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Driver, Ciaran and Harris, Laurence (2021) 'Investment in South Africa.' In: Oqubay, Arkebe, Tregenna, Fiona and Valodia, Imraan, (eds.), The Oxford Handbook of the South African Economy. Oxford: Oxford University Press, pp. 441-466.

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Abstract: Since the achievement of democracy, high levels of gross fixed capital formation have been required for the economic and social transformation of South Africa. Public-sector investment has risen, particularly since 2008, but private-business investment has not grown enough, while manufacturing’s share of the capital stock has declined substantially. Common explanations for low investment in manufacturing are examined in the light of empirical literature and are judged to have inadequate evidential support. Industrial policies derived from these views, such as maintaining low interest rates to promote investment, need to be based on stronger evidence. An argument is put forward for a system-based approach to research on the determinants of investment.

Item Type: Book Chapters
Keywords: gross fixed capital formation, public-sector investment, manufacturing sector, user cost of capital, uncertainty, concentration, crowding in, South Africa
SOAS Departments & Centres: Departments and Subunits > School of Finance & Management
ISBN: 9780192894199
Copyright Statement: This is a version of the chapter published in the Oxford Handbook of the South African Economy. Oxford: Oxford University Press, pp. 441-466. The version of record is available at: Not for re-distribution or re-use
DOI (Digital Object Identifier):
Date Deposited: 13 Dec 2021 18:51
Related URLs: https://www.oxf ... nf70s&result=11

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