Abstract: Based on the statistical data from 1984 to 2001, this paper employs Cobb-Douglas production function and the method of Solow remaining value to calculate and analyze the contributions to the total output increase in construction industry of China. The results show that its annual increase rate of the total output is 16.91% in average during the period. The main contributions come from capital input with (65.11%) and labor input with 20.29%. However, technology contributes only 14.60%. It is manifested that technological progress is not significant enough in the traditional construction industry. The total output increase belongs to external expanding development. In the new situation of entering WTO, therefore, it is urgent to enhance the efficiency and expand internal improvements to meet the challenges in the future.

Key words: construction industry； increase； technological progress； contribution；