TY - GEN
T1 - A preliminary study on a country risk analysis for international construction
AU - Lee, Kang Wook
AU - Jung, Wooyong
AU - Han, Seung Heon
N1 - Publisher Copyright:
Copyright © 2011 by Research Publishing Services.
Copyright:
Copyright 2015 Elsevier B.V., All rights reserved.
PY - 2011
Y1 - 2011
N2 - International construction projects are often exposed to various and complex risks related to the political, economic, social, and cultural issues of host countries. These factors usually have negative effects on the cost and schedule performances. Despite this, most previous research on international construction has focused on risk at a project level rather than a country level. In addition, the current country risk (CR) indices that are supported by financial institutions cannot effectively reflect the specific features of the construction industry. Accordingly, this research aims to conduct an analysis of CR that takes into account the nature of international construction. For this purpose, we first used a comparative literature review to develop a hierarchy for assessing CR levels. We then attempted to indirectly evaluate individual risk factors using 51 types of secondary data. We integrated performance data from 1,223 projects conducted by Korean contractors in 33 countries to construct a CR database. Next, diverse statistical techniques were used to conduct a CR analysis. In particular, a multiple regression analysis was utilized to investigate the causal relationships between risk influencing factors and profit performances. The results revealed the critical risk factors for each country group and indicated the quantitative effect they had on profit performances. The analysis outlined can provide practitionerswith an opportunity to consider CR in the context of the construction industry.
AB - International construction projects are often exposed to various and complex risks related to the political, economic, social, and cultural issues of host countries. These factors usually have negative effects on the cost and schedule performances. Despite this, most previous research on international construction has focused on risk at a project level rather than a country level. In addition, the current country risk (CR) indices that are supported by financial institutions cannot effectively reflect the specific features of the construction industry. Accordingly, this research aims to conduct an analysis of CR that takes into account the nature of international construction. For this purpose, we first used a comparative literature review to develop a hierarchy for assessing CR levels. We then attempted to indirectly evaluate individual risk factors using 51 types of secondary data. We integrated performance data from 1,223 projects conducted by Korean contractors in 33 countries to construct a CR database. Next, diverse statistical techniques were used to conduct a CR analysis. In particular, a multiple regression analysis was utilized to investigate the causal relationships between risk influencing factors and profit performances. The results revealed the critical risk factors for each country group and indicated the quantitative effect they had on profit performances. The analysis outlined can provide practitionerswith an opportunity to consider CR in the context of the construction industry.
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U2 - 10.3850/978-981-08-7920-4-S1-R07-cd
DO - 10.3850/978-981-08-7920-4-S1-R07-cd
M3 - Conference contribution
AN - SCOPUS:84923145848
T3 - ISEC 2011 - 6th International Structural Engineering and Construction Conference: Modern Methods and Advances in Structural Engineering and Construction
SP - 299
EP - 304
BT - ISEC 2011 - 6th International Structural Engineering and Construction Conference
A2 - Yazdani, Siamak
A2 - Cheung, Sai On
A2 - Singh, Amarjit
A2 - Ghafoori, Nader
PB - Research Publishing Services
T2 - 6th International Structural Engineering and Construction Conference: Modern Methods and Advances in Structural Engineering and Construction, ISEC 2011
Y2 - 21 June 2011 through 26 June 2011
ER -