Trade openness, economic growth, income inequality and poverty nexus in SADC countries: 1980-2019
- Authors: Gonese, Dorcas https://orcid.org/0000-0003-0774-024X
- Date: 2022-01
- Subjects: Economic development , Income distribution
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/23370 , vital:57618
- Description: Trade openness (TO) has been identified as a critical component for sustainable economic growth, income inequality reduction, and poverty reduction in the 2030 Agenda as per the Sustainable Development Goals (SDGs), and the Southern African Development Community (SADC) regional indicative strategic development plan (RISDP). Despite the opening up to the global world, developing countries such as the SADC continue to face exclusive and unstable economic growth, massive income disparity, and poverty. Considering the previous empirical work, many controversies are related to methodologies and measurement issues. The study attempted to examine the impact of trade openness on economic growth of the SADC countries as well as its effect on income inequality and poverty reduction from 1980 to 2019. The study builds on existing studies in the region that have mainly analysed this kind of relationship, assuming that it is only TO and economic growth (EGR) that matters. The study sought to address three analytical objectives. The first objective focused on examining the effects of trade openness on economic growth in the SADC countries. In addressing this objective, the Pooled Mean Group (PMG) was utilised, given the nature of the relationship between the variables of interest. The empirical results revealed that all measures of trade openness (real trade openness, economic globalisation, exports and imports of goods and services) used in the study have a positive effect on economic growth in SADC countries. This implies that the foreign factors account for a share of SADC's economic growth. The PMG indicates that the mediating variables of all measures of trade openness with human capital development have a positive effect on economic growth. This implies that the beneficial impact of the said measures of trade openness, are more effective when investment in human capital increases. The second objective focused on analysing trade openness's direct and indirect impact on income inequality using the PMG model again. The empirical results indicate that trade openness via exports has a negative effect on income inequality. In contrast, real trade openness and imports positively affect income inequality. This implies that the exports of goods and services in SADC are drivers of income inequality reduction while real trade openness and imports worsen it. Therefore, the SADC countries must be wary of real trade openness and import policies addressing income inequality. As for the interaction effects, the empirical results indicate that greater openness via real trade openness, economic globalisation, exports and imports reduce income inequality when economic growth increases and when the financial sector is more developed. The final analytical objective focused on analysing the effects of TO on poverty in the SADC region. The PMG model was utilised for trade openness-non-income poverty (NPOV) relationship. However, because there is a scarcity of income-poverty (IPOV) data, the time dimensions for the income poverty-trade openness model are smaller than the cross sections. Therefore, the current study employed the system generalised method of moments (SGMM) estimation technique which is a more effective and efficient estimation technique for controlling for endogeneity when the time dimension is smaller than the cross sections. The findings indicate that real trade openness has a positive effect on NPOV, whereas economic globalisation, exports, and imports negatively affect NPOV. This implies that real trade openness increases poverty reduction while economic globalisation, exports and imports exacerbate non-income poverty in SADC countries. On testing whether trade openness- NPOV relationship changes with economic growth, income inequality, human capital development, financial development and institutional quality, the complementary variable with EGR is positive and significant for real trade openness and exports, implying that real trade openness and exports reduce NPOV when economic growth increases. The SGMM indicates that only economic globalisation and imports have negative impact on income poverty in SADC countries. This implies that economic globalisation and imports are determinants of income poverty reduction in the SADC countries. The SADC governments and policymakers should be mindful about what ways they should globalise, what goods they export or imports to minimise income poverty. , Thesis (PhD) -- Faculty of Management and Commerce, 2022
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- Date Issued: 2022-01
Effects of non-communicable diseases on labour market outcomes in South Africa
- Authors: Lawana, Nozuko https://orcid.org/0000-0003-0027-4725
- Date: 2020-12
- Subjects: Labor economics , Environmental health
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/20340 , vital:45656
- Description: South Africa has experienced a high and rising burden of non-communicable diseases (NCDs) and lifestyle risk factors over the past decade. Health as a category of human capital is generally ex-pected to influence an individual’s labour supply and productivity. Despite the increasing burden of non-communicable diseases, the high rate of economically inactive population and persistent wage inequalities in South Africa, there is limited empirical research on the effect of NCDs on labour force participation, employment status and wage differentials. Given this, the main object-ive of this study was to determine the effects of NCDs on three labour market outcomes: labour force participation, employment status and wage differentials in South Africa. This was divided into three major analytical objectives. Data used was extracted from the five waves of the National Income Dynamics Study, a nationally