The Effect of Government Policies on Investment in Poverty-Stricken Areas in South Africa

Abstract

Purpose: The aim of the study was to analyze the effect of government policies on investment in poverty-stricken areas. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Government policies positively impact investment in poverty-stricken areas, fostering economic revitalization and poverty alleviation. Targeted fiscal incentives, infrastructure development, and microfinance initiatives stimulate investment, create jobs, and improve livelihoods. These interventions attract private sector investment, encourage entrepreneurship, and foster sustainable development. Overall, government policies play a crucial role in unlocking economic potential and promoting inclusive growth in marginalized regions. Unique Contribution to Theory, Practice and Policy: Institutional theory, political economy theory & developmental state theory may be used to anchor future studies on effect of government policies on investment in poverty-stricken areas. The research on the effect of government policies on investment offers valuable insights for practitioners involved in poverty alleviation efforts and economic development initiatives. The research contributes to the formulation of informed policy decisions aimed at addressing poverty and promoting investment in marginalized regions.