Human capital investment, productivity and economic growth in selected Sub Saharan African countries
- Mutambirwa, Edward https://orcid.org/0000-0002-9010-1950
- Authors: Mutambirwa, Edward https://orcid.org/0000-0002-9010-1950
- Date: 2023-11
- Subjects: Human capital -- Africa, Sub-Saharan , Economic development -- Africa, Sub-Saharan , Capital investments -- Africa, Sub-Saharan
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28639 , vital:74481
- Description: Many Sub-Saharan African (SSA) countries experience low economic growth rate levels which is worrisome given the demographic window of opportunities in the region. The governments of SSA countries have been putting emphasis on increasing investments in human capital development as it is vital in unlocking potential economic growth through enhancing regional productivity. With this in mind, this study examined the effect of human capital investment on economic growth through productivity in 12 selected SSA countries during the period 2000 to 2017. The selection of these countries and the study period were based on the data availability as well as differences in income growth. The sample represents all the countries in the income growth groups which are low income, lower middle income and upper middle income. In order to examine the overall effect of human capital investment on economic growth the study utilizes two models which are: 1. Human capital investment and productivity in selected SSA countries. 2. Human capital investment and economic growth in selected SSA countries. Model 1 objective of the study was to investigate the effect of human capital investment on productivity in the selected SSA countries. Productivity proxied by labour productivity measured by real output per person employed was the dependent regressed against a host of independent variables which includes human capital investment, foreign direct investment (FDI), total factor productivity (TFP) and labour quantity growth (LQ).The human capital investment components used in the model included: fiscal expenditure on primary education (PEI), secondary education(SEI), tertiary education (TEI) all as a percentage of government expenditure on education; public health(PHI) as a percentage of GDP and domestic private health (DPHI) as a percentage of current health expenditure. Several estimation techniques which include the Pooled Mean Group (PMG), Panel Fully Modified Ordinary Least Square (PFMOLS) and Panel Dynamic Ordinary Least Square (PDOLS) were employed to analyse the relationship between the variables of interest. The empirical findings indicated that all human capital investment components contribute positively to labour productivity except tertiary education investment which had a negative effect. Moreover, the empirical findings also revealed that foreign direct investment and total factor productivity had positive effects on labour productivity while labour quantity growth had a negative effect. Model 2 objective examined the effect of productivity enhanced human capital on economic growth in the sample of countries. It also incorporated the direct channel of the effect of human capital on economic growth in the stated countries. Economic growth (EG) proxied by real GDP growth as the dependent variable and, on the other hand, explanatory variables being productivity enhanced human capital investment (PEHC), human capital (HC), gross fixed capital formation (GFCF), population growth (POP), institutional quality proxied by government effectiveness (GE) and political stability (PS). The same estimation techniques were also employed so as to obtain robust results. The empirical findings revealed that both productivity enhanced human capital investment and human capital contributes positively to economic growth in the selected SSA countries. In addition, the empirical results also proved that gross fixed capital formation, government effectiveness and political stability have positive effects on economic growth whilst population growth has a negative effect. Overall, the results of the study evidenced the existence of a transfer mechanism from human capital investment to economic growth through productivity in the selected SSA countries. The empirical results imply that increasing investment on human capital is of importance in trying to enhance productivity and through this economic growth in the SSA region. The study concludes that there is a potential on enhancing economic growth in the long run in the SSA region if countries invest more on human capital. Therefore, the study recommends that SSA countries must devote more budget to human capital so that free basic education can be offered in both primary and secondary as well as free health care services. With this, the objectives of quality education and health, sustainable and inclusive growth targets of the African Union (AU) Agenda 2063 as well as United Nations (UN) Sustainable Development Goals (SDGs) can be achieved. , Thesis (PhD) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023-11
Human capital investment, productivity and economic growth in selected Sub Saharan African countries
- Authors: Mutambirwa, Edward https://orcid.org/0000-0002-9010-1950
- Date: 2023-11
- Subjects: Human capital -- Africa, Sub-Saharan , Economic development -- Africa, Sub-Saharan , Capital investments -- Africa, Sub-Saharan
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28639 , vital:74481
- Description: Many Sub-Saharan African (SSA) countries experience low economic growth rate levels which is worrisome given the demographic window of opportunities in the region. The governments of SSA countries have been putting emphasis on increasing investments in human capital development as it is vital in unlocking potential economic growth through enhancing regional productivity. With this in mind, this study examined the effect of human capital investment on economic growth through productivity in 12 selected SSA countries during the period 2000 to 2017. The selection of these countries and the study period were based on the data availability as well as differences in income growth. The sample represents all the countries in the income growth groups which are low income, lower middle income and upper middle income. In order to examine the overall effect of human capital investment on economic growth the study utilizes two models which are: 1. Human capital investment and productivity in selected SSA countries. 