Budget Deficits, the Savings Gap and Current Account Deficits in the Southern African Development Community
- Authors: Kopeledi, Alyssa
- Date: 2020
- Subjects: Budget deficits -- South Africa Accounts current
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/12392 , vital:39259
- Description: This study examines the validity of the triple deficit hypothesis for a selected number of SADC countries, utilising secondary annual data for the period 1996-2018. Based on previous studies and theory, current account deficit was chosen as the dependent variable and budget deficit and the savings gap as the independent variables. The study makes use of both first generation and second-generation unit root tests to examine the time series properties of the data. The empirical results show that the data is integrated of different orders. Kao, Pedroni and Westerlund cointegration tests were carried out to examine the long-term relationship between the variables of interest. The empirical results revealed that there is a long-term relationship between current account deficit, budget deficit s and the savings gap. The long-run model under the Autoregressive Distributed Lag test revealed that, a positive and significant relationship exists between budget deficit and current account deficit at a significance level of 10% and a negative and insignificant relationship exists between savings gap and current account deficit in the long run. This suggests that an improvement in the current account balance in SADC countries requires fiscal stringency
- Full Text:
- Date Issued: 2020
- Authors: Kopeledi, Alyssa
- Date: 2020
- Subjects: Budget deficits -- South Africa Accounts current
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/12392 , vital:39259
- Description: This study examines the validity of the triple deficit hypothesis for a selected number of SADC countries, utilising secondary annual data for the period 1996-2018. Based on previous studies and theory, current account deficit was chosen as the dependent variable and budget deficit and the savings gap as the independent variables. The study makes use of both first generation and second-generation unit root tests to examine the time series properties of the data. The empirical results show that the data is integrated of different orders. Kao, Pedroni and Westerlund cointegration tests were carried out to examine the long-term relationship between the variables of interest. The empirical results revealed that there is a long-term relationship between current account deficit, budget deficit s and the savings gap. The long-run model under the Autoregressive Distributed Lag test revealed that, a positive and significant relationship exists between budget deficit and current account deficit at a significance level of 10% and a negative and insignificant relationship exists between savings gap and current account deficit in the long run. This suggests that an improvement in the current account balance in SADC countries requires fiscal stringency
- Full Text:
- Date Issued: 2020
Human capital Development and Economic Growth: A cross country study
- Authors: Sokanti, Thembalethu
- Date: 2020
- Subjects: Economic development Human capital
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/18985 , vital:43005
- Description: The study examined the impact of human capital development on economic growth for 129 countries comprising of developed and developing countries. The primary focus of the study is on examining the contribution of human capital index components on economic growth for the period 2014 to 2017. The panel data model was employed in the study. Firstly, the hausman test was used to determine the suitable method between fixed and random effects. The fixed effects model was selected as the best panel econometric technique to be used in the study. The empirical results showed that there is a positive and statistically significant relationship between human capital index components (capacity, development, deployment and know how) and economic growth. The study also found that these components of human capital index have more impact on economic growth when they are interacted together based on theories of human capital and economic growth. Capacity and development are found to be the best contributors to economic growth for all the regions; thus, the study recommends that for economic growth to be increased, countries should invest more of their funds on capacity and development sub- indexes of human capital index. Exchange rates and inflation are found to have a negative relationship with the economic growth, while interest rates are found to have a positive and statistical relationship with the economic growth. The study also found out that there is a regional effect associated with human capital development, with European region being the best contributor to GDP. The components of human capital index also found to be important for all regions to invest on to improve economic performance. Deployment is found not to be significant is Sub-Saharan Africa. The existence of income group effect is found with developed countries performing much better compared to developing countries. The study also recommended that countries should invest more of their wealth in human capital development components such as education and health to enhance their economic growth
- Full Text:
- Date Issued: 2020
- Authors: Sokanti, Thembalethu
- Date: 2020
- Subjects: Economic development Human capital
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/18985 , vital:43005
- Description: The study examined the impact of human capital development on economic growth for 129 countries comprising of developed and developing countries. The primary focus of the study is on examining the contribution of human capital index components on economic growth for the period 2014 to 2017. The panel data model was employed in the study. Firstly, the hausman test was used to determine the suitable method between fixed and random effects. The fixed effects model was selected as the best panel econometric technique to be used in the study. The empirical results showed that there is a positive and statistically significant relationship between human capital index components (capacity, development, deployment and know how) and economic growth. The study also found that these components of human capital index have more impact on economic growth when they are interacted together based on theories of human capital and economic growth. Capacity and development are found to be the best contributors to economic growth for all the regions; thus, the study recommends that for economic growth to be increased, countries should invest more of their funds on capacity and development sub- indexes of human capital index. Exchange rates and inflation are found to have a negative relationship with the economic growth, while interest rates are found to have a positive and statistical relationship with the economic growth. The study also found out that there is a regional effect associated with human capital development, with European region being the best contributor to GDP. The components of human capital index also found to be important for all regions to invest on to improve economic performance. Deployment is found not to be significant is Sub-Saharan Africa. The existence of income group effect is found with developed countries performing much better compared to developing countries. The study also recommended that countries should invest more of their wealth in human capital development components such as education and health to enhance their economic growth
- Full Text:
- Date Issued: 2020
The Effect of Household Income on Public Transport Demand in South Africa
- Authors: Moss, Vuyokazi
- Date: 2020
- Subjects: Low-income housing -- South Africa Local transit -- South Africa -- Finance
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/12469 , vital:39266
- Description: High transport expenditure by the low-income households has for a long time been a problem in South Africa. This expenditure consumes a big proportion of their income which limits these households’ accessibility to basic services such as health services, employment opportunities and education. Therefore, the study reviewed the effect of household income on public transport demand in South Africa. The aim of the study was to investigate the determinants of public transport demand, through specifically investigating the impact household income has on public transport demand. This study adopted the quantitative approach. The analysis was based on data from the 2017 General Household Survey. Descriptive analysis was conducted to address the objectives of the study. The Probit model was utilised in establishing the relationship between mode choice and household income. The results indicated that household income has a negative effect on public transport demand. The distance to means of transport has a negative relationship on public transport demand, indicating that accessibility plays a significant role in the demand for public transport. The location of a household significantly affects the demand for public transport, more so in peri- urban and rural-farm areas where low-income households reside. Furthermore, variables such as age, social grants and the economically active individuals presented a positive relationship with public transport as a modal choice. Individuals with some form of disability indicated statistical insignificance. The study recommended that, a properly planned coordination of current and new policies for the development of urban planning could be more practical in improving the high transport expenditure through affordability measures by low-income households in South Africa. Furthermore, these spatially targeted developments will enable increases in the accessibility of affordable public transport modes in the peri- urban areas which in turn will manage these high transport expenditures.
