A macroeconomic definition of the contribution of the South African ocean economy

Abstract

This study is structured around the objective of developing a macroeconomic definition of the sustainable welfare contribution of the South African ocean economy that is both feasible to evaluate and to track. It provides a rationale for developing this definition, discusses the concept and parts of an ocean economy and identifies three models through which this macroeconomic contribution can be assessed; one conventional model and two alternatives. The two alternative models are based respectively on the enhancement effect provided by access to the ocean and the value added to a regional economy by enterprises that locate near the ocean to take advantage of its economic benefits. The study defines the sustainable macroeconomic contribution of the South African ocean economy with reference to these models and to welfare-related criteria. For evaluating and monitoring the welfare-sustaining contribution of the South African ocean economy it recommends applying a combination of the two alternative models, rather than the conventional one, because they incorporate more of the contribution.