The potential short and long term benefits of major infrastructure projects to the South African economy
- Authors: Nhlapo, Sibusiso Johannes
- Date: 2014-03-17
- Subjects: Infrastructure (Economics) - South Africa , Construction projects - Economic aspects - South Africa , Economic forecasting - South Africa
- Type: Thesis
- Identifier: uj:4348 , http://hdl.handle.net/10210/9698
- Description: M.Ing. (Engineering Management) , As a result of its direct relations with the different sectors of the economy, the construction industry is used as a tool by governments around the world for economic recovery. The South African government has taken such a stance following the 2008/2009 global financial crisis, by proposing the government‘s infrastructure spending and expansion programme for economic growth and development. The South African economy took a stalling from 4.1% in 2007 to 2.3% in 2008 and then turning negative in 2009. This research paper seeks to gather insight of the relationship between construction output and economic growth, as well as the potential long and short term benefits of major infrastructure projects to the South African economy. South Africa; as a developing country and with its construction industry currently in the upward trend, there are lessons that can be learnt from the developed countries. To this end, trends in construction output and GDP have been scrutinised to examine any pattern of development relating the construction industry and its relationship with the economy as a whole. The examination spanned over 32 countries grouped according to their respective development status. With South Africa‘s significant increase in the annual change in construction output between 2004 and 2008, amid developments of the FIFA world cup, confirmed the relation between construction investment and economic growth. The contribution of the construction industry to GDP for developed countries all follow the same trend of having high contributions in the beginning of development declining as less and less new infrastructure is required by the country. The contribution of construction averaged at 6 per cent for the entire duration of analysis between 1970 and 2011. Compared to international standards, South Africa‘s contribution of construction to GDP is determined to be very low at 3 per cent for the duration 1963 and 2011. Further, the construction industry has displayed characteristics of instability for South Africa when compared to developed countries over the same period.
- Full Text:
- Authors: Nhlapo, Sibusiso Johannes
- Date: 2014-03-17
- Subjects: Infrastructure (Economics) - South Africa , Construction projects - Economic aspects - South Africa , Economic forecasting - South Africa
- Type: Thesis
- Identifier: uj:4348 , http://hdl.handle.net/10210/9698
- Description: M.Ing. (Engineering Management) , As a result of its direct relations with the different sectors of the economy, the construction industry is used as a tool by governments around the world for economic recovery. The South African government has taken such a stance following the 2008/2009 global financial crisis, by proposing the government‘s infrastructure spending and expansion programme for economic growth and development. The South African economy took a stalling from 4.1% in 2007 to 2.3% in 2008 and then turning negative in 2009. This research paper seeks to gather insight of the relationship between construction output and economic growth, as well as the potential long and short term benefits of major infrastructure projects to the South African economy. South Africa; as a developing country and with its construction industry currently in the upward trend, there are lessons that can be learnt from the developed countries. To this end, trends in construction output and GDP have been scrutinised to examine any pattern of development relating the construction industry and its relationship with the economy as a whole. The examination spanned over 32 countries grouped according to their respective development status. With South Africa‘s significant increase in the annual change in construction output between 2004 and 2008, amid developments of the FIFA world cup, confirmed the relation between construction investment and economic growth. The contribution of the construction industry to GDP for developed countries all follow the same trend of having high contributions in the beginning of development declining as less and less new infrastructure is required by the country. The contribution of construction averaged at 6 per cent for the entire duration of analysis between 1970 and 2011. Compared to international standards, South Africa‘s contribution of construction to GDP is determined to be very low at 3 per cent for the duration 1963 and 2011. Further, the construction industry has displayed characteristics of instability for South Africa when compared to developed countries over the same period.
