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Infrastructure development and economic complexity in South Africa. Running title: Can infrastructure development influence economic complexity?

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  • Richard Chauke

    (School of Economics and Management, University of Limpopo, South Africa)

  • Thobeka Ncanywa

    (School of Economics and Management, University of Limpopo, South Africa)

Abstract

South African economy comprises of a narrow range of exports and an overdependence on the primary production. These challenges hindered the growth and development of the country as well as the continent. One of the ways to enhance growth and development is through the improvement of economic complexity which measures productive capabilities of sophisticated products that countries export. The study seeks to find the role of investing in infrastructure development has on economic complexity using South African data. The autoregressive distributive lag approach was employed using yearly data spanning from 1960 to 2018. Results indicate that investing in government economic infrastructure has a negative and robust impact on economic complexity. Investment on government social infrastructure and public corporations' infrastructure can positively influence economic complexity. It can be recommended that there should be policies to support industrial development that targeted incentivising economic infrastructure development. The development should prioritize specific geographical areas such as special economic zones to improve the lives of citizens, boost the economy, attract foreign direct investment and create jobs.

Suggested Citation

  • Richard Chauke & Thobeka Ncanywa, 2021. "Infrastructure development and economic complexity in South Africa. Running title: Can infrastructure development influence economic complexity?," Technium Social Sciences Journal, Technium Science, vol. 26(1), pages 488-501, Decembrie.
    • Handle: RePEc:tec:journl:v:26:y:2021:i:1:p:488-501
    DOI: https://doi.org/10.47577/tssj.v26i1.5166
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    References listed on IDEAS

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    Cited by:

    1. Achmad Fauzi & Martani Huseini & Amy Yayuk Sri Rahayu, 2022. "Designing Strategies to Improve the Competitiveness of Special Economic Zones," Technium Social Sciences Journal, Technium Science, vol. 31(1), pages 22-43, May.
    2. Isaac Ketu & Jules-Eric Tchapchet Tchouto & Arsene Mouongue Kelly, 2022. "Does infrastructure development drive economic complexity in African countries?," Economics Bulletin, AccessEcon, vol. 42(4), pages 2043-2053.

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    More about this item

    Keywords

    Economic complexity; government economic infrastructure; government social-economic infrastructure; public corporations' infrastructure; special economic zones;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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