Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/126384
Authors: 
Kreuser, Friedrich
Burger, Rulof
Rankin, Neil
Year of Publication: 
2015
Series/Report no.: 
WIDER Working Paper 2015/101
Abstract: 
This paper uses normalized constant elasticity of substitution production functions to estimate the elasticity of substitution and labour-augmenting technical change in South Africa over the period 1994-2012. We find elasticities of 0.6-0.9 and positive labour-augmenting technical change, which results in an increase in capital's income share relative to labour. More broadly, we find total factor productivity (TFP) growth rates of between 1 and 2 per cent across industries, although we find no TFP growth in the mining sector. We also find that the sector with the highest TFP growth - agriculture - achieved this through shedding labour while steadily increasing output.
Subjects: 
elasticity of substitution
labour demand
production functions
technical growth
JEL: 
E24
O47
O41
ISBN: 
978-92-9230-990-9
Document Type: 
Working Paper

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