- Title
- Transport infrastructure investment and exports growth in South Africa
- Creator
- Gengele , Nosiphelo
- Subject
- Transportation -- South Africa Infrastructure (Economics) -- South Africa
- Date
- 2019
- Type
- Thesis
- Type
- Masters
- Type
- MCom (Transport Economics)
- Identifier
- http://hdl.handle.net/10353/13370
- Identifier
- vital:39638
- Description
- The transport sector is very important in facilitating trade and travel between and within nations. It is at the core of every country‟s economy. In order for transport to play this critical role, this research suggests that it is important for countries to invest in infrastructure. This study examined the impact of transport infrastructure investment on export growth in South Africa for the period of 1994 to 2017. The standard procedure in interpreting the long-run VECM results was applied. All the variables enter the long-run equation significantly, and the signs and magnitudes also appear reasonable. The long run results suggest that transport infrastructure investment have a positive effect on exports in South Africa. As indicated on the long-run equation, transport infrastructure investment is significant in specification; the positive coefficient of the variable in the regression suggests that an increase in investment in the transport infrastructure will lead to an increase in exports. A vector error correction model was estimated with exports, transport infrastructure investment, real effective exchange rate, world gross domestic product, export prices and consumer price index. The variance decompositions show that exports have a high level of inertia in the first year with most of the variations dependent on past export variations. In the second year, employment contributes significantly to variations in exports. Transport infrastructure investment makes very little contribution. Impulse responses show that a positive shock to infrastructure investments increases exports marginally. The results of the study have revealed a number of policy implications that affect transport infrastructure investment and exports. It is highly recommended that government should improve transport infrastructure for all modes of transport as this will lead to an increase in the level of exports in South Africa. Empirical evidence shows that transport infrastructure investment granger cause exports. Government expenditure in transport infrastructure has been considered s one of the means to enhance economic development and transport sector operates as the crucial engine of the economic growth in both developed and developing countries
- Format
- 108 leaves
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Management and Commerce
- Language
- English
- Rights
- University of Fort Hare
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | GENGELE N 201205042 MCOM.pdf | 1 MB | Adobe Acrobat PDF | View Details Download |