- Full Text:
An assessment of public urban infrastructure financing in South Africa
- Authors: Dithebe, Khotso
- Date: 2018
- Subjects: Infrastructure (Economics) - South Africa , Construction industry - South Africa - Management , City planning - South Africa , Urbanization - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/284800 , uj:30773
- Description: M.Tech. (Construction Management) , Abstract: Infrastructure development plays an essential role in any developing economy. Inadequate infrastructure investment excludes inhabitants from flourishing economically, thus negatively affecting the economic growth of communities and the nation at large. Without financial means to construct, maintain and restore public urban infrastructure, inhabitants continue to struggle. Therefore, the purpose of this study was to assess the current urban infrastructure financing sources and recommend the most effective options for water infrastructure development in South Africa. The data used in this study was derived from both primary and secondary sources. Primary data was collected using a structured questionnaire, from which the questionnaire was developed through the review of literature. The structured questionnaire was distributed physically and using google form. Out of the 150 questionnaires distributed, 96 were returned. However, 91 of the 96 questionnaires were usable, representing a 64% response rate. A quantitative approach was used for this study. Data from the research was analysed using descriptive statistics and exploratory factor analysis. Findings from the data analysis revealed that national government, provincial government, local government and para-state agencies are essential stakeholders of financing public urban infrastructure. In addition, the World Bank, development banks, the building and construction sector, infrastructure investors and civic associations were also pivotal stakeholders of public urban infrastructure financing. The study also showed that the level of awareness and usage of the traditional procurement system, develop and construct, management contracting, construction management, project management and public-private partnerships are recognisable procurement systems in the South African infrastructure projects. Likewise, the study revealed that the level of awareness and usage of local tax revenues and tariffs, inter-governmental transfers, user charges, municipal borrowing, debt financing, public-private partnerships and market instruments were important for financing public urban infrastructure projects. Furthermore, insufficient municipal revenue, insufficient investment laws, corruption, weak project structuring, inadequate risk-adjusted returns and extreme state guarantees on debt repayment were revealed as alarming challenges delaying public infrastructure investment in South Africa. Finally, legal frameworks stipulating policy continuity, clear legislation for private participation, political willingness, accountability, transparency and strong institutional arrangement from all spheres of government were identified as critical success factors for financing public urban infrastructure through public-private partnerships. The findings clearly revealed that government remains the custodian of...
- Full Text:
- Authors: Dithebe, Khotso
- Date: 2018
- Subjects: Infrastructure (Economics) - South Africa , Construction industry - South Africa - Management , City planning - South Africa , Urbanization - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/284800 , uj:30773
- Description: M.Tech. (Construction Management) , Abstract: Infrastructure development plays an essential role in any developing economy. Inadequate infrastructure investment excludes inhabitants from flourishing economically, thus negatively affecting the economic growth of communities and the nation at large. Without financial means to construct, maintain and restore public urban infrastructure, inhabitants continue to struggle. Therefore, the purpose of this study was to assess the current urban infrastructure financing sources and recommend the most effective options for water infrastructure development in South Africa. The data used in this study was derived from both primary and secondary sources. Primary data was collected using a structured questionnaire, from which the questionnaire was developed through the review of literature. The structured questionnaire was distributed physically and using google form. Out of the 150 questionnaires distributed, 96 were returned. However, 91 of the 96 questionnaires were usable, representing a 64% response rate. A quantitative approach was used for this study. Data from the research was analysed using descriptive statistics and exploratory factor analysis. Findings from the data analysis revealed that national government, provincial government, local government and para-state agencies are essential stakeholders of financing public urban infrastructure. In addition, the World Bank, development banks, the building and construction sector, infrastructure investors and civic associations were also pivotal stakeholders of public urban infrastructure financing. The study also showed that the level of awareness and usage of the traditional procurement system, develop and construct, management contracting, construction management, project management and public-private partnerships are recognisable procurement systems in the South African infrastructure projects. Likewise, the study revealed that the level of awareness and usage of local tax revenues and tariffs, inter-governmental transfers, user charges, municipal borrowing, debt financing, public-private partnerships and market instruments were important for financing public urban infrastructure projects. Furthermore, insufficient municipal revenue, insufficient investment laws, corruption, weak project structuring, inadequate risk-adjusted returns and extreme state guarantees on debt repayment were revealed as alarming challenges delaying public infrastructure investment in South Africa. Finally, legal frameworks stipulating policy continuity, clear legislation for private participation, political willingness, accountability, transparency and strong institutional arrangement from all spheres of government were identified as critical success factors for financing public urban infrastructure through public-private partnerships. The findings clearly revealed that government remains the custodian of...