2. Human capital investment and economic growth in selected SSA countries. Model 1 objective of the study was to investigate the effect of human capital investment on productivity in the selected SSA countries. Productivity proxied by labour productivity measured by real output per person employed was the dependent regressed against a host of independent variables which includes human capital investment, foreign direct investment (FDI), total factor productivity (TFP) and labour quantity growth (LQ).The human capital investment components used in the model included: fiscal expenditure on primary education (PEI), secondary education(SEI), tertiary education (TEI) all as a percentage of government expenditure on education; public health(PHI) as a percentage of GDP and domestic private health (DPHI) as a percentage of current health expenditure. Several estimation techniques which include the Pooled Mean Group (PMG), Panel Fully Modified Ordinary Least Square (PFMOLS) and Panel Dynamic Ordinary Least Square (PDOLS) were employed to analyse the relationship between the variables of interest. The empirical findings indicated that all human capital investment components contribute positively to labour productivity except tertiary education investment which had a negative effect. Moreover, the empirical findings also revealed that foreign direct investment and total factor productivity had positive effects on labour productivity while labour quantity growth had a negative effect. Model 2 objective examined the effect of productivity enhanced human capital on economic growth in the sample of countries. It also incorporated the direct channel of the effect of human capital on economic growth in the stated countries. Economic growth (EG) proxied by real GDP growth as the dependent variable and, on the other hand, explanatory variables being productivity enhanced human capital investment (PEHC), human capital (HC), gross fixed capital formation (GFCF), population growth (POP), institutional quality proxied by government effectiveness (GE) and political stability (PS). The same estimation techniques were also employed so as to obtain robust results. The empirical findings revealed that both productivity enhanced human capital investment and human capital contributes positively to economic growth in the selected SSA countries. In addition, the empirical results also proved that gross fixed capital formation, government effectiveness and political stability have positive effects on economic growth whilst population growth has a negative effect. Overall, the results of the study evidenced the existence of a transfer mechanism from human capital investment to economic growth through productivity in the selected SSA countries. The empirical results imply that increasing investment on human capital is of importance in trying to enhance productivity and through this economic growth in the SSA region. The study concludes that there is a potential on enhancing economic growth in the long run in the SSA region if countries invest more on human capital. Therefore, the study recommends that SSA countries must devote more budget to human capital so that free basic education can be offered in both primary and secondary as well as free health care services. With this, the objectives of quality education and health, sustainable and inclusive growth targets of the African Union (AU) Agenda 2063 as well as United Nations (UN) Sustainable Development Goals (SDGs) can be achieved. , Thesis (PhD) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023-11
The analysis of the impact of financial integration on financial development and economic growth in the Southern African development community
- Ndlovu, Nomusa https://orcid.org/0000-0001-7777-2939
- Authors: Ndlovu, Nomusa https://orcid.org/0000-0001-7777-2939
- Date: 2023-11
- Subjects: Economic development -- Finance -- Africa, Southern , Financial services industry -- Africa, Southern
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28650 , vital:74491
- Description: The study investigated the impact of financial integration on financial development and economic growth in the Southern African Development Community using annual data for the period 2000 to 2018. Literature shows that there is no universally accepted measure of financial integration hence the study utilized the Lane and Milesi-Ferretti measure, foreign direct investment as a percentage of GDP and Chinn-Ito (KAOPEN) index in achieving the objectives of the study. One of the main objectives of the study was to examine the impact of financial integration on financial development in the SADC community. The study utilized first difference GMM to achieve this objective and the results showed that Lane and Milesi-Ferretti measure and foreign direct investment as a percentage of GDP significantly affect financial development whilst Chinn-Ito (KAOPEN) index displayed an insignificant effect. The next step was to investigate the impact of financial integration on economic growth in the SADC region. To accomplish this objective, the study investigated both the direct channel as well as the possibility of financial integration indirectly influencing economic growth through financial development, trade openness, and institutional quality. The Three Stage Least Squares (3SLS) technique was utilized on a system of five simultaneous equations in examining the effect of financial integration on economic growth. The results revealed that financial integration affects economic growth both directly and indirectly. Regarding the indirect channels, only the financial development and institutional quality channel proved to be significant. To ensure the robustness of the results the study checked if the impact of financial integration was sensitive to the measure of financial integration and financial development used. The study employed KAOPEN to proxy financial integration while broad money supply (% of GDP) measured financial development. Robustness results confirmed that financial integration affects economic growth both directly and indirectly. This time, the trade openness channel was significant at 10% which shows the benefits through this channel are significant. This shows that the results of the trade openness channel are inconclusive. When the Lane and Milesi-Ferretti measure of financial integration was employed the impact of the trade openness channel was insignificant whilst a significant impact was found based on KAOPEN. The inconclusive findings for the trade openness channel may indicate the impact of financial integration on economic growth depends on the proxy of financial integration utilized. In addition, the study also gathered some interesting results where financial development, institutional quality, trade openness, and government size (government spending) are significant drivers of financial integration. The study makes some fundamental contributions to literature on financial integration, financial development, and economic growth. Initially, the study provides empirical evidence on the nature of the impact of financial integration on financial development in the SADC. In particular, this study contributes to the body of knowledge by showing that the impact of financial integration on financial development is linear. Secondly, this study makes an original contribution to the literature on the channels through which financial integration affect economic growth in the SADC, providing a more subtlety understanding of the mechanisms at play. Finally, the study provides important policy implications for policymakers and financial regulators in the SADC who seek to promote economic growth through financial integration. The findings of the study imply that deeper financial integration is crucial in the SADC region as it can potentially increase the rate of economic growth in the region. Not only economic growth will be boosted but also the institutional quality and the development of the financial sector of the countries in the region. Based on these findings, the study recommends that the governments of the member countries in the region continue to come up with policies that boost regional and international financial integration. The study suggests that to ensure that they continuously reap positive benefits from financial integration, member countries of the SADC should appoint a board that deals with implementation and accountability. This board must be responsible for ensuring that member countries implement the formulated policies and should also hold member countries accountable in case of failure to implement the formulated policies. Since the region is pursuing financial integration, the region must come up with policies that prioritize domestic developments in the form of financial development, improving domestic institutional quality and reducing trade restrictions in advance in order to ensure that preconditions for financial integration are met. Developing these will attract different forms of financial flows or increase financial openness which will ultimately boost economic growth. , Thesis (PhD) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023-11
