The effects of inequality on total factor productivity across districts in South Africa: a spatial econometric analysis.

ABSTRACT: This study builds on the fundamentals of the new economic geography and the skill-biased technological change argument, to empirically investigate whether increasing income/earning inequality enhances total factor productivity in South Africa. In so doing, panel data of district-municipalities and spatial econometric techniques are used for the period between 1995 and 2015, to gain a better understanding of the role of location and distance in the effects of income inequality on total factor productivity. The results from the analysis and empirical estimations indicate that: (1) there is strong support for the existence of positive spatial interactions in the effects of income inequality on total factor productivity; (2) the estimated direct effect of income inequality on TFP in local dist

SUBMITTER: Espoir DK 

PROVIDER: S-EPMC7228445 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature