School for Economics, North West University, Potchefstroom, North West, South Africa; School for Economics ZA, 11 Hoffman Street, Potchefstroom, North West, South Africa
Van Heerden, C., School for Economics, North West University, Potchefstroom, North West, South Africa, School for Economics ZA, 11 Hoffman Street, Potchefstroom, North West, South Africa; Rossouw, R., School for Economics, North West University, Potchefstroom, North West, South Africa
The objective of this paper is to analyse the utilisation of production capacity and total under-utilisation in order to identify weak-performing industries across the nine South African provinces. Detecting inefficiencies within the different provinces will help to identify where sound managerial or government intervention is required, which can contribute to the future success of the New Growth Path Framework and the Strategic Integrated Projects. Using a multistage data envelopment analysis model at the subnational level, several categories of production factors are explored: intermediate demand, labour, capital, as well as taxes and subsidies. The results emphasise South Africa's weak infrastructure and the failure to effectively promote stability in managing factor inputs. The results further illustrate that industry scale efficiency for water and electricity are poorest across all provinces, highlighting the current water and energy supply concerns in South Africa and problem areas associated with the National Development Program. © 2014 Economic Society of South Africa.