- Authors: Ndlovu, Nomusa https://orcid.org/0000-0001-7777-2939
- Date: 2023-11
- Subjects: Economic development -- Finance -- Africa, Southern , Financial services industry -- Africa, Southern
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28650 , vital:74491
- Description: The study investigated the impact of financial integration on financial development and economic growth in the Southern African Development Community using annual data for the period 2000 to 2018. Literature shows that there is no universally accepted measure of financial integration hence the study utilized the Lane and Milesi-Ferretti measure, foreign direct investment as a percentage of GDP and Chinn-Ito (KAOPEN) index in achieving the objectives of the study. One of the main objectives of the study was to examine the impact of financial integration on financial development in the SADC community. The study utilized first difference GMM to achieve this objective and the results showed that Lane and Milesi-Ferretti measure and foreign direct investment as a percentage of GDP significantly affect financial development whilst Chinn-Ito (KAOPEN) index displayed an insignificant effect. The next step was to investigate the impact of financial integration on economic growth in the SADC region. To accomplish this objective, the study investigated both the direct channel as well as the possibility of financial integration indirectly influencing economic growth through financial development, trade openness, and institutional quality. The Three Stage Least Squares (3SLS) technique was utilized on a system of five simultaneous equations in examining the effect of financial integration on economic growth. The results revealed that financial integration affects economic growth both directly and indirectly. Regarding the indirect channels, only the financial development and institutional quality channel proved to be significant. To ensure the robustness of the results the study checked if the impact of financial integration was sensitive to the measure of financial integration and financial development used. The study employed KAOPEN to proxy financial integration while broad money supply (% of GDP) measured financial development. Robustness results confirmed that financial integration affects economic growth both directly and indirectly. This time, the trade openness channel was significant at 10% which shows the benefits through this channel are significant. This shows that the results of the trade openness channel are inconclusive. When the Lane and Milesi-Ferretti measure of financial integration was employed the impact of the trade openness channel was insignificant whilst a significant impact was found based on KAOPEN. The inconclusive findings for the trade openness channel may indicate the impact of financial integration on economic growth depends on the proxy of financial integration utilized. In addition, the study also gathered some interesting results where financial development, institutional quality, trade openness, and government size (government spending) are significant drivers of financial integration. The study makes some fundamental contributions to literature on financial integration, financial development, and economic growth. Initially, the study provides empirical evidence on the nature of the impact of financial integration on financial development in the SADC. In particular, this study contributes to the body of knowledge by showing that the impact of financial integration on financial development is linear. Secondly, this study makes an original contribution to the literature on the channels through which financial integration affect economic growth in the SADC, providing a more subtlety understanding of the mechanisms at play. Finally, the study provides important policy implications for policymakers and financial regulators in the SADC who seek to promote economic growth through financial integration. The findings of the study imply that deeper financial integration is crucial in the SADC region as it can potentially increase the rate of economic growth in the region. Not only economic growth will be boosted but also the institutional quality and the development of the financial sector of the countries in the region. Based on these findings, the study recommends that the governments of the member countries in the region continue to come up with policies that boost regional and international financial integration. The study suggests that to ensure that they continuously reap positive benefits from financial integration, member countries of the SADC should appoint a board that deals with implementation and accountability. This board must be responsible for ensuring that member countries implement the formulated policies and should also hold member countries accountable in case of failure to implement the formulated policies. Since the region is pursuing financial integration, the region must come up with policies that prioritize domestic developments in the form of financial development, improving domestic institutional quality and reducing trade restrictions in advance in order to ensure that preconditions for financial integration are met. Developing these will attract different forms of financial flows or increase financial openness which will ultimately boost economic growth. , Thesis (PhD) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023-11
Housing market dynamics and economic growth in South Africa (1994 – 2019)
- Authors: Muchaonyerwa, Forward
- Date: 2023-09
- Subjects: Economic development -- South Africa , Housing -- Prices -- South Africa , Housing forecasting -- South Africa
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28628 , vital:74477
