Factors that influence knowledge management systems to improve knowledge transfer in local government: a case study of Buffalo City Metropolitan Municipality
- Authors: Ncoyini, Samuel
- Date: 2017
- Subjects: Knowledge management -- South Africa -- Eastern Cape Technology transfer -- South Africa -- Eastern Cape Management information systems -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: http://hdl.handle.net/10353/1918 , vital:27583
- Description: The demand for improved service delivery requires new approaches and attitudes from local government. One of the ways this can be achieved is to focus on continuous improvement by driving innovation and lessons learnt from the municipalities’ past successes and failures. For local government authorities to rethink service delivery, they need to find better ways to share information assets, business processes and staff expertise with their citizens and business partners. The lack of Knowledge Management (KM) and, therefore, a low level of information and knowledge transfer in the public services have been identified as two of the main contributors to poor service delivery. The implementation of knowledge transfer process is one of the factors that will impact on the improvement of service delivery. The main purpose of this research study was to investigate how knowledge management systems can be used to improve the knowledge transfer at Buffalo City Metropolitan Municipality (BCMM). The research study focused on knowledge transfer within the Municipality as the general area of research. The objective of this study was to produce critical success factors that would improve knowledge management systems and knowledge transfer among employees at BCMM, which would ultimately improve service delivery.
- Full Text:
- Date Issued: 2017
- Authors: Ncoyini, Samuel
- Date: 2017
- Subjects: Knowledge management -- South Africa -- Eastern Cape Technology transfer -- South Africa -- Eastern Cape Management information systems -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: http://hdl.handle.net/10353/1918 , vital:27583
- Description: The demand for improved service delivery requires new approaches and attitudes from local government. One of the ways this can be achieved is to focus on continuous improvement by driving innovation and lessons learnt from the municipalities’ past successes and failures. For local government authorities to rethink service delivery, they need to find better ways to share information assets, business processes and staff expertise with their citizens and business partners. The lack of Knowledge Management (KM) and, therefore, a low level of information and knowledge transfer in the public services have been identified as two of the main contributors to poor service delivery. The implementation of knowledge transfer process is one of the factors that will impact on the improvement of service delivery. The main purpose of this research study was to investigate how knowledge management systems can be used to improve the knowledge transfer at Buffalo City Metropolitan Municipality (BCMM). The research study focused on knowledge transfer within the Municipality as the general area of research. The objective of this study was to produce critical success factors that would improve knowledge management systems and knowledge transfer among employees at BCMM, which would ultimately improve service delivery.
- Full Text:
- Date Issued: 2017
An investigation into the relationship of job satisfaction, organisational commitment and the intention to quit among academics and administrative employees at the University of Fort Hare
- Authors: Gomomo, Nokuzola Ruth
- Date: 2014
- Subjects: Job satisfaction -- South Africa -- Eastern Cape Employee retention -- South Africa -- Eastern Cape Employees -- Resignation -- South Africa -- Eastern Cape Labor turnover -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: http://hdl.handle.net/10353/1730 , vital:27553
- Description: University of Fort Hare Human Resource Department reports show evidence relating to high labour turnover. Between 2009 and 2012 there was a high degree of labour turnover. A total 1127 staff left the University. This study investigated the relationship between job satisfaction, organisational commitment and intention to quit among academics and administrative employees at the University of Fort Hare. Data was collected from a random sample of 289 employees of the University staff. To obtain data in this study a questionnaire was utilised. This questionnaire was divided into four sections viz, biographical information, measured ten-items which range from age to condition of employment, Halpern’s (1966) seven-level evaluation scale was utilised to measure job satisfaction, to measure organisational commitment, Meyer, and Allen (1984) 24-item rating point scale was applied and Canmann, Fichman, Jenkins and Klesh’s questionnaire was used to measure intention to quit. Data analysis was performed by way of several statistical techniques, including the Pearson Product Moment Correlation Technique and Multiple Regression analysis. The results obtained revealed that job satisfaction has a significant positive correlation with intention to leave while organisational commitment showed no substantial correlation with intention to quit work.
- Full Text:
- Date Issued: 2014
- Authors: Gomomo, Nokuzola Ruth
- Date: 2014
- Subjects: Job satisfaction -- South Africa -- Eastern Cape Employee retention -- South Africa -- Eastern Cape Employees -- Resignation -- South Africa -- Eastern Cape Labor turnover -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: http://hdl.handle.net/10353/1730 , vital:27553
- Description: University of Fort Hare Human Resource Department reports show evidence relating to high labour turnover. Between 2009 and 2012 there was a high degree of labour turnover. A total 1127 staff left the University. This study investigated the relationship between job satisfaction, organisational commitment and intention to quit among academics and administrative employees at the University of Fort Hare. Data was collected from a random sample of 289 employees of the University staff. To obtain data in this study a questionnaire was utilised. This questionnaire was divided into four sections viz, biographical information, measured ten-items which range from age to condition of employment, Halpern’s (1966) seven-level evaluation scale was utilised to measure job satisfaction, to measure organisational commitment, Meyer, and Allen (1984) 24-item rating point scale was applied and Canmann, Fichman, Jenkins and Klesh’s questionnaire was used to measure intention to quit. Data analysis was performed by way of several statistical techniques, including the Pearson Product Moment Correlation Technique and Multiple Regression analysis. The results obtained revealed that job satisfaction has a significant positive correlation with intention to leave while organisational commitment showed no substantial correlation with intention to quit work.
- Full Text:
- Date Issued: 2014
Determinants of the yield curve in South Africa
- Authors: Ngonyama, Nomasomi
- Date: 2014
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11496
- Description: The yield curve has been the subject of many studies for some time, mainly in predicting recessions, economic growth and inflation. However, scant work is available on what drives the yield spread. Given this, the paper examines the determinants of the yield curve in South Africa by using time series econometric analysis over the period 2000-2012. Some key variables considered include inflation, economic growth, budget deficit, and monetary policy. To separate the long and short run effects, VECM was employed after ensuring stationarity of the series. The study found that a long run relationship exist between the yield spread, inflation, GDP, budget deficit, Repo rate, Real effective exchange rate and a money supply (M1). The Results of this thesis have implications for policy and academic work.
