results exhibit that there is strong causal bi-directional
relationship between construction sector and economic growth
(GDP) of Malaysia during the period (2000-2010), which
implies that economic expansion is necessary for the
development of construction sector of Malaysia.