The development of the stock market and its effect on economic growth: the case of SADC
- Authors: Elliott, Kevin Andrew
- Date: 2009
- Subjects: Stocks -- Africa, Southern , Stock exchanges -- Africa, Southern , Economic development -- Africa, Southern , Stocks -- Economic aspects -- Africa, Southern
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:967 , http://hdl.handle.net/10962/d1002701 , Stocks -- Africa, Southern , Stock exchanges -- Africa, Southern , Economic development -- Africa, Southern , Stocks -- Economic aspects -- Africa, Southern
- Description: Using a pooled panel data set from nine developing countries within the SADC region from 1992 to 2004, this paper empirically examines; firstly, the relationship between stock market development and long-term economic growth, and secondly, the macroeconomic determinants of stock market development, particularly market capitalisation as a percentage of GDP. The results suggest that there is a strong link between stock market development and economic growth, particularly through the liquidity provided by the market. The evidence obtained lends support to the view that a well-developed and functioning stock market can boost economic growth by enhancing faster capital accumulation and allowing for better resource allocation, particularly in developing countries. In terms of the macroeconomic determinants of stock market development, the results support those of Garcia and Liu (1999), in that we found the indicators of financial intermediary development, the value of shares traded as a percentage of GDP and the macroeconomic instability variable to be important determinants of stock market development.
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- Date Issued: 2009
The economic contribution of trout fly-fishing to the economy of the rhodes region
- Authors: Gatogang, Ballbo Patric
- Date: 2009
- Subjects: Trout fishing -- South Africa , Rainbow trout fisheries , Fishery management -- Economic aspects , Fishery management -- South Africa , Fly-fishing -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8991 , http://hdl.handle.net/10948/919 , Trout fishing -- South Africa , Rainbow trout fisheries , Fishery management -- Economic aspects , Fishery management -- South Africa , Fly-fishing -- South Africa
- Description: Approximately 24 alien fish species, equivalent to 9 percent of all South African freshwater fish species, were introduced and established into South African waters during the 19th and 20th Centuries (Skelton, 2001). Of the 24 species introduced, the Rainbow trout and the Brown trout have over time become South Africa's most widely spread and used freshwater fish species (Bainbridge, Alletson, Davies, Lax and Mills, 2005). The National Environmental Management: Biodiversity Act, no.10 of 2004 has, however, cast considerable doubt on the future of trout as a food source and a recreational fishing resource in South Africa. More specifically, Section 64 of the Act has the following aims: “(a) to prevent the unauthorized introduction and spread of alien species and invasive species to ecosystems and habitats where they do not naturally occur; (b) to manage and control alien species and invasive species to prevent or minimize harm to the environment and to biodiversity in particular; and (c) to eradicate alien species and invasive species from ecosystems and habitats where they may harm such ecosystems or habitats.” The uncertainty surrounding the future of trout in South Africa is mainly underpinned by aim (c) of Section 64 of the Act. Regarding the eradication of trout and in keeping with aim (c) of Section 64 of the Act, three remarks can be made. First, there exists a paucity of published studies which offer validated proof of the impacts which may be ascribed entirely to the introduction of alien trout in South Africa, since no pre-stocking assessments were conducted (Bainbridge et al., 2005). Second, the elimination of trout is feasible in a few limited closed ecosystems, such as small dams, but is highly impractical and untenable from an environmental and cost perspective where open and established river systems are concerned (Bainbridge et al., x 2005). More specifically, there are no efficient or adequate eradication measures which may be used in wide-ranging open ecosystems, which selectively target alien fish species. Moreover, most, if not all, measures have the potential to cause considerable adverse impacts on indigenous aquafaunal species. Finally, the elimination of trout could undermine the tourism appeal of many upper catchment areas in South Africa. The trout fishing industry is well established and is a source of local and foreign income, as well as a job creator in the South African economy (Bainbridge et al., 2005; Hlatswako, 2000; Rogerson, 2002). In particular, the industry provides a two-tier service: first, in food production at the subsistence as well as commercial levels, and second, as an angling resource. Recreational angling, including fly-fishing for trout, is one of the fastest growing tourism attractions in South Africa. Furthermore, the trout fishing industry is sustained and underpinned by a considerable infrastructure consisting of tackle manufacturers and retailers, tourist operators, professional guides, hotels, lodges and B&Bs. The economic case for the trout fishing industry in South Africa has, however, not been convincingly made. The economic benefit provided by trout and trout fly-fishing is priced directly in the market place by expenditures made by fly-fishers, and indirectly in property values, which provide access to fly-fishing opportunities. The benefit of trout and trout fly-fishing can also be valued through non-market valuation techniques. Non-market valuation is used to calculate values for items that are not traded in markets, such as environmental services. There are several non-market valuation methods available to the researcher, namely those based on revealed preference and those based on stated preference. The former includes the hedonic pricing method and the travel cost method, while the latter includes the contingent valuation method and the choice modelling method. Of the available non-market valuation techniques, the travel cost method is the most suitable method for determining the value of trout and the trout fishing industry because travel cost is often the main expenditure incurred. xi The aim of this study is threefold: first, to value the economic contribution of trout and trout fly-fishing to the Rhodes region, North Eastern Cape; second, to determine the willingness-to-pay for a project that entails the rehabilitation and maintenance of trout streams and rivers in and around Rhodes village so as to increase their trout carrying capacity by 10 percent; third, to determine the willingness-to-pay for a project aimed at eradicating trout from streams and rivers in and around Rhodes village so as to prevent trout from harming the indigenous yellowfish habitat. The first aim was achieved by applying the travel cost method, whereas the second and third aims were achieved by applying the contingent valuation method. The study aimed to provide policy makers with information regarding the value of trout fishing in the Rhodes region, so as to create an awareness of the economic trade-offs associated with alien fish eradication. Through the application of the travel cost method, the consumer surplus per trout fly-fishermen was estimated to be R19 677.69, while the total consumer surplus was estimated to be R13 774 384.40. The median willingness-to-pay for a project to rehabilitate trout habitat was estimated to be R248.95, while the total willingness-to-pay amounted to R199 462.20. The median willingness-to-pay for a project to eradicate alien trout from the Rhodes region rivers and streams was estimated to be R41.18, while the total willingness-to-pay amounted to R28 829.36. This study concludes that trout and trout fly-fishing make a valuable economic contribution to the Rhodes region. The extent of the economic benefit provided by trout and trout fly-fishing services in the Rhodes region should be carefully considered in any stream management project.