- Full Text:
- Date Issued: 2014
- Authors: Ngonyama, Nomasomi
- Date: 2014
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11496
- Description: The yield curve has been the subject of many studies for some time, mainly in predicting recessions, economic growth and inflation. However, scant work is available on what drives the yield spread. Given this, the paper examines the determinants of the yield curve in South Africa by using time series econometric analysis over the period 2000-2012. Some key variables considered include inflation, economic growth, budget deficit, and monetary policy. To separate the long and short run effects, VECM was employed after ensuring stationarity of the series. The study found that a long run relationship exist between the yield spread, inflation, GDP, budget deficit, Repo rate, Real effective exchange rate and a money supply (M1). The Results of this thesis have implications for policy and academic work.
- Full Text:
- Date Issued: 2014
Exchange rate misalignment and economic growth: a case study of South Africa
- Authors: Rudd, Bernice Nicolette
- Date: 2014
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: http://hdl.handle.net/10353/894 , vital:26507
- Description: The relationship between a country’s real exchange rate (RER) misalignment and economic growth has attracted much attention from both academic and policy perspective. This study examines the relationship between the exchange rate misalignment and economic growth in South Africa, by specifically looking at the fundamental determinants of the real exchange rate and the impact of the misalignment on economic growth for the period 1980 to 2012. This study employs the Johansen cointegration technique and the Vector Error Correction Model. The empirical results revealed that terms of trade, government consumption expenditure, net foreign assets, broad money supply and technological productivity are important factors in determining the RER in South Africa. In addition to the misalignment variable, terms of trade, government spending, private business investment and broad money supply were also found to influence economic growth in South Africa. This suggest that authorities can influence the behaviour of the exchange rate in South Africa through altering one of its fundaments. The results suggest that a RER misalignment has a negative effect on economic growth in South Africa. Thus policies aimed at maintaining an equilibrium RER should be pursued.
- Full Text:
- Date Issued: 2014
- Authors: Rudd, Bernice Nicolette
- Date: 2014
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: http://hdl.handle.net/10353/894 , vital:26507
- Description: The relationship between a country’s real exchange rate (RER) misalignment and economic growth has attracted much attention from both academic and policy perspective. This study examines the relationship between the exchange rate misalignment and economic growth in South Africa, by specifically looking at the fundamental determinants of the real exchange rate and the impact of the misalignment on economic growth for the period 1980 to 2012. This study employs the Johansen cointegration technique and the Vector Error Correction Model. The empirical results revealed that terms of trade, government consumption expenditure, net foreign assets, broad money supply and technological productivity are important factors in determining the RER in South Africa. In addition to the misalignment variable, terms of trade, government spending, private business investment and broad money supply were also found to influence economic growth in South Africa. This suggest that authorities can influence the behaviour of the exchange rate in South Africa through altering one of its fundaments. The results suggest that a RER misalignment has a negative effect on economic growth in South Africa. Thus policies aimed at maintaining an equilibrium RER should be pursued.
- Full Text:
- Date Issued: 2014
The effect of real exchange rate volatility on export performance: evidence from South Africa (2000-2011)
- Authors: Chamunorwa, Wilson
- Date: 2014
- Subjects: Monetary policy -- South Africa , Economic development -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11499 , http://hdl.handle.net/10353/d1018600 , Monetary policy -- South Africa , Economic development -- South Africa , Foreign exchange rates -- South Africa
- Description: The effect of real exchange rate volatility on export performance: evidence from South Africa (2000-2011) This study sought to investigate the relationship between exchange rate volatility and export performance in South Africa. The main objective of the study was to examine the impact of exchange rate volatility on export performance in South Africa. This relationship was examined using GARCH methods. Exports were regressed against real effective exchange rate, trade openness and capacity utilisation. The research aimed to establish whether exchange rate volatility impacts negatively on export performance in the manner suggested by the econometric model. The result obtained showed that exchange rate volatility had a significantly negative effect on South African exports in the period 2000-2011.
- Full Text:
- Date Issued: 2014
- Authors: Chamunorwa, Wilson
- Date: 2014
- Subjects: Monetary policy -- South Africa , Economic development -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11499 , http://hdl.handle.net/10353/d1018600 , Monetary policy -- South Africa , Economic development -- South Africa , Foreign exchange rates -- South Africa
- Description: The effect of real exchange rate volatility on export performance: evidence from South Africa (2000-2011) This study sought to investigate the relationship between exchange rate volatility and export performance in South Africa. The main objective of the study was to examine the impact of exchange rate volatility on export performance in South Africa. This relationship was examined using GARCH methods. Exports were regressed against real effective exchange rate, trade openness and capacity utilisation. The research aimed to establish whether exchange rate volatility impacts negatively on export performance in the manner suggested by the econometric model. The result obtained showed that exchange rate volatility had a significantly negative effect on South African exports in the period 2000-2011.
- Full Text:
- Date Issued: 2014
The impact of financial development on private investment in south Africa
- Authors: Mukuya, Prisca R
- Date: 2014
- Subjects: Economic development -- South Africa , Gross domestic product -- South Africa , Investments, Foreign -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11488 , http://hdl.handle.net/10353/d1018210 , Economic development -- South Africa , Gross domestic product -- South Africa , Investments, Foreign -- South Africa
- Description: Empirical evidence and theoretical propositions suggest that financial development is strongly correlated to private investment because financial development positively affects investments by affecting capital accumulation, altering savings rate or by channelizing savings to various capital producing technologies. This study empirically investigated the impact of financial development on private investment in South Africa using quarterly data for the period 1994/01 to 2011/04. This study assess whether the theoretical and empirical propositions can be supported in South Africa. Cointegration tests using the Johansen approach (1988) were conducted to examine if there is a stable relationship in the level of private investment and financial development in South Africa. As a proxy for financial sector development, credit to private sector as per cent of GDP and stock market development were employed. Other variables that affect investment such as real interest rates and real GDP were also included in the model. Results of the study indicate that stock market development and real GDP have a positive relationship with private investment. Bank credit to the private sector however showed a negative relationship with private investment. A negative relationship was also noted for the relationship between private investment and real interest rates.
