An analysis of economic infrastructure investment in South Africa

dc.contributor.authorPerkins, Peter
dc.contributor.authorFedderke, Johann
dc.contributor.authorLuiz, John
dc.date.accessioned2016-05-03T08:52:07Z
dc.date.available2016-05-03T08:52:07Z
dc.date.issued2005
dc.date.updated2016-05-03T08:51:02Z
dc.description.abstractThis 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.identifier.apacitationPerkins, P., Fedderke, J., & Luiz, J. (2005). <i>An analysis of economic infrastructure investment in South Africa</i> University of Cape Town ,Faculty of Humanities ,Centre for Social Science Research(CSSR). Retrieved from http://hdl.handle.net/11427/19351en_ZA
dc.identifier.chicagocitationPerkins, Peter, Johann Fedderke, and John Luiz <i>An analysis of economic infrastructure investment in South Africa.</i> University of Cape Town ,Faculty of Humanities ,Centre for Social Science Research(CSSR), 2005. http://hdl.handle.net/11427/19351en_ZA
dc.identifier.citationPerkins, 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.ris TY - Working Paper AU - Perkins, Peter AU - Fedderke, Johann AU - Luiz, John AB - 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. DA - 2005 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2005 T1 - An analysis of economic infrastructure investment in South Africa TI - An analysis of economic infrastructure investment in South Africa UR - http://hdl.handle.net/11427/19351 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/19351
dc.identifier.vancouvercitationPerkins P, Fedderke J, Luiz J. An analysis of economic infrastructure investment in South Africa. 2005 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/19351en_ZA
dc.languageengen_ZA
dc.publisher.departmentCentre for Social Science Research(CSSR)en_ZA
dc.publisher.facultyFaculty of Humanitiesen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.rightsCreative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0)*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/en_ZA
dc.titleAn analysis of economic infrastructure investment in South Africaen_ZA
dc.typeWorking Paperen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceResearch paperen_ZA
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