representative survey collected by the South African Labour and Development Research Unit (SALDRU). Several econometric tests, including cross-sectional data analysis, panel data analysis and the Blinder-Oaxaca decomposition methods, were used in the study. The first analytical objective focused on estimating the effect of lifestyle risk factors on labour force participation through NCDs by gender. Endogenous multivariate probit models with a recur-sive simultaneous structure were employed as a method of analysis. The empirical findings suggested that NCDs and associated risk factors have detrimental effect on labour force participation. The analysis was further expanded to analyse the effect of gender differences, considering that the effect of NCDs may be gender-specific. The results revealed that the effect of stroke and heart diseases were significant only for men, while diabetes and high blood pressure were only significant for women. The results also emphasised the significant indirect influence of obesity, physical inactivity, and alcohol consumption on labour force participation through NCDs, especially for men. The second analytical chapter focused on investigating the effect of NCDs on employment status – that is, those employed, unemployed and economically inactive in the population of South Africa by gender. The estimation technique known as generalised linear latent and mixed methods (GLLAMM) was employed to fit the multinomial logit model with correlated random intercept. The findings suggest that NCDs affect the economically inactive population significantly relative to those employed, and the magnitude is larger for women than for men. There was no significant difference found in the effect of NCDs on the unemployed relative to the employed segment of the population. In addition, the results revealed gender differences on the effect of NCDs on employment status and that stroke had a significant influence on the employment status of both sexes, while heart diseases had significant influence only in men, whereas diabetes had significant effects only in women. The last analytical chapter focuses on estimating the effect of NCDs on wage differentials in South Africa by gender. The recentred influence function regression model and Blinder-Oaxaca de-composition with RIF were used in the chapter. The empirical results revealed that the effect of NCDs on earnings differ by gender. It was found that women with NCDs earn less than those without NCDs, while men with NCDs were found to earn more than their counterparts without NCDs. The results further revealed that women with NCDs suffer from wage discrimination in South Africa. The policy implications of this study are gender-specific. The results highlight the necessity for undertaking a massive awareness campaign regarding the prevention and control of NCDs, espe-cially among women. This can be achieved through specific female health programmes, including maternal healthcare. The findings of the study imply largely that calls for gender-responsive health approaches which take into account gender-specific needs and priorities should be promoted, compared to a blanket approach. In addition, there is a need for the government to complement education policies to promote labour market outcomes. Policies aimed at increasing access to education should continue to improve access to higher education and so to enhance participation in the labour force and reduce wage gaps. , Thesis (PhD) -- Faculty of Management and Commerce, 2020
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- Date Issued: 2020-12
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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- Date Issued: 2020-02
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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- Date Issued: 2020-01
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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- Date Issued: 2019-12
The impact of capital adequacy requirements on loan pricing : the case of South African Commercial Banks
- Authors: Mgxekwa, Bahle
- Date: 2018
- Subjects: Bank loans Banks and banking -- State supervision Financial institutions -- State supervision
- Language: English
- Type: Thesis , Masters , (MCom) Economics
- Identifier: http://hdl.handle.net/10353/10188 , vital:35373
- Description: Capital adequacy requirements are viewed as an important form of regulation within the banking sector and they represent a major change in banking regulation. The capital accord is a globalised regulation which seeks to reduce banking failures and achieve a stable and efficient financial system for the growth of the global economies. Through the adoption of the capital adequacy requirement in the South African banking system as well as having internationally active financial institutions, the South African economy is no exception to the benefits ensued by this regulation to the global economies. In light of this, this study examined the impact of capital adequacy requirements on loan pricing of South African commercial banks, using quarterly time series econometric analysis over the time period 2000-2016. The study used interest rate on loan, the dependent variable as a measure of loan pricing and the following independent variables: risk of default, market structure, Treasury bill and capital adequacy ratio. To confirm the level of integration, the study employed the Augmented Dickey-Fuller and Phillips-Perron tests. The Johansen co-integration and the Vector Error Correction Model were employed to obtain long-run and short-run coefficients. The findings of this study show that the measure of capital adequacy requirements CCAR is negatively related to real interest rate on loans CRL. This agrees with theory and expected priori. In addition, past studies in the developing countries’ context support these findings. Estimation of results reveals that all other variables such as market structure CMS, Treasury bill rate TB and loan loss provisions GLLP have a positive impact on interest rate on loans.
