Premium
Aggregate Investment in South Africa: A Model with Implications for Political Reform
Author(s) -
Fielding David
Publication year - 1997
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/1468-0084.00070
Subject(s) - economics , investment (military) , aggregate (composite) , politics , political instability , macroeconomics , econometrics , interest rate , aggregate data , macroeconomic model , simultaneous equations model , monetary economics , political science , mathematics , statistics , materials science , law , composite material
A small macroeconomic model is used as the basis for estimating the determinants of investment in South Africa within a simultaneous equations framework. Investment is highly sensitive to interest rates, relative prices and political instability. The policy implications of such sensitivity are outlined.