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Working Paper 160 - Infrastructure Investment and Economic Growth in South Africa: A Granger Causality Analysis


After one and a half decades of democracy, the South African economy still faces serious challenges to further improvements of sustained economic growth performance and elimination of poverty and reduction of inequality (Kirsten and Davies 2008). Although economic growth performance improved significantly since the late 1990s and overall poverty levels have declined, inequality in income distribution has increased. With the Gini coefficient of about 0.68 in 2009, South Africa remains one of the most unequal economies in the world.

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