- Full Text:
The impact of basic and social infrastructure investment on inequality in South Africa
- Authors: Gnade, Johan Hendrik
- Date: 2015
- Subjects: Infrastructure (Economics) - South Africa , Economic development - South Africa , Cities and towns - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/75045 , uj:18624
- Description: Abstract: Basic infrastructure investment and social infrastructure investment have different impacts on economic growth and social development in urban and rural municipalities respectively. Empirical analysis of the impact that basic and social infrastructures have on economic growth and social development in urban and rural municipalities respectively is however largely lacking. Such estimates could be used to influence basic and social infrastructure investment decisions towards correcting inequalities that exist between urban and rural municipalities. A balanced panel dataset containing infrastructure, economic, demographic and social indicators are used to compile synthetic indices for basic and social infrastructure (using principal component analysis) and the analysis. Restricted within the least square dummy variable (LSDV), estimation techniques are used to calculate the respective elasticities and to evaluate if the differences between urban and rural municipalities are statistically significant. The results indicate that basic and social infrastructure have different impacts on economic growth and social development in urban and rural municipalities. The results also indicate that both basic and social infrastructure investment generally have a greater economic growth and social development impact in rural municipalities. The research provides an empirical framework and actionable elasticities for the respective impact that basic and social infrastructure investment have on urban and rural municipalities, which is largely under-researched. Knowing that basic and social infrastructure investment have a greater impact on economic growth and social development in rural municipalities can therefore influence policy and investment decisions towards the reduction of inequalities experienced between urban and rural municipalities. , M.Com.
- Full Text:
- Authors: Gnade, Johan Hendrik
- Date: 2015
- Subjects: Infrastructure (Economics) - South Africa , Economic development - South Africa , Cities and towns - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/75045 , uj:18624
- Description: Abstract: Basic infrastructure investment and social infrastructure investment have different impacts on economic growth and social development in urban and rural municipalities respectively. Empirical analysis of the impact that basic and social infrastructures have on economic growth and social development in urban and rural municipalities respectively is however largely lacking. Such estimates could be used to influence basic and social infrastructure investment decisions towards correcting inequalities that exist between urban and rural municipalities. A balanced panel dataset containing infrastructure, economic, demographic and social indicators are used to compile synthetic indices for basic and social infrastructure (using principal component analysis) and the analysis. Restricted within the least square dummy variable (LSDV), estimation techniques are used to calculate the respective elasticities and to evaluate if the differences between urban and rural municipalities are statistically significant. The results indicate that basic and social infrastructure have different impacts on economic growth and social development in urban and rural municipalities. The results also indicate that both basic and social infrastructure investment generally have a greater economic growth and social development impact in rural municipalities. The research provides an empirical framework and actionable elasticities for the respective impact that basic and social infrastructure investment have on urban and rural municipalities, which is largely under-researched. Knowing that basic and social infrastructure investment have a greater impact on economic growth and social development in rural municipalities can therefore influence policy and investment decisions towards the reduction of inequalities experienced between urban and rural municipalities. , M.Com.
- Full Text:
Comparison of quality infrastructure of the Republic of South Africa and Sweden
- Ntlhane, Makibane Daniel, Akinlabi, Stephen A., Mbohwa, Charles
- Authors: Ntlhane, Makibane Daniel , Akinlabi, Stephen A. , Mbohwa, Charles
- Date: 2016
- Subjects: Infrastructure (Economics) - Management , Infrastructure (Economics) - South Africa , Infrastructure (Economics) - Sweden , Engineering economy , Quality infrastructure
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/217201 , uj:21610 , Citation: Ntlhane, M.D., Akinlabi, S.A. & Mbohwa, C. 2016. Comparison of quality infrastructure of the Republic of South Africa and Sweden.
- Description: Abstract: The study focuses on Comparative Study of Quality Infrastructure (QI) between Republic of South Africa (RSA) and Sweden. QI is important for the reason that it provides technical support to companies in order to improve their production processes and ensuring compliance to regulations or international requirements. QI in this study refers to six foremost institutions, which are accreditation body, inspection body, testing laboratory, certification body, metrology institution and standardization body. The methodology employed was by data collections through questionnaires and interviews. The result of the study found that the QI of both South Africa and Sweden is the same based on the types of institutions. It was also observed that the employees of both countries are offered long services of minimum of seven years. A significant difference of 22.6% was reported between the two countries with respect to agreement that law mandates compliance with standard. It was further observed that the QI of both South Africa and Sweden plays a role in reducing non-compliance and adding value to the economies of these countries.
