| Summary: | This study examines the determinants of economic growth at sub-national level in South
Africa, and investigates cross-locality medium-term (five-year) growth rate differentials
between 354 magisterial districts. The period in question is 1998 to 2002. A dynamic panel
data regression model is used that includes measures of geography (distance and natural
resources) as well as recent estimates of physical and human capital. It is found that the
significant determinants of local economic growth are distance from internal markets, human
capital, export propensity, and the capital stock of municipalities (reflecting institutional
quality and governance on local government level). Distance from international harbours, as
a measure of transport costs, and urban agglomeration (or density) affects growth indirectly
through its significant effect on the ability of a region to export. Overall, these results
indicate that geography is important for economic growth, independent of its effects in
institutions. Bearing in mind the medium-term focus of the work, no evidence of absolute
convergence could be found over a five-year period, rather the tentative evidence suggests
slow beta convergence. === Thesis (Ph.D. (Economics))--North-West University, Potchefstroom Campus, 2005.
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