This paper examines the key macroeconomic factors that contribute to economic growth in the Western Cape using time series data from 1995 to 2022. The study adopts the error correction model to investigate both the long-run and the short-run relationship between certain macroeconomic variables and real GDP per capita. The empirical results show that gross fixed capital formation, multifactor productivity, international trade, and population growth are positively associated with real GDP per capita in the Western Cape.
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