- Full Text:
- Date Issued: 2020
- Authors: Moss, Vuyokazi
- Date: 2020
- Subjects: Low-income housing -- South Africa Local transit -- South Africa -- Finance
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/12469 , vital:39266
- Description: High transport expenditure by the low-income households has for a long time been a problem in South Africa. This expenditure consumes a big proportion of their income which limits these households’ accessibility to basic services such as health services, employment opportunities and education. Therefore, the study reviewed the effect of household income on public transport demand in South Africa. The aim of the study was to investigate the determinants of public transport demand, through specifically investigating the impact household income has on public transport demand. This study adopted the quantitative approach. The analysis was based on data from the 2017 General Household Survey. Descriptive analysis was conducted to address the objectives of the study. The Probit model was utilised in establishing the relationship between mode choice and household income. The results indicated that household income has a negative effect on public transport demand. The distance to means of transport has a negative relationship on public transport demand, indicating that accessibility plays a significant role in the demand for public transport. The location of a household significantly affects the demand for public transport, more so in peri- urban and rural-farm areas where low-income households reside. Furthermore, variables such as age, social grants and the economically active individuals presented a positive relationship with public transport as a modal choice. Individuals with some form of disability indicated statistical insignificance. The study recommended that, a properly planned coordination of current and new policies for the development of urban planning could be more practical in improving the high transport expenditure through affordability measures by low-income households in South Africa. Furthermore, these spatially targeted developments will enable increases in the accessibility of affordable public transport modes in the peri- urban areas which in turn will manage these high transport expenditures.
- Full Text:
- Date Issued: 2020
Adoption and risk of mobile financial services: a case of some selected municipalities in Eastern Cape Province
- Authors: Aderibigbe, Ifeoluwa A.I
- Date: 2019
- Subjects: Mobile commerce Finance
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13281 , vital:39630
- Description: The study investigated risk and adoption of mobile financial services among some users in selected municipalities within the Eastern Cape Province, using the theory of reason action, technology acceptance model and the theory of expected utility and risk aversion to explain the variables. Moreover, the explanatory research design and quantitative data collection approach formed the methodology adopted in the study. In addition, a validated semistructured interview questionnaire was used as a research instrument in the study. The multistage, stratify, purposive and convenience sampling techniques were applied to select 6 research sites and 386 research participants for the study. Three research objectives were stated and tested using descriptive, Principal Component Analysis (PCA) to profile the risk and logit regression statistics. The results of statistical analysis show different level of cross tabulation between MFS and education level, all the 6 different locations, individual age range, job type, and average income of individual. Analysis revealed that age and income level of individuals have the highest relationship with the use of MFS. The statistical analysis used was the logistic regression. Pool of effort of all the stake holders in financial services sector should focus on including the low income earners and the technology should be simple enough for the use of the older generation.
- Full Text:
- Date Issued: 2019
- Authors: Aderibigbe, Ifeoluwa A.I
- Date: 2019
- Subjects: Mobile commerce Finance
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13281 , vital:39630
- Description: The study investigated risk and adoption of mobile financial services among some users in selected municipalities within the Eastern Cape Province, using the theory of reason action, technology acceptance model and the theory of expected utility and risk aversion to explain the variables. Moreover, the explanatory research design and quantitative data collection approach formed the methodology adopted in the study. In addition, a validated semistructured interview questionnaire was used as a research instrument in the study. The multistage, stratify, purposive and convenience sampling techniques were applied to select 6 research sites and 386 research participants for the study. Three research objectives were stated and tested using descriptive, Principal Component Analysis (PCA) to profile the risk and logit regression statistics. The results of statistical analysis show different level of cross tabulation between MFS and education level, all the 6 different locations, individual age range, job type, and average income of individual. Analysis revealed that age and income level of individuals have the highest relationship with the use of MFS. The statistical analysis used was the logistic regression. Pool of effort of all the stake holders in financial services sector should focus on including the low income earners and the technology should be simple enough for the use of the older generation.
- Full Text:
- Date Issued: 2019
Financial development, income inequality and poverty: case of a selected SADC countries
- Authors: Leve, Samkele
- Date: 2019
- Subjects: Finance Economic development Income distribution
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/16918 , vital:40785
- Description: The financial sector plays a pivotal role in an economy of a country; hence the importance of financial development cannot be underestimated. Financial development is widely regarded as another conduit through which income inequality and poverty can be alleviated, however both theoretical and empirical literature does not reach consensus on the effect of financial development on income inequality and poverty. Against this background, the study empirically examines the effect of financial development on income inequality and poverty in selected Southern African Development Community (SADC) countries, employing the Generalised Method of Moments (GMM) technique for the period 1980 to 2011. Based on the inequalitydecreasing and Mckinnon Conduit effect, two models which link financial sector development and inequality and financial sector development and poverty were estimated using five different dimensions of financial development. Empirical results revealed that financial development overall does have an impact on income inequality and poverty in the selected SADC countries. An interesting observation from the empirical results is that the actual dimension of financial development plays a significant role in determining the relationship between financial development, income inequality and poverty in the SADC region. The impact of financial depth on poverty is not obvious in the study, depending on the variable used. On the relationship between financial system stability, income inequality and poverty, results reveal that a stable financial system is beneficial to the poor. Financial efficiency does not appear to have a significant role in reducing income inequality and poverty in the selected SADC countries. Overall, the findings from the study indicate that financial access or financial inclusion and financial stability is what reduces poverty instead of mere financial sector development at a broader level.
- Full Text:
- Date Issued: 2019
- Authors: Leve, Samkele
- Date: 2019
- Subjects: Finance Economic development Income distribution
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/16918 , vital:40785
- Description: The financial sector plays a pivotal role in an economy of a country; hence the importance of financial development cannot be underestimated. Financial development is widely regarded as another conduit through which income inequality and poverty can be alleviated, however both theoretical and empirical literature does not reach consensus on the effect of financial development on income inequality and poverty. Against this background, the study empirically examines the effect of financial development on income inequality and poverty in selected Southern African Development Community (SADC) countries, employing the Generalised Method of Moments (GMM) technique for the period 1980 to 2011. Based on the inequalitydecreasing and Mckinnon Conduit effect, two models which link financial sector development and inequality and financial sector development and poverty were estimated using five different dimensions of financial development. Empirical results revealed that financial development overall does have an impact on income inequality and poverty in the selected SADC countries. An interesting observation from the empirical results is that the actual dimension of financial development plays a significant role in determining the relationship between financial development, income inequality and poverty in the SADC region. The impact of financial depth on poverty is not obvious in the study, depending on the variable used. On the relationship between financial system stability, income inequality and poverty, results reveal that a stable financial system is beneficial to the poor. Financial efficiency does not appear to have a significant role in reducing income inequality and poverty in the selected SADC countries. Overall, the findings from the study indicate that financial access or financial inclusion and financial stability is what reduces poverty instead of mere financial sector development at a broader level.