- Full Text:
- Date Issued: 2014
- Authors: Mukuya, Prisca R
- Date: 2014
- Subjects: Economic development -- South Africa , Gross domestic product -- South Africa , Investments, Foreign -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11488 , http://hdl.handle.net/10353/d1018210 , Economic development -- South Africa , Gross domestic product -- South Africa , Investments, Foreign -- South Africa
- Description: Empirical evidence and theoretical propositions suggest that financial development is strongly correlated to private investment because financial development positively affects investments by affecting capital accumulation, altering savings rate or by channelizing savings to various capital producing technologies. This study empirically investigated the impact of financial development on private investment in South Africa using quarterly data for the period 1994/01 to 2011/04. This study assess whether the theoretical and empirical propositions can be supported in South Africa. Cointegration tests using the Johansen approach (1988) were conducted to examine if there is a stable relationship in the level of private investment and financial development in South Africa. As a proxy for financial sector development, credit to private sector as per cent of GDP and stock market development were employed. Other variables that affect investment such as real interest rates and real GDP were also included in the model. Results of the study indicate that stock market development and real GDP have a positive relationship with private investment. Bank credit to the private sector however showed a negative relationship with private investment. A negative relationship was also noted for the relationship between private investment and real interest rates.
- Full Text:
- Date Issued: 2014
The impact of financial intermediaries on the savings-investment ratio in South Africa
- Authors: Mtimkhulu, Ayibongwe Joseph
- Date: 2014
- Subjects: Saving and investment -- South Africa , Intermediation (Finance) -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11484 , Saving and investment -- South Africa , Intermediation (Finance) -- South Africa
- Description: This study examined whether or not financial intermediation can explain the variations in the savings-investment ratio in South Africa during the period 1990 to 2012. The study specifically tests the McKinnon Conduit Effect hypothesis which states that increasing interest rate raises the capacity of financial savings via financial intermediaries based on data from South Africa. Apart from informal graphical test, this study employed formal tests such as the Augmented Dickey-Fuller and Phillips Perron stationarity tests to test the properties of the variables considered, including interest rates, for stationarity. In order to ascertain the long-run and short-run dynamics between its variables, the Johansen co-integration test is utilized, while the Error Correction Mechanism is also employed. Results from the study state that financial assets (a proxy for financial intermediation), income and real interest rate all positively impact the savings-investment ratio. Additionally, short-run analysis results showed that income, financial assets and real interest rates positively influence the savings-investment ratio. Real interest rates were seen as being both positive and statistically significant. Therefore the study recommended that the financial services sector and the South African Reserve Bank (SARB) should work together as this will result in the improvement of efficiencies in price discovery with regards to bank charges, access to banking facilities and the timely provision of services in order to encourage savings (for investment purposes) in the South African economy.
- Full Text:
- Date Issued: 2014
- Authors: Mtimkhulu, Ayibongwe Joseph
- Date: 2014
- Subjects: Saving and investment -- South Africa , Intermediation (Finance) -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11484 , Saving and investment -- South Africa , Intermediation (Finance) -- South Africa
- Description: This study examined whether or not financial intermediation can explain the variations in the savings-investment ratio in South Africa during the period 1990 to 2012. The study specifically tests the McKinnon Conduit Effect hypothesis which states that increasing interest rate raises the capacity of financial savings via financial intermediaries based on data from South Africa. Apart from informal graphical test, this study employed formal tests such as the Augmented Dickey-Fuller and Phillips Perron stationarity tests to test the properties of the variables considered, including interest rates, for stationarity. In order to ascertain the long-run and short-run dynamics between its variables, the Johansen co-integration test is utilized, while the Error Correction Mechanism is also employed. Results from the study state that financial assets (a proxy for financial intermediation), income and real interest rate all positively impact the savings-investment ratio. Additionally, short-run analysis results showed that income, financial assets and real interest rates positively influence the savings-investment ratio. Real interest rates were seen as being both positive and statistically significant. Therefore the study recommended that the financial services sector and the South African Reserve Bank (SARB) should work together as this will result in the improvement of efficiencies in price discovery with regards to bank charges, access to banking facilities and the timely provision of services in order to encourage savings (for investment purposes) in the South African economy.
- Full Text:
- Date Issued: 2014
The impact of oil price changes on selected economic indicators in South Africa
- Authors: Vellem, Nomtha
- Date: 2014
- Subjects: Petroleum industry and trade -- South Africa , Foreign exchange rates -- South Africa , Interest rate futures -- South Africa , Economic indicators -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11485 , http://hdl.handle.net/10353/d1017862 , Petroleum industry and trade -- South Africa , Foreign exchange rates -- South Africa , Interest rate futures -- South Africa , Economic indicators -- South Africa
- Description: The study examines the effect of oil price changes on selected economic indicators in South Africa. A VAR-5 model was applied to quarterly data of 1990:Q1-2012:Q4 estimating the impulse response functions, variance decomposition and Granger-causality tests. The findings allow for a conclusion that oil significantly affects the exchange rate and an inverse link between oil and GDP exists. A unidirectional relation is found where oil Granger-causes the exchange rate and GDP Granger-causes oil in South Africa.
- Full Text:
- Date Issued: 2014
- Authors: Vellem, Nomtha
- Date: 2014
- Subjects: Petroleum industry and trade -- South Africa , Foreign exchange rates -- South Africa , Interest rate futures -- South Africa , Economic indicators -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11485 , http://hdl.handle.net/10353/d1017862 , Petroleum industry and trade -- South Africa , Foreign exchange rates -- South Africa , Interest rate futures -- South Africa , Economic indicators -- South Africa
- Description: The study examines the effect of oil price changes on selected economic indicators in South Africa. A VAR-5 model was applied to quarterly data of 1990:Q1-2012:Q4 estimating the impulse response functions, variance decomposition and Granger-causality tests. The findings allow for a conclusion that oil significantly affects the exchange rate and an inverse link between oil and GDP exists. A unidirectional relation is found where oil Granger-causes the exchange rate and GDP Granger-causes oil in South Africa.
- Full Text:
- Date Issued: 2014
The impact of oil price volatility on unemployment: a case study of South Africa
- Authors: Senzangakhona, Phakama
- Date: 2014
- Subjects: Cointegration -- South Africa Foreign exchange rates -- South Africa Interest rate futures -- South Africa Petroleum products -- Prices -- South Africa Petroleum industry and trade -- South Africa -- Econometric models
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: http://hdl.handle.net/10353/1697 , vital:27550
- Description: This study analyses and investigates the impact of crude oil price vitality on unemployment in South Africa. This is done by firstly surveying theoretical and empirical literature on the crude oil price-unemployment relationship before relating it to South Africa. Secondly, crude oil and unemployment trends with their causes are overviewed. The study employs a Johansen co-integration technique based on VAR to model unemployment against crude oil prices, real effective exchange rate, real interest rates and real gross domestic product. Using quarterly data for the period 1990-2010, econometric results show that crude oil prices are positively related to unemployment in the long run while the opposite is true in the short run. Parameter estimates and variables are statistically significant; hence there are also policy recommendations which are related to both empirical and theoretical literature. Lastly, impulse response functions show that unemployment returns to equilibrium in the long run when crude oil price changes whereas real interest rates followed by crude oil prices explain most of unemployment changes compared to other variables in the long run.