- Description: The housing market contributes significantly to economic growth. On this background, the study examined South Africa’s housing market dynamics, particularly determinants of demand, supply, and formal housing prices. Furthermore, the study looked at the impact of housing prices on economic growth from 1994:Q1 to 2019:Q2. The study period is important as it covers the new political dispensation in South Africa where the country entered a new democracy in 1994. The first three objectives of the study were to identify the determinants of housing demand, supply, and prices. The theory of demand and supply provided the theoretical framework for these models. Estimation of the housing demand, supply and price models was done by the employing Seemingly Unrelated Regression (SUR) technique. The Three Stage Least Squares (3SLS) model was estimated for robustness. Findings from SUR and 3SLS confirmed that Housing Demand (HD) is negatively and significantly influenced by residential Building Costs per Square Meter (BCSM), Housing Supply (HS) and Financial Costs (FC); and positively influenced by House Prices (HP). In addition, HS is negatively affected by BCSM, HD, Production Costs (PC) and Urban Population (UP); and positively influenced by HP and Residential Construction Confidence (RC). Lastly, HP are negatively affected by Prime Overdraft Rate (POR) and RC; and positively influenced by BCSM, HS, HD, Coincident Business Cycle Indicator (CBC) and residential Valuation (VAL). The fourth objective was to examine the impact of house prices on economic growth. An economic model was specified with Gross Domestic Product (GDP) as its dependent variable. The new growth theory provided the theoretical framework for this model. The Johansen co-integration technique confirmed a long run-term relationship between economic growth and house prices. The Vector Error Correction Model (VECM) was estimated to analyze the long and short run relationship among the variables. Empirical results confirmed that house prices have a positive impact on economic growth. Results further confirmed that CBC and Unemployment Rate (UR) are also positively related to GDP. POR and Leading Business Cycle indicator (LEBC) are negatively related to GDP. Granger Causality test was performed to analyze the causality between house prices and economic growth. The results indicated that there is a long run unidirectional causality from house prices to economic growth. With these results, the study recommends policy formation emanating from continuous research by establishing a human settlement agency or task team. The team can establish procedures for data collection and maintain a database for all kinds of housing market data. Their mandate includes research on commissioning of new towns and/or cities to boost housing supply. The government should avail more land and relax restrictive regulations and minimize red tape to ensure that houses are supplied to meet the growing demand as well as to stabilize prices. Policies to promote confidence and stabilize building costs are needed. These variables indicated significant influence on housing dynamics. It is also recommended to incentivize households to participate on the mortgage market. This assist both households through the wealth effect which positively influence increase in economic activity in South Africa. , Thesis (DCom) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023-09
- Authors: Muchaonyerwa, Forward
- Date: 2023-09
- Subjects: Economic development -- South Africa , Housing -- Prices -- South Africa , Housing forecasting -- South Africa
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28628 , vital:74477
- Description: The housing market contributes significantly to economic growth. On this background, the study examined South Africa’s housing market dynamics, particularly determinants of demand, supply, and formal housing prices. Furthermore, the study looked at the impact of housing prices on economic growth from 1994:Q1 to 2019:Q2. The study period is important as it covers the new political dispensation in South Africa where the country entered a new democracy in 1994. The first three objectives of the study were to identify the determinants of housing demand, supply, and prices. The theory of demand and supply provided the theoretical framework for these models. Estimation of the housing demand, supply and price models was done by the employing Seemingly Unrelated Regression (SUR) technique. The Three Stage Least Squares (3SLS) model was estimated for robustness. Findings from SUR and 3SLS confirmed that Housing Demand (HD) is negatively and significantly influenced by residential Building Costs per Square Meter (BCSM), Housing Supply (HS) and Financial Costs (FC); and positively influenced by House Prices (HP). In addition, HS is negatively affected by BCSM, HD, Production Costs (PC) and Urban Population (UP); and positively influenced by HP and Residential Construction Confidence (RC). Lastly, HP are negatively affected by Prime Overdraft Rate (POR) and RC; and positively influenced by BCSM, HS, HD, Coincident Business Cycle Indicator (CBC) and residential Valuation (VAL). The fourth objective was to examine the impact of house prices on economic growth. An economic model was specified with Gross Domestic Product (GDP) as its dependent variable. The new growth theory provided the theoretical framework for this model. The Johansen co-integration technique confirmed a long run-term relationship between economic growth and house prices. The Vector Error Correction Model (VECM) was estimated to analyze the long and short run relationship among the variables. Empirical results confirmed that house prices have a positive impact on economic growth. Results further confirmed that CBC and Unemployment Rate (UR) are also positively related to GDP. POR and Leading Business Cycle indicator (LEBC) are negatively related to GDP. Granger Causality test was performed to analyze the causality between house prices and economic growth. The results indicated that there is a long run unidirectional causality from house prices to economic growth. With these results, the study recommends policy formation emanating from continuous research by establishing a human settlement agency or task team. The team can establish procedures for data collection and maintain a database for all kinds of housing market data. Their mandate includes research on commissioning of new towns and/or cities to boost housing supply. The government should avail more land and relax restrictive regulations and minimize red tape to ensure that houses are supplied to meet the growing demand as well as to stabilize prices. Policies to promote confidence and stabilize building costs are needed. These variables indicated significant influence on housing dynamics. It is also recommended to incentivize households to participate on the mortgage market. This assist both households through the wealth effect which positively influence increase in economic activity in South Africa. , Thesis (DCom) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023-09
Foreign direct investment, institutions and economic growth in the selected Southern African Development Community (SADC) countries
- Authors: Onceya, Siyabulela
- Date: 2023-06
- Subjects: Investments, Foreign -- Africa, Southern , Southern African Development Community -- Economic conditions , Economic development -- Africa, Southern
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28672 , vital:74497