- Full Text:
- Date Issued: 2019
Public health expenditure and economic development: the case of South Africa
- Authors: Hlotywa, Anathi
- Date: 2019
- Subjects: Public health -- South Africa -- Finance Public health -- Economic aspects -- South Africa Medical economics
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13491 , vital:39673
- Description: Literature shows that there is a relationship between health expenditure and a country’s level of development. The labour productivity depends on health and the level of education of the employees. Given this background, the study’s main objective was to examine the impact of public healthcare expenditure on economic development in South Africa for the period 1996- 2016 utilising the Autoregressive Distributed lag Model. The empirical results show that there is a positive relationship between Public Health Expenditure and Human development Index. This shows that an increase in government expenditure on health increases economic development in South Africa. The results are consistent with other previous studies such as Wang (2015) and Riayati and Unaidah (2016). The study recommends that the government should increase public health expenditure. This will increase economic development. The government can do this by building hospitals and rolling out more funds to improve the healthcare in South Africa. The study also recommends that the government should reduce unemployment. Unemployment has been seen to have an undesirable impact on economic development
- Full Text:
- Date Issued: 2019
- Authors: Hlotywa, Anathi
- Date: 2019
- Subjects: Public health -- South Africa -- Finance Public health -- Economic aspects -- South Africa Medical economics
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13491 , vital:39673
- Description: Literature shows that there is a relationship between health expenditure and a country’s level of development. The labour productivity depends on health and the level of education of the employees. Given this background, the study’s main objective was to examine the impact of public healthcare expenditure on economic development in South Africa for the period 1996- 2016 utilising the Autoregressive Distributed lag Model. The empirical results show that there is a positive relationship between Public Health Expenditure and Human development Index. This shows that an increase in government expenditure on health increases economic development in South Africa. The results are consistent with other previous studies such as Wang (2015) and Riayati and Unaidah (2016). The study recommends that the government should increase public health expenditure. This will increase economic development. The government can do this by building hospitals and rolling out more funds to improve the healthcare in South Africa. The study also recommends that the government should reduce unemployment. Unemployment has been seen to have an undesirable impact on economic development
- Full Text:
- Date Issued: 2019
Regional Financial Integration and Financial Sector Development in the Southern African Development Community
- Authors: Ntlemeza, Lwando
- Date: 2019
- Subjects: Integrating national economies
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13870 , vital:39720
- Description: Regional financial integration (RFI) is perceived as the other avenue through which the financial sector of member countries can develop given the vast benefits which associated with it. These benefits include mobilization and allocation of efficient resources to productive sectors within the region which plays a very important role in the development process. Given this background, the study examines how regional financial integration promotes financial sector development in the SADC region utilizing the panel data model for the period 1996 to 2015. The empirical results revealed that regional financial integration does have an impact on the financial sector development in the member countries in the region. Furthermore, the results showed that regional financial integration require a certain degree of institutional quality for RFI benefits to accrue. The empirical results imply that the countries in the SADC region should pursue regional financial integration. This can be achieved through commitment by all authorities in the region. There should be a firm commitment to broader economic integration and building on existing networks and build the necessary infrastructure.
- Full Text:
- Date Issued: 2019
- Authors: Ntlemeza, Lwando
- Date: 2019
- Subjects: Integrating national economies
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13870 , vital:39720
- Description: Regional financial integration (RFI) is perceived as the other avenue through which the financial sector of member countries can develop given the vast benefits which associated with it. These benefits include mobilization and allocation of efficient resources to productive sectors within the region which plays a very important role in the development process. Given this background, the study examines how regional financial integration promotes financial sector development in the SADC region utilizing the panel data model for the period 1996 to 2015. The empirical results revealed that regional financial integration does have an impact on the financial sector development in the member countries in the region. Furthermore, the results showed that regional financial integration require a certain degree of institutional quality for RFI benefits to accrue. The empirical results imply that the countries in the SADC region should pursue regional financial integration. This can be achieved through commitment by all authorities in the region. There should be a firm commitment to broader economic integration and building on existing networks and build the necessary infrastructure.
- Full Text:
- Date Issued: 2019
Teacher practices and human capital acquisition: evidence from the international association for evaluation of educational achievement
- Authors: Tsikai,Epiphania
- Date: 2019
- Subjects: Human capital Academic achievement
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/17011 , vital:40811
- Description: Human capital is considered as the measure of education, skills, capacity and attributes of labour which impact people’s productive capacity and earning potential. The study used mathematics student academic performance as a proxy to measure human capital across countries using the Trends in International Mathematics and Science study (TIMSS) dataset. African countries participating in TIMSS are performing poorly as they are always at the bottom. The budget allocation of African countries is more than that of Asian countries, but the student outcomes do not correlate with the input. This is so disappointing considering the amount of money the governments invest in the education sectors. The study investigated teacher practices and human capital acquisition in four African countries that participated in TIMSS from 2007 to 2015. The four countries were South Africa, Botswana, Egypt and Morocco. In addition, the study included the best performing countries from East Asia that also participated in TIMSS. These four countries were Singapore, South Korea, Japan and Hong Kong Sar. The best performing countries were included in the analysis in order to determine best practice from the best performing countries. Using Stata 14, pooled OLS cross sections methodology was used to generate results on whether teacher practices influence students’ mathematics achievement by using grade 8 test scores per country, student and teacher background. The study found that some teacher practices significantly explain academic performance in mathematics especially in African countries whilst socio economic status significantly affect performance across all the countries. Future research will investigate some other measures that can promote good performance of mathematics in African countries.