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- Date Issued: 2018
Exhaustible resources and the hotelling rule : an empirical test of the hotelling rule's significance to gold production in South Africa
- Authors: Mlambo, Courage
- Date: 2017
- Subjects: Natural resources -- Mathematical models Econometrics
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/4738 , vital:28507
- Description: The study sought to test the applicability of the Hotelling rule in South Africa. In environmental economics, the Hotelling rule has come to be a pillar of the exhaustible resources framework and in addition to this, it has presented essential insights into the consumption and extraction of non-renewable resources. Hotelling sought to address one important question which had been unanswered regarding the depletion of exhaustible resources: How much of the natural resource in question should be consumed presently and how much of it should be stocked up for future generations? The focus was to find a solution for those involved in the exploitation of natural resources to choose between the current value of the natural resource if extracted and sold and the future increased value of the asset if left unexploited. According to the Hotelling rule, the extraction path in competitive market economies will, under certain circumstances, be socially optimal. An extraction path that is not socially optimal compromises the welfare of future generations. The welfare of South Africa’s present population and more especially in the future will be greatly determined by the stock of natural resources available and the quality of the environment. Currently, the production processes deplete natural resources. Concern with the supposed increasing scarcity of gold in South Africa, and the possibility of running out of gold, has become a source of concern. South Africa’s gold reserves (gold in the ground that can be extracted profitably) are becoming depleted at an alarming rate. Most reserves are already exhausted; and the costs involved in mining lower-grade ore, and deposits located very deep in the ground, are becoming excessive. In light of this, this study sought to test the applicability of the Hotelling rule in South Africa. In order to empirically test the Hotelling rule, the study was guided by previous literature that had sought to test it. In this regard, the study used both descriptive and inferential statistics. The study has three data analysis chapters. The first two presented and examined the time series properties of gold prices, gold production and gold consumption. The third data analysis chapter examined the relationship between gold price and interest rates. In the first two data analysis chapters, visual inspection, growth rates, variance ratio tests and advanced unit root tests were used to examine the time series properties of gold prices, gold production and gold consumption. Results showed that the behaviour of the gold price series and gold production series in South Africa have a behaviour that is socially optimal. This is in line with the Hotelling rule. The rule predicts exponentially increasing resource prices and this result in mineral resources following the path of the positive trend. The positive trend is prompted by the increasing price reflecting the increasing scarcity of the resource. However, consumption trends were seen to be violating the Hotelling rule. The Hotelling rule predicts that the price increases until it eventually reaches the choke price, where the quantity demanded decreases to zero. However, in contrast to this, results showed that the demand for gold has been increasing instead of decreasing. This is not in line with the Hotelling rule. Furthermore the relationship between interest rate and gold price was negative and this suggested that the price of gold was not rising at the rate of the interest rate. The results of the study suggested that gold production is not following a social optimally path. The study recommended that the government come up with measures that prolong the lifespan of the gold reserves. These included research and development to promote technological innovations in the mining sector. This may make it possible for firms to access lower-grade ores. The study also recommended that since the Hotelling rule partly applied in the gold sector, there is a need to adopt some other theoretical measures that can ensure that the proceeds from the gold taxes are used in the most effective way.
