The impact of budget deficits on economic growth in South Africa

Title: The impact of budget deficits on economic growth in South Africa
Creator: Mrwebo, Luzuko T
Date: 2013
Type: Thesis
Type: Masters
Type: M Com
Identifier: vital:11481
Identifier: http://hdl.handle.net/10353/d1015284
Description: The study examines the impact of budget deficits on economic growth in South Africa. The review of the results from theoretical and empirical studies has shown that budget deficits in the most have a negative impact on GDP growth. The Johansen cointegration test has shown evidence that there is cointegration between the GDP growth and its determinants. The tests indicated the presence of cointegration which led to the estimation of VECM. The measure for the long run relationship was between GDP growth and its determinants such as, budget deficits, domestic activities, government debt, and trade openness. The co-integration and vector error correction modelling techniques were applied to South African data between 1990 to 2012 period. This study at hand indicated that government budget deficits have a long run negative effect on economic growth, but the impact shown from the results of this study is very low.
Format: iv, 93 leaves
Format: pdf
Publisher: University of Fort Hare
Publisher: Faculty of Management & Commerce
Language: English
Rights: University of Fort Hare

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UFH Department of Economics

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