Author
Johannes Fedderke
Other affiliations: Max Planck Society, University of Cape Town, City University London ...read more
Bio: Johannes Fedderke is an academic researcher from Pennsylvania State University. The author has contributed to research in topics: Investment (macroeconomics) & Total factor productivity. The author has an hindex of 32, co-authored 137 publications receiving 3638 citations. Previous affiliations of Johannes Fedderke include Max Planck Society & University of Cape Town.
Papers published on a yearly basis
Papers
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TL;DR: In this paper, the authors study the impact of foreign direct investment in South Africa and find that foreign investment has tended to be capital intensive, suggesting that FDI has been horizontal rather than vertical, implying a positive technological spillover from foreign to domestic capital.
Abstract: The paper is concerned with the growth impact and the determinants of foreign direct investment in South Africa. Estimation is in terms of a standard spill-over model of investment, and in terms of a new model of locational choice in FDI between domestic and foreign alternatives. We find complementarity of foreign and domestic capital in the long run, implying a positive technological spill-over from foreign to domestic capital. While there is a crowd-out of domestic investment from foreign direct investment, this impact is restricted to the short run. Further we find that foreign direct investment in South Africa has tended to be capital intensive, suggesting that foreign direct investment has been horizontal rather than vertical. Determinants of foreign direct investment in South Africa lie in the net rate of return, as well as the risk profile of the foreign direct investment liabilities. Policy handles are both direct and powerful. Reducing political risk, ensuring property rights, most importantly bolstering growth in the market size, as well as wage moderation, lowering corporate tax rates, and ensuring full integration of the South African economy into the world economy all follow as policy prescriptions from our empirical findings.
248 citations
TL;DR: In this paper, the authors examined the relationship between investment in economic infrastructure and long-run economic growth by examining the experience of South Africa in a time-series context and found that investment in infrastructure does appear to lead economic growth in South Africa and does so both directly and indirectly (the latter by raising the marginal productivity of capital).
248 citations
TL;DR: In this paper, the authors study the impact of foreign direct investment in South Africa on the growth impact and the determinants of FDI in the long run, and find that the complementarity of foreign and domestic capital implies a positive technological spillover from foreign to domestic capital.
218 citations
TL;DR: In this article, the authors show that high markups have a large negative impact on productivity growth in South African manufacturing industry and that low level of product market competition has a negative effect on productivity.
Abstract: This article shows that mark-ups are significantly higher in South African manufacturing industries than they are in corresponding industries worldwide. We test for the consequences of this low-level of product market competition on productivity growth. The results of the paper are that high mark-ups have a large negative impact on productivity growth in South African manufacturing industry. Our results are robust to three different data sources, two alternative measures of productivity growth, and three distinct measures of the mark-up. Controlling for potential endogeneity of regressors does not eliminate the findings.
160 citations
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TL;DR: This paper explored the question of infrastructure endogeneity in output equations and developed an instrumentation strategy generalizable to other contexts, and found that controlling for the possibility of endogeneity of infrastructure measures rendered the impact of infrastructure capital not only positive, but of economically meaningful magnitudes.
Abstract: Empirical explorations of the growth and aggregate productivity impacts of infrastructure have been characterized by ambiguous (countervailing signs) results with little robustness. This paper, utilizing panel data for South African manufacturing over the 1970–2000 period, and a range of 19 infrastructure measures, explores the question of infrastructure endogeneity in output equations. The paper develops an instrumentation strategy generalizable to other contexts. Controlling for the possibility of endogeneity in the infrastructure measures renders the impact of infrastructure capital not only positive, but of economically meaningful magnitudes.
142 citations
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6,977 citations
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TL;DR: In this article, the authors introduce the concept of ''search'' where a buyer wanting to get a better price, is forced to question sellers, and deal with various aspects of finding the necessary information.
Abstract: The author systematically examines one of the important issues of information — establishing the market price. He introduces the concept of «search» — where a buyer wanting to get a better price, is forced to question sellers. The article deals with various aspects of finding the necessary information.
3,790 citations
Journal Article•
3,713 citations