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- Date Issued: 2017
Impact of business confidence on private investments in South Africa
- Authors: Madzivire, Venna Wadzanayi
- Date: 2017
- Subjects: Success in business Confidence Investments
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/8910 , vital:33955
- Description: A wide range of theoretical and empirical studies have been carried out on various determinants of private investments in different economies. This dissertation specifically focuses on the impact business confidence on private investments with regards to the South African economy for the period between 1990 and 2014. The private investment sector in South Africa has, to a greater extent contributed to the overall GDP of the economy. Even though business confidence has a considerable impact on private investments, this study also took into consideration other variables that affect the private investment sector such as interest rates, exchange range and GDP To determine short-run and long-run relationships of business confidence on private Investments in South Africa, a vector error correction model was employed. In order to avoid spurious regression, the ADF test and the PP test were used to test for stationarity. Results of the study indicate that private investments are subject to permanent changes because of changes in business confidence. In addition to that, not all variables have a long-term relationship with private investments but business confidence has a significant long run relationship with private investment. After conducting an econometric analysis, results revealed that Business Confidence and Gross Domestic Product have a positive impact on private investments. On the other hand, interest rates and exchange rates have a negative impact on private investments in South Africa. Various policy recommendations were established on both Private Investments and Business Confidence.
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- Date Issued: 2017
The impact of intra- and inter- regional integration on trade flows in Africa
- Authors: Taylor, Nina-Mari
- Date: 2017
- Subjects: International trade Trade blocs Regionalism
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10353/12408 , vital:39260
- Description: Regional integration is regarded as a formation which would allow African countries to improve their trade performance and economic growth. By subscribing to such a regional integration grouping, successful regional trade integration could assist African countries in achieving economies of scale, expand respective domestic markets, reduce marginalisation as well as the collective utilisation and exploitation of resources. Such achievements could, gradually, raise the competitiveness of African countries in respect of the global market. By collaborating in regional integration agreements, groups of countries are sought to increase their collective bargaining power and co-operation amongst the member countries. Regional integration can, therefore, be regarded as a necessary means by which economic development, growth and trade can be enhanced amongst African countries. The associated advantages and benefits of regional integration could improve the productive capacity of African counties and strengthen both their individual and continental position in the process of globalisation and integration into the world economy. This study endeavours to examine the impact of intra-regional integration and inter-regional integration on trade flows among and between: SADC, COMESA, ECOWAS and the EAC. The relevant theoretical and empirical literature regarding regional integration is considered as well as the challenges faced by regional economic communities in Africa. The study is based on an Augmented Gravity Model and it employs Panel Data Estimation Techniques and Panel Unit Root Tests. The Hausman test results proved the Fixed Effects Model to be the most applicable to the study. The empirical findings revealed that both intra-regional integration and inter-regional integration had a positive bearing on trade flows and between: SADC, COMESA, ECOWAS and the EAC. Hence, regional integration is concluded as having a prominent role in promoting trade flows in Africa and the study recommends that African countries and regional economic communities should pursue deeper economic integration and continental integration.
