Classical and dynamic shift-share cost analysis for the construction sector in the European Union

Abstract

Purpose: The aim of this study is to parametrize and assess the situation which companies dealing in the building industry in the European Union found themselves in. The situation is analyzed from the point of view of the costs borne by the enterprises in the years 2011-2017. Design/Methodology/Approach: For the purpose of the calculations the shift-share analysis was used in both its classical and dynamic approach. Findings: The results of the research point to the fact that the dynamics of changes in the construction sector in the EU member states is not equal and depends on the accepted analytical approach. The factor which is deciding about a change in the growth rate or a decrease in the costs borne by enterprises is the high level of competitiveness between the associated states. In the majority of cases, a rise in the costs positively correlates with an increase in the operating surplus. Practical Implications: The information obtained on the basis of the conducted empirical research can be of use to individual EU member states and also to the whole Commonwealth, primarily as a tool in creating the policy of development. The study allows selecting states which are characterized by a high investment potential. Originality/value: So far the problem of enterprises dealing in construction industry, which are based in the EU member states, has not been addressed by the literature on the subject from the point of view of the structural-geographical analysis or with reference to operating profit.