Austerity Measures, Infrastructure and Economic Development in South Africa (1996–2019)
Articles
Kukhanyile Mali
University of the Western Cape, South Africa
https://orcid.org/0000-0002-0281-5153
Johannes Sheefeni
University of the Western Cape, South Africa
https://orcid.org/0000-0001-7260-7811
Published 2023-05-29
https://doi.org/10.15388/omee.2023.14.82
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Keywords

austerity
infrastructure development
economic development
fiscal policy
neoliberalism

How to Cite

Mali, K. and Sheefeni, J. (2023) “Austerity Measures, Infrastructure and Economic Development in South Africa (1996–2019)”, Organizations and Markets in Emerging Economies, 14(1(27), pp. 56–82. doi:10.15388/omee.2023.14.82.

Abstract

The paper aims to establish whether austerity measures promote economic development, improve infrastructure development, and whether they exacerbate infrastructure backlogs. The methodology used is a quantitative research method, sourcing secondary quarterly data from the South African Reserve Bank. The VAR model is used to analyse data between 1994 and 2019. The results showed that austerity measures have a significantly negative role in economic development. Also, they slow down investments that are crucial for infrastructure development. The results also pointed to the exacerbation of infrastructure backlogs caused by austerity measures.

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