Abstract
This chapter reviews the literature on the drivers of growth in South Africa. While growth has picked up since the mid-1990s, there are a number of impediments to faster, sustainable growth. These include a continued impact of uncertainty on physical capital investment, uncertainty surrounding property rights, incomplete recovery of infrastructure investment, market distortions that thwart competition in product markets and an excessively rigid labour code. In addition, skills creation, credit and R&D activity remain too low, while credit rationing in financial markets stills appears to be a feature of the economy. The fiscal space for more aggressive growth-promoting public expenditure has been reduced by the expansion of welfare payments. A number of policy implications follow from the analysis, including a need for macroeconomic stability and for credible, transparent policies to address economic and social infrastructure bottlenecks, to maintain fiscal discipline in the face of pressures for further expansion in welfare payments, and to reform product and labour market regulations. Finally, action is also needed to improve the quality of education, create incentives for R&D activity, and improve the efficiency of the financial sector.
| Original language | English (US) |
|---|---|
| Title of host publication | Growth and Sustainability in Brazil, China, India, Indonesia and South Africa |
| Publisher | Organisation for Economic Cooperation and Development (OECD) |
| Pages | 147-188 |
| Number of pages | 42 |
| Volume | 9789264090200 |
| ISBN (Electronic) | 9789264090200 |
| ISBN (Print) | 9789264090194 |
| DOIs | |
| State | Published - Jan 1 2010 |
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All Science Journal Classification (ASJC) codes
- Social Sciences(all)
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Sustainable growth in South Africa. / Fedderke, Johannes Wolfgang.
Growth and Sustainability in Brazil, China, India, Indonesia and South Africa. Vol. 9789264090200 Organisation for Economic Cooperation and Development (OECD), 2010. p. 147-188.Research output: Chapter in Book/Report/Conference proceeding › Chapter
TY - CHAP
T1 - Sustainable growth in South Africa
AU - Fedderke, Johannes Wolfgang
PY - 2010/1/1
Y1 - 2010/1/1
N2 - This chapter reviews the literature on the drivers of growth in South Africa. While growth has picked up since the mid-1990s, there are a number of impediments to faster, sustainable growth. These include a continued impact of uncertainty on physical capital investment, uncertainty surrounding property rights, incomplete recovery of infrastructure investment, market distortions that thwart competition in product markets and an excessively rigid labour code. In addition, skills creation, credit and R&D activity remain too low, while credit rationing in financial markets stills appears to be a feature of the economy. The fiscal space for more aggressive growth-promoting public expenditure has been reduced by the expansion of welfare payments. A number of policy implications follow from the analysis, including a need for macroeconomic stability and for credible, transparent policies to address economic and social infrastructure bottlenecks, to maintain fiscal discipline in the face of pressures for further expansion in welfare payments, and to reform product and labour market regulations. Finally, action is also needed to improve the quality of education, create incentives for R&D activity, and improve the efficiency of the financial sector.
AB - This chapter reviews the literature on the drivers of growth in South Africa. While growth has picked up since the mid-1990s, there are a number of impediments to faster, sustainable growth. These include a continued impact of uncertainty on physical capital investment, uncertainty surrounding property rights, incomplete recovery of infrastructure investment, market distortions that thwart competition in product markets and an excessively rigid labour code. In addition, skills creation, credit and R&D activity remain too low, while credit rationing in financial markets stills appears to be a feature of the economy. The fiscal space for more aggressive growth-promoting public expenditure has been reduced by the expansion of welfare payments. A number of policy implications follow from the analysis, including a need for macroeconomic stability and for credible, transparent policies to address economic and social infrastructure bottlenecks, to maintain fiscal discipline in the face of pressures for further expansion in welfare payments, and to reform product and labour market regulations. Finally, action is also needed to improve the quality of education, create incentives for R&D activity, and improve the efficiency of the financial sector.
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U2 - 10.1787/9789264090200-8-en
DO - 10.1787/9789264090200-8-en
M3 - Chapter
AN - SCOPUS:84901639968
SN - 9789264090194
VL - 9789264090200
SP - 147
EP - 188
BT - Growth and Sustainability in Brazil, China, India, Indonesia and South Africa
PB - Organisation for Economic Cooperation and Development (OECD)
ER -