Potential Output and Total Factor Productivity Growth in Post-Apartheid South Africa

 
Author/Editor: Arora, Vivek B. ; Bhundia, Ashok
 
Publication Date: September 01, 2003
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper provides estimates of potential output growth in post-apartheid South Africa using both time trend techniques and a production function approach which indicates a potential growth rate of around 3 percent. The implied output gap provides statistically significant information for predicting inflation and could thus provide valuable input for formulating macroeconomic policy. Growth accounting and regression analysis suggest that an increase in trend GDP growth after the end of apartheid in 1994 is attributable to higher TFP growth driven by trade liberalization and greater private sector participation.
 
Series: Working Paper No. 03/178
Subject(s): Productivity | South Africa

Author's Keyword(s): Potential output | output gap | total factor productivity | South Africa
 
English
Publication Date: September 01, 2003
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1782003 Pages: 20
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
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