The Italian residential construction sector: an input-output historical analysis

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 for which such data are 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 overall Italian economy. As expected, the achieved maturity of the Italian economy is accompanied by the growing importance of maintenance and repair construction because of the ageing 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 supply industries. Significant differences are reported in the technology of the residential sector, with a shift towards services and away from manufacturing inputs. Finally, the main findings and directions for future research are summarized.