- Description: Examining the relationship between economic growth and foreign direct investment (FDI) has been a subject of discussion for many researchers, economists, and policy analysts mainly in developing regions. It is important to note that, recent literature highlights that there are other country-specific conditions such as state of institutions which are important in attracting FDI inflows into a country. Given this, the study analysed the relationship between FDI, institutions and economic growth in the Southern African Development Community (SADC) for the period 1990- 2020. The analysis was carried out at both cross- country (2010 to 2018) and individual country level (1990 to 2018). The main objectives of the study were to review the trends of FDI inflow into the region, institutional framework, and trends economic growth in the region as well as member countries. Secondly, to analyse the impact of FDI inflow and institutions on economic growth in the selected SADC countries. Thirdly, to examine how institutions and other factors determine the amount of FDI inflow to the selected SADC countries an provide policy recommendations. Existing literature has documented the relationship between FDI and economic growth. However, the significance of this study is that it provides an analysis of the impact of FDI inflows on economic growth in the SADC region at both cross-country and country specific level. At cross- country level, the Generalized Methods of Moments (GMM) was utilized as the estimation technique. The empirical results revealed that there exists a positive relationship between FDI and economic growth both in the short run and long run. The results also revealed that institutions in combination with financial sector development have a positive effect on economic growth in the SADC region. This gives support to the complimentary view of the importance of institutions and financial sector development as important factors determining the extent to which FDI influences economic growth. Guided by economic theory which suggests that there is a two-way relationship between FDI and economic growth, granger causality tests were performed to check the direction of effect between the two variables. The empirical results revealed that there is a bi-directional relationship between FDI, institutions and economic growth. This in a way suggest that the past values of each of the variables, explains the current values of the other variables. On the other hand, at country level, utilising the Autoregressive Distributed Lag model, empirical results revealed that the effects of FDI and institutions on economic growth is positive and significant. However, this was not found to be the case for Mauritius and Namibia. Given the significant role played by FDI in promoting economic growth, the study also investigated the factors determining the inflow of FDI into the SADC region focusing on the role played by institutions and other factors utilising GMM technique. The empirical results revealed that, in addition to institutions, financial development, infrastructure, and education also play an important role in determining the inflow of FDI into these countries. To a greater extent the same findings were also established at country level. Of great importance the study recommends that at a country level, countries should develop and adopt policies that strengthen good governance and sound institutions. These policies must be implemented and monitored to attract more FDI both in the short-run and long-run. , Thesis (DCom) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023-06
- Authors: Onceya, Siyabulela
- Date: 2023-06
- Subjects: Investments, Foreign -- Africa, Southern , Southern African Development Community -- Economic conditions , Economic development -- Africa, Southern
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28672 , vital:74497
- Description: Examining the relationship between economic growth and foreign direct investment (FDI) has been a subject of discussion for many researchers, economists, and policy analysts mainly in developing regions. It is important to note that, recent literature highlights that there are other country-specific conditions such as state of institutions which are important in attracting FDI inflows into a country. Given this, the study analysed the relationship between FDI, institutions and economic growth in the Southern African Development Community (SADC) for the period 1990- 2020. The analysis was carried out at both cross- country (2010 to 2018) and individual country level (1990 to 2018). The main objectives of the study were to review the trends of FDI inflow into the region, institutional framework, and trends economic growth in the region as well as member countries. Secondly, to analyse the impact of FDI inflow and institutions on economic growth in the selected SADC countries. Thirdly, to examine how institutions and other factors determine the amount of FDI inflow to the selected SADC countries an provide policy recommendations. Existing literature has documented the relationship between FDI and economic growth. However, the significance of this study is that it provides an analysis of the impact of FDI inflows on economic growth in the SADC region at both cross-country and country specific level. At cross- country level, the Generalized Methods of Moments (GMM) was utilized as the estimation technique. The empirical results revealed that there exists a positive relationship between FDI and economic growth both in the short run and long run. The results also revealed that institutions in combination with financial sector development have a positive effect on economic growth in the SADC region. This gives support to the complimentary view of the importance of institutions and financial sector development as important factors determining the extent to which FDI influences economic growth. Guided by economic theory which suggests that there is a two-way relationship between FDI and economic growth, granger causality tests were performed to check the direction of effect between the two variables. The empirical results revealed that there is a bi-directional relationship between FDI, institutions and economic growth. This in a way suggest that the past values of each of the variables, explains the current values of the other variables. On the other hand, at country level, utilising the Autoregressive Distributed Lag model, empirical results revealed that the effects of FDI and institutions on economic growth is positive and significant. However, this was not found to be the case for Mauritius and Namibia. Given the significant role played by FDI in promoting economic growth, the study also investigated the factors determining the inflow of FDI into the SADC region focusing on the role played by institutions and other factors utilising GMM technique. The empirical results revealed that, in addition to institutions, financial development, infrastructure, and education also play an important role in determining the inflow of FDI into these countries. To a greater extent the same findings were also established at country level. Of great importance the study recommends that at a country level, countries should develop and adopt policies that strengthen good governance and sound institutions. These policies must be implemented and monitored to attract more FDI both in the short-run and long-run. , Thesis (DCom) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023-06
The impact of fiscal and monetary policies on manufacturing sector performance in South Africa
- Authors: Hunter, Desireѐ
- Date: 2023
- Subjects: Manufacturing industries -- South Africa , Fiscal policy -- South Africa , Monetary policy -- South Africa
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28549 , vital:74417
