Do aggregate domestic consumption spending & technological innovation affect industrialization in South Africa? An application of linear & non-linear ARDL models

Manzoor Ahmad · Shoukat Iqbal Khattak · Shehzad Khan · Zia Ur Rahman

40 citations0/0 files storedJournal of Applied Economics

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Economic Theory and Policy Monetary Policy and Economic Impact Economic Growth and Productivity

Abstract

The current paper has attempted to measure the effect of the positive and negative shocks of aggregate domestic consumption spending (ADCS) and technological innovation (TINN) on industrialisation in South Africa using the time-series data from 1980 to 2014. The ARDL estimations indicated that the ADCS and TINN determine industrialisation in both the short term and long term, while the NARDL estimations suggested that the positive shocks in ADCS and TINN have a positive effect on industrialisation in both the short run and long run. Our results validated an asymmetrical association between TINN and industrialisation, and between ADCS and industrialisation.

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References

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