Output, Employment and Financial Sanctions in South Africa

December 1, 1990

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Format: Chicago

Tamim Bayoumi. Output, Employment and Financial Sanctions in South Africa, (USA: International Monetary Fund, 1990) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The effects of the marked slowdown in the growth of the capital stock in South Africa since 1985, associated with political uncertainty and financial sanctions, and future growth prospects are quantified using a modified version of the Lewis development model. This is done by estimating production functions for the nonprimary and mining sectors of the South African economy involving skilled (white) labor, unskilled (nonwhite) labor and capital. It is concluded that each 1 percent change in the growth rata of the capital stock leads to at 0.8 percent change in output growth, and hence the fall in investment since 1985 has lead to significant falls in growth, employment and real wages.

Subject: Employment, Financial institutions, Labor, Labor force, Real wages, Stocks

Keywords: Africa, Employment, Labor force, Nonwhite employment, Nonwhite labor force, Nonwhite real wage growth, Nonwhite wage, Output ratio, Production function, Real wage rate, Real wages, Stocks, WP

Publication Details

Pages:

28
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1990/113
Stock No:

WPIEA1131990
ISBN:

9781451943948
ISSN:

1018-5941

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