- Description: Regulatory authorities have to date utilised a strategic blend of fiscal and monetary policies in dealing with the unique set of macroeconomic conditions facing South Africa. Government policy intervention has significant implications for economic growth and output within the manufacturing environment. Heterogeneity has also been discerned in relation to the responsiveness of various industries within the manufacturing sector towards both fiscal and monetary policy variable variations. However, given weakened growth prospects, policy alignment issues have been observed. The purpose of this study was firstly, to examine the impact of fiscal and monetary variables on manufacturing sector output in South Africa and secondly, to analyse the manufacturing industry significance of the various monetary transmission mechanism channels. The study made use of quarterly and monthly data to achieve these stated objectives, dated between 1998 and 2020. To achieve the first objective, the study employed the Autoregressive Distributed Lag (ARDL) model given the order of integration of the variables. The empirical results revealed significant, positive relations between tax revenue, deficit financing, nominal effective exchange rate (NEER) and money supply (M3) for total manufacturing (LTOTAL). Contrastingly, there were negative links between LTOTAL, government spending and the lending rate. At a disaggregated industry level, there were positive relations with tax revenue in food and wood industries, although tax revenue was significantly negative for metals. Likewise, to LTOTAL, linkages with spending were significantly negative for wood and metal industries but positive for chemicals. Negative spending signage could be a result of crowding-out. For deficit financing, positive associations within chemicals did not conform to expectations. Similarly, to LTOTAL, wood and metal industries conformed to expectations of negative relations with the lending rate. In respect of the NEER in food and wood production, significant, positive links were established. Contrastingly, a negative linkage existed for chemical activities at the 5% level. Concerning M3 and akin to LTOTAL, the relation with metal industries was positive. However, negative findings for food and chemicals contradicted expectations, suggesting money supply was not efficiently utilised in managing monetary variables in the long-term. The second objective of the study focused on analysing manufacturing industry significance of the various monetary transmission mechanism channels. The Vector Error Correction Model (VECM) were employed to analyse the relationship between the variables. Impulse response and variance decomposition were also constructed to further trace which channel is more significant in influencing manufacturing output. The empirical results revealed that the interest rate channel occupied a relatively significant role in both LTOTAL and several selected manufacturing industries. Shocks accounted for 9.71%, 11.96% and 14.28% of the variance in LTOTAL, metal and chemical industries. The asset price channel also appeared relatively significant, with shocks to the FTSE/JSE all-share index explaining 18.21% and 21.13% of the variation in food and wood production, signifying the most relevant channel for these particular industries and representing the second most important channel for LTOTAL and the other remaining industries. The exchange rate channel also presented as being a more relevant channel for food and wood, but occupied little role in LTOTAL, whilst the credit channel was relatively ineffectual for both LTOTAL and all industries examined. The results obtained imply that government should exercise caution and demonstrate fiscal restraint and that the South African Reserve Bank (SARB) need to take greater consideration of output fluctuations in monetary policy setting. Research has dictated that an expansionary fiscal policy is generally required as a means to achieving increased growth. However, findings obtained at both the aggregate and disaggregated manufacturing level in South Africa largely varied. This implies significant heterogeneity within the South African manufacturing sector in respect of fiscal policy responses. Expansionary fiscal stimulus packages need to be better targeted towards industries that will most benefit. Similarly, monetary policy responses at the aggregate and disaggregated manufacturing level in South Africa were heterogeneous and furthermore, differed when examining combined policy impacts. There was also a heterogeneous response with respect to relevance of the channels, via which monetary policy operated, with the interest rate channel dominating. SARB do take into consideration output fluctuations in policy setting but this is not currently emphasised or legislated. , Thesis (DCom) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023
- Authors: Hunter, Desireѐ
- Date: 2023
- Subjects: Manufacturing industries -- South Africa , Fiscal policy -- South Africa , Monetary policy -- South Africa
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28549 , vital:74417
- Description: Regulatory authorities have to date utilised a strategic blend of fiscal and monetary policies in dealing with the unique set of macroeconomic conditions facing South Africa. Government policy intervention has significant implications for economic growth and output within the manufacturing environment. Heterogeneity has also been discerned in relation to the responsiveness of various industries within the manufacturing sector towards both fiscal and monetary policy variable variations. However, given weakened growth prospects, policy alignment issues have been observed. The purpose of this study was firstly, to examine the impact of fiscal and monetary variables on manufacturing sector output in South Africa and secondly, to analyse the manufacturing industry significance of the various monetary transmission mechanism channels. The study made use of quarterly and monthly data to achieve these stated objectives, dated between 1998 and 2020. To achieve the first objective, the study employed the Autoregressive Distributed Lag (ARDL) model given the order of integration of the variables. The empirical results revealed significant, positive relations between tax revenue, deficit financing, nominal effective exchange rate (NEER) and money supply (M3) for total manufacturing (LTOTAL). Contrastingly, there were negative links between LTOTAL, government spending and the lending rate. At a disaggregated industry level, there were positive relations with tax revenue in food and wood industries, although tax revenue was significantly negative for metals. Likewise, to LTOTAL, linkages with spending were significantly negative for wood and metal industries but positive for chemicals. Negative spending signage could be a result of crowding-out. For deficit financing, positive associations within chemicals did not conform to expectations. Similarly, to LTOTAL, wood and metal industries conformed to expectations of negative relations with the lending rate. In respect of the NEER in food and wood production, significant, positive links were established. Contrastingly, a negative linkage existed for chemical activities at the 5% level. Concerning M3 and akin to LTOTAL, the relation with metal industries was positive. However, negative findings for food and chemicals contradicted expectations, suggesting money supply was not efficiently utilised in managing monetary variables in the long-term. The second objective of the study focused on analysing manufacturing industry significance of the various monetary transmission mechanism channels. The Vector Error Correction Model (VECM) were employed to analyse the relationship between the variables. Impulse response and variance decomposition were also constructed to further trace which channel is more significant in influencing manufacturing output. The empirical results revealed that the interest rate channel occupied a relatively significant role in both LTOTAL and several selected manufacturing industries. Shocks accounted