Investigating the link between government expenditure in tertiary education and income inequality in South Africa
- Authors: Mkhize, Ntlakanipho
- Date: 2024-04
- Subjects: Tax and expenditure limitations -- South Africa , Budget deficits -- South Africa , Education, Higher -- South Africa -- Finance
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/65186 , vital:74042
- Description: This study examines the relationship between government expenditure in tertiary education and income inequality in South Africa between 1990 and 2021. The autoregressive distributed lag (ARDL) method was used in analysing this association. The study indicates that government in tertiary education has an inverse relationship with income inequality in South Africa. The study is underpinned by the work of economists like Smith (1776), Schultz (1961), Mincer (1957), Barker (1964) and Kuznets (1955). This study employed the conventional unit root test, applying the augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) tests for stationarity. The results of this study show that there are both short and long run dynamics present in the estimated models. The Granger causality test found no causal relationship between government expenditure in higher education and income inequality. Following from this, this study recommends that the South African government continue to direct government spending towards higher education so as to reduce income inequality. , Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2024
- Full Text:
- Date Issued: 2024-04
- Authors: Mkhize, Ntlakanipho
- Date: 2024-04
- Subjects: Tax and expenditure limitations -- South Africa , Budget deficits -- South Africa , Education, Higher -- South Africa -- Finance
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/65186 , vital:74042
- Description: This study examines the relationship between government expenditure in tertiary education and income inequality in South Africa between 1990 and 2021. The autoregressive distributed lag (ARDL) method was used in analysing this association. The study indicates that government in tertiary education has an inverse relationship with income inequality in South Africa. The study is underpinned by the work of economists like Smith (1776), Schultz (1961), Mincer (1957), Barker (1964) and Kuznets (1955). This study employed the conventional unit root test, applying the augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) tests for stationarity. The results of this study show that there are both short and long run dynamics present in the estimated models. The Granger causality test found no causal relationship between government expenditure in higher education and income inequality. Following from this, this study recommends that the South African government continue to direct government spending towards higher education so as to reduce income inequality. , Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2024
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- Date Issued: 2024-04
The impact of underperforming state-owned enterprises on the South African economy
- Authors: Erasmus, Christopher
- Date: 2024-04
- Subjects: Government business enterprises , Government corporations , Budget deficits -- South Africa , Deficit financing -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/64951 , vital:73991
- Description: Problems have existed in South African SOEs for more than 80 years and in the more recent past, billions of rands in bailouts have begun to accumulate in an effort to revive struggling SOEs and consequently has placed the South African economy under immense fiscal strain. With the use of case study analysis, this study set out to determine the impact bailouts of underperforming SOEs are having on the budget deficit as well as government debt, with particular focus aimed at the contributions of Eskom and SAA. Thereafter, the study adopted a VAR framework and investigated if either the budget deficit or government debt share a relationship with economic growth based on data from 2000-2020. It was discovered that an alarming R331,206 billion has been given out in bailouts to underperforming SOEs over the past decade. As a result, SOEs have been identified by credit rating agencies, financial institutions such as the IMF and the National Treasury as posing one of the greatest threats to the fiscal outlook and a widening budget deficit. Results from the granger casualty tests only found evidence of unidirectional causality running from GDP to both the budget deficit and government debt, meaning there was no evidence to suggest that changes in the budget deficit and government debt influence GDP. The estimated VAR model also failed to find evidence of a statistically significant relationship existing between the budget deficit and GDP as well as government debt and GDP. These findings suggest that there is inconclusive evidence to suggest that underperforming SOEs do impact economic growth via the budget deficit and government debt. However, government expenditure was found to have a statistically significant and negative relationship with GDP which indicates that expenditure has been wasteful and is a reflection of the impact bailouts have on economic growth when considering the significant amount of expenditure directed towards SOEs over the past two decades. , Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2024
- Full Text:
- Date Issued: 2024-04
- Authors: Erasmus, Christopher
- Date: 2024-04
- Subjects: Government business enterprises , Government corporations , Budget deficits -- South Africa , Deficit financing -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/64951 , vital:73991
- Description: Problems have existed in South African SOEs for more than 80 years and in the more recent past, billions of rands in bailouts have begun to accumulate in an effort to revive struggling SOEs and consequently has placed the South African economy under immense fiscal strain. With the use of case study analysis, this study set out to determine the impact bailouts of underperforming SOEs are having on the budget deficit as well as government debt, with particular focus aimed at the contributions of Eskom and SAA. Thereafter, the study adopted a VAR framework and investigated if either the budget deficit or government debt share a relationship with economic growth based on data from 2000-2020. It was discovered that an alarming R331,206 billion has been given out in bailouts to underperforming SOEs over the past decade. As a result, SOEs have been identified by credit rating agencies, financial institutions such as the IMF and the National Treasury as posing one of the greatest threats to the fiscal outlook and a widening budget deficit. Results from the granger casualty tests only found evidence of unidirectional causality running from GDP to both the budget deficit and government debt, meaning there was no evidence to suggest that changes in the budget deficit and government debt influence GDP. The estimated VAR model also failed to find evidence of a statistically significant relationship existing between the budget deficit and GDP as well as government debt and GDP. These findings suggest that there is inconclusive evidence to suggest that underperforming SOEs do impact economic growth via the budget deficit and government debt. However, government expenditure was found to have a statistically significant and negative relationship with GDP which indicates that expenditure has been wasteful and is a reflection of the impact bailouts have on economic growth when considering the significant amount of expenditure directed towards SOEs over the past two decades. , Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2024
