The determinants of the currency deposit ratio of South Africa: an econometric analysis
- Authors: Chiwota, Richard
- Date: 2020-02
- Subjects: Econometricshttp://id.loc.gov/authorities/subjects/sh85040763
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/19694 , vital:43169
- Description: The main objective of the study was to investigate the determinants of the currency deposit ratio of South Africa. The stability of the demand for money has been a recurring area of interest of empirical research on the South African economy. Underlying this interest in the behavior of money demand is the potential role of movement in monetary aggregates as indicators of future developments in inflation. Specifically, if a stable relationship exists between the demand for money and its determinants, changes in the money supply can provide useful information in the longer terms. While there has been considerable empirical research on estimating the money demand function for many less developed countries (LDCs), the currency demand function has been largely ignored. The study used secondary data sourced from the South African Reserve Bank, Statistics South Africa and Quantec. It also used annual data from 2000 to 2018 with an autoregressive distributed lag (ARDL) technique used for regression purposes. The study opted for this model because the variables were a mixture of me (0) and me (1). The empirical results show that income had a positive relationship with currency deposit ratio. In other words, when income increases, the amount of currency in circulation increases relative to deposits. Results show that there is a negative relationship between inflation and currency demand ratio. The SARB has to monitor changes in income in order to keep pace with the demand for cash. They must also use other monetary policy operational variables such as M3 to ensure that there is a match between income and money demand and money supply. , Thesis (MCom) -- Faculty of Management and Commerce, 2020
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The effects of exchange rate volatility on manufacturing exports in South Africa
- Authors: Munyu, Yibanati
- Date: 2020-01
- Subjects: Foreign exchange rates
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/20208 , vital:45411
- Description: The study examined the effect of exchange rate volatility on manufacturing exports in South Africa utilizing quarterly time series data from 1990 to 2018. Manufacturing exports (MX), foreign income (GDPf), input costs (C01), the real effective exchange rate (REER) and exchange rate volatility (V) were the key parameters. The study employed two alternative measures of exchange rate volatility. The first measure is the moving average standard deviation of the logarithm of the real effective exchange rate (MASDlnREER) based on the raw monthly data of the real effective exchange rate. The second measure is a dummy variable intended to capture the unexpected variation of the exchange rate. The study utilized the Autoregressive Distributed Lag (ARDL) and the Error Correction Method (ECM) to examine the both the long run and short-run relationships. The empirical results revealed that in the long run, the real effective exchange rate volatility measure (MASDlnREER) has a negative and significant effect on manufacturing exports in South Africa. This result suggests that policy makers need to make an effort to moderate, the volatility of the Rand in an attempt to contain the adverse effects on manufacturing exports. , Thesis (MCom) -- Faculty of Management and Commerce, 2020
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The relationship between financial development and economic growth in Eswatini (formerly Swaziland)
- Authors: Fakudze, Siphe-okuhlehttps://orcid.org/0000-0001-7928-5552
- Date: 2019-12
- Subjects: Economic development -- Eswatini , Eswatini -- Economic conditions
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/19704 , vital:43170
- Description: The study empirically examined the relationship between financial development and economic growth in Eswatini using quarterly time series data covering the period 1996 to 2018. Auto Regressive Distributed Lag bounds test technique and Granger causality test were used. The ratio of credit to the private sector to economic growth, openness to trade, revealed a positive relationship with economic growth in the long-run and short-run dynamics. Money supply displayed a negative association with real output in the long-run and short-run. Government size as a ratio of GDP highlighted a negative linkage with economic growth in the long-run and temporary positive association in the short-run. The Granger Causality test results displayed unidirectional causality running from financial development to economic growth, supporting the demand following causality hypothesis in Eswatini. The study recommends developing policies aimed at enhancing credit to the private sector to stimulate investment; reprioritise Government expenditure to minimise fiscal gap and support supply side reforms focusing on infrastructure development; control domestic liquidity and develop market securities attractive to the private sector; strengthen trade intensity to bolster growth; and improve regulatory framework to develop the non-bank financial industry. , Thesis (MCom) -- Faculty of Management and Commerce, 2019
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The relationship between exports and economic growth: an empirical case study of the South African automobile industry
- Authors: Taylor, Nina-Mari
- Date: 2012-03
- Subjects: Exports , Automobile industry and trade
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/26313 , vital:65237
