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Social Ingredients and Conditional Convergence in the Study of Sectoral Growth

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  • Jacques Kibambe

    ()
    (Department of Economics, University of Pretoria)

  • Renee van Eyden

    ()
    (Department of Economics, University of Pretoria)

  • charlotte du Toit

    ()
    (Department of Economics, University of Pretoria)

Abstract

In this research article, we investigate the improved modelling ability and the outstanding policy advocacy of infusing health and education in sectoral growth equations of the South African economy. Our findings not only include improved and dependable modelling results but also provide distinct estimates of the returns on investment in health and education per sector using Iterative Seemingly Unrelated Regressions techniques. Additionally, this paper provides a theoretical description of the productivity effects of HIV/AIDS using sectoral equations. Also, this research investigates the diffusion process in the technological progress at the South African sectoral level and its impact on the study of social ingredients. Using a fixed effects model, some features of the diffusion process are explained.

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Bibliographic Info

Paper provided by University of Pretoria, Department of Economics in its series Working Papers with number 200931.

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Length: 17 pages
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:pre:wpaper:200931

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Keywords: Coefficient of effectiveness; Diffusion process; Fixed effects model; Seemingly Unrelated Regressions;

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  1. Barro, Robert J, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 106(2), pages 407-43, May.
  2. Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2005. "The Quantity and Quality of Life and the Evolution of World Inequality," American Economic Review, American Economic Association, American Economic Association, vol. 95(1), pages 277-291, March.
  3. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, American Economic Association, vol. 76(5), pages 1072-85, December.
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