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The complex interaction of politics and the economy is a critical factor for the sustainable growth and development of the construction sector (CNS). This study aims to investigate the effects of type of political administration including democracy and military on the performance of CNS using the Nigerian Construction Sector (NCS) as a case study.

A 48 year (1970–2017) time series data (TSD) on the NCS and the gross domestic product (GDP) based on 2010 constant USD were extracted from the United Nations Statistical Department database. Analysis of variance (ANOVA) and analysis of covariance (ANCOVA) models were used to analyze the TSD. The ANCOVA model includes the GDP as correlational variable or covariate.

The estimates of the ANOVA model indicate that democratic administration is significantly better than military administration in construction performance. However, the ANCOVA model indicates that the GDP is more important than political administration in the performance of the CNS. The study recommends for a new national construction policy, favourable fiscal and monetary policy, local content development policy and construction credit guaranty scheme for the rapid growth and development of the NCS.

Hitherto, little is known about the influence of political administration on the performance of the CNS. This study provides empirical evidence from a developing economy perspective. It presents the relationships and highlights recommendations for driving growth in the construction industry.

The construction sector (CNS) occupies a very unique position in any economy depending on whether developed or developing economy. The size and linkages of the CNS are expected to be high to help push or pull the economy from developing to developed economy through elaborate forward and backward linkages, a cardinal aim of developing economies. This paper aims to investigate the forward and backward linkages of the CNS in the Nigerian economy.

In contrast to the traditional input–output analysis to assess sectoral economic performance and production interdependence, this paper used econometric techniques, including unit root test, cointegration test and Granger causality test to analyze the data. Time-series data (TSD) for the study were extracted from United Nations Statistical Department database.

The result indicated that the CNS has low forward linkages but high backward linkages to virtually all the sectors of the Nigerian economy. Thus, the outputs of construction mainly satisfy the manufacturing and other activities.

The paper gives an insight into the construction on backward linkages but less extensive forward linkages. The paper recommends a massive local content development of sector to deepen backward and forward linkages and thus helps pull or push weak sectors out of stagnation.

Banking sector reforms can impact the development of the real sector. However, there is very little known about this impact on the construction sector in a developing country context. This study aims to evaluate the impact of the banking sector reform on the construction output (CNS) using the banking sector reform in Nigeria in 2005 (2005 Banking Sector Reform Programme [BSRP]) as a case.

This study used econometric methodology comprising unit root test for stationarity, Johansen test for cointegration, analysis of variance (ANOVA) and the analysis of covariance. Time series data covering a period from 1981 to 2017 (37 years) about the banking and construction sector performances are analyzed using ten-time series equations.

The ANOVA estimates reveal that the 2005 BSRP positively impacted the CNS and construction sector growth rate. However, the ANOVA estimates reveal that the gross domestic product (GDP) and bank total loan had a positive impact on CNS in the period (1981–2017) before and after the 2005 BSRP, and consequently removing the effect of the 2005 BSRP on CNS.

This paper concludes that the banking sector reform has a positive impact on CNS in the Nigerian construction industry. The impact is greater and lasting when the reform is directly targeted at improving CNS.

This study provides empirical evidence of the dependence between banking sector reform and construction sector performance in a developing country context. Also, this study demonstrates the relationship between GDP, banking sector reform and construction sector performance in a developing country context.