Boosting productivity to improve living standards in South Africa
Productivity growth has been falling for a decade, hindering improvements in living
standards. Low productivity reflects, firstly, poor infrastructure in telecommunications
and transport. Secondly, the regulatory environment is not always business-friendly
and often raises obstacles to firm entry, exit and expansion. Combined with weak competition
in important sectors, this has led to lower private investment levels, particularly,
business R&D. Finally, the educational and health care systems have been unable to
supply adequately skilled workers across the country. To improve productivity, public
investment needs to become more effective, notably by strengthening the selection
process for large infrastructure projects. A more pro-competitive business environment
would let productive firms grow and foster innovation. Widening and reducing inequalities
in access to education and health care would reduce skill shortages.
Published on December 22, 2022
In series:OECD Economics Department Working Papersview more titles