An assessment of the investment climate in South Africa / George R.G. Clarke ... [and others].

Format:

Book

Government document

Contributor:

Clarke, George R. G.

Language:

English

Subjects (All):

Investments--South Africa.

Investments.

South Africa--Economic conditions--1991-.

South Africa.

Economic conditions.

Physical Description:

xxv, 128 pages : illustrations ; 23 cm

Place of Publication:

Washington, DC : World Bank, [2007]

Summary:

Most aspects of South Africa's investment climate-the location-specific factors that shape opportunities and incentives for firms to invest productively, create jobs, and grow-are favorable. The majority of large, registered firms believe that the legal system is able to protect their property rights. Infrastructure is reliable. Tax rates are relatively low. The burden of regulation is comparable to other middle-income countries. Few firms pay bribes. And most firms have adequate access to credit. In many dimensions, South Africa has a good investment climate.

Consistent with this, large South African firms are very productive. Labor productivity is far higher than in the most productive low-income countries in Sub-Saharan Africa and compares favorably with other middle-income countries such as Brazil, Lithuania, Malaysia, and Poland. And although labor productivity in South Africa is slightly lower than in the most productive cities in China, it is over three times higher than in China as a whole.

So, why hasn't South Africa been growing faster? As An Assessment of the Investment Climate in South Africa explores, while the investment climate is generally favorable, some problems remain. Firms appear to be particularly concerned about four areas: difficulty hiring skilled and educated workers, rigid labor regulations, exchange rate instability, and crime. Using rigorous statistical information on these and related topics, the book aims to assist policy makers and private sector stakeholders in developing reforms that will improve firm performance and growth.

Contents:

Chapter 1 Macroeconomic Background 1

Economic Growth 3

Investment and Savings 4

Interest Rates and Inflation 10

Exchange Rate 11

Chapter 2 An Analysis of Firm Performance 15

Productivity 16

Profitability 31

Exporting 32

Chapter 3 Characteristics of the Labor Market 41

Worker Characteristics 42

Remuneration and Determinants of Wages 43

Employment Growth 55

Training 61

Labor Regulation 64

Chapter 4 Access to and Cost of Finance 73

Finance as an Obstacle to Enterprise Operations and Growth 73

Perceptions about Access to Finance by Firm Type 78

Objective Indicators on Access to and the Cost of Finance 79

Chapter 5 Other Aspects of the Investment Climate 87

Perceptions about Investment Climate Problems 88

Major Constraints on Enterprise Operation and Growth 91

Other Constraints on Enterprise Operations and Growth 100

1.1 Cross-Country Comparison of per Capita Growth, 1994-2003 3

1.2 Cross-Country Comparison of Gross Fixed Capital Formation, Average 1994-2003 6

1.3 Nominal and Real Overdraft Rates, 1991-2004 11

1.4 South Africa's Real Exchange Rate, 1998-2004 12

2.1 Cross-Country Comparison of Labor Productivity (in the Garment Industry) 17

2.2 Cross-Country Comparison of Labor Costs 20

2.3 Cross-Country Comparison of Unit Labor Costs 21

2.4 Cross-Country Comparison of Capital Intensity 22

2.5 Cross-Country Comparison of Capital Productivity 23

2.6 Cross-Country Comparison of Capacity Utilization 24.

Notes:

Includes bibliographical references (pages 115-121) and index.

ISBN:

9780821368985

0821368982

9780821368992

0821368990

OCLC:

74029218