- Full Text:
- Date Issued: 2019
- Authors: Tsikai,Epiphania
- Date: 2019
- Subjects: Human capital Academic achievement
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/17011 , vital:40811
- Description: Human capital is considered as the measure of education, skills, capacity and attributes of labour which impact people’s productive capacity and earning potential. The study used mathematics student academic performance as a proxy to measure human capital across countries using the Trends in International Mathematics and Science study (TIMSS) dataset. African countries participating in TIMSS are performing poorly as they are always at the bottom. The budget allocation of African countries is more than that of Asian countries, but the student outcomes do not correlate with the input. This is so disappointing considering the amount of money the governments invest in the education sectors. The study investigated teacher practices and human capital acquisition in four African countries that participated in TIMSS from 2007 to 2015. The four countries were South Africa, Botswana, Egypt and Morocco. In addition, the study included the best performing countries from East Asia that also participated in TIMSS. These four countries were Singapore, South Korea, Japan and Hong Kong Sar. The best performing countries were included in the analysis in order to determine best practice from the best performing countries. Using Stata 14, pooled OLS cross sections methodology was used to generate results on whether teacher practices influence students’ mathematics achievement by using grade 8 test scores per country, student and teacher background. The study found that some teacher practices significantly explain academic performance in mathematics especially in African countries whilst socio economic status significantly affect performance across all the countries. Future research will investigate some other measures that can promote good performance of mathematics in African countries.
- Full Text:
- Date Issued: 2019
The Impact of capital structure on performance of banks in South Africa
- Authors: Jiza, Andiswa Abongile
- Date: 2019
- Subjects: Banks and banking Capital management and capital structure
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/16895 , vital:40783
- Description: The study examined the relationship between capital structure and bank performance in South Africa using five small banks and the two big banks from 2002-2017. Fixed effects model, Pooled and the random effects model were utilised to test the relationship between capital structure and bank performance. Return on assets and the earnings per share were used as a measure for financial performance while the debt to equity ratio and the debt to assets ratio were used as proxies for capital structure. The results show that there is a negative significant relationship between return on assets and the two capital structure measures meaning that higher leverage ratios lead to lower profits measured by return on assets. while there is a negative significant relationship between earnings per share and the capital structure meaning that higher leverage ratios lead to lower profits. The study recommends that financial managers of banks should maintain lower debt than equity in their mix of capital structure as more debts is not good for the performance of banks.
- Full Text:
- Date Issued: 2019
- Authors: Jiza, Andiswa Abongile
- Date: 2019
- Subjects: Banks and banking Capital management and capital structure
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/16895 , vital:40783
- Description: The study examined the relationship between capital structure and bank performance in South Africa using five small banks and the two big banks from 2002-2017. Fixed effects model, Pooled and the random effects model were utilised to test the relationship between capital structure and bank performance. Return on assets and the earnings per share were used as a measure for financial performance while the debt to equity ratio and the debt to assets ratio were used as proxies for capital structure. The results show that there is a negative significant relationship between return on assets and the two capital structure measures meaning that higher leverage ratios lead to lower profits measured by return on assets. while there is a negative significant relationship between earnings per share and the capital structure meaning that higher leverage ratios lead to lower profits. The study recommends that financial managers of banks should maintain lower debt than equity in their mix of capital structure as more debts is not good for the performance of banks.
- Full Text:
- Date Issued: 2019
The impact of public health expenditure on health outcomes in South Africa
- Authors: Hlafa, Besuthu
- Date: 2019
- Subjects: Health services administration
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13381 , vital:39639
- Description: Health holds an important position in maintainable economic development since it is both a prerequisite for and an outcome of economic development. This means that health contributes hugely to the attainment of sustainable development and health outcomes. The importance of health is demonstrated in the Millennium Development Goals (MDGs) where three of the eight goals are aimed at improving health outcomes. Despite progress made by other middle-income countries in achieving health-related MDGs, South Africa still has worse health outcomes and experiences a challenge in attaining positive outcomes for these goals (Coovadia et al., 2009; Malaudzi 2016). This study’s main focus was to identify the association between public health expenditure and health outcomes in South Africa’s nine provinces from 2002 to 2016. The study implemented fixed effects and a random effects panel data estimation technique to control for time effects and individual province heterogeneity. This was followed by employing the Hausman specification test to identify the fixed effects model as the appropriate estimator for the study. The study also employed the seemingly unrelated regression (SUR) model and the least squares dummy variable (LSDV) model to examine the impact of public health expenditure on each province separately. The findings from the study elucidated that the relationship between public health expenditure and health outcomes in South Africa varied across provinces depending provincial management and infrastructure availability.
- Full Text:
- Date Issued: 2019
- Authors: Hlafa, Besuthu
- Date: 2019
- Subjects: Health services administration
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13381 , vital:39639
- Description: Health holds an important position in maintainable economic development since it is both a prerequisite for and an outcome of economic development. This means that health contributes hugely to the attainment of sustainable development and health outcomes. The importance of health is demonstrated in the Millennium Development Goals (MDGs) where three of the eight goals are aimed at improving health outcomes. Despite progress made by other middle-income countries in achieving health-related MDGs, South Africa still has worse health outcomes and experiences a challenge in attaining positive outcomes for these goals (Coovadia et al., 2009; Malaudzi 2016). This study’s main focus was to identify the association between public health expenditure and health outcomes in South Africa’s nine provinces from 2002 to 2016. The study implemented fixed effects and a random effects panel data estimation technique to control for time effects and individual province heterogeneity. This was followed by employing the Hausman specification test to identify the fixed effects model as the appropriate estimator for the study. The study also employed the seemingly unrelated regression (SUR) model and the least squares dummy variable (LSDV) model to examine the impact of public health expenditure on each province separately. The findings from the study elucidated that the relationship between public health expenditure and health outcomes in South Africa varied across provinces depending provincial management and infrastructure availability.
