South Africa : Stimulating Economic Growth

South Africa has begun a new phase in its history. This article reports on a study examining the challenge of promoting equitable and fiscally sustainable growth, and evaluating alternative paths to growth using an econometric model developed by World Bank staff. The broad conclusion is that there needs to be greater complementarity between stimulating the economy through public investment and reviving private investment if South Africa is to achieve a sustainable growth. The prospects of success will be improved considerably if skills are upgraded and a reorientation towards exports is achieved, accompanied by a restructuring of public expenditure - within fiscally sustainable limits - for targeting the poor. The scenarios examined assume that political stability is achieved and that access to international capital markets improves.

Bibliographic Details

Main Authors:	Fallon, Peter, Pereira de Silva, Luiz A.
Language:	English
Published:	World Bank, Washington, DC 1994-07
Subjects:	ECONOMIC GROWTH, ECONOMETRIC MODELS, PUBLIC INVESTMENTS, PRIVATE INVESTMENTS, EXPORT PROMOTION, SKILLED WORKERS, PUBLIC EXPENDITURES, POVERTY MITIGATION, POLITICAL STABILITY, INTERNATIONAL CAPITAL MARKETS, EMPLOYMENT, TRADE POLICY, LABOR MARKETS AGGREGATE DEMAND, AGRICULTURE, BALANCE OF PAYMENTS, BASIC EDUCATION, CAPITAL STOCK, DEBT, DEVELOPED COUNTRIES, DISPOSABLE INCOME, ECONOMIC EFFECTS, ECONOMIC IMPACT, ECONOMIC PERFORMANCE, ECONOMIC POLICIES, ECONOMIC PROBLEMS, ELECTRICITY GENERATION, EMPLOYMENT GROWTH, EXCHANGE RATE, EXOGENOUS FACTORS, EXPORTS, FOREIGN EXCHANGE, FOREIGN INVESTMENT, FUELS, GDP, GOVERNMENT EXPENDITURE, GROSS DOMESTIC PRODUCT, GROWTH PATH, HIGH GROWTH, IMPORT DUTIES, IMPORTS, INCOME, INCOME DIFFERENTIALS, INCREASED INVESTMENT, INFLATION, INTEREST RATES, INTERMEDIATE GOODS, INVESTMENT, INVESTMENT LEVELS, LABOR FORCE, LABOR MARKET, LABOR SUPPLY, LABOR SUPPLY GROWTH, LONG RUN, LOW INTEREST RATES, MACROECONOMIC MODEL, MONETARY POLICIES, PER CAPITA GROWTH, POLICIES, PRIVATE INVESTMENT, PRIVATE SECTOR, PRODUCTIVITY, PRODUCTIVITY GROWTH, PUBLIC EXPENDITURE, PUBLIC INVESTMENT, PUBLIC SECTOR, PUBLIC SERVICES, PUBLIC SPENDING, RAPID GROWTH, REAL GDP, RECESSION, REDISTRIBUTIVE POLICIES, REGULATORY FRAMEWORK, SAVINGS, SKILLED LABOR, SOCIAL STABILITY, SOCIAL TENSIONS, SUSTAINABLE GROWTH, TOTAL FACTOR PRODUCTIVITY, TOTAL FACTOR PRODUCTIVITY GROWTH, UNEMPLOYMENT, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/1994/07/1614975/south-africa-stimulating-economic-growth https://hdl.handle.net/10986/10014
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