Trade openness, economic growth, income inequality and poverty nexus in SADC countries: 1980-2019
- Gonese, Dorcas https://orcid.org/0000-0003-0774-024X
- 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
- Full Text:
- Date Issued: 2022-01
- 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
- Full Text:
- Date Issued: 2022-01
Effects of non-communicable diseases on labour market outcomes in South Africa
- Lawana, Nozuko https://orcid.org/0000-0003-0027-4725
- 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
- Full Text:
- Date Issued: 2020-12
- 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
- Full Text:
- Date Issued: 2020-12
Social intrepreneurship and millennium development goals in developing countries: case study of Zimbabwe
- Ngorora, Grace P K https://orcid.org/0000-0003-4756-313
- 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
- Full Text:
- Date Issued: 2014-11
- 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
- Full Text:
- Date Issued: 2014-11
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