Total factor productivity in Singapore construction

This study uses the Tornqvist index to estimate the total factor productivity (TFP) for the Singapore construction industry between 1980 and 1996. Throughout the period, the main contribution to real construction output growth was capital accumulation. TFP was found to be negative, indicating that construction productivity growth has not been spectacular, even in a dynamic and rapidly growing economy such as Singapore. The result is in broad agreement with previous estimates of TFP for the entire Singapore economy. A lot needs to be done to improve construction productivity, as the industry cannot continue to grow by increasing factor inputs indefinitely without an accompanying rise in efficiency.