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
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