- Full Text:
- Date Issued: 2014
- Authors: Senzangakhona, Phakama
- Date: 2014
- Subjects: Cointegration -- South Africa Foreign exchange rates -- South Africa Interest rate futures -- South Africa Petroleum products -- Prices -- South Africa Petroleum industry and trade -- South Africa -- Econometric models
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: http://hdl.handle.net/10353/1697 , vital:27550
- Description: This study analyses and investigates the impact of crude oil price vitality on unemployment in South Africa. This is done by firstly surveying theoretical and empirical literature on the crude oil price-unemployment relationship before relating it to South Africa. Secondly, crude oil and unemployment trends with their causes are overviewed. The study employs a Johansen co-integration technique based on VAR to model unemployment against crude oil prices, real effective exchange rate, real interest rates and real gross domestic product. Using quarterly data for the period 1990-2010, econometric results show that crude oil prices are positively related to unemployment in the long run while the opposite is true in the short run. Parameter estimates and variables are statistically significant; hence there are also policy recommendations which are related to both empirical and theoretical literature. Lastly, impulse response functions show that unemployment returns to equilibrium in the long run when crude oil price changes whereas real interest rates followed by crude oil prices explain most of unemployment changes compared to other variables in the long run.
- Full Text:
- Date Issued: 2014
The interaction between the stock market and macroeconomic variables in South Africa
- Authors: Ntshangase, Khanyisa
- Date: 2014
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11491 , http://hdl.handle.net/10353/d1018271
- Description: This study investigates the interaction between stock market and macroeconomic variables in South Africa. Apart from the stock market being a channel to raise capital, another important role of the stock market is to provide correct valuation of stocks and promote efficient allocation of capital. This is important given the great need of investment capital in a country such as South Africa. Utilising quarterly data for the period from 1994 to 2012, the study employs the Johansen cointegration test and the Vector Error Correction Model (VECM) to analyse the relationship between these important variables due to the simultaneous nature of the relationship between the variables. Empirical results indicate that all the variables have a significant relationship with the stock market. The findings in this study suggest that it is important to achieve macroeconomic equilibrium in South Africa because any disequilibrium in macroeconomics feeds into the stock market and it is likely to affect investor decision making and hence access to capital by companies listed on the stock exchange.
- Full Text:
- Date Issued: 2014
- Authors: Ntshangase, Khanyisa
- Date: 2014
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11491 , http://hdl.handle.net/10353/d1018271
- Description: This study investigates the interaction between stock market and macroeconomic variables in South Africa. Apart from the stock market being a channel to raise capital, another important role of the stock market is to provide correct valuation of stocks and promote efficient allocation of capital. This is important given the great need of investment capital in a country such as South Africa. Utilising quarterly data for the period from 1994 to 2012, the study employs the Johansen cointegration test and the Vector Error Correction Model (VECM) to analyse the relationship between these important variables due to the simultaneous nature of the relationship between the variables. Empirical results indicate that all the variables have a significant relationship with the stock market. The findings in this study suggest that it is important to achieve macroeconomic equilibrium in South Africa because any disequilibrium in macroeconomics feeds into the stock market and it is likely to affect investor decision making and hence access to capital by companies listed on the stock exchange.
- Full Text:
- Date Issued: 2014
An empirical application of the Tobin’s Q theory in housing investments in South Africa
- Authors: Sitima, Innocent
- Date: 2013
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11474 , http://hdl.handle.net/10353/d1013581
- Description: This study examines the patterns in the housing investments in South Africa in an attempt to understand if the possibility of the Tobin Q can be used to interpret the patterns and trends in the South African residential investments. The study, in its quest to explore and expose this intermporal relationship, it makes use of the South African annual time series data from 1960- 2010. The data was computed in different economic and econometric analysis software for better and reliable output, depending on the different level econometric technique that is required and need to be captured by the study. The dynamic investment equation is estimated using general- to- specific ARDL approach to magnify this connection and trends. The study established that combined asset prices and the levels of residential investment affect the long run investment performance rather than the Tobin Q. In the short run the lagged values of the Q, Business investment and residential investments seemed to be influential driving forces of private investment in South Africa. Even if the capital reserves in South Africa seem to be healthy, there is always a dire call for policy to be geared in the direction of the accessibility of credit to guarantee a supplementary conducive investment climate.
- Full Text:
- Date Issued: 2013
- Authors: Sitima, Innocent
- Date: 2013
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11474 , http://hdl.handle.net/10353/d1013581
- Description: This study examines the patterns in the housing investments in South Africa in an attempt to understand if the possibility of the Tobin Q can be used to interpret the patterns and trends in the South African residential investments. The study, in its quest to explore and expose this intermporal relationship, it makes use of the South African annual time series data from 1960- 2010. The data was computed in different economic and econometric analysis software for better and reliable output, depending on the different level econometric technique that is required and need to be captured by the study. The dynamic investment equation is estimated using general- to- specific ARDL approach to magnify this connection and trends. The study established that combined asset prices and the levels of residential investment affect the long run investment performance rather than the Tobin Q. In the short run the lagged values of the Q, Business investment and residential investments seemed to be influential driving forces of private investment in South Africa. Even if the capital reserves in South Africa seem to be healthy, there is always a dire call for policy to be geared in the direction of the accessibility of credit to guarantee a supplementary conducive investment climate.
