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.
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- 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.
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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.
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- 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.
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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:
- 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
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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:
- 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
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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:
- 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:
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