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

WPIEA1782003 Image
Price:  $15.00

Author/Editor: Ashok Bhundia, Vivek B. Arora
Release Date: © September, 2003
ISBN : 978-1-45185-897-6
Stock #: WPIEA1782003
English
Stock Status: Available

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Description

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.




More publications in this series: Working Papers


More publications by: Ashok Bhundia ; Vivek B. Arora