- Full Text:
- Date Issued: 2013
An exploratory study of female labour force participation in South Africa: 1995 - 2010
- Authors: Mahali, Lesala
- Date: 2013
- Subjects: Labor markets -- South Africa , Unemployment -- South Africa , Labor supply -- South Africa , Women -- Employment -- South Africa , Role conflict , Women employees -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11465 , http://hdl.handle.net/10353/d1007050 , Labor markets -- South Africa , Unemployment -- South Africa , Labor supply -- South Africa , Women -- Employment -- South Africa , Role conflict , Women employees -- South Africa
- Description: The role that women play in the economy of any society is a desirable goal for equity and efficiency considerations. Just as with the rest of the world, the South African women lagged behind their male counterparts within the economic empowerment space and in the formal labour force. However, the role of women has undergone some transformations with issues relating to employment opportunities, such that their labour force participation has risen considerably since 1994. The female labour force participation rate is still seen to be persistently lower compared to the male participation rate even in the second decade of democracy. The rate of women labour force participation is even lower than the average. On the other hand, the increases have also been coupled with the rising rate of unemployment among women. The objective of this study was to investigate the determinants of female labour force participation in the South African labour market. The study uses a regression analysis on a cross sectional panel data covering a period of 1995 to 2010. Unlike most popular beliefs, the findings of this study reveal that fertility though not statistically significant, positively influences labour force participation of women. Other variables that are statistically significant in explaining female labour force are HIV/AIDS, marital status, age, household income and education. Race was found to be insignificant in explaining female labour force participation in the South African labour force.
- Full Text:
- Date Issued: 2013
- Authors: Mahali, Lesala
- Date: 2013
- Subjects: Labor markets -- South Africa , Unemployment -- South Africa , Labor supply -- South Africa , Women -- Employment -- South Africa , Role conflict , Women employees -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11465 , http://hdl.handle.net/10353/d1007050 , Labor markets -- South Africa , Unemployment -- South Africa , Labor supply -- South Africa , Women -- Employment -- South Africa , Role conflict , Women employees -- South Africa
- Description: The role that women play in the economy of any society is a desirable goal for equity and efficiency considerations. Just as with the rest of the world, the South African women lagged behind their male counterparts within the economic empowerment space and in the formal labour force. However, the role of women has undergone some transformations with issues relating to employment opportunities, such that their labour force participation has risen considerably since 1994. The female labour force participation rate is still seen to be persistently lower compared to the male participation rate even in the second decade of democracy. The rate of women labour force participation is even lower than the average. On the other hand, the increases have also been coupled with the rising rate of unemployment among women. The objective of this study was to investigate the determinants of female labour force participation in the South African labour market. The study uses a regression analysis on a cross sectional panel data covering a period of 1995 to 2010. Unlike most popular beliefs, the findings of this study reveal that fertility though not statistically significant, positively influences labour force participation of women. Other variables that are statistically significant in explaining female labour force are HIV/AIDS, marital status, age, household income and education. Race was found to be insignificant in explaining female labour force participation in the South African labour force.
- Full Text:
- Date Issued: 2013
Central Bank policy and the exchange rate under an inflation targeting regime: a case dtudy of South Africa
- Authors: Gonzo, Prosper
- Date: 2013
- Subjects: Foreign exchange rates -- Government policy -- South Africa , Inflation (Finance) -- South Africa , Monetary policy -- South Africa , Banks and banking, Central -- South Africa , South Africa -- Economic conditions , Banking industry -- Finance -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11476 , http://hdl.handle.net/10353/d1015043 , Foreign exchange rates -- Government policy -- South Africa , Inflation (Finance) -- South Africa , Monetary policy -- South Africa , Banks and banking, Central -- South Africa , South Africa -- Economic conditions , Banking industry -- Finance -- South Africa
- Description: This work examined the optimality of the inclusion of the exchange rate in the reaction function of the Central Bank in an inflation targeting framework. The study attempts to answer the question whether the exchange rate should have an independent role in an open economy Taylor-type rule. To this end, a Taylor-type rule is incorporating the exchange rate is estimated by the cointegration and vector error correction modeling (VECM) using quarterly data for the period of 1995 to 2009. The empirical studies point out the importance of the exchange rates in explaining and forecasting the behaviour of the South African Reserve Bank monetary policy control variable.
- Full Text:
- Date Issued: 2013
- Authors: Gonzo, Prosper
- Date: 2013
- Subjects: Foreign exchange rates -- Government policy -- South Africa , Inflation (Finance) -- South Africa , Monetary policy -- South Africa , Banks and banking, Central -- South Africa , South Africa -- Economic conditions , Banking industry -- Finance -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11476 , http://hdl.handle.net/10353/d1015043 , Foreign exchange rates -- Government policy -- South Africa , Inflation (Finance) -- South Africa , Monetary policy -- South Africa , Banks and banking, Central -- South Africa , South Africa -- Economic conditions , Banking industry -- Finance -- South Africa
- Description: This work examined the optimality of the inclusion of the exchange rate in the reaction function of the Central Bank in an inflation targeting framework. The study attempts to answer the question whether the exchange rate should have an independent role in an open economy Taylor-type rule. To this end, a Taylor-type rule is incorporating the exchange rate is estimated by the cointegration and vector error correction modeling (VECM) using quarterly data for the period of 1995 to 2009. The empirical studies point out the importance of the exchange rates in explaining and forecasting the behaviour of the South African Reserve Bank monetary policy control variable.
- Full Text:
- Date Issued: 2013
Determinants of household savings in South Africa: an econometric approach
- Authors: Chipote, Precious
- Date: 2013
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11479 , http://hdl.handle.net/10353/d1015281
- Description: Savings play a crucial role in promoting economic growth through their effect on investments. In addition, savings cushion the economy against fluctuating international capital flows. In periods of low or fluctuating capital, domestic savings are essential to finance high levels of capital formation thereby leading to increased productivity and sustainable economic growth. In South Africa saving levels have been declining, particularly household savings. This has been a major cause of concern as low savings hinder economic growth. In light of this, the study explored the determinants of household savings in South Africa over the period 1990 to 2011 using quarterly data. Based on the review of the theoretical and empirical literature, particular attention was paid to the effects of age dependency ratio, the level of household income, inflation and real interest rate on household savings. Apart from informal graphical test, the study employed the Augmented Dickey-Fuller and Phillips Perron unit root tests to test for stationarity in the time series. To identify the long-run and short-run dynamics among the variables, the study used the Johansen co-integration and the Error Correction Mechanism. Results of the study indicated that age dependency ratio, inflation and real interest rate have a positive impact on household savings whilst income has a negative long run relationship with household savings. In addition, the findings revealed that income, inflation and real interest rate play a major role in determining household savings whereas age dependency ratio is insignificant. The study recommends that the government should employ a countercyclical fiscal policy to avoid the development of excessive current account deficits during periods of more rapid economic growth, rising investment and falling saving.