- Full Text:
- Authors: Ntlhane, Makibane Daniel , Akinlabi, Stephen A. , Mbohwa, Charles
- Date: 2016
- Subjects: Infrastructure (Economics) - Management , Infrastructure (Economics) - South Africa , Infrastructure (Economics) - Sweden , Engineering economy , Quality infrastructure
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/217201 , uj:21610 , Citation: Ntlhane, M.D., Akinlabi, S.A. & Mbohwa, C. 2016. Comparison of quality infrastructure of the Republic of South Africa and Sweden.
- Description: Abstract: The study focuses on Comparative Study of Quality Infrastructure (QI) between Republic of South Africa (RSA) and Sweden. QI is important for the reason that it provides technical support to companies in order to improve their production processes and ensuring compliance to regulations or international requirements. QI in this study refers to six foremost institutions, which are accreditation body, inspection body, testing laboratory, certification body, metrology institution and standardization body. The methodology employed was by data collections through questionnaires and interviews. The result of the study found that the QI of both South Africa and Sweden is the same based on the types of institutions. It was also observed that the employees of both countries are offered long services of minimum of seven years. A significant difference of 22.6% was reported between the two countries with respect to agreement that law mandates compliance with standard. It was further observed that the QI of both South Africa and Sweden plays a role in reducing non-compliance and adding value to the economies of these countries.
- Full Text:
Risks and mitigations associated with infrastructure development projects in South Africa
- Authors: Kudumela, Frans Phetole
- Date: 2015
- Subjects: Infrastructure (Economics) - South Africa , Sustainable development - South Africa , Project management - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/82759 , uj:18999
- Description: Abstract: Infrastructure development describes a group of activities that contribute towards the positive outcome of socio-economic conditions for communities. The two commonly known types of infrastructure are economic infrastructure and social infrastructure. Economic infrastructure promotes economic activities through the provision of physical assets such as power stations (electricity), telecommunication networks, roads, highways, railways, airports etc. Social infrastructure contributes to the welfare of communities by promoting education, healthcare and cultural norms of the population. Though infrastructure plays an important role in the livelihood of communities, there have been instances whereby infrastructure development projects are overshadowed by risks that impede their successful implementation. Some infrastructure development projects in South Africa showed evidence of been negatively affected by risks. Thus the purpose of this research study is to identify infrastructure development risks and mitigations in South Africa. A questionnaire survey was used to collect data from professionals involved in the implementation of infrastructure projects. The questionnaire contained a list of risks identified from literature, and respondents were asked to identify risks that they have encountered while implementing infrastructure projects and provide mitigations that were implemented. The results of the study revealed that infrastructure development risks encountered in South Africa are similar to risks experienced in other parts of Africa and the rest of the world. Many professionals in the industry associate with performance risks and inadequate skills capacity risks. Political risks and corruption have also been identified by a large number of the participants, followed by commercial and lack of funding risks. Financial risk and economic risks were identified by a small number of participants, which indicates that such risks are seldom experienced on infrastructure development projects in South Africa. Risk mitigations were identified for each of the identified risks by the research participants. , M.Ing. (Engineering Management)
- Full Text:
- Authors: Kudumela, Frans Phetole
- Date: 2015
- Subjects: Infrastructure (Economics) - South Africa , Sustainable development - South Africa , Project management - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/82759 , uj:18999
- Description: Abstract: Infrastructure development describes a group of activities that contribute towards the positive outcome of socio-economic conditions for communities. The two commonly known types of infrastructure are economic infrastructure and social infrastructure. Economic infrastructure promotes economic activities through the provision of physical assets such as power stations (electricity), telecommunication networks, roads, highways, railways, airports etc. Social infrastructure contributes to the welfare of communities by promoting education, healthcare and cultural norms of the population. Though infrastructure plays an important role in the livelihood of communities, there have been instances whereby infrastructure development projects are overshadowed by risks that impede their successful implementation. Some infrastructure development projects in South Africa showed evidence of been negatively affected by risks. Thus the purpose of this research study is to identify infrastructure development