Abstract
This paper investigates the impacts of Covid-19 shocks on South Africa’s economy and determines how post-pandemic reforms could boost output growth in the country. The analysis employs a monthly time series data in South Africa, spanning the period 2020M3 – 2022M6. It also uses two proxies for the Covid-19 shocks: i) total confirmed incidences/cases and ii) total deaths while using the Stepwise Least Squares (STEPLS) regression method. The findings reveal that the Covid-19 shock exerts a strong negative effect on output growth in the country. Conversely, governance reforms and production variables have a significant positive impact and are capable of boosting output growth in the country. Consistent with the theory of social-economic reforms and disruptive innovation, the study recommends a reform mix comprising products and innovation in the use of modern technology and human capital development. There should be full implementation of post-pandemic reforms like the supply-side and demand management policies as well as sustaining pandemic-related supports and permanent lifting of all lockdown restrictions.
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Article Details
- Year: 2023
- Volume: 44
- Issue: 3
- Pages: 69 - 90
- Accepted: 06.12.2022
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DOI:
https://doi.org/10.5281/zenodo.16909425 -
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How to Cite?
Augustine Adebayo Kutu, Lenhle Dlamini (2023). Post-Covid-19 Recovery and Reforms for Output Growth in South Africa: From Rebound to Recovery. Journal of Economic Cooperation and Development, 44(3), 69-90. https://doi.org/10.5281/zenodo.16909425
