ABSTRACT

Two sets of input-output tables are employed in this paper to analyse the role of the Italian residential construction sector in the national economy. The analysis focuses on changes in construction technology over a period of some 30 years, ending in 1985, the last year in which this kind of data is available. A set of eight-sector input-output tables is used to show the weakening of the residential construction sector’s effect on the economy as a whole. This trend is caused by the progressive saturation of the residential construction market and the transformation of the Italian economy as a whole. As expected, the achieved maturity of the Italian economy is accompanied by the growing importance of maintenance and repair construction (M&R) because of the aging building infrastructure. Another set of 24-sector input-output tables is used to analyse the input and output profiles of the residential and non-residential construction sectors, by selecting key supplying industries. Significant differences are reported in the technology of the residential sector with a shift toward services and away from manufacturing inputs. Finally, the main findings and directions for future research are summarised.