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- Date Issued: 2024-04
Testing the applicability of the Twin deficits and the Ricardian equivalence hypotheses in South Africa
- Authors: Makua, Khutso Baltimore
- Date: 2021-04
- Subjects: Budget deficits -- South Africa , South Africa -- Economic conditions , Economics
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51831 , vital:43376
- Description: This study investigates the applicability of the twin deficit and Ricardian equivalence hypotheses in South Africa by exploring the relationship between budget deficits and current account deficits for the period 1990-2020 in South Africa. The reviewed theoretical and empirical literature has shown the results of this relationship to be mixed, depending on the region in review and the policy regime in some instances. The Johansen cointegration test was used because it has advantage over the Engle-Granger over the number of cointegrating relationships they both test. Compared to Engle-Granger, Johansen cointegration allows for more than one cointegrating relationship. The test show evidence that there is cointegration between current account deficits, budget deficits and other explanatory variables. The tests indicated the presence of cointegration which led to the estimation of VECM. Co-integration and vector error correction modelling techniques were applied to South African data between 1990 to 2020 period. The study at hand indicated that government budget deficits have a long run negative effect on current account deficits, but Granger causality failed to prove the direction of causality between the main variables, current account deficits and current account deficits. Therefore, the study concluded that the twin deficits hypothesis is not applicable in South Africa and revealed that South Africa is a Ricardian economy as Granger causality could not establish that budget deficits cause current account deficits. , Thesis (MCom) -- Faculty of Business and Economic Sciences, Economics, 2021
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- Date Issued: 2021-04
- Authors: Makua, Khutso Baltimore
- Date: 2021-04
- Subjects: Budget deficits -- South Africa , South Africa -- Economic conditions , Economics
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51831 , vital:43376
- Description: This study investigates the applicability of the twin deficit and Ricardian equivalence hypotheses in South Africa by exploring the relationship between budget deficits and current account deficits for the period 1990-2020 in South Africa. The reviewed theoretical and empirical literature has shown the results of this relationship to be mixed, depending on the region in review and the policy regime in some instances. The Johansen cointegration test was used because it has advantage over the Engle-Granger over the number of cointegrating relationships they both test. Compared to Engle-Granger, Johansen cointegration allows for more than one cointegrating relationship. The test show evidence that there is cointegration between current account deficits, budget deficits and other explanatory variables. The tests indicated the presence of cointegration which led to the estimation of VECM. Co-integration and vector error correction modelling techniques were applied to South African data between 1990 to 2020 period. The study at hand indicated that government budget deficits have a long run negative effect on current account deficits, but Granger causality failed to prove the direction of causality between the main variables, current account deficits and current account deficits. Therefore, the study concluded that the twin deficits hypothesis is not applicable in South Africa and revealed that South Africa is a Ricardian economy as Granger causality could not establish that budget deficits cause current account deficits. , Thesis (MCom) -- Faculty of Business and Economic Sciences, Economics, 2021
- Full Text:
- Date Issued: 2021-04
Accountability deficits in local government in South Africa: implications for social and economic development
- Authors: Sepogwane, Pheladi
- Date: 2019
- Subjects: Budget deficits -- South Africa , Local government -- South Africa Local government -- South Africa -- Evaluation South Africa -- Economic conditions Economic development
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/43424 , vital:36879
- Description: Local government faces require that spheres of government provide accountable, effective, transparent, and good governance. Yet local government face challenges that compel a need for mechanisms that will improve the accountability and effective management of municipal resources. There have been concerns among scholars that development is not being coordinated by an evenly powerful formation of fitting accountability regimes (Abata, 2012; Adenuga, 2013). For this reason, the study aims to investigate to what degree and how trends towards local government policymaking and implementation have been matched by correspondent changes and innovations in accountability regimes and practices. In keeping with the distinctions made above, it undertakes research on accountability practices in two domains of politics. It entails a systematic comparative empirical research on accountability regimes surrounding: the municipal mayors, committees and managers in regular policymaking, implementation and crisis management; evaluating the effectiveness of accountability regimes as catalysts of development programmes. The Researcher observed growing concerns on the issues of accountability. Hence an exploratory study on the issue based on qualitative research methodology was undertaken. The method of research is comprised of a case study, observation and interviews that were conducted. The accountability systems that were examined include the political, bureaucratic and professional accountability systems. Yet the two accountability mechanisms that were designed highlight the challenges in the dominance, abuse of powers, non-compliance with the code of conduct, the lack of exemplary behaviour and accountability deficits. The major conclusion that is drawn from the research study is that a multi-dimensional is required to ensure effective accountability systems in municipalities. The recommendations include the enforcement of the legal instruments, codes of conduct; the impartial prosecution of violators; implementing effective policies on training and personnel management and encouraging associations and stakeholders to play a catalytic role in enforcing accountability in municipalities.
