Abstract:
In a first for South Africa, this article raws on literature on infrastructure productivity to model dynamic
economy-wide employment impacts of infrastructure investment funded with different fiscal tools.
Using a dynamic computable general equilibrium model, the South African investment plan is
modelled, given the infrastructure externality. Alternative fiscal scenarios to finance the policy are
modelled in the article. In the long run, unemployment decreases for all types of workers under one of
the scenarios. In the short run, only elementary occupation workers benefit from a decrease in
unemployment; for the rest, unemployment rises.
