The Construction Sector and its Future in the Libyan Economy

Abstract

The main goal of this study is to shed light upon the importance of the construction sector in the Libyan economy covering during the last decades. Despite the dominant role of the oil sector, it is very important to clarify the size and the contribution of the construction sector to the Libyan national economy in order to suggest adequate and concrete suggestions which help to increase this contribution regarding construction sector as a promise sector, that reinforce development process in the Libyan economy as a whole, and during the post-conflict period in particular.

To achieve its goal, and according to the nature of the study, a descriptive statistical analysis method has been used to trace and analyze the development and the contribution of the construction sector in comparative to the other sectors. The main findings of the study could be summarized as follows:

• Development process in Libya must take into account how to improve the efficiency of the construction sector by focusing on the arrangements and the plans required increasing the total factor productivity in this sector.

This includes substantial changes in laws, regulations and human capital in the context of discovering and exploiting the comparative advantage of this industry in the Libyan economy, which reinforce its economic development, increases its competitiveness, and reduces the high dependency on oil sector in Libya