- Full Text:
- Date Issued: 2019
The nexus between capital inflows and credit growth in South Africa
- Authors: Davani, Siviwe
- Date: 2019
- Subjects: Capital movements Credit
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/16885 , vital:40782
- Description: This study examines the effect of capital inflows on credit growth on the South African economy. Capital inflows ease the constraint of the low domestic savings in the domestic economy. The study employed the Structural Vector Auto Regression model to analyse the relationship between the variables of interest. The findings of the study indicate that the two types of capital inflows employed in the study, Foreign Direct Investment and Foreign Portfolio investment have a significant effect on credit growth in the long-run. The results also indicate that there are other important factors such as macroeconomic stability and political stability which have a significant effect of capital inflows into South Africa. Overall, the results revealed that a greater variation of credit growth is explained by GDP. This indicates that there is a link between GDP and FDI and FPI given their link with credit growth. These results also suggest that the foreign capital channel can be another channel which may affect growth in the domestic economy in the event that there are negative innovations which affects capital flows to South Africa. The study thus suggests that policies which ensures macroeconomic stability and political stability should be pursued given their influence on capital inflows into South Africa. Also it’s recommended that the country mobilise domestic resources to ensure sustainable development
- Full Text:
- Date Issued: 2019
- Authors: Davani, Siviwe
- Date: 2019
- Subjects: Capital movements Credit
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/16885 , vital:40782
- Description: This study examines the effect of capital inflows on credit growth on the South African economy. Capital inflows ease the constraint of the low domestic savings in the domestic economy. The study employed the Structural Vector Auto Regression model to analyse the relationship between the variables of interest. The findings of the study indicate that the two types of capital inflows employed in the study, Foreign Direct Investment and Foreign Portfolio investment have a significant effect on credit growth in the long-run. The results also indicate that there are other important factors such as macroeconomic stability and political stability which have a significant effect of capital inflows into South Africa. Overall, the results revealed that a greater variation of credit growth is explained by GDP. This indicates that there is a link between GDP and FDI and FPI given their link with credit growth. These results also suggest that the foreign capital channel can be another channel which may affect growth in the domestic economy in the event that there are negative innovations which affects capital flows to South Africa. The study thus suggests that policies which ensures macroeconomic stability and political stability should be pursued given their influence on capital inflows into South Africa. Also it’s recommended that the country mobilise domestic resources to ensure sustainable development
- Full Text:
- Date Issued: 2019
The residuality of agriculture and the time dimensions of rural employment in South Africa
- Authors: Ngqwala, Sixolile
- Date: 2019
- Subjects: Rural poor -- Employment
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/16985 , vital:40806
- Description: There has been increasing recognition in the past few decades that rural households in developing countries are not limited to the agricultural sector, but also depend on other, nonagricultural activities. Rural households are understood to pursue multiple livelihood strategies which involve juggling different economic pursuits as a means of reducing risk and maintaining options. In South Africa, the importance of multiple livelihood strategies is widely appreciated, on the other hand there is a common perception in policy circles that agricultural development can become an important route out of poverty, for instance as part-time small-scale farmers become larger and more commercialised. The purpose of this dissertation is to attempt to better understand the relationship between households’ participation in agriculture and nonagricultural activities. The point of departure is the observation that there is a great deal of flux into and out of agriculture in a way that is difficult to understand in terms of prevailing theories and frameworks. The study makes use of four waves of data from the National Income Dynamics Study (NIDS), and employs a variety of analytical approaches, including transition matrices, multinomial logistic regression, and panel data econometric models. The findings are mixed. In the one hand, there is evidence that households enter agriculture as other income sources become available, and leave agriculture again when those sources dry up. On the other hand, there is also evidence that participation in agriculture compensates for the absence or loss of other income sources, in which case agriculture can be thought of as a ‘residual’ sector that is activated when other options fail.
- Full Text:
- Date Issued: 2019
- Authors: Ngqwala, Sixolile
- Date: 2019
- Subjects: Rural poor -- Employment
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/16985 , vital:40806
- Description: There has been increasing recognition in the past few decades that rural households in developing countries are not limited to the agricultural sector, but also depend on other, nonagricultural activities. Rural households are understood to pursue multiple livelihood strategies which involve juggling different economic pursuits as a means of reducing risk and maintaining options. In South Africa, the importance of multiple livelihood strategies is widely appreciated, on the other hand there is a common perception in policy circles that agricultural development can become an important route out of poverty, for instance as part-time small-scale farmers become larger and more commercialised. The purpose of this dissertation is to attempt to better understand the relationship between households’ participation in agriculture and nonagricultural activities. The point of departure is the observation that there is a great deal of flux into and out of agriculture in a way that is difficult to understand in terms of prevailing theories and frameworks. The study makes use of four waves of data from the National Income Dynamics Study (NIDS), and employs a variety of analytical approaches, including transition matrices, multinomial logistic regression, and panel data econometric models. The findings are mixed. In the one hand, there is evidence that households enter agriculture as other income sources become available, and leave agriculture again when those sources dry up. On the other hand, there is also evidence that participation in agriculture compensates for the absence or loss of other income sources, in which case agriculture can be thought of as a ‘residual’ sector that is activated when other options fail.
- Full Text:
- Date Issued: 2019
An examination of the pass-through from exchange rate to inflation in South Africa
- Authors: Mhizha,Tinashe
- Date: 2018
- Subjects: Foreign exchange rates -- South Africa Inflation (Finance) -- South Africa
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13705 , vital:39698
- Description: This study examined the exchange-rate-pass-through to import, producer and consumer prices in South Africa using quarterly data covering the period 2000 to 2015. The study made use of panel data techniques to examine the degree of pass-through to import prices, producer prices as well consumer prices. The Hausman test indicated fixed effects (FE) as the correct model for the data. In order to correct for errors and get a more robust model, the least squares dummy variable (LSDV) model was estimated. The key findings claim that the exchange rate is negative and weakly significant to explain South African prices. It was highest for producer prices, followed by import prices and lowest at consumer prices. The findings have implications for policy and theory.
- Full Text:
- Date Issued: 2018
- Authors: Mhizha,Tinashe
- Date: 2018
- Subjects: Foreign exchange rates -- South Africa Inflation (Finance) -- South Africa
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13705 , vital:39698
- Description: This study examined the exchange-rate-pass-through to import, producer and consumer prices in South Africa using quarterly data covering the period 2000 to 2015. The study made use of panel data techniques to examine the degree of pass-through to import prices, producer prices as well consumer prices. The Hausman test indicated fixed effects (FE) as the correct model for the data. In order to correct for errors and get a more robust model, the least squares dummy variable (LSDV) model was estimated. The key findings claim that the exchange rate is negative and weakly significant to explain South African prices. It was highest for producer prices, followed by import prices and lowest at consumer prices. The findings have implications for policy and theory.
