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

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  • Mr. Vivek B. Arora
  • Mr. Ashok Bhundia

Abstract

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.

Suggested Citation

  • Mr. Vivek B. Arora & Mr. Ashok Bhundia, 2003. "Potential Output and total Factor Productivity Growth in Post-Apartheid South Africa," IMF Working Papers 2003/178, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2003/178
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    References listed on IDEAS

    as
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