- Full Text:
- Date Issued: 2019
- Authors: Sepogwane, Pheladi
- Date: 2019
- Subjects: Budget deficits -- South Africa , Local government -- South Africa Local government -- South Africa -- Evaluation South Africa -- Economic conditions Economic development
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/43424 , vital:36879
- Description: Local government faces require that spheres of government provide accountable, effective, transparent, and good governance. Yet local government face challenges that compel a need for mechanisms that will improve the accountability and effective management of municipal resources. There have been concerns among scholars that development is not being coordinated by an evenly powerful formation of fitting accountability regimes (Abata, 2012; Adenuga, 2013). For this reason, the study aims to investigate to what degree and how trends towards local government policymaking and implementation have been matched by correspondent changes and innovations in accountability regimes and practices. In keeping with the distinctions made above, it undertakes research on accountability practices in two domains of politics. It entails a systematic comparative empirical research on accountability regimes surrounding: the municipal mayors, committees and managers in regular policymaking, implementation and crisis management; evaluating the effectiveness of accountability regimes as catalysts of development programmes. The Researcher observed growing concerns on the issues of accountability. Hence an exploratory study on the issue based on qualitative research methodology was undertaken. The method of research is comprised of a case study, observation and interviews that were conducted. The accountability systems that were examined include the political, bureaucratic and professional accountability systems. Yet the two accountability mechanisms that were designed highlight the challenges in the dominance, abuse of powers, non-compliance with the code of conduct, the lack of exemplary behaviour and accountability deficits. The major conclusion that is drawn from the research study is that a multi-dimensional is required to ensure effective accountability systems in municipalities. The recommendations include the enforcement of the legal instruments, codes of conduct; the impartial prosecution of violators; implementing effective policies on training and personnel management and encouraging associations and stakeholders to play a catalytic role in enforcing accountability in municipalities.
- Full Text:
- Date Issued: 2019
The impact of a budget deficit on transport infrastructure investment in South Africa
- Authors: Nanto, Aphiwe
- Date: 2013
- Subjects: Budget deficits -- South Africa , Infrastructure (Economics) -- South Africa , Transportation -- South Africa , Debts, Public -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11478 , http://hdl.handle.net/10353/d1015245 , Budget deficits -- South Africa , Infrastructure (Economics) -- South Africa , Transportation -- South Africa , Debts, Public -- South Africa
- Description: Persistent government budget deficits and government debt have become major concerns in both developed and developing countries. This study investigates the impact of a budget deficit on transport infrastructure investment in South Africa. Quarterly time series data, covering the period 1990q1- 2009q4, was used in this project. The study tests for stationarity using the Augmented Dickey- Fuller and Phillips Perron; it tests for cointegration using the Johansen (1991, 1995) methodology. A vector error correction model is used as an estimation technique. The results of this study show that a budget deficit has a negative impact on transport infrastructure investment in South Africa.
- Full Text:
- Date Issued: 2013
- Authors: Nanto, Aphiwe
- Date: 2013
- Subjects: Budget deficits -- South Africa , Infrastructure (Economics) -- South Africa , Transportation -- South Africa , Debts, Public -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11478 , http://hdl.handle.net/10353/d1015245 , Budget deficits -- South Africa , Infrastructure (Economics) -- South Africa , Transportation -- South Africa , Debts, Public -- South Africa
- Description: Persistent government budget deficits and government debt have become major concerns in both developed and developing countries. This study investigates the impact of a budget deficit on transport infrastructure investment in South Africa. Quarterly time series data, covering the period 1990q1- 2009q4, was used in this project. The study tests for stationarity using the Augmented Dickey- Fuller and Phillips Perron; it tests for cointegration using the Johansen (1991, 1995) methodology. A vector error correction model is used as an estimation technique. The results of this study show that a budget deficit has a negative impact on transport infrastructure investment in South Africa.
- Full Text:
- Date Issued: 2013
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
- Full Text:
- Date Issued: 2011
- 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
- Full Text:
- Date Issued: 2011
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