An analysis of economic infrastructure investment in South Africa

Simple item page
dc.contributor.authorPerkins, Peter
dc.contributor.authorFedderke, Johann
dc.contributor.authorLuiz, John
dc.date.accessioned2016-05-06T08:43:12Z
dc.date.available2016-05-06T08:43:12Z
dc.date.issued2005
dc.date.updated2016-05-06T08:38:16Z
dc.description.abstractThis paper analyses long-term trends in the development of South Africa's economic infrastructure and discusses their relationship with the country's long-term economic growth. A database covering national accounts data, 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). An analysis of economic infrastructure investment in South Africa. <i>South African Journal of Economics</i>, http://hdl.handle.net/11427/19477en_ZA
dc.identifier.chicagocitationPerkins, Peter, Johann Fedderke, and John Luiz "An analysis of economic infrastructure investment in South Africa." <i>South African Journal of Economics</i> (2005) http://hdl.handle.net/11427/19477en_ZA
dc.identifier.citationPerkins, P., Fedderke, J., & Luiz, J. (2005). An analysis of economic infrastructure investment in South Africa. South African Journal of Economics, 73(2), 211-228.en_ZA
dc.identifier.issn0038-2280en_ZA
dc.identifier.ris TY - Journal Article 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 discusses their relationship with the country's long-term economic growth. A database covering national accounts data, 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 J1 - South African Journal of Economics LK - https://open.uct.ac.za PB - University of Cape Town PY - 2005 SM - 0038-2280 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/11427/19477 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/19477
dc.identifier.vancouvercitationPerkins P, Fedderke J, Luiz J. An analysis of economic infrastructure investment in South Africa. South African Journal of Economics. 2005; http://hdl.handle.net/11427/19477.en_ZA
dc.language.isoeng
dc.publisherWileyen_ZA
dc.publisher.departmentCentre for Social Science Research(CSSR)en_ZA
dc.publisher.facultyFaculty of Humanitiesen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.sourceSouth African Journal of Economicsen_ZA
dc.source.urihttp://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1813-6982
dc.subject.otherInfrastructure
dc.subject.otherEconomic growth
dc.subject.otherSouth Africa
dc.subject.otherLong-run development
dc.subject.otherRailways
dc.subject.otherRoads
dc.subject.otherPorts
dc.titleAn analysis of economic infrastructure investment in South Africaen_ZA
dc.typeJournal Articleen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceArticleen_ZA
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Perkins_An_analysis_economic_2005.pdf
Size:
376.69 KB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
1.72 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
Journal Articles