On the impact of provincial development policies in South Africa

Santeramo, Fabio Gaetano and Phali, Lerato (2023): On the impact of provincial development policies in South Africa.

Abstract

Although South Africa is one of the biggest economies in Africa, poverty and income inequality persist and a vast number of households lack access to water and sanitation services. Provincial governments have implemented the Provincial Development and Growth Strategy to improve standards. We evaluate its effects on selected development indicators. Using a generalization of the Difference-in-Differences method, we study the effects on four development indicators: food security, economic well-being, and water and sanitation security. We use secondary data from the General Household Survey, collected between 2002-2017 and conclude that i) the policies improve development indicators; ii) the effects are heterogeneous across racial and geographic distributions of households. Long-term economic stimulators, such as employment opportunities and education for vulnerable communities, are needed to improve household welfare across the provinces. Programs emanating from these development policies should be ongoing and continuously adapted to fulfill the specific needs of the local groups.

• Item Type: MPRA Paper
• Language: English
• Keywords: Provincial Development and Growth Strategies; Provincial Poverty Reduction Strategies; development indicators; Difference-in-Differences; Roll-out-of program approach
• Subjects: F - International Economics > F6 - Economic Impacts of Globalization > F63 - Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O38 - Government Policy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General > Q01 - Sustainable Development; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy

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