Return to search

The influence of fiscal policy on economic growth in South Africa

This study examines the relationship between fiscal policy and economic growth in South Africa for the period 1994-2014. This study examines the relationship between fiscal policy and economic growth within the context of the endogenous growth theory. Three models are estimated. The variables included in the first model are; real GDP, aggregate government expenditure, total taxes and private investment. The second and third models disaggregate government expenditure into productive and non-productive and taxes into distortionary and non-distortionary. The Vector Autoregressive is used to estimate the relationship between fiscal policy and economic growth. The data is quarterly in frequency. The findings of the study suggest that government investment expenditure has negative impact on growth, while government consumption expenditure has positive impact on growth. Furthermore, the findings of the study are that direct taxes have negative impact on the economy while indirect taxes have positive impact on economic growth.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:28917
Date January 2017
CreatorsMphinyana, Shonisani Tshinakaho
PublisherNelson Mandela Metropolitan University, Faculty of Business and Economic Sciences
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MCom
Formatx, 118 leaves, pdf
RightsNelson Mandela Metropolitan University

Page generated in 0.0019 seconds