- Full Text:
- Date Issued: 2018
Association between teacher confidence and student mathematics outcomes
- Authors: Qwelani, Noluthando
- Date: 2018
- Subjects: Human capital
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13955 , vital:39732
- Description: Teacher attributes such as teacher’s confidence in knowledge are important in the ability to teach. It is further, expected in developing countries that teachers from high socio-economic schools are highly confident in teaching mathematics whilst teachers from low socioeconomic schools are expected to be less confident. Hence, teacher attributes decisions are of great importance in achieving skills development goals. The realisation of the impact teachers’ confidence has on mathematics performance requires an investigation based on multilateral measures of teacher confidence. The purpose of this study is to investigate and analyse the impact of teacher abilities on student’s performance on mathematics in South Africa, this will be realised through an analysis of teacher confidence as the main variable and teacher qualifications, teacher characteristics and socio economic status as controlling variables. The study employed Trends in International Mathematics and Sciences studies (TIMSS) 2011 cross sectional data for South Africa. Descriptive statistics, inferential statistics and the Ordinary Least Squares (OLS) econometric technique were employed in analysing the data. The empirical results revealed that majority of South African teachers rated themselves highly confident but showed no significant impact in the performance of students. This implies that South African teachers who produce poor student’s performance are not open about their lack of confidence in teaching mathematics. However, from the student’s perspective, teacher confidence showed a strong impact on students’ performance in mathematics. The third findings were that, teachers who are happy as educators do not have a significant impact at all. The empirical results also revealed that teachers who felt they wee being allocated more than enough time to teach mathematics showed a strong negative relationship with student performance when compared to teachers who felt otherwise. The findings from the study imply that an open policy should be encouraged in which teachers are encouraged to openly express their views and any shortcomings. This will make it easier to identify the best intervention strategy on helping the teachers. Based on the findings again, it is encouraged that periodic training of mathematical teachers be encouraged. This is likely to boost teacher’s confidence and improve the mathematical results in the country.
- Full Text:
- Date Issued: 2018
- Authors: Qwelani, Noluthando
- Date: 2018
- Subjects: Human capital
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13955 , vital:39732
- Description: Teacher attributes such as teacher’s confidence in knowledge are important in the ability to teach. It is further, expected in developing countries that teachers from high socio-economic schools are highly confident in teaching mathematics whilst teachers from low socioeconomic schools are expected to be less confident. Hence, teacher attributes decisions are of great importance in achieving skills development goals. The realisation of the impact teachers’ confidence has on mathematics performance requires an investigation based on multilateral measures of teacher confidence. The purpose of this study is to investigate and analyse the impact of teacher abilities on student’s performance on mathematics in South Africa, this will be realised through an analysis of teacher confidence as the main variable and teacher qualifications, teacher characteristics and socio economic status as controlling variables. The study employed Trends in International Mathematics and Sciences studies (TIMSS) 2011 cross sectional data for South Africa. Descriptive statistics, inferential statistics and the Ordinary Least Squares (OLS) econometric technique were employed in analysing the data. The empirical results revealed that majority of South African teachers rated themselves highly confident but showed no significant impact in the performance of students. This implies that South African teachers who produce poor student’s performance are not open about their lack of confidence in teaching mathematics. However, from the student’s perspective, teacher confidence showed a strong impact on students’ performance in mathematics. The third findings were that, teachers who are happy as educators do not have a significant impact at all. The empirical results also revealed that teachers who felt they wee being allocated more than enough time to teach mathematics showed a strong negative relationship with student performance when compared to teachers who felt otherwise. The findings from the study imply that an open policy should be encouraged in which teachers are encouraged to openly express their views and any shortcomings. This will make it easier to identify the best intervention strategy on helping the teachers. Based on the findings again, it is encouraged that periodic training of mathematical teachers be encouraged. This is likely to boost teacher’s confidence and improve the mathematical results in the country.
- Full Text:
- Date Issued: 2018
Monetary policy credibility, exchange rate pass through and inflation in South Africa
- Authors: Bom, Sandisiwe Abongile
- Date: 2018
- Subjects: Foreign exchange rates -- South Africa Monetary policy -- South Africa
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13303 , vital:39632
- Description: The South African Reserve Bank (SARB) implemented inflation targeting as a monetary policy framework in 2000 with the aim of achieving low and stable price associated with economic growth. However, the period in which the framework was implemented is characterised by periods of price instability and low economic growth. This contradicts the view of different views in the literature that indicates that inflation targeting ensures low inflation rates. The purpose of the current study was to investigate the nexus between monetary policy credibility, exchange rate pass-through and inflation in South Africa. The study employed the Johansen co-integration test, Vector error correction modelling (VECM) techniques, impulse response and variance decomposition for the period from 2000 to 2017 using quarterly data. The Johansen cointegration indicated that there was a long-term relationship between the variables of interest. The VECM was estimated together with the impulse response and variance decomposition. The empirical results indicated that the variables utilised in the study are positively related. Impulse response functions also proved that in the long run, changes in consumer prices are a result of fluctuations in oil prices and the repo rate. It is evident that consumer prices (inflation) are positively related to changes in exchange rates and monetary policy credibility. Thus, the study recommends that changes in the exchange rate must be considered when implementing the monetary policy as the prices move in the same direction as changes in the NEER. Further, the lack of monetary policy credibility seems to be an issue for monetary authorities as there is supposed to be an inverse relationship among the CPI and MPCRED, which is opposed by the study. Additionally, the results also indicate that the repo rate is positively related to the consumer price and this opposes previous literature. Thus, recommending that the SARB needs to evaluate the monetary policy or the inflation targeting framework to ensure they achieve credibility
- Full Text:
- Date Issued: 2018
- Authors: Bom, Sandisiwe Abongile
- Date: 2018
- Subjects: Foreign exchange rates -- South Africa Monetary policy -- South Africa
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13303 , vital:39632
- Description: The South African Reserve Bank (SARB) implemented inflation targeting as a monetary policy framework in 2000 with the aim of achieving low and stable price associated with economic growth. However, the period in which the framework was implemented is characterised by periods of price instability and low economic growth. This contradicts the view of different views in the literature that indicates that inflation targeting ensures low inflation rates. The purpose of the current study was to investigate the nexus between monetary policy credibility, exchange rate pass-through and inflation in South Africa. The study employed the Johansen co-integration test, Vector error correction modelling (VECM) techniques, impulse response and variance decomposition for the period from 2000 to 2017 using quarterly data. The Johansen cointegration indicated that there was a long-term relationship between the variables of interest. The VECM was estimated together with the impulse response and variance decomposition. The empirical results indicated that the variables utilised in the study are positively related. Impulse response functions also proved that in the long run, changes in consumer prices are a result of fluctuations in oil prices and the repo rate. It is evident that consumer prices (inflation) are positively related to changes in exchange rates and monetary policy credibility. Thus, the study recommends that changes in the exchange rate must be considered when implementing the monetary policy as the prices move in the same direction as changes in the NEER. Further, the lack of monetary policy credibility seems to be an issue for monetary authorities as there is supposed to be an inverse relationship among the CPI and MPCRED, which is opposed by the study. Additionally, the results also indicate that the repo rate is positively related to the consumer price and this opposes previous literature. Thus, recommending that the SARB needs to evaluate the monetary policy or the inflation targeting framework to ensure they achieve credibility
