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A Computable General Equilibrium (CGE) Analysis of the Expenditure on Infrastructure in the Limpopo Economy in South Africa

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  • J. Mostert
  • J. Heerden

Abstract

The Limpopo Province is one of the poorer provinces in South Africa, facing the challenges of poverty, inequality and unemployment. To address these challenges the national government of South Africa has embarked on a massive infrastructure program. Our literature review confirmed a positive link between infrastructure development and economic growth. One of the key infrastructure projects that will be implemented in the Limpopo province is the building of a railway line to link the mining belt in the province to the Richards Bay harbour. The coal in the Limpopo province is also a strategic resource that is needed to fuel the coal fired power stations in the neighbouring Mpumalanga province. The short run and long run impacts of the proposed railway line have been simulated using the TERM CGE model. Copyright International Atlantic Economic Society 2015

Suggested Citation

  • J. Mostert & J. Heerden, 2015. "A Computable General Equilibrium (CGE) Analysis of the Expenditure on Infrastructure in the Limpopo Economy in South Africa," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 21(2), pages 227-236, May.
    • Handle: RePEc:kap:iaecre:v:21:y:2015:i:2:p:227-236:10.1007/s11294-015-9524-1
    DOI: 10.1007/s11294-015-9524-1
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    References listed on IDEAS

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    1. Mark Horridge & Glyn Wittwer, 2007. "The economic impacts of a construction project, using SinoTERM, a multi-regional CGE model of China," Centre of Policy Studies/IMPACT Centre Working Papers g-164, Victoria University, Centre of Policy Studies/IMPACT Centre.
    2. Bogetic, Zeljko & Fedderke, Johannes W., 2006. "International benchmarking of South Africa's infrastructure performance," Policy Research Working Paper Series 3830, The World Bank.
    3. Johannes Fedderke & Charles Simkins, 2012. "Economic Growth in South Africa," Economic History of Developing Regions, Taylor & Francis Journals, vol. 27(1), pages 176-208.
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    Cited by:

    1. Ragchaasuren Galindev & Tsolmon Baatarzorig & Nyambaatar Batbayar & Delgermaa Begz & Unurjargal Davaa & Oyunzul Tserendorj, 2019. "The Economic and Environmental Impact of Foreign Direct Investment on the Mongolian Coal-Export Sector," Working Papers MPIA 2019-21, PEP-MPIA.
    2. Timilsina,Govinda R. & Stern,David S. & Das,Debasish Kumar, 2021. "How Much Does Physical Infrastructure Contribute to Economic Growth ? An Empirical Analysis," Policy Research Working Paper Series 9888, The World Bank.
    3. Timilsina,Govinda R. & Hochman,Gal & Song,Ze, 2020. "Infrastructure, Economic Growth, and Poverty : A Review," Policy Research Working Paper Series 9258, The World Bank.
    4. Sedef Sen & Tugba Yilmaz, 2023. "An Econometric Analysis on the Relationship between Infrastructure and Economic Growth," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(2), pages 361-393, July.

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    More about this item

    Keywords

    Infrastructure; CGE modelling; Mining; O10; R10;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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