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Competitio

Évf. 25 szám 1-2 (2026)
Tanulmányok

Is the clamour for infrastructure investment justifiable for economic development? An investigation into an emerging economy. A case from South Africa.

Megjelent:
2026-01-29
DOI Linkhttps://doi.org/10.21845/comp/2026/1-2/1
Szerző
Marais Stacey Lee
Megtekintés
PDF (Angol)
Kulcsszavak
panel data analysis infrastructure regional economic development income inequality
Licenc

Copyright (c) 2026 Stacey Lee Marais

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Hogyan hivatkozzuk
Kiválasztott formátum: APA
Marais, S. L. (2026). Is the clamour for infrastructure investment justifiable for economic development? An investigation into an emerging economy. A case from South Africa. Competitio, 25(1-2), 3-27. https://doi.org/10.21845/comp/2026/1-2/1
Beküldött 2025-05-26
Elfogadott 2026-01-05
Publikált 2026-01-29
Absztrakt

A critical challenge in South Africa today is the absence of consistent economic growth and job creation, both of which are necessary to reduce poverty and increase the standard of living of its citizens. The South African government continues to commit and spend billions of rands annually on infrastructure in an attempt to address social ills. We analyse this type of investment using long- and short-term statistical methods to determine its effects on income per capita over the period 1996-2021. This was examined through the application of classic and contemporary econometric modelling and analysis, which started with a panel unit root testing, then moved onto cointegration test, and regression testing such as FMOLS, DOLS, and VAR models. The analysis demonstrated a long-term link between infrastructure investment and income per capita. Specifically, transport and ICT investments have a significant positive effect on earnings. On the contrary, labour has a long-term negative impact. Capital investment projects should not be developed, constructed, or implemented haphazardly. But must be coordinated with education and vocational development programs to improve labour efficiency to counter its negative impact on GDP per capita.

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