Austerity Measures, Infrastructure and Economic Development in South Africa (1996–2019)
Austerity Measures, Infrastructure and Economic Development in South Africa (1996–2019)
Author(s): Kukhanyile Mali, Johannes P S SheefeniSubject(s): Economic policy, Economic development, Transformation Period (1990 - 2010), Present Times (2010 - today)
Published by: Vilniaus Universiteto Leidykla
Keywords: austerity; infrastructure development; economic development; fiscal policy; neoliberalism;
Summary/Abstract: The paper aims to establish whether austerity measures promote economic development, improve infrastructure development, and whether they exacerbate infrastructure backlogs. The methodology used is a quantitative research method, sourcing secondary quarterly data from the South African Reserve Bank. The VAR model is used to analyse data between 1994 and 2019. The results showed that austerity measures have a significantly negative role in economic development. Also, they slow down investments that are crucial for infrastructure development. The results also pointed to the exacerbation of infrastructure backlogs caused by austerity measures.
Journal: Organizations and Markets in Emerging Economies
- Issue Year: 14/2023
- Issue No: 1
- Page Range: 56-82
- Page Count: 27
- Language: English