- Full Text:
- Date Issued: 2013
- Authors: Chipote, Precious
- Date: 2013
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11479 , http://hdl.handle.net/10353/d1015281
- Description: Savings play a crucial role in promoting economic growth through their effect on investments. In addition, savings cushion the economy against fluctuating international capital flows. In periods of low or fluctuating capital, domestic savings are essential to finance high levels of capital formation thereby leading to increased productivity and sustainable economic growth. In South Africa saving levels have been declining, particularly household savings. This has been a major cause of concern as low savings hinder economic growth. In light of this, the study explored the determinants of household savings in South Africa over the period 1990 to 2011 using quarterly data. Based on the review of the theoretical and empirical literature, particular attention was paid to the effects of age dependency ratio, the level of household income, inflation and real interest rate on household savings. Apart from informal graphical test, the study employed the Augmented Dickey-Fuller and Phillips Perron unit root tests to test for stationarity in the time series. To identify the long-run and short-run dynamics among the variables, the study used the Johansen co-integration and the Error Correction Mechanism. Results of the study indicated that age dependency ratio, inflation and real interest rate have a positive impact on household savings whilst income has a negative long run relationship with household savings. In addition, the findings revealed that income, inflation and real interest rate play a major role in determining household savings whereas age dependency ratio is insignificant. The study recommends that the government should employ a countercyclical fiscal policy to avoid the development of excessive current account deficits during periods of more rapid economic growth, rising investment and falling saving.
- Full Text:
- Date Issued: 2013
Dynamic linkages between monetary policy and the stock market: the case of South Africa
- Authors: Mabitle, Mope
- Date: 2013
- Subjects: Johannesburg Stock Exchange , South African Reserve Bank , Monetary policy -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11483 , http://hdl.handle.net/10353/d1015290 , Johannesburg Stock Exchange , South African Reserve Bank , Monetary policy -- South Africa
- Description: This study analyses the linkage between monetary policy and the stock market in South Africa using monthly data for the period from 2000 to 2010. It provides an overview of the Johannesburg Stock Exchange and the monetary regimes adopted by the South African Reserve Bank since the 1960s and the interrelation between the monetary variables and the stock market. It also provides a review of literature, both theoretical and empirical on the linkages between the two variables. Based on the review of literature, a Vector Autoregression [VAR] model was chosen as a method of analyzing the relationship between the two variables. The empirical results revealed that there is no long term relationship between the variables, however, in the short-run there is a dynamic relationship between monetary policy and the stock market in South Africa. This implies that innovations in the stock market affect the implementation of monetary policy and vice-versa. The study recommended that monetary authorities should pay attention to the fact that the stock market performance has a great impact on their decision making due to the fact it is greatly affected by repo rates.
- Full Text:
- Date Issued: 2013
- Authors: Mabitle, Mope
- Date: 2013
- Subjects: Johannesburg Stock Exchange , South African Reserve Bank , Monetary policy -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11483 , http://hdl.handle.net/10353/d1015290 , Johannesburg Stock Exchange , South African Reserve Bank , Monetary policy -- South Africa
- Description: This study analyses the linkage between monetary policy and the stock market in South Africa using monthly data for the period from 2000 to 2010. It provides an overview of the Johannesburg Stock Exchange and the monetary regimes adopted by the South African Reserve Bank since the 1960s and the interrelation between the monetary variables and the stock market. It also provides a review of literature, both theoretical and empirical on the linkages between the two variables. Based on the review of literature, a Vector Autoregression [VAR] model was chosen as a method of analyzing the relationship between the two variables. The empirical results revealed that there is no long term relationship between the variables, however, in the short-run there is a dynamic relationship between monetary policy and the stock market in South Africa. This implies that innovations in the stock market affect the implementation of monetary policy and vice-versa. The study recommended that monetary authorities should pay attention to the fact that the stock market performance has a great impact on their decision making due to the fact it is greatly affected by repo rates.
- Full Text:
- Date Issued: 2013
Econometric analysis of labour demand in the South African textiles, clothing and footwear manufacturing sector: 1990-2012
- Authors: Chikwanha, Tafadzwa R
- Date: 2013
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11498 , http://hdl.handle.net/10353/d1018551
- Description: South Africa in its quest for socio-economic improvement still faces the problem of persistent unemployment. Unemployment in South Africa is very intricate and therefore makes it a complex challenge to tackle for policy makers. Differing unemployment phenomena exist in different sectors of the economy. Some sectors are facing employment growth while others are declining. This study examines the possible major determinants of labour demand (employment) in the textiles, clothing and footwear manufacturing sector in South Africa. The study is based on semi-annual time series data from 1990 to 2012. The Johansen (1991) model is used to examine the trends. The model is an error correction model imposed upon a vector autoregressive model. The results obtained showed that wages and imports both have negative relationships with the demand for workers. Based on these two important results, policy recommendations were made. The study recommended the introduction of a sector-based wage subsidy. The wage structure in South Africa is a perpetually problematic factor of the labour market and therefore a significant determinant in the viability of business and investment. Secondly, the import structure on textiles, clothing and footwear is not clearly and thoroughly setup. A complete restructuring of import tariffs on the entire sector is suggested.
- Full Text:
- Date Issued: 2013
- Authors: Chikwanha, Tafadzwa R
- Date: 2013
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11498 , http://hdl.handle.net/10353/d1018551
- Description: South Africa in its quest for socio-economic improvement still faces the problem of persistent unemployment. Unemployment in South Africa is very intricate and therefore makes it a complex challenge to tackle for policy makers. Differing unemployment phenomena exist in different sectors of the economy. Some sectors are facing employment growth while others are declining. This study examines the possible major determinants of labour demand (employment) in the textiles, clothing and footwear manufacturing sector in South Africa. The study is based on semi-annual time series data from 1990 to 2012. The Johansen (1991) model is used to examine the trends. The model is an error correction model imposed upon a vector autoregressive model. The results obtained showed that wages and imports both have negative relationships with the demand for workers. Based on these two important results, policy recommendations were made. The study recommended the introduction of a sector-based wage subsidy. The wage structure in South Africa is a perpetually problematic factor of the labour market and therefore a significant determinant in the viability of business and investment. Secondly, the import structure on textiles, clothing and footwear is not clearly and thoroughly setup. A complete restructuring of import tariffs on the entire sector is suggested.