- Full Text:
- Date Issued: 2018
The Impact of Automobile Trade on Economic Growth: A Comparative Study of South Africa and Brazil
- Bhasa, W
- Authors: Bhasa, W
- Date: 2018
- Subjects: Automobile industry and trade
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13292 , vital:39631
- Description: Economic theory suggests that trade plays a critical role in the economic performance of a country. South Africa and Brazil’s automobile trade has been greatly influenced by government intervention through policy regimes with essentially similar objectives. Through the Automotive Production Development Programme in South Africa and the Plano Brasil Maior in Brazil, both countries have invested much effort in legislation, technology and capital to boost the automobile industry and overcome challenges of strengthening the automotive value chain, sustaining employment, raising productivity and increasing sales volumes both internally and on foreign markets. In light of such government interventions, this study investigates the contribution of the automobile trade on economic growth on South Africa and Brazil. The major concern is to determine whether the impact of the automobile trade is greater in South Africa and lesser in Brazil or vice-versa. This paper uses panel data analysis through the Least Squares Dummy Variable technique using quarterly data from 1995 to 2016. The regression results show that exports of automobiles, domestic investment in automobile trade, employment levels in the automobile industry together with the levels of general government expenditure positively affect GDP growth while imports of automobiles and inflation have a negative effect on general economic performance. Both countries should continue with automobile trade and governments should offer more production incentives and tax exemptions for component imports. Automobile industries are strategic industries which need government protection. Promotion of long-term partnerships and relationships within the automotive industry will play a critical role in boosting production with associated deepening of the components industry. The LSDV model results reveal that the individual country effects are statistically significant; this implies that the results for South Africa and Brazil differ. South Africa had a higher country coefficient which indicates that they benefitted more from the automobile trade than Braz
- Full Text:
- Date Issued: 2018
- Authors: Bhasa, W
- Date: 2018
- Subjects: Automobile industry and trade
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13292 , vital:39631
- Description: Economic theory suggests that trade plays a critical role in the economic performance of a country. South Africa and Brazil’s automobile trade has been greatly influenced by government intervention through policy regimes with essentially similar objectives. Through the Automotive Production Development Programme in South Africa and the Plano Brasil Maior in Brazil, both countries have invested much effort in legislation, technology and capital to boost the automobile industry and overcome challenges of strengthening the automotive value chain, sustaining employment, raising productivity and increasing sales volumes both internally and on foreign markets. In light of such government interventions, this study investigates the contribution of the automobile trade on economic growth on South Africa and Brazil. The major concern is to determine whether the impact of the automobile trade is greater in South Africa and lesser in Brazil or vice-versa. This paper uses panel data analysis through the Least Squares Dummy Variable technique using quarterly data from 1995 to 2016. The regression results show that exports of automobiles, domestic investment in automobile trade, employment levels in the automobile industry together with the levels of general government expenditure positively affect GDP growth while imports of automobiles and inflation have a negative effect on general economic performance. Both countries should continue with automobile trade and governments should offer more production incentives and tax exemptions for component imports. Automobile industries are strategic industries which need government protection. Promotion of long-term partnerships and relationships within the automotive industry will play a critical role in boosting production with associated deepening of the components industry. The LSDV model results reveal that the individual country effects are statistically significant; this implies that the results for South Africa and Brazil differ. South Africa had a higher country coefficient which indicates that they benefitted more from the automobile trade than Braz
- Full Text:
- Date Issued: 2018
The impact of mineral resources production on economic growth in South Africa
- Authors: Kholwane, Noluthando
- Date: 2018
- Subjects: Economic development -- South Africa South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13502 , vital:39674
- Description: South Africa is widely known in the world as a country rich in mineral resources mainly due to its large mineral reserves of gold and diamonds. Such wealth in mineral resources in the country raises the expectations of advanced economic growth. How the production of mineral resources influences economic growth in a country is an interesting area of investigation. Therefore, this study examined the impact of mineral resources production on economic growth using the standard econometric techniques, such as stationarity tests, Johansen co-integration test and the Vector Error Correction Model (VECM) estimation technique, using quarterly data between 1995 and 2016. In addition, diagnostic tests and impulse response analysis were conducted. In the model estimation, real gross domestic product (GDP) was regressed against mineral resource production as a percentage of GDP (MRP/GDP), Final Consumption Expenditure by Households (FCE_by Houselds), gross fixed capital formation as a percentage of GDP (excluding mining investment) (GFCF/GDP), labour productivity (LP) and Rand/ Dollar exchange rate (ER). The results from this study show that the explanatory variables without mineral resource governance positively influence GDP in the long run. On the other hand, the diagnostic test results indicate that the model is well specified and fitted since residuals are homoscedastic, normally distributed without autocorrelation. Likewise, the impulse response of real GDP is positive for mineral resource production, fixed capital formation and final consumption by household. Moreover, real GDP reacts negatively from shocks of labour productivity and exchange rate. Based on the outcomes of the study, from a policy perspective, intensified productive activities other than mineral resources production and re-investment of mineral rents could guarantee a sustainable increase in the real gross domestic product of a country in the long run. Furthermore, raw material processing should also be a consideration to foster economic growth in South Africa.
- Full Text:
- Date Issued: 2018
- Authors: Kholwane, Noluthando
- Date: 2018
- Subjects: Economic development -- South Africa South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13502 , vital:39674
- Description: South Africa is widely known in the world as a country rich in mineral resources mainly due to its large mineral reserves of gold and diamonds. Such wealth in mineral resources in the country raises the expectations of advanced economic growth. How the production of mineral resources influences economic growth in a country is an interesting area of investigation. Therefore, this study examined the impact of mineral resources production on economic growth using the standard econometric techniques, such as stationarity tests, Johansen co-integration test and the Vector Error Correction Model (VECM) estimation technique, using quarterly data between 1995 and 2016. In addition, diagnostic tests and impulse response analysis were conducted. In the model estimation, real gross domestic product (GDP) was regressed against mineral resource production as a percentage of GDP (MRP/GDP), Final Consumption Expenditure by Households (FCE_by Houselds), gross fixed capital formation as a percentage of GDP (excluding mining investment) (GFCF/GDP), labour productivity (LP) and Rand/ Dollar exchange rate (ER). The results from this study show that the explanatory variables without mineral resource governance positively influence GDP in the long run. On the other hand, the diagnostic test results indicate that the model is well specified and fitted since residuals are homoscedastic, normally distributed without autocorrelation. Likewise, the impulse response of real GDP is positive for mineral resource production, fixed capital formation and final consumption by household. Moreover, real GDP reacts negatively from shocks of labour productivity and exchange rate. Based on the outcomes of the study, from a policy perspective, intensified productive activities other than mineral resources production and re-investment of mineral rents could guarantee a sustainable increase in the real gross domestic product of a country in the long run. Furthermore, raw material processing should also be a consideration to foster economic growth in South Africa.