- Description: The dissertation investigates the relationship between automobile exports and economic growth in South Africa. Given the amount of investment and government assistance that has gone into assisting and developing the South African automobile industry via the Motor Industry Development Programme, this study examines whether the increase in automobile exports has impacted on economic growth. A demand-side model of the Export-Led Growth hypothesis is estimated in order to analyse the magnitude of the impact of automobile exports on growth. The results of the VECM and Dynamic Granger Causality test reveal that vehicle exports have a long-run positive impact on economic growth and that a uni-directional causal relationship is found to run from vehicle exports to economic growth. Even though vehicle exports are found to have a relatively significant impact on economic growth, domestic demand factors are concluded as being the key contributor of economic growth in South Africa. , Thesis (MA) -- Faculty of Management and Commerce, 2012
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The determinants of demand for public transport in South Africa
- Authors: Seleseng, Tshegofatso Priscilla
- Date: 2011-10
- Subjects: Transportation--South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/24565 , vital:63176
- Description: This study analyses the determinants of demand for public transport in South Africa, using quarterly data covering the period from 1990-2009. The study initially provides an overview of the South African public transport system and population trends. Based on the review of the theoretical and empirical literature on transport, the study specifies a model of public transport demand in South Africa. Tests for stationarity and unit roots in the series (both informal and formal tests), and co-integration test have been performed. The co-integration test is done using the Johansen (1990, 1995) methodology. A vector error correction model is run to provide robust determinant variables on public transport. The results revealed that in the short run, the demand for public transport depends positively and significantly on GDP per capita growth and negatively on prices for public transport and fuel prices. However, over the long run, the demand for public transport depends negatively on GDP per capita growth as expected, but positively on the other variables including the growth in employment levels. To check for robustness of the VECM results the diagnostic tests were performed. The AR Roots Graph reports the inverse roots of the characteristics AR polynomial. The graph showed that all roots lie inside the unit circle which is an indication that VAR is stable. Some of the results found in this the study, such as the short run and long run impact of income growth on public demand, are supported by findings from other studies. , Thesis (MCom) -- Faculty of Management and Commerce, 2011
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The role and contribution of the South African money market towards financial development
- Authors: Gwenhure, Yvonne
- Date: 2011-03
- Subjects: Money market -- South Africa , Finance -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/24139 , vital:62385
- Description: The Money Market has sparked a lot of interest amongst many researchers over the years of evolving financial markets, with particular reference to its impact on Financial Development. It has been viewed as an important stimulus for financial development and ultimately economic growth in developing countries. Therefore this thesis attempts to establish the impact that the money market has on Financial Development in South Africa. The main objective of this thesis is to comparatively examine the impact of the money market on financial development within the banking sector and financial markets sector. Money Markets that function in an era of liberalized interest rates are perceived to have a greater impact on Financial Development than those whose interest rates are repressed. Therefore, the underpinning theoretical literature in this study is the McKinnon-Shaw theory of Financial Liberalization. The study disaggregates measures of financial depth into indicators covering both the banking sector and financial markets sector. A single equation model is used for both the banking and financial markets sectors were the dependant variable for the banking sector model (LRPG) as well as that of the financial markets model (LSBG) are modeled as functions of the money market, real deposit rate, real income and inflation. Stationarity as well as cointegration tests have been employed in the generation of the Error Correction Model. Results obtained confirm that the money market does have a positive impact on financial development and also that factors such as financial liberalization and real income enhance financial development. For policy recommendations, it is therefore imperative to prioritize money market policies in order to enhance financial development in the country. , Thesis (MCom) -- Faculty of Management and Commerce, 2021
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Do budget deficits crowd out private investment?: an analysis of the South African Economy
- Authors: Biza, Rumbidzai Aimee
- Date: 2011
- Subjects: Individual investors -- South Africa , Budget deficits -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/24956 , vital:63750
- Description: This dissertation investigates whether budget deficits crowd out or crowd in private investment in South Africa, using quarterly South African data covering the period 1994 to 2009. South Africa has been experiencing unprecedented budget deficits since the 1960s and the study investigates how this has impacted on the country’s private investment demand. An empirical model linking private investment to its theoretical variables is specified and used to assess the quantitative effects of budget deficits on private investment. This study augments the co-integration and vector auto-regression (VAR) analysis with impulse response and variance decomposition analyses to provide robust long run and short run dynamic effects on private investment. The variables have been found to have a long run relationship with private investment. Results suggest that budget deficits significantly crowds out private investment. These results corroborate the theoretical predictions and are also supported by previous studies. , Thesis (MCom) -- Faculty of Management and Commerce, 2011
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