The construction industry in the economy of Trinidad & Tobago

The construction sector is generally one of the larger and more important sectors of a nation's economy. If economic policy is to achieve its desired objectives, it is necessary to have some understanding of how the economy will react to various changes that can be effected. Because the construction sector is large and responsive, it is a key sector for manipulating the economy and, hence, it is important to know what the role of the construction sector is in the economy. Some of the key issues here are the effect of changes in GDP on construction output and employment, as well as the effects of changes in money supply, inflation, expenditure on the public sector investment programme and the rate of approval of building plans. This paper sets out to see if there are relationships between these factors that justify further investigation and, as such, helps establish a research agenda for the industry, particularly in comparing developed and less‐developed countries.