- Full Text:
- Date Issued: 2018
Bank Competition and Economic Growth: The Case of South Africa, Russia and China
- Authors: Sokapase ,Zukile
- Date: 2017
- Subjects: Banks and banking
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/14120 , vital:39846
- Description: This study examined the relationship between bank competition and economic growth across South Africa, Russia and China. In this regard, the study conducted a comparative analysis which allowed for country differences and thus enhanced the provision of relevant policy guidance given how each of the country’s economic growth is reacting to changes in bank competition. To account for country differences, the study estimated a random coefficient panel (RCP) model using Swamy’s generalised least squares (GLS) estimators for the period 1999 – 2015. Across the three countries, bank competition and economic growth have been found to be positively related. In addition, bank competition has been found to be highly significant in influencing economic growth across the three countries. However, the extent of influence that bank competition has on economic growth differs in each country. Therefore, this study recommends that policies aimed at promoting competition in the banking sector of South Africa, Russia and China should be adopted in order to promote economic growth.
- Full Text:
- Date Issued: 2017
- Authors: Sokapase ,Zukile
- Date: 2017
- Subjects: Banks and banking
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/14120 , vital:39846
- Description: This study examined the relationship between bank competition and economic growth across South Africa, Russia and China. In this regard, the study conducted a comparative analysis which allowed for country differences and thus enhanced the provision of relevant policy guidance given how each of the country’s economic growth is reacting to changes in bank competition. To account for country differences, the study estimated a random coefficient panel (RCP) model using Swamy’s generalised least squares (GLS) estimators for the period 1999 – 2015. Across the three countries, bank competition and economic growth have been found to be positively related. In addition, bank competition has been found to be highly significant in influencing economic growth across the three countries. However, the extent of influence that bank competition has on economic growth differs in each country. Therefore, this study recommends that policies aimed at promoting competition in the banking sector of South Africa, Russia and China should be adopted in order to promote economic growth.
- Full Text:
- Date Issued: 2017
The effect of gold price volatility on stock market returns in South Africa
- Authors: Gcadana, Nqabisa Mary
- Date: 2017
- Subjects: Stock exchanges --South Africa.
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13359 , vital:39637
- Description: The South African stock market has become a major player in the African Securities Exchanges Association through its performance. Gold is one of the commodities that are traded at Johannesburg Stock Exchange, hence gold price fluctuations are the crucial factor that JSE needs to keep its eye on. The demand for gold in South Africa is continuously rising because gold has full security, less credit risk and is a highly liquid instrument. Based on the given background, the study examines the effect of gold price volatility on stock market returns in South Africa, employing the Generalised Autoregressive Conditional Heteroskedasticity (GARCH) (1.1) model. The study used monthly data covering the period from 2005 to 2017. The Storage model and discounted cash flows model which are the theories that connect gold price and stock market were specified. The research findings are supported by previous studies. The gold price volatility was found to have a negative effect on stock market returns, and the proxy of stock market returns is the All Share Index. The study will help to provide an understanding of how gold price volatility affects the stock market that will help policymakers to come up with policies that are relevant to volatility of gold price towards stock market.
- Full Text:
- Date Issued: 2017
- Authors: Gcadana, Nqabisa Mary
- Date: 2017
- Subjects: Stock exchanges --South Africa.
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: http://hdl.handle.net/10353/13359 , vital:39637
- Description: The South African stock market has become a major player in the African Securities Exchanges Association through its performance. Gold is one of the commodities that are traded at Johannesburg Stock Exchange, hence gold price fluctuations are the crucial factor that JSE needs to keep its eye on. The demand for gold in South Africa is continuously rising because gold has full security, less credit risk and is a highly liquid instrument. Based on the given background, the study examines the effect of gold price volatility on stock market returns in South Africa, employing the Generalised Autoregressive Conditional Heteroskedasticity (GARCH) (1.1) model. The study used monthly data covering the period from 2005 to 2017. The Storage model and discounted cash flows model which are the theories that connect gold price and stock market were specified. The research findings are supported by previous studies. The gold price volatility was found to have a negative effect on stock market returns, and the proxy of stock market returns is the All Share Index. The study will help to provide an understanding of how gold price volatility affects the stock market that will help policymakers to come up with policies that are relevant to volatility of gold price towards stock market.
- Full Text:
- Date Issued: 2017
An investigation of the relationship between financial sector development and economic growth in South Africa
- Authors: Lotz, Michael James
- Date: 2014
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: vital:11482 , http://hdl.handle.net/10353/d1015285
- Description: This study examines the relationship between financial development and economic growth in South Africa in order to get a better understanding of which direction the causality runs. The study takes a look at the literature on the topic as well as econometric techniques using data from 1990 to 2011. A Vector Error Correction Model (VECM) is used to determine the long run relationship between the variables. The Granger causality tests are done in order to determine the direction of causality between variables. Economic growth is proxied by GDP and financial development is proxied by liquid liabilities, credit to the private sector and turnover of shares traded. After careful evaluation and interpretation, it is determined that there is indeed a relationship between financial development and economic growth. Furthermore, the relationship is bidirectional. Policies should thus take on a balanced approach in that they should pursue both financial development and economic growth in order to maximise growth and development in the country.
- Full Text:
- Date Issued: 2014
- Authors: Lotz, Michael James
- Date: 2014
- Language: English
- Type: Thesis , Masters , MCom (Economics)
- Identifier: vital:11482 , http://hdl.handle.net/10353/d1015285
- Description: This study examines the relationship between financial development and economic growth in South Africa in order to get a better understanding of which direction the causality runs. The study takes a look at the literature on the topic as well as econometric techniques using data from 1990 to 2011. A Vector Error Correction Model (VECM) is used to determine the long run relationship between the variables. The Granger causality tests are done in order to determine the direction of causality between variables. Economic growth is proxied by GDP and financial development is proxied by liquid liabilities, credit to the private sector and turnover of shares traded. After careful evaluation and interpretation, it is determined that there is indeed a relationship between financial development and economic growth. Furthermore, the relationship is bidirectional. Policies should thus take on a balanced approach in that they should pursue both financial development and economic growth in order to maximise growth and development in the country.
- Full Text:
- Date Issued: 2014
- «
- ‹
- 1
- ›
- »