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Tracking total factor productivity across industries in South Africa

Author

Listed:
  • Steenkamp, Daan
  • Fourie, Jurgens

Abstract

We show that national total factor productivity estimates mask significant heterogeneity across industries. Our estimates imply that there has been broad-based decline in productivity since the global financial crisis, particularly for mining, manufacturing and construction. While we highlight challenges to measuring productivity in South Africa, we show that our estimates are broadly similar to estimates from other international agencies. Over the long term, productivity is a key determinant of a country's per capita income. South Africa's poor productivity performance since 1990 is therefore very concerning. Our estimates have profound policy implications, highlighting the impact that electricity and logistical constraints, rising regulatory compliance costs, policy uncertainty and municipal mismanagement.

Suggested Citation

  • Steenkamp, Daan & Fourie, Jurgens, 2026. "Tracking total factor productivity across industries in South Africa," EconStor Research Reports 335705, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esrepo:335705
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    File URL: https://www.econstor.eu/bitstream/10419/335705/1/Codera_TFP_in_SouthAfrica_26.pdf
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    References listed on IDEAS

    as
    1. Daan Steenkamp, 2018. "Productivity estimates for South Africa from CES production functions," Working Papers 8937, South African Reserve Bank.
    2. Rainer Klump & Peter McAdam & Alpo Willman, 2012. "The Normalized Ces Production Function: Theory And Empirics," Journal of Economic Surveys, Wiley Blackwell, vol. 26(5), pages 769-799, December.
    3. Rainer Klump & Peter McAdam & Alpo Willman, 2007. "Factor Substitution and Factor-Augmenting Technical Progress in the United States: A Normalized Supply-Side System Approach," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 183-192, February.
    4. Julius Pain & Mpho Rapapali & Daan Steenkamp, 2020. "Industry TFP estimates for South Africa," Occasional Bulletin of Economic Notes 10412, South African Reserve Bank.
    5. Daan Steenkamp, 2018. "Factor Substitution and Productivity in New Zealand," The Economic Record, The Economic Society of Australia, vol. 94(304), pages 64-79, March.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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