The role of construction in territorial development: new dimensions

Abstract

Purpose: to investigate the impact of construction activities on development of regions given multiplication of socio-economic processes. Discussion: as construction has a significant impact on economic development, we have specified its macroeconomic functions. Based on them, construction’s function of multiplicative influence on territorial development is stated. The author makes a review and presents distinctive characteristics of approaches that cover evaluation of multiplier effects. A comparison of Russian and foreign scientific works, which deal with quantitative assessment of such effects, is conducted by designated in the article eight criteria. As a result, the necessity of comprehensive quantitative assessment of both direct and indirect effects of construction in three development areas (spatial, economic and social) is justified. It is shown that main types of construction’s effects within these three areas are similar for various sectors of construction industry and differ only by the degree and the time of their occurrence. Results: five levels of construction’s effects assessment are proposed, and for each options of application of evaluated effects for decision-making by authorities and private investors are suggested. Classification of investment and construction projects according to criteria of multiplicative influence reflecting the nature and strategic significance of these impacts is developed.