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Macro Economic Determinants of Economic Growth In South Africa

Author

Listed:
  • Dorah Dubihlela
  • Phakama Senzangakhona
  • Nomsindisi Dudumashe

Abstract

Purpose: To investigate the determinants of economic growth in South Africa amidst ongoing macroeconomic challenges. Method: Utilized yearly time series data. Assessed data stationarity using the Phillips-Perron and Augmented Dickey-Fuller tests. Employed an Autoregressive Distributed Lag (ARDL) model to analyze short- and long-run relationships. Applied Granger causality to explore causal relationships among the variables. Results: In the long run, financial development, capital stock, and employment are significant determinants of economic growth. In the short run, all variables examined were significant. Originality/Relevance: The study addresses critical macroeconomic challenges in South Africa, providing insights that can inform policies aimed at stimulating economic growth through employment, investment in capital, and financial development.

Suggested Citation

  • Dorah Dubihlela & Phakama Senzangakhona & Nomsindisi Dudumashe, 2025. "Macro Economic Determinants of Economic Growth In South Africa," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 0, September.
    • Handle: RePEc:jaf:journl:v::y:2025:i::n:754
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    File URL: https://www.scientific-society.com/journal/index.php/AF/article/view/870
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    References listed on IDEAS

    as
    1. Vasily E. Tarasov & Valentina V. Tarasova, 2019. "Dynamic Keynesian Model of Economic Growth with Memory and Lag," Mathematics, MDPI, vol. 7(2), pages 1-17, February.
    2. Diego Comin & Sunil Mulani, 2006. "Diverging Trends in Aggregate and Firm Volatility," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 374-383, May.
    3. Valentina V. Tarasova & Vasily E. Tarasov, 2017. "Economic Growth Model with Constant Pace and Dynamic Memory," Papers 1701.06299, arXiv.org, revised Apr 2019.
    4. Simbarashe Tendengu & Forget Mingiri Kapingura & Asrat Tsegaye, 2022. "Fiscal Policy and Economic Growth in South Africa," Economies, MDPI, vol. 10(9), pages 1-14, August.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • N8 - Economic History - - Micro-Business History
    • G3 - Financial Economics - - Corporate Finance and Governance

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