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- Date Issued: 2017
External financial flows, domestic savings and economic growth in the Southern African development community (SADC)(1980-2013)
- Authors: kapingura, Forget Mingri
- Date: 2016
- Subjects: International finance Saving and investment -- South Africa Capital movements
- Language: English
- Type: Thesis , Doctoral , Degree
- Identifier: http://hdl.handle.net/10353/5198 , vital:29100
- Description: .Most countries in the SADC region experience low levels of domestic savings. This calls for the need to explore other sources of financial flows to bridge the gap between domestic capital demand and supply, and one such source is external financial flows. It is with this background that this study examined the relationship between the different forms of external financial flows, domestic savings and economic growth in the SADC region for the period from 1980 to 2013. Firstly the study examined the impact of the different forms of external financial flows on economic growth in the region. The empirical results revealed that FDI, CBF and remittances have a significant impact on economic growth in the SADC region. ODA was however found to be insignificant. When the different types of external financial flows were interacted with institutions they all became significant in explaining economic growth in the region. The second aspect was to examine the extent to which external financial flows complement or displace domestic saving. The empirical results revealed that external financial flows with the exception of ODA complement domestic savings in the region. In addition, there is evidence of investment generating additional savings in the region, which is likely to be through the economic growth channel. The last objective of the study was to examine the determinants of external financial flows to the SADC region. The empirical results revealed that both push and pull factors are important in determining external financial flows in the region. Of great importance was the observation that events in the source country determine financial flows to the region. Proxy for financial integration was found to be positive though insignificant, pointing out that the region may not be benefiting from cross-border bank flows due to the region being disintegrated. This suggests that the region may benefit from increased cross-border bank flows if the region is integrated. Overall, the results from the study suggest that external financial flows are important to the region in providing the much needed development finance. However this also suggests that the foreign capital channel is another source in which a crisis from a developed country can be transmitted to the SADC region.
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- Date Issued: 2016
The impact of inflation on financial development in South Africa
- Authors: Muzvanya, Kudzai Fungai
- Date: 2016
- Subjects: Economic development Monetary policy Consumer price indexes
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/13045 , vital:39440
- Description: Growing theoretical and empirical studies have predicted different influences that inflation has on financial development in different economies. This dissertation observes the impact South Africa’s inflation has on financial development over the period between 1990 and 2012. Monetary policy framework in South Africa has, to a greater extent, assisted in monitoring the movement of the consumer price index. Although inflation does affect financial sector performance, the study also looked into other variables that have an effect like private credit, money supply and gross domestic product. To test for stationarity to avoid spurious regression, the ADF test and the PP test were used. To determine the long- and short-run relationship, the Johansen Maximum Likelihood test and VECM models were used. Results of the study indicated that money supply and inflation have a negative effect on financial development. In addition, apart from money supply and inflation the findings revealed that private credit and gross domestic product play a significant part in financial sector performance. The study recommends that the South African Reserve Bank should keep the inflation rate within its target range (3-6percent). This would ensure price stability and restore investor confidence in the financial sector, which then improves financial sector development.
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- Date Issued: 2016
The relationship between household debt and consumption spending in South Africa (1994 - 2013)
- Authors: Nkala, Patience
- Date: 2016
- Subjects: Finance, Personal Financial services industry Consumption (Economics)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/14022 , vital:39798
- Description: Consumption has been and remains the main contributor to gross domestic product (GDP) growth in South Africa. Household debt on the other side has remained high over the years. This study examined the relationship between household debt and consumption spending, for the period between 1994 and 2013. The Johansen cointegration technique and the Vector error correction model (VECM) were utilised to test the long run and short run relationships between the variables. The Granger causality test was also employed to test the direction of causality between the variables. Results from this study have revealed that a relationship exists between household debt and consumption spending in South Africa and they have also showed that this relationship flows from household debt to consumption spending. The implications of these results are that consumption spending may be increased through other measures rather than through increasing debt. The study therefore recommends that policy makers avail more investment opportunities for households and to also create employment in a bid to increase the income of households which can then be used to increase household consumption rather than the use of debt.
