Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures

18 Pages Posted: 10 Apr 2011

See all articles by Zeljko Bogetic

Zeljko Bogetic

World Bank

Johannes W. Fedderke

University of the Witwatersrand - School of Economics and Business Sciences; University of Cape Town

Multiple version iconThere are 2 versions of this paper

Date Written: September 8, 2009

Abstract

Empirical explorations of the growth and aggregate productivity impacts of infrastructure have been characterized by ambiguous (countervailing signs) results with little robustness. This paper, utilizing panel data for South African manufacturing over the 1970–2000 period, and a range of 19 infrastructure measures, explores the question of infrastructure endogeneity in output equations. The paper develops an instrumentation strategy generalizable to other contexts. Controlling for the possibility of endogeneity in the infrastructure measures renders the impact of infrastructure capital not only positive, but of economically meaningful magnitudes.

Keywords: growth, productivity, infrastructure, Africa, South Africa

JEL Classification: F43, O4, H54, N17

Suggested Citation

Bogetic, Zeljko and Fedderke, Johannes, Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures (September 8, 2009). World Development, Vol. 37, No. 9, 2009. Available at SSRN: https://ssrn.com/abstract=1805838

Zeljko Bogetic

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Johannes Fedderke (Contact Author)

University of the Witwatersrand - School of Economics and Business Sciences ( email )

Private Bag 3
WITS 2050
South Africa
+27 11 717-8106 (Phone)

University of Cape Town ( email )

Private Bag X3
Rondebosch, Western Cape 7701
South Africa

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