An analysis of economic infrastructure investment in South Africa

 

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dc.contributor.author Perkins, Peter
dc.contributor.author Fedderke, Johann
dc.contributor.author Luiz, John
dc.date.accessioned 2016-05-03T08:52:07Z
dc.date.available 2016-05-03T08:52:07Z
dc.date.issued 2005
dc.identifier.citation Perkins, P., Fedderke, J., & Luiz, J. (2005). An analysis of economic infrastructure investment in South Africa. Centre for Social Science Research: University of Cape Town. en_ZA
dc.identifier.uri http://hdl.handle.net/11427/19351
dc.description.abstract This paper analyses long-term trends in the development of South Africa's economic infrastructure and how this relates to the country's long-term economic growth. A database covering railways, roads, ports, air travel, phone lines and electricity was established for this purpose, and may facilitate further quantitative research. PSS (Pesaran, Shin and Smith, 1996, 2001) F-tests are used to identify directions of association between economic infrastructure and economic growth. These indicate long-run forcing relationships from public sector economic infrastructure investment and fixed capital stock to gross domestic product (GDP), from roads to GDP, and from GDP to a range of other types of infrastructure. There is also evidence of potential simultaneity between specific types of infrastructure and GDP. The evidence suggests three main findings. Firstly, the relationship between economic infrastructure and economic growth appears to run in both directions. Inadequate investment in infrastructure could create bottlenecks, and opportunities for promoting economic growth could be missed. Secondly, South Africa's stock of economic infrastructure has developed in phases. Policymakers should focus on choosing or encouraging the right type of infrastructure at the right time. Thirdly, the need for investment in economic infrastructure never goes away. The maintenance and expansion of infrastructure are important dimensions of supporting economic activity in a growing economy, provided that individual projects are chosen on the basis of appropriate cost-benefit analyses. en_ZA
dc.language eng en_ZA
dc.rights Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) *
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/4.0/ en_ZA
dc.title An analysis of economic infrastructure investment in South Africa en_ZA
dc.type Working Paper en_ZA
dc.date.updated 2016-05-03T08:51:02Z
uct.type.publication Research en_ZA
uct.type.resource Research paper en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Humanities en_ZA
dc.publisher.department Centre for Social Science Research(CSSR) en_ZA
uct.type.filetype Text
uct.type.filetype Image


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Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) Except where otherwise noted, this item's license is described as Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0)