Use of concrete and its relationship with financial crisis: The case of Turkey

It is generally accepted that buildings constructed in the peak period of business cycles have been in competition with each other with respect to height. In fact, it has been emphasized for the last 20 years that increased use of concrete can be a leading indicator for crises, although many people may not be aware of the correlation. Accordingly, the phenomenon of excessive rise in building heights is assumed to be a leading indicator of Gross Domestic Product and per capita Gross Domestic Product, as the completion of the most recent tallest skyscraper is typically completed near the peak of a business cycle. This thesis is an attempt to measure the relationship between skyscraper height and financial crises in Turkey. In order to test the relationship between the record-breaking skyscraper height and financial crises, regression analysis was performed by using secondary data between 1960 and 2018 according to the heteroskedasticity and autocorrelation consistent (HAC) approach in ordinary least squares method. Three separate dummy models were used according to start, completion and duration times of construction and the one-way effect of skyscraper construction on the dependent variables GDP and per capita GDP was examined. Despite some methodological limitations, the start, completion and duration of the construction of exceptionally high skyscrapers in Turkey have been understood and could explain the dependent variables towards the end of construction time.