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- Date Issued: 2016
The impact of biofuels on food prices, lessons from the experiences of Brazil and U.S. (1995-2013)
- Authors: Ncube, Free P
- Date: 2015
- Subjects: Biomass energy -- Economic aspects Food prices -- Brazil Food prices -- United States , Energy crops -- Economic aspects|zBrazil
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/2150 , vital:27616
- Description: Using crops for fuel generates concerns over competition with food uses. As Rajagopal et al (2009) asserts, “In 2008 the world entered a food crisis amid record-high commodity and energy prices that induced hunger and political unrest in developing countries, by export restrictions in top grain-producing countries”. This took place at the same time when biofuel production, reached its pinnacle in developed countries. This paper examines the effect that biofuel prices and or production has had on food prices in Brazil and U.S. by employing the panel cointegration and Dynamic Ordinary Least Squares (DOLS) method of analysis. In regressing food prices as a function of demand and supply factors, such as oil prices, biofuel prices, interest rates and biofuel production, the study found that the increase in biofuels production over the past eighteen years has had a significant impact on food prices. Over the period January 1995- December 2013, the study estimates that a one hundred percent increase in biofuels production across time and between countries results in the increase of food prices by 21,9%. The study therefore rejects the null hypothesis that states, biofuel production does not have a statistically significant negative impact on food prices in U.S. and Brazil. , and accepts the alternative that biofuel production does have a statistically significant negative impact on food prices in U.S. and Brazil. Other predictors of food prices that the study revealed as significant were oil and interest rates. Policy recommendations for other countries like South Africa are therefore, made based on the results obtained.
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- Date Issued: 2015
Social intrepreneurship and millennium development goals in developing countries: case study of Zimbabwe
- Authors: Ngorora, Grace P K https://orcid.org/0000-0003-4756-313
- Date: 2014-11
- Subjects: Social entrepreneurship , Economic development , Poverty
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/26661 , vital:65847
- Description: The study set out to examine the contribution of social entrepreneurship to the achievement of Millennium Development Goals (MDGs), particularly MDG 1, the eradication of extreme poverty and hunger. Poverty reduction occurred when social entrepreneurial activities resulted in the improvement of the socio-economic well-being of social entrepreneurs and their beneficiaries. The problem this study sought to research on was that, despite the impact of social entrepreneurship, there has been inadequate attention to and discussion of its contribution to attaining the MDGs in Zimbabwe. The population were social entrepreneurs in Harare, Zimbabwe. The random sampling method was used to determine the sample size. Semi-structured questionnaires were used to collect primary data in Harare, Zimbabwe from 132 social entrepreneurs and 200 beneficiaries of social entrepreneurial activities. Secondary information was obtained from textbooks and various internet sources. The data collected was analyzed through SPSS Version 22 because of its appropriateness and wide use. The null hypothesis that social entrepreneurship does not contribute to the achievement of MDGs was rejected in favor of the alternative hypothesis that social entrepreneurship provides an alternative to the achievement of MDGs. Findings from the study suggest that social entrepreneurs contribute immensely to poverty reduction. They also contribute towards research and development, promoting gender equality and empowerment, education for all as well as access to health facilities. The segments of the population benefiting from social entrepreneurship include the poor, socially excluded, discriminated, the unemployed and disabled. The impact on poverty and hunger was achieved through microfinance initiatives, income generation activities, empowerment and capacity building. Results showed that social entrepreneurship activities solve social problems through providing food, shelter, water, education and collateral to access finance. The study concluded that social entrepreneurship is a plausible approach to promote implementation of policies to reduce extreme poverty and hunger by using readily available resources to bring sustainable solutions to problems. The strategies to make social entrepreneurship more effective included creating a conducive legal and policy environment, financial provision, political support, and government support, publicity of the contribution of social entrepreneurship, mentorship and collaboration among stakeholders. , Thesis (PhD) -- Faculty of Social Sciences and Humanities, 2014
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- Date Issued: 2014-11
The impact of export diversification on economic performance in South Africa: 1980-2012
- Authors: Choga, Ireen
- Date: 2014
- Language: English
- Type: Thesis , Doctoral , Doctor of Commerce (in Economics)
- Identifier: vital:11489 , http://hdl.handle.net/10353/d1018223
