This study was motivated by low rates of economic growth and insufficient investment in infrastructure to
balance infrastructure backlogs and growth that the South African economy has been facing in recent years.
The main objective of the study is to examine the impact of disaggregated government investment and
consumption spending on economic growth in South Africa using the Auto-Regressive Distributed Lag
(ARDL) technique and Error Correction Model (ECM). Annual time series data spanning the period 1983–
2017 was employed. Earlier studies conducted in South Africa measured the impact of aggregated
government expenditure on economic growth using different methodologies, including estimating
procedures, model specifications and time frames. To the best of our knowledge, this paper is the first to
study the effect of disaggregated government investment spending on the South African economy. This
study, therefore, examines the disaggregated government spending on education, health, defence and social
protection along with other control variables. The ARDL cointegration test result indicates the existence of
a long-run relationship between the variables. The estimated ECM model reveals that the short-run impact
of each explanatory variable is significant in explaining changes in economic growth in South Africa. These
results will enable the spheres of government to formulate and adjust economic development policies that
will produce the needed economic growth in line with the radical economic transformation programme in
South Africa. / Economics / M. Com. (Economics)
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:uir.unisa.ac.za:10500/26994 |
| Date | 11 1900 |
| Creators | Maribe, Mamafake Hellen |
| Contributors | Leshoro, Lydia |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Dissertation |
| Format | 1 online resource (ix, 79 leaves) : illustrations, application/pdf |
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