risks and mitigations in South Africa. A questionnaire survey was used to collect data from professionals involved in the implementation of infrastructure projects. The questionnaire contained a list of risks identified from literature, and respondents were asked to identify risks that they have encountered while implementing infrastructure projects and provide mitigations that were implemented. The results of the study revealed that infrastructure development risks encountered in South Africa are similar to risks experienced in other parts of Africa and the rest of the world. Many professionals in the industry associate with performance risks and inadequate skills capacity risks. Political risks and corruption have also been identified by a large number of the participants, followed by commercial and lack of funding risks. Financial risk and economic risks were identified by a small number of participants, which indicates that such risks are seldom experienced on infrastructure development projects in South Africa. Risk mitigations were identified for each of the identified risks by the research participants. , M.Ing. (Engineering Management)
- Full Text:
Comparison of quality infrastructure of the Republic of South Africa and Sweden
- Authors: Ntlhane, Makibane Daniel
- Date: 2015
- Subjects: Infrastructure (Economics) - Management , Infrastructure (Economics) - South Africa , Infrastructure (Economics) - Sweden , Engineering economy
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/212794 , uj:21028
- Description: Abstract: This dissertation focuses on Comparative Study of Quality Infrastructure (QI) between Republic of South Africa (RSA) and Sweden. Quality Infrastructure is important because it provides technical support to companies to improve their production processes and ensuring compliance to regulations or international requirements. Quality Infrastructure refers to six foremost institutions, being the accreditation body, inspection body, testing laboratory, certification body, metrology institution and standardisation body. This study compares and analyses whether QI in Sweden and the Republic of South Africa. RSA plays a role in eliminating non-compliance for their markets and establish if QI have an impact on the economy of both countries, and determining the gaps of QI in both countries. The research methodology was qualitative. The primary data were collected with structured questionnaire whereas the secondary data were collected by using library searches. The literature review showed that earlier research acknowledges the importance for trade of QI in countries. The researcher has discovered that the respondents from RSA and Sweden agree that QI helps to reduce the inferior products in the market and add value in the economy of their countries. Based on the data collected from RSA and Sweden it shows that there is no difference between the QI of both countries relating to the eliminating of non-compliance in their markets and adding value in the economy of their countries. From the data collected, it is concluded that, when compared, the QI from RSA and Sweden can reduce non-compliance and add value to the economy of these countries. Although there are some differences and similarities from QI of RSA and Sweden, the researcher strongly recommends the following:.. , M.Tech.
- Full Text:
- Authors: Ntlhane, Makibane Daniel
- Date: 2015
- Subjects: Infrastructure (Economics) - Management , Infrastructure (Economics) - South Africa , Infrastructure (Economics) - Sweden , Engineering economy
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/212794 , uj:21028
- Description: Abstract: This dissertation focuses on Comparative Study of Quality Infrastructure (QI) between Republic of South Africa (RSA) and Sweden. Quality Infrastructure is important because it provides technical support to companies to improve their production processes and ensuring compliance to regulations or international requirements. Quality Infrastructure refers to six foremost institutions, being the accreditation body, inspection body, testing laboratory, certification body, metrology institution and standardisation body. This study compares and analyses whether QI in Sweden and the Republic of South Africa. RSA plays a role in eliminating non-compliance for their markets and establish if QI have an impact on the economy of both countries, and determining the gaps of QI in both countries. The research methodology was qualitative. The primary data were collected with structured questionnaire whereas the secondary data were collected by using library searches. The literature review showed that earlier research acknowledges the importance for trade of QI in countries. The researcher has discovered that the respondents from RSA and Sweden agree that QI helps to reduce the inferior products in the market and add value in the economy of their countries. Based on the data collected from RSA and Sweden it shows that there is no difference between the QI of both countries relating to the eliminating of non-compliance in their markets and adding value in the economy of their countries. From the data collected, it is concluded that, when compared, the QI from RSA and Sweden can reduce non-compliance and add value to the economy of these countries. Although there are some differences and similarities from QI of RSA and Sweden, the researcher strongly recommends the following:.. , M.Tech.
