Fiscal expenditures, revenues and labour productivity in South Africa
The COVID-19 pandemic emerged at a time when the South African economy was already battling to recover from the aftermath of the global financial crisis of 2007–09 which led the country to experience a decade-old slowdown in labour productivity. Our study investigates the role which government plays...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2062912 |
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| author | Andrew Phiri Chuma Mbaleki |
| author_facet | Andrew Phiri Chuma Mbaleki |
| author_sort | Andrew Phiri |
| collection | DOAJ |
| description | The COVID-19 pandemic emerged at a time when the South African economy was already battling to recover from the aftermath of the global financial crisis of 2007–09 which led the country to experience a decade-old slowdown in labour productivity. Our study investigates the role which government plays in influencing labour productivity by estimating a log-linearized growth model augmented with a fiscal sector using the autoregressive distributive lag model applied to annual data of 1990–2020. We further disaggregate the composition of government size into seven expenditure items and six revenue items, and find i) education, health, recreation and public safety to be expenditure items most beneficial to short-run and long-run labour productivity ii) income taxes and VAT to be revenue items most beneficial to long-run productivity and yet most taxes have adverse short-run effects. The policy implications of the study are discussed. |
| format | Article |
| id | doaj-art-b078e47c91c84b98aa03b468808ea720 |
| institution | OA Journals |
| issn | 2332-2039 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-b078e47c91c84b98aa03b468808ea7202025-08-20T02:01:24ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2062912Fiscal expenditures, revenues and labour productivity in South AfricaAndrew Phiri0Chuma Mbaleki1Department of Economics, Faculty of Business and Economic Studies, Nelson Mandela University, 6031 Port Elizabeth, South AfricaSchool of Business, Baldwin Wallace University, United StatesThe COVID-19 pandemic emerged at a time when the South African economy was already battling to recover from the aftermath of the global financial crisis of 2007–09 which led the country to experience a decade-old slowdown in labour productivity. Our study investigates the role which government plays in influencing labour productivity by estimating a log-linearized growth model augmented with a fiscal sector using the autoregressive distributive lag model applied to annual data of 1990–2020. We further disaggregate the composition of government size into seven expenditure items and six revenue items, and find i) education, health, recreation and public safety to be expenditure items most beneficial to short-run and long-run labour productivity ii) income taxes and VAT to be revenue items most beneficial to long-run productivity and yet most taxes have adverse short-run effects. The policy implications of the study are discussed.https://www.tandfonline.com/doi/10.1080/23322039.2022.2062912public expenditurefiscal revenueslabour productivityARDLSouth Africa |
| spellingShingle | Andrew Phiri Chuma Mbaleki Fiscal expenditures, revenues and labour productivity in South Africa Cogent Economics & Finance public expenditure fiscal revenues labour productivity ARDL South Africa |
| title | Fiscal expenditures, revenues and labour productivity in South Africa |
| title_full | Fiscal expenditures, revenues and labour productivity in South Africa |
| title_fullStr | Fiscal expenditures, revenues and labour productivity in South Africa |
| title_full_unstemmed | Fiscal expenditures, revenues and labour productivity in South Africa |
| title_short | Fiscal expenditures, revenues and labour productivity in South Africa |
| title_sort | fiscal expenditures revenues and labour productivity in south africa |
| topic | public expenditure fiscal revenues labour productivity ARDL South Africa |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2062912 |
| work_keys_str_mv | AT andrewphiri fiscalexpendituresrevenuesandlabourproductivityinsouthafrica AT chumambaleki fiscalexpendituresrevenuesandlabourproductivityinsouthafrica |