- Description: A widely held view is that export diversification constitutes an important component of export led growth, and poses a major challenge for many developing countries. Given this, the role of export diversification on economic growth warrants a fresh analysis in South Africa. The primary objective of this study is to determine the impact of export diversification on economic growth in South Africa. In this context, the study seeks to establish the relationship between export diversification, export stability and export growth. Initially, the study examines the extent and structure of export diversification in South Africa; it then empirically establishes the link between export diversification, export stability and export growth. Finally, it develops a model and investigates the effects of export diversification on economic growth in South Africa. As an attempt to fulfill the proposed objectives, this study uses quarterly data for the period 1980 to 2012 as well as data for 28 selected groups of commodities to investigate the effects of export diversification on economic growth in South Africa. Measures of export diversification and structural changes in exports in the context of South Africa were discussed. The findings of this study are that the Commodity Specific Cumulative Experience function showed that plots for manufactured commodities are shifted to the right indicating that the commodities are non-traditional in nature whereas, plots for primary commodities are shifted to the left. Results also indicated that South Africa relies more on traditional exports than manufactured exports. Various measures of export instability were used to calculate the export instability index in South Africa. The results of the study reveal that the South African export basket is slightly diversified, and the less diversified or primary commodities are associated with high instability VECM approach was used to allow us to establish the extent of influence of export diversification and other explanatory variables on economic growth. Consistent with other researchers, the study found that export diversification plays significant roles to economic growth in South Africa. A number of diagnostic checks were employed to validate the parameter evaluation of the outcomes achieved by the model. The model passed all the diagnostic checks. On the whole, the results to a larger extent painted a pictured that export diversification is important or drives economic growth in South Africa. Corroborating our findings with work of other scholars, we conclude that our results are complementary.
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- 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
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
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.
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- Date Issued: 2013
The impact of budget deficits on economic growth in South Africa
- Authors: Mrwebo, Luzuko T
- Date: 2013
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11481 , http://hdl.handle.net/10353/d1015284
- Description: The study examines the impact of budget deficits on economic growth in South Africa. The review of the results from theoretical and empirical studies has shown that budget deficits in the most have a negative impact on GDP growth. The Johansen cointegration test has shown evidence that there is cointegration between the GDP growth and its determinants. The tests indicated the presence of cointegration which led to the estimation of VECM. The measure for the long run relationship was between GDP growth and its determinants such as, budget deficits, domestic activities, government debt, and trade openness. The co-integration and vector error correction modelling techniques were applied to South African data between 1990 to 2012 period. This study at hand indicated that government budget deficits have a long run negative effect on economic growth, but the impact shown from the results of this study is very low.
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- Date Issued: 2013
The impact of stock market development on economic growth: evidence from South Africa
- Authors: Vacu, Nomfundo Portia
- Date: 2013
- Subjects: Stock exchanges -- South Africa , Economic development -- South Africa , Stocks -- Economic aspects -- South Africa , South Africa -- Economic conditions , Stock market development , Economic growth , South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11655 , http://hdl.handle.net/10353/d1006983 , Stock exchanges -- South Africa , Economic development -- South Africa , Stocks -- Economic aspects -- South Africa , South Africa -- Economic conditions , Stock market development , Economic growth , South Africa
- Description: The main objective of this study is to examine the long run relationship between stock market development and economic growth in the case of South Africa. The study used quarterly data covering the period from 1990Q1 to 2010Q4. To empirically test the link between the two variables, the study used the Johnson’s cointegration approach and Granger causality so as to test the direction of the relationship. The Vector Error Correction Model was also employed to capture both short run and long run dynamics. Generally, the results reveal that a long run relationship exists between the two variables and the causality flows from economic growth to stock market development. Also, the extent to which of stock market development impacts on growth is statistically weak.
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- Date Issued: 2013