- Full Text:
Essays on public infrastructure investment in South Africa
- Authors: Mbanda, Vandudzai
- Date: 2018
- Subjects: Infrastructure (Economics) - South Africa , Public investments - South Africa
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/296992 , uj:32366
- Description: Abstract: This thesis is a collection of four essays assessing the impact of public infrastructure investment in South Africa. Each of the four essays, Chapter 2 to Chapter 5, can be considered as standalone self-contained pieces of work. The thesis general introduction and conclusion are given in Chapter 1 and Chapter 6 respectively. The first essay (Chapter 2) focused on growth and employment impacts of increasing public infrastructure investment in South Africa, using dynamic computable general equilibrium (CGE) modelling. The results of all simulations showed that an increase in public economic infrastructure investment had positive impacts on economic growth and employment in South African. However, the results indicate that relatively better outcomes are observed when investment in public infrastructure is financed through a combination of tax and government deficit, particularly in the short run and long run. The second essay (Chapter 3) applied multiplier analysis, structural path analysis (SPA) and CGE modelling to analyse the linkages between the public economic sector and other economic actors following an increase in public economic infrastructure in South Africa. Multiplier analysis indicates that the public economic sector is a significant sector in the South African economy and that it has the strongest backward linkages. This means a shock to this sector, in the form of an increase in public economic infrastructure investment, has a positive economy-wide effect. The public economic sector, as indicated by SPA, impacts on the economy mainly via the formal labour categories. The static CGE analysis results show that an increase in public economic infrastructure investment has an overall positive impact on the South African economy. CGE modelling results and SAM modelling results confirm that increasing public economic infrastructure could help reduce unemployment in South Africa. The third essay (Chapter 4) applies CGE-microsimulation to investigate the economy-wide and poverty and inequality impacts of an increase in the price of electricity in South Africa. The results indicate that an increase in the price of electricity that results in an increase in output production for the electricity sector and other sectors through supply side effects does not have an entirely negative impact on the economy. Even though inequality does not decline, this provides some relief in terms of poverty. The fourth essay (Chapter 5) investigated the existence of a nonlinear relationship between capital spending and capital transfers for South African municipalities using the panel smooth transition regression (PSTR) model. The essay analysed factors that contribute to underspending of the capital budget by South Africa municipalities. The results confirm the existence of a nonlinear relationship between municipal government capital spending and capital transfers in South Africa. The results indicate that large amounts of capital transfer are too high for the capacity of some municipalities, which explains persistent underspending of the capital budget. , Ph.D. (Economics)
- Full Text:
- Authors: Mbanda, Vandudzai
- Date: 2018
- Subjects: Infrastructure (Economics) - South Africa , Public investments - South Africa
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/296992 , uj:32366
- Description: Abstract: This thesis is a collection of four essays assessing the impact of public infrastructure investment in South Africa. Each of the four essays, Chapter 2 to Chapter 5, can be considered as standalone self-contained pieces of work. The thesis general introduction and conclusion are given in Chapter 1 and Chapter 6 respectively. The first essay (Chapter 2) focused on growth and employment impacts of increasing public infrastructure investment in South Africa, using dynamic computable general equilibrium (CGE) modelling. The results of all simulations showed that an increase in public economic infrastructure investment had positive impacts on economic growth and employment in South African. However, the results indicate that relatively better outcomes are observed when investment in public infrastructure is financed through a combination of tax and government deficit, particularly in the short run and long run. The second essay (Chapter 3) applied multiplier analysis, structural path analysis (SPA) and CGE modelling to analyse the linkages between the public economic sector and other economic actors following an increase in public economic infrastructure in South Africa. Multiplier analysis indicates that the public economic sector is a significant sector in the South African economy and that it has the strongest backward linkages. This means a shock to this sector, in the form of an increase in public economic infrastructure investment, has a positive economy-wide effect. The public economic sector, as indicated by SPA, impacts on the economy mainly via the formal labour categories. The static CGE analysis results show that an increase in public economic infrastructure investment has an overall positive impact on the South African economy. CGE modelling results and SAM modelling results confirm that increasing public economic infrastructure could help reduce unemployment in South Africa. The third essay (Chapter 4) applies CGE-microsimulation to investigate the economy-wide and poverty and inequality impacts of an increase in the price of electricity in South Africa. The results indicate that an increase in the price of electricity that results in an increase in output production for the electricity sector and other sectors through supply side effects does not have an entirely negative impact on the economy. Even though inequality does not decline, this provides some relief in terms of poverty. The fourth essay (Chapter 5) investigated the existence of a nonlinear relationship between capital spending and capital transfers for South African municipalities using the panel smooth transition regression (PSTR) model. The essay analysed factors that contribute to underspending of the capital budget by South Africa municipalities. The results confirm the existence of a nonlinear relationship between municipal government capital spending and capital transfers in South Africa. The results indicate that large amounts of capital transfer are too high for the capacity of some municipalities, which explains persistent underspending of the capital budget. , Ph.D. (Economics)
- Full Text:
- «
- ‹
- 1
- ›
- »