- Full Text:
- Date Issued: 2013
Effects of exchange rate volatility on the stock market: a case study of South Africa
- Authors: Mlambo, Courage
- Date: 2013
- Subjects: Foreign exchange rates -- South Africa , Currency question -- South Africa , Free trade -- South Africa , Capital movements -- South Africa , Cointegration -- South Africa , Investments, Foreign , International trade , Stock exchanges -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11468 , http://hdl.handle.net/10353/d1007125 , Foreign exchange rates -- South Africa , Currency question -- South Africa , Free trade -- South Africa , Capital movements -- South Africa , Cointegration -- South Africa , Investments, Foreign , International trade , Stock exchanges -- South Africa , South Africa -- Economic policy
- Description: This study assessed the effects of currency volatility on the Johannesburg Stock Exchange. An evaluation of literature on exchange rate volatility and stock markets was conducted resulting into specification of an empirical model.The Generalised Autoregressive Conditional Heteroskedascity (1.1) (GARCH) model was used in establishing the relationship between exchange rate volatility and stock market performance. The study employed monthly South African data for the period 2000 – 2010. The data frequency selected ensured an adequate number of observations. A very weak relationship between currency volatility and the stock market was confirmed. The research finding is supported by previous studies. Prime overdraft rate and total mining production were found to have a negative impact on Market capitalisation. Surprisingly, US interest rates were found to have a positive impact on Market capitalisation. This study recommended that, since the South African stock market is not really exposed to the negative effects of currency volatility, government can use exchange rate as a policy tool to attract foreign portfolio investment. The weak relationship between currency volatility and the stock market suggests that the JSE can be marketed as a safe market for foreign investors. However, investors, bankers and portfolio managers still need to be vigilant in regard to the spillovers from the foreign exchange rate into the stock market. Although there is a weak relationship between rand volatility and the stock market in South Africa, this does not necessarily mean that investors and portfolio managers need not monitor the developments between these two variables.
- Full Text:
- Date Issued: 2013
- Authors: Mlambo, Courage
- Date: 2013
- Subjects: Foreign exchange rates -- South Africa , Currency question -- South Africa , Free trade -- South Africa , Capital movements -- South Africa , Cointegration -- South Africa , Investments, Foreign , International trade , Stock exchanges -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11468 , http://hdl.handle.net/10353/d1007125 , Foreign exchange rates -- South Africa , Currency question -- South Africa , Free trade -- South Africa , Capital movements -- South Africa , Cointegration -- South Africa , Investments, Foreign , International trade , Stock exchanges -- South Africa , South Africa -- Economic policy
- Description: This study assessed the effects of currency volatility on the Johannesburg Stock Exchange. An evaluation of literature on exchange rate volatility and stock markets was conducted resulting into specification of an empirical model.The Generalised Autoregressive Conditional Heteroskedascity (1.1) (GARCH) model was used in establishing the relationship between exchange rate volatility and stock market performance. The study employed monthly South African data for the period 2000 – 2010. The data frequency selected ensured an adequate number of observations. A very weak relationship between currency volatility and the stock market was confirmed. The research finding is supported by previous studies. Prime overdraft rate and total mining production were found to have a negative impact on Market capitalisation. Surprisingly, US interest rates were found to have a positive impact on Market capitalisation. This study recommended that, since the South African stock market is not really exposed to the negative effects of currency volatility, government can use exchange rate as a policy tool to attract foreign portfolio investment. The weak relationship between currency volatility and the stock market suggests that the JSE can be marketed as a safe market for foreign investors. However, investors, bankers and portfolio managers still need to be vigilant in regard to the spillovers from the foreign exchange rate into the stock market. Although there is a weak relationship between rand volatility and the stock market in South Africa, this does not necessarily mean that investors and portfolio managers need not monitor the developments between these two variables.
- Full Text:
- Date Issued: 2013
Factors influencing market orientation in SME computer retailers in Buffalo city metropolitan, South Africa
- Authors: Moyo, Hazel Nobandile
- Date: 2013
- Subjects: Marketing -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: http://hdl.handle.net/10353/d1010689 , vital:26496
- Description: Despite the significant contribution to socio-economic development by SMEs (small and medium enterprises), their failure rate is very high in South Africa. Adoption and implementation of market orientation has been identified by various scholars as a means to mitigate SME failure in the highly competitive environments they operate in. This study investigated the factors influencing market orientation in SME computer retailers in King Williams Town and East London, South Africa. The objectives of the study were to investigate whether owner/manager involvement of had an influence on market orientation in SME computer retailers, to establish whether organisational systems and interdepartmental dynamics had an impact on the customer focused culture as well as investigate whether competitive intensity influenced the SME computer retailers to be market focused. Both primary and secondary data sources were used in this study. A quantitative research design was used in conducting this research. Simple random sampling, a probability sampling technique was used to select a sample of 104 from the sample frame of 141 registered SME computer retailers. The survey method, by way of a selfadministered questionnaire was used to collect primary data. The statistical Package for Social Sciences (SPSS) as statistical software was used to analyse data. The Chi-square test, Pearson correlation, the t-test, and descriptive statistics were used to analyse data. The findings of this research found that there are factors influencing market orientation in SME computer retailers, such as owner/manager involvement. Competitive intensity was found to influence SME computer retailers to be market focused. It was also found that organisational systems and interdepartmental dynamics did not impact on the customer focused culture. The findings of this research showed that SME owner/managers hold the key to shaping an organisation‟s values and culture orientation therefore in order to be market orientated, they need pass on a clear message to the lower levels of the organisation. The careful implementation of organisational systems and interdepartmental dynamics that encourage market orientation as well as constant matching and monitoring of competitors was recommended to enable SMEs to be market orientated and in turn improve their business performance and success.
