External Factors Affecting the Value of The Construction Industry in Thailand

Authors

  • Nattawut Klonklang School of Civil Engineering and Construction Management, Suranaree University of Technology
  • Menglim Hoy School of Civil Engineering and Construction Management, Suranaree University of Technology
  • Kwunkamol Donkwa Suranaree University of Technology

Keywords:

External factors, Value of the construction industry, Affecting, Thailand

Abstract

The objectives of the research were to 1) study the overview of the Gross Domestic Product in construction, the total construction material price index, the average loan interest rate per year, the average of capita income, and the number of construction companies registered with the Department of Business Development; and 2) analyze the influence of the total construction material price index, the average loan interest rate per year, the average of capita income, and the number of construction companies registered with the Department of Business Development toward the Gross Domestic Product in construction. The quantitative and qualitative data were collected from secondary data sources from 2002-to 2021, totaling 20 years. Data were analyzed by descriptive statistics, namely average annual growth rate, and inferential statistical analysis with a multiple regression model.

The results of the study found that the overview of Gross Domestic Product in construction, total construction material price index, an average loan interest rate per year, an average capita income, and the number of construction companies registered with the Department of Business Development have an average annual growth rate of 8.60, 2.04, 4.70 and 3.31, respectively, except for the average annual loan interest rate which has an average annual growth rate decrease of 0.071. It was also found that if the total construction material price index and the number of construction companies registered with the Department of Business Development change by 1%, it would result in a change in the Gross Domestic Product of construction in Thailand in the same direction by 0.01% and 0.73%, respectively. In addition, a 1% change in average annual loan interest rate will result in a 0.04% change in Thailand's Gross Domestic Product of construction in the opposite direction, but it is statistically unacceptable. The average of capita income cannot be used to analyze the influence that affects Thailand's Gross Domestic Product of construction due to the multicollinearity problem.

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Published

2022-08-10

How to Cite

Klonklang, N., Hoy, M., & Donkwa, K. (2022). External Factors Affecting the Value of The Construction Industry in Thailand. Journal for Strategy and Enterprise Competitiveness, 1(2), 58–76. retrieved from https://so07.tci-thaijo.org/index.php/STECOJournal/article/view/1239

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Section

Research Article