for 9.71%, 11.96% and 14.28% of the variance in LTOTAL, metal and chemical industries. The asset price channel also appeared relatively significant, with shocks to the FTSE/JSE all-share index explaining 18.21% and 21.13% of the variation in food and wood production, signifying the most relevant channel for these particular industries and representing the second most important channel for LTOTAL and the other remaining industries. The exchange rate channel also presented as being a more relevant channel for food and wood, but occupied little role in LTOTAL, whilst the credit channel was relatively ineffectual for both LTOTAL and all industries examined. The results obtained imply that government should exercise caution and demonstrate fiscal restraint and that the South African Reserve Bank (SARB) need to take greater consideration of output fluctuations in monetary policy setting. Research has dictated that an expansionary fiscal policy is generally required as a means to achieving increased growth. However, findings obtained at both the aggregate and disaggregated manufacturing level in South Africa largely varied. This implies significant heterogeneity within the South African manufacturing sector in respect of fiscal policy responses. Expansionary fiscal stimulus packages need to be better targeted towards industries that will most benefit. Similarly, monetary policy responses at the aggregate and disaggregated manufacturing level in South Africa were heterogeneous and furthermore, differed when examining combined policy impacts. There was also a heterogeneous response with respect to relevance of the channels, via which monetary policy operated, with the interest rate channel dominating. SARB do take into consideration output fluctuations in policy setting but this is not currently emphasised or legislated. , Thesis (DCom) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023
Trade openness, economic growth, income inequality and poverty nexus in SADC countries: 1980-2019
- Gonese, Dorcas https://orcid.org/0000-0003-0774-024X
- Authors: Gonese, Dorcas https://orcid.org/0000-0003-0774-024X
- Date: 2022-01
- Subjects: Economic development , Income distribution
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/23370 , vital:57618
- Description: Trade openness (TO) has been identified as a critical component for sustainable economic growth, income inequality reduction, and poverty reduction in the 2030 Agenda as per the Sustainable Development Goals (SDGs), and the Southern African Development Community (SADC) regional indicative strategic development plan (RISDP). Despite the opening up to the global world, developing countries such as the SADC continue to face exclusive and unstable economic growth, massive income disparity, and poverty. Considering the previous empirical work, many controversies are related to methodologies and measurement issues. The study attempted to examine the impact of trade openness on economic growth of the SADC countries as well as its effect on income inequality and poverty reduction from 1980 to 2019. The study builds on existing studies in the region that have mainly analysed this kind of relationship, assuming that it is only TO and economic growth (EGR) that matters. The study sought to address three analytical objectives. The first objective focused on examining the effects of trade openness on economic growth in the SADC countries. In addressing this objective, the Pooled Mean Group (PMG) was utilised, given the nature of the relationship between the variables of interest. The empirical results revealed that all measures of trade openness (real trade openness, economic globalisation, exports and imports of goods and services) used in the study have a positive effect on economic growth in SADC countries. This implies that the foreign factors account for a share of SADC's economic growth. The PMG indicates that the mediating variables of all measures of trade openness with human capital development have a positive effect on economic growth. This implies that the beneficial impact of the said measures of trade openness, are more effective when investment in human capital increases. The second objective focused on analysing trade openness's direct and indirect impact on income inequality using the PMG model again. The empirical results indicate that trade openness via exports has a negative effect on income inequality. In contrast, real trade openness and imports positively affect income inequality. This implies that the exports of goods and services in SADC are drivers of income inequality reduction while real trade openness and imports worsen it. Therefore, the SADC countries must be wary of real trade openness and import policies addressing income inequality. As for the interaction effects, the empirical results indicate that greater openness via real trade openness, economic globalisation, exports and imports reduce income inequality when economic growth increases and when the financial sector is more developed. The final analytical objective focused on analysing the effects of TO on poverty in the SADC region. The PMG model was utilised for trade openness-non-income poverty (NPOV) relationship. However, because there is a scarcity of income-poverty (IPOV) data, the time dimensions for the income poverty-trade openness model are smaller than the cross sections. Therefore, the current study employed the system generalised method of moments (SGMM) estimation technique which is a more effective and efficient estimation technique for controlling for endogeneity when the time dimension is smaller than the cross sections. The findings indicate that real trade openness has a positive effect on NPOV, whereas economic globalisation, exports, and imports negatively affect NPOV. This implies that real trade openness increases poverty reduction while economic globalisation, exports and imports exacerbate non-income poverty in SADC countries. On testing whether trade openness- NPOV relationship changes with economic growth, income inequality, human capital development, financial development and institutional quality, the complementary variable with EGR is positive and significant for real trade openness and exports, implying that real trade openness and exports reduce NPOV when economic growth increases. The SGMM indicates that only economic globalisation and imports have negative impact on income poverty in SADC countries. This implies that economic globalisation and imports are determinants of income poverty reduction in the SADC countries. The SADC governments and policymakers should be mindful about what ways they should globalise, what goods they export or imports to minimise income poverty. , Thesis (PhD) -- Faculty of Management and Commerce, 2022
- Full Text:
- Date Issued: 2022-01
- Authors: Gonese, Dorcas https://orcid.org/0000-0003-0774-024X
- Date: 2022-01
- Subjects: Economic development , Income distribution
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/23370 , vital:57618