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- Date Issued: 2009
The impact of macroeconomic and financial factors on the performance of the housing property market in South Africa
- Authors: Kwangware, Debra
- Date: 2009
- Subjects: Microeconomics , Housing -- South Africa , Housing -- Prices -- South Africa , Real property -- South Africa , Interest rates -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1042 , http://hdl.handle.net/10962/d1005641 , Microeconomics , Housing -- South Africa , Housing -- Prices -- South Africa , Real property -- South Africa , Interest rates -- South Africa , Foreign exchange rates -- South Africa
- Description: This study exammes the impact of macroeconomic and financial variables on the performance of the housing property market in South Africa using monthly data for the period January 1996 to June 2008. Orthogonalised and non-orthogonalised house price returns and real estate returns are utilised as proxies for the housing property market in separate models. Three main issues were empirically analysed in relation to the linkage between selected variables and the housing property market. The first aspect examined the relationship between selected macroeconomic and financial factors and property returns. Secondly, the study examined the influence that a unit shock to each variable has on property returns over a period of time. The third aspect focused on determining the proportion of property returns variation that results from changes in the macroeconomic and financial variables. VAR modelling was thus adopted to empirically analyse these three aspects. The results reveal that house price returns are influenced by most of the macroeconomic and financial variables used in this study. Specifically, the real effective exchange rate, interest rate spread and manufacturing production positively impact on house price returns while the domestic interest rate, the dividend yield and expected inflation have a negative effect. Furthermore, manufacturing production has a lagged effect on house price returns while the real effective exchange rate and domestic interest rate have a contemporaneous effect. Real estate returns are not influenced by most of the variables except for the domestic interest rate and dividend yield which have a negative effect.
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- Date Issued: 2009
The implementation of the new capital accord (BASEL II) : a comparative study of South Africa, Switzerland, Brazil and the United States
- Authors: Makwiramiti, Anthony Munyaradzi
- Date: 2009
- Subjects: Basel II (2004) , Banks and banking, International , Banks and banking, International -- State supervision , Capital market -- Government policy , Bank capital , Banking law , Financial institutions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:983 , http://hdl.handle.net/10962/d1002717 , Basel II (2004) , Banks and banking, International , Banks and banking, International -- State supervision , Capital market -- Government policy , Bank capital , Banking law , Financial institutions
- Description: The international banking environment has become potentially riskier because of the recent developments in financial services and products which have changed the way banks do their day to day business. Imposing minimum capital adequacy regulations is one way of fostering stability in the global banking system. A number of countries have started to implement the new capital adequacy rules (Basel II) following the worldwide consensus among central bankers that bank‟s capital levels should be regulated to enhance global financial stability. In this study, through the comparative analysis of the general implementation issues it was established that emerging countries apply all Basel II rules uniformly across all the banking institutions that operate in their territories. Developed countries apply these rules only to large and internationally active banks and because of the diversity of their banking industries, they also apply domestically modified rules to the domestically based banks. For the successful implementation of Basel II, properly planning, devoting bank resources and making necessary legislative amendments are prerequisites for incorporating Basel II into the regulatory framework for any country. The study concludes that the current global financial turmoil continues to pose a threat to the effectiveness of the Basel II rules which are aimed at achieving global financial stability.