- Full Text:
- Date Issued: 2013
- Authors: Moyo, Hazel Nobandile
- Date: 2013
- Subjects: Marketing -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: http://hdl.handle.net/10353/d1010689 , vital:26496
- Description: Despite the significant contribution to socio-economic development by SMEs (small and medium enterprises), their failure rate is very high in South Africa. Adoption and implementation of market orientation has been identified by various scholars as a means to mitigate SME failure in the highly competitive environments they operate in. This study investigated the factors influencing market orientation in SME computer retailers in King Williams Town and East London, South Africa. The objectives of the study were to investigate whether owner/manager involvement of had an influence on market orientation in SME computer retailers, to establish whether organisational systems and interdepartmental dynamics had an impact on the customer focused culture as well as investigate whether competitive intensity influenced the SME computer retailers to be market focused. Both primary and secondary data sources were used in this study. A quantitative research design was used in conducting this research. Simple random sampling, a probability sampling technique was used to select a sample of 104 from the sample frame of 141 registered SME computer retailers. The survey method, by way of a selfadministered questionnaire was used to collect primary data. The statistical Package for Social Sciences (SPSS) as statistical software was used to analyse data. The Chi-square test, Pearson correlation, the t-test, and descriptive statistics were used to analyse data. The findings of this research found that there are factors influencing market orientation in SME computer retailers, such as owner/manager involvement. Competitive intensity was found to influence SME computer retailers to be market focused. It was also found that organisational systems and interdepartmental dynamics did not impact on the customer focused culture. The findings of this research showed that SME owner/managers hold the key to shaping an organisation‟s values and culture orientation therefore in order to be market orientated, they need pass on a clear message to the lower levels of the organisation. The careful implementation of organisational systems and interdepartmental dynamics that encourage market orientation as well as constant matching and monitoring of competitors was recommended to enable SMEs to be market orientated and in turn improve their business performance and success.
- Full Text:
- Date Issued: 2013
Financial structure and economic growth nexus: comparisons of banks, financial markets and economic growth in South Africa
- Authors: Godza, Praise G
- Date: 2013
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: http://hdl.handle.net/10353/921 , vital:26509
- Description: The importance of the financial structure system, which comprises the banking sector and financial markets, to the growth of a country’s economy cannot be underestimated. It is important to analyse comparatively the contribution of each sector to the economic growth of a country. This study, therefore, empirically examined the relationship between financial markets, banks and economic growth in South Africa using time series analysis for the period 1990 to 2011. The study used the Vector Error Correction model (VECM) based causality tests to establish the link between financial structure (represented by both banks and financial markets) and economic growth. Real GDP was used as a measure for economic growth, Bank credit to the private sector was used as a proxy for the banking system, turnover ratio and value of shares traded was used as a measure for the stock market and bond market capitalisation was used as a measure for the bond market. To determine the net effects of financial structure on long run growth in South Africa, one control variable was added which was the ratio of government expenditure to GDP to control for the government’s role in the economy. The Johansen co-integration technique was also employed to obtain a long run relationship. The results from the study revealed that the stock turnover ratio, bond market capitalisation, and government expenditure have a long run relationship with economic growth while bank credit to private sector and value of shares traded showed a negative relationship with economic growth. With granger causality all the variables proved to granger cause economic growth except for bond market capitalisation where economic growth prove to granger cause bond market development. The study recommended that measures to improve liquidity, transparency and accessibility of both the banking sector and financial markets instruments should be a priority for South African authorities. The authorities should, therefore, encourage stock market development through an appropriate mix of taxes, legal and regulatory policies to remove barriers to stock market operations and thus enhance their efficiency since stock markets in Africa are underdeveloped. Strong financial regulation and supervision in banks to ensure efficiency in credit allocation should be done to enable channelling of credits to capital development rather than consumption spending.
- Full Text:
- Date Issued: 2013
- Authors: Godza, Praise G
- Date: 2013
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: http://hdl.handle.net/10353/921 , vital:26509
- Description: The importance of the financial structure system, which comprises the banking sector and financial markets, to the growth of a country’s economy cannot be underestimated. It is important to analyse comparatively the contribution of each sector to the economic growth of a country. This study, therefore, empirically examined the relationship between financial markets, banks and economic growth in South Africa using time series analysis for the period 1990 to 2011. The study used the Vector Error Correction model (VECM) based causality tests to establish the link between financial structure (represented by both banks and financial markets) and economic growth. Real GDP was used as a measure for economic growth, Bank credit to the private sector was used as a proxy for the banking system, turnover ratio and value of shares traded was used as a measure for the stock market and bond market capitalisation was used as a measure for the bond market. To determine the net effects of financial structure on long run growth in South Africa, one control variable was added which was the ratio of government expenditure to GDP to control for the government’s role in the economy. The Johansen co-integration technique was also employed to obtain a long run relationship. The results from the study revealed that the stock turnover ratio, bond market capitalisation, and government expenditure have a long run relationship with economic growth while bank credit to private sector and value of shares traded showed a negative relationship with economic growth. With granger causality all the variables proved to granger cause economic growth except for bond market capitalisation where economic growth prove to granger cause bond market development. The study recommended that measures to improve liquidity, transparency and accessibility of both the banking sector and financial markets instruments should be a priority for South African authorities. The authorities should, therefore, encourage stock market development through an appropriate mix of taxes, legal and regulatory policies to remove barriers to stock market operations and thus enhance their efficiency since stock markets in Africa are underdeveloped. Strong financial regulation and supervision in banks to ensure efficiency in credit allocation should be done to enable channelling of credits to capital development rather than consumption spending.
- Full Text:
- Date Issued: 2013
Impact of oil price on tourism in South Africa: an error correction model (ECM) analysis
- Authors: Gqozo, Pamela
- Date: 2013
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11486 , http://hdl.handle.net/10353/d1017941
- Description: The study focuses on the impact of oil price on tourism in South Africa. Quarterly time series data for the period 1990 to 2012 was used in this study. Error correction model is the research instrument that was used to determine the impact of oil price on tourism in South Africa. The explanatory variables in this study are oil price, real exchange rates, gross domestic product, consumer price index and transport infrastructure investment. The results of the study revealed that oil price, consumer price index and real exchange rate have a negative long run relationship on tourism, while gross domestic product and transport infrastructure investment had a positive long run relationship on tourism. It was also shown that oil price is statistically significant relationship on tourism.
- Full Text:
- Date Issued: 2013
- Authors: Gqozo, Pamela
- Date: 2013
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11486 , http://hdl.handle.net/10353/d1017941
- Description: The study focuses on the impact of oil price on tourism in South Africa. Quarterly time series data for the period 1990 to 2012 was used in this study. Error correction model is the research instrument that was used to determine the impact of oil price on tourism in South Africa. The explanatory variables in this study are oil price, real exchange rates, gross domestic product, consumer price index and transport infrastructure investment. The results of the study revealed that oil price, consumer price index and real exchange rate have a negative long run relationship on tourism, while gross domestic product and transport infrastructure investment had a positive long run relationship on tourism. It was also shown that oil price is statistically significant relationship on tourism.
- Full Text:
- Date Issued: 2013