| Summary: | The purpose of the study is to examine the impact of fatal road accidents on the South African economy. The study used quarterly time series data for the period 1997 to 2011. A Johansen cointegration and vector error correction model (VCEM) was used to determine the impact of fatal road accidents on the South African economy. The explanatory variables in this study are labour productivity, real interest rates, unemployment and real exchange rates. Results from this study revealed that fatal road accidents have negatively impacted on the economic growth in South Africa while labour productivity, real interest rates, unemployment and real exchange rates have a positive long-run impact on economic growth in South Africa. This study recommends that road safety measures must be intensified in South Africa in order to maximize the benefits of economic growth. Keywords: Economic growth, fatal road accidents, South Africa
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