Employment impact of national, provincial and local government capital in South Africa: An aggregate and sectoral perspective

This study examines the impact of general/national, provincial and local government capital on employment in South Africa. The study spans from 1993 to 2017 for a panel of 269 South African municipalities. The study employs the Granger causality test and the System Generalised Method of Moments (SGM...

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Main Authors: Charles Shaaba Saba, Nicholas Ngepah, Abieyuwa Ohonba
Format: Article
Language:English
Published: Taylor & Francis Group 2022-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2022.2046322
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author Charles Shaaba Saba
Nicholas Ngepah
Abieyuwa Ohonba
author_facet Charles Shaaba Saba
Nicholas Ngepah
Abieyuwa Ohonba
author_sort Charles Shaaba Saba
collection DOAJ
description This study examines the impact of general/national, provincial and local government capital on employment in South Africa. The study spans from 1993 to 2017 for a panel of 269 South African municipalities. The study employs the Granger causality test and the System Generalised Method of Moments (SGMM) estimation techniques. Findings show bidirectional causality between the variables of interest in the eight economic sectors. The results from the SGMM show that general/national government capital contributes more to total employment and the categories of employment (that is, different skills levels) in the economic sectors compared to provincial and local government capital. This suggests provincial and local government capital has not adequately contributed to citizens’ different skills development and employment levels. Therefore, this article recommends synergised and well invested national, provincial and local government capital at all levels of skills development to equip citizens, create jobs, and grow the South African economy.
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series Cogent Economics & Finance
spelling doaj-art-33e4b36a27af4a2ba69e36261f43b5822025-08-20T03:22:21ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2046322Employment impact of national, provincial and local government capital in South Africa: An aggregate and sectoral perspectiveCharles Shaaba Saba0Nicholas Ngepah1Abieyuwa Ohonba2School of Economics, College of Business and Economics, University of Johannesburg, Auckland Park Kingsway Campus, PO Box 524 Auckland Park, Johannesburg, South AfricaSchool of Economics, College of Business and Economics, University of Johannesburg, Auckland Park Kingsway Campus, PO Box 524 Auckland Park, Johannesburg, South AfricaSchool of Economics, College of Business and Economics, University of Johannesburg, Auckland Park Kingsway Campus, PO Box 524 Auckland Park, Johannesburg, South AfricaThis study examines the impact of general/national, provincial and local government capital on employment in South Africa. The study spans from 1993 to 2017 for a panel of 269 South African municipalities. The study employs the Granger causality test and the System Generalised Method of Moments (SGMM) estimation techniques. Findings show bidirectional causality between the variables of interest in the eight economic sectors. The results from the SGMM show that general/national government capital contributes more to total employment and the categories of employment (that is, different skills levels) in the economic sectors compared to provincial and local government capital. This suggests provincial and local government capital has not adequately contributed to citizens’ different skills development and employment levels. Therefore, this article recommends synergised and well invested national, provincial and local government capital at all levels of skills development to equip citizens, create jobs, and grow the South African economy.https://www.tandfonline.com/doi/10.1080/23322039.2022.2046322Government capitalemploymentsystem-GMMSouth Africa
spellingShingle Charles Shaaba Saba
Nicholas Ngepah
Abieyuwa Ohonba
Employment impact of national, provincial and local government capital in South Africa: An aggregate and sectoral perspective
Cogent Economics & Finance
Government capital
employment
system-GMM
South Africa
title Employment impact of national, provincial and local government capital in South Africa: An aggregate and sectoral perspective
title_full Employment impact of national, provincial and local government capital in South Africa: An aggregate and sectoral perspective
title_fullStr Employment impact of national, provincial and local government capital in South Africa: An aggregate and sectoral perspective
title_full_unstemmed Employment impact of national, provincial and local government capital in South Africa: An aggregate and sectoral perspective
title_short Employment impact of national, provincial and local government capital in South Africa: An aggregate and sectoral perspective
title_sort employment impact of national provincial and local government capital in south africa an aggregate and sectoral perspective
topic Government capital
employment
system-GMM
South Africa
url https://www.tandfonline.com/doi/10.1080/23322039.2022.2046322
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AT nicholasngepah employmentimpactofnationalprovincialandlocalgovernmentcapitalinsouthafricaanaggregateandsectoralperspective
AT abieyuwaohonba employmentimpactofnationalprovincialandlocalgovernmentcapitalinsouthafricaanaggregateandsectoralperspective