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- Date Issued: 2009
The relationship between accounting choices and share prices : a study of South African listed companies
- Authors: Bunting, Mark Bevan
- Date: 2009
- Subjects: Financial statements -- South Africa , Accounting -- South Africa , Managerial accounting -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:989 , http://hdl.handle.net/10962/d1002724 , Financial statements -- South Africa , Accounting -- South Africa , Managerial accounting -- South Africa
- Description: It is widely assumed that the managers of companies behave in a self-interested and opportunistic manner when making the discretionary accounting choices that are applied in the preparation of published financial reports. Empirical research has found evidence for this in the United States, Britain, Spain, France and Australia, amongst other countries. There has, however, been no prior work of a similar nature in a South African context. The purpose of this study is to extend this body of work by examining the relationship between a number of potentially opportunistic (profit-increasing, income-smoothing and solvencyimproving) accounting choices made by the managers of South African listed companies, and growth rates in the share prices of those companies. Data in respect of thirty-nine medium-sized South African listed companies are analysed for evidence of the expected positive relationship between opportunistic accounting choices and share price growth. No evidence is found for this relationship. This may be due to limitations in the research design, inadequacies in the interpretation of the agency theory from which the hypotheses are developed, or a combination of both. Refinements in the research design or a re-interpretation of the theory may be successful in addressing these matters as part of future research efforts.
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- Date Issued: 2009
Valuing preferences for freshwater inflows into five Eastern Cape and Kwazulu-Natal estuaries
- Authors: Chege, Jedidah
- Date: 2009
- Subjects: Estuarine ecology -- South Africa -- Eastern Cape , Estuarine ecology -- South Africa -- Kwazulu-Natal , Freshwater ecology -- South Africa -- Eastern Cape , Estuaries -- South Africa -- Eastern Cape , Estuaries -- Management -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8990 , http://hdl.handle.net/10948/932 , Estuarine ecology -- South Africa -- Eastern Cape , Estuarine ecology -- South Africa -- Kwazulu-Natal , Freshwater ecology -- South Africa -- Eastern Cape , Estuaries -- South Africa -- Eastern Cape , Estuaries -- Management -- South Africa
- Description: An estuary, according to the National Water Act of 1998, is a partially or fully enclosed body of water which is open periodically or permanently to the sea within which the sea water can be diluted, to an extent that is measurable with freshwater from inland. Estuaries and the lands surrounding them are places of transition from land to sea, and from freshwater to saltwater. Although influenced by the tides, estuaries are protected from the full force of ocean waves, winds, and storms by the reefs, barrier islands, or fingers of land, mud, or sand that surround them. South Africa’s estuaries are important and irreplaceable habitats, especially for prawns, fish, wading birds and mangroves. They are home to numerous plants and animals that live in water that is partly fresh and partly salty. Estuaries are also homes to growing coastal communities as increasing number of people occupy watersheds. However, estuaries are also threatened. One of the threats is reduced river water inflow. This study applies the contingent valuation method (CVM) to elicit user’s willingness to pay to mitigate the negative impacts of reduced freshwater inflow into selected five Eastern Cape and Kwazulu-Natal estuaries: the Sundays, Gamtoos, Mdloti, Mgeni and Mvoti estuaries. In addition to the contingent valuation method, the travel cost method was used to generate comparative values. The contingent valuation method is a technique to establish the value of a good (or service) that is not bought or sold in an actual market. The CVM establishes the economic value of the good by asking the users of an environmental good to state their willingness to pay (WTP) for a hypothetical project to prevent, or bring about, a change in the current condition of the environmental good. The users’ WTP is aggregated to establish a total willingness to pay (TWTP) for the population of the users of the environmental good.
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- Date Issued: 2009
Valuing preferences for freshwater inflows into selected Western and Southern Cape estuaries
- Authors: Akoto, William
- Date: 2009
- Subjects: Estuarine ecology -- South Africa , Freshwater ecology -- South Africa , Estuaries -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8992 , http://hdl.handle.net/10948/915 , Estuarine ecology -- South Africa , Freshwater ecology -- South Africa , Estuaries -- South Africa
- Description: An estuary is the last stage of a river. It is where the river meets the sea. Estuaries are one of the most significant features of the South African coastline. In recent years, South Africa has witnessed an increase in the demand for freshwater for both industrial and domestic purposes. At the same time, there has been a gradual deterioration of river systems and their catchments. To add to this, there has been a gradual reduction in the amount of recorded rainfall, which is the primary source of freshwater for rivers. This has resulted in decreased freshwater inflow into estuaries, a situation which poses a serious threat to the biological functioning of these estuaries and the services rendered to its recreational users. A deterioration of estuary services reduces the yield for subsistence households and their appeal for recration. This study uses the contingent valuation method as its primary methodology to elicit users' willingness-to-pay to reduce the negative impacts of reduced freshwater inflow into selected western and southern Cape estuaries. Eight estuaries were selected for this study; the Breede, Duiwenhoks, Great Berg, Kleinemond West, Mhlathuze, Swartvlei and Olifants estuaries. The contingent valuation (CV) method is widely used for studies of this nature because of its ability to capture active, passive and non-use values. The CV method involves directly asking people how much they would be willing to pay for specific environmental services. In this case, users were asked what they would be willing to pay to sustain freshwater inflows into selected estuaries in order to prevent the negative impacts of reduced inflows. The travel cost method (TCM) was uesed to generate an alternative comparative set of values for the purposes of convergence testing. This is because convergence testing is highly desirable as a validity test for CV estimates.
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- Date Issued: 2009