Original Research

Analysis of the South African input-output table to determine sector specific economic impacts: A study on real estate

Douw Gert Brand Boshoff, Reyno Seymore
South African Journal of Economic and Management Sciences | Vol 19, No 4 | a1404 | DOI: https://doi.org/10.4102/sajems.v19i4.1404 | © 2016 Douw Gert Brand Boshoff, Reyno Seymore | This work is licensed under CC Attribution 4.0
Submitted: 21 July 2015 | Published: 25 November 2016

About the author(s)

Douw Gert Brand Boshoff, University of Pretoria, South Africa
Reyno Seymore, University of Pretoria, South Africa

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Abstract

Input-output analysis is a well known method of analysing specific economic activity and the influence of different sectors on the economy and on one another. This study investigates the ability of input-output analysis to consider the importance of commercial real estate on the economy. It analyses the economic activity, contribution to GDP, employment created and taxes generated with reference to direct, indirect and induced impacts. The research shows the contribution of the specific sector on the economy and highlights the ability of input-output analysis to determine the impact of different types of property and locational analysis. The interaction of property with the economy is discussed, which also enables the use of the analysis reported here for short term future forecasting, whereby expected real estate activity is used to forecast the direct, indirect and induced effects on the economy.

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