Impact of construction activities on GDP in the Czech Republic and its regions

An important link between the volume of investment activity and economic growth are represented by the structure of the implemented investments. The research has investigated a correlation between performance in the construction activities and GDP. The analysis has been performed based on data collected during 1998-2014 period in terms of current and constant prices. Regression analysis and correlation coefficients have been applied in order to determine the dependence between regional GDP and civil engineering production. Research results have determined the highest value of the correlation for GDP and construction activities in total values for the whole Czech Republic in a current price dataset, the medium value of this coeficient in constant price dataset. This dependence was not confirmed at the regional level. It can be concluded that construction activities has a very strong influence on GDP, but in case of smaller areas, the impact of public investments shows a significant time delay.