- Description: Trade openness (TO) has been identified as a critical component for sustainable economic growth, income inequality reduction, and poverty reduction in the 2030 Agenda as per the Sustainable Development Goals (SDGs), and the Southern African Development Community (SADC) regional indicative strategic development plan (RISDP). Despite the opening up to the global world, developing countries such as the SADC continue to face exclusive and unstable economic growth, massive income disparity, and poverty. Considering the previous empirical work, many controversies are related to methodologies and measurement issues. The study attempted to examine the impact of trade openness on economic growth of the SADC countries as well as its effect on income inequality and poverty reduction from 1980 to 2019. The study builds on existing studies in the region that have mainly analysed this kind of relationship, assuming that it is only TO and economic growth (EGR) that matters. The study sought to address three analytical objectives. The first objective focused on examining the effects of trade openness on economic growth in the SADC countries. In addressing this objective, the Pooled Mean Group (PMG) was utilised, given the nature of the relationship between the variables of interest. The empirical results revealed that all measures of trade openness (real trade openness, economic globalisation, exports and imports of goods and services) used in the study have a positive effect on economic growth in SADC countries. This implies that the foreign factors account for a share of SADC's economic growth. The PMG indicates that the mediating variables of all measures of trade openness with human capital development have a positive effect on economic growth. This implies that the beneficial impact of the said measures of trade openness, are more effective when investment in human capital increases. The second objective focused on analysing trade openness's direct and indirect impact on income inequality using the PMG model again. The empirical results indicate that trade openness via exports has a negative effect on income inequality. In contrast, real trade openness and imports positively affect income inequality. This implies that the exports of goods and services in SADC are drivers of income inequality reduction while real trade openness and imports worsen it. Therefore, the SADC countries must be wary of real trade openness and import policies addressing income inequality. As for the interaction effects, the empirical results indicate that greater openness via real trade openness, economic globalisation, exports and imports reduce income inequality when economic growth increases and when the financial sector is more developed. The final analytical objective focused on analysing the effects of TO on poverty in the SADC region. The PMG model was utilised for trade openness-non-income poverty (NPOV) relationship. However, because there is a scarcity of income-poverty (IPOV) data, the time dimensions for the income poverty-trade openness model are smaller than the cross sections. Therefore, the current study employed the system generalised method of moments (SGMM) estimation technique which is a more effective and efficient estimation technique for controlling for endogeneity when the time dimension is smaller than the cross sections. The findings indicate that real trade openness has a positive effect on NPOV, whereas economic globalisation, exports, and imports negatively affect NPOV. This implies that real trade openness increases poverty reduction while economic globalisation, exports and imports exacerbate non-income poverty in SADC countries. On testing whether trade openness- NPOV relationship changes with economic growth, income inequality, human capital development, financial development and institutional quality, the complementary variable with EGR is positive and significant for real trade openness and exports, implying that real trade openness and exports reduce NPOV when economic growth increases. The SGMM indicates that only economic globalisation and imports have negative impact on income poverty in SADC countries. This implies that economic globalisation and imports are determinants of income poverty reduction in the SADC countries. The SADC governments and policymakers should be mindful about what ways they should globalise, what goods they export or imports to minimise income poverty. , Thesis (PhD) -- Faculty of Management and Commerce, 2022
- Full Text:
- Date Issued: 2022-01
The impact of export commodity prices on emerging markets economic growth: a case of South Africa’s mineral exports.
- Authors: Moodley, Shiven
- Date: 2021-09
- Subjects: Economic development
- Language: English
- Type: Master's/ theses , text
- Identifier: http://hdl.handle.net/10353/20462 , vital:45668
- Description: Despite South Africa being a mineral resource-rich country, it has experienced low economic growth post-democracy era. The available literature suggests that fluctuations in global demand for commodities have harmed the production process of tradeable and non-tradable goods. Based on this, this dissertation examines the impact of export commodity price on GDP per capita in South Africa using quarterly data beginning from Q2 (April-June) 1990 to Q4 (Oct-Dec) 2018. The Johansen co-integration technique and the Vector Error Correction Method (VECM) were utilised to examine both the long and short-run relationships between the variables of interest. The outcome of the examination has revealed that export commodity price and government expenditure have a positive relationship with GDP per capita in the long run. However, net capital flows have a negative effect on GDP per capita in South Africa. In the short run, the empirical results also reveal that both net capital flows and government expenditure are negatively related to GDP per capita. Furthermore, policy action should be directed towards structural investment for the development of sustainable infrastructure projects within the commodity export sector based on the long-run relationship between commodity export prices and GDP per capita. , Thesis (MCom) (Economics) -- University of Fort Hare, 2021
- Full Text:
- Date Issued: 2021-09
- Authors: Moodley, Shiven
- Date: 2021-09
- Subjects: Economic development
- Language: English
- Type: Master's/ theses , text
- Identifier: http://hdl.handle.net/10353/20462 , vital:45668
- Description: Despite South Africa being a mineral resource-rich country, it has experienced low economic growth post-democracy era. The available literature suggests that fluctuations in global demand for commodities have harmed the production process of tradeable and non-tradable goods. Based on this, this dissertation examines the impact of export commodity price on GDP per capita in South Africa using quarterly data beginning from Q2 (April-June) 1990 to Q4 (Oct-Dec) 2018. The Johansen co-integration technique and the Vector Error Correction Method (VECM) were utilised to examine both the long and short-run relationships between the variables of interest. The outcome of the examination has revealed that export commodity price and government expenditure have a positive relationship with GDP per capita in the long run. However, net capital flows have a negative effect on GDP per capita in South Africa. In the short run, the empirical results also reveal that both net capital flows and government expenditure are negatively related to GDP per capita. Furthermore, policy action should be directed towards structural investment for the development of sustainable infrastructure projects within the commodity export sector based on the long-run relationship between commodity export prices and GDP per capita. , Thesis (MCom) (Economics) -- University of Fort Hare, 2021
- Full Text:
- Date Issued: 2021-09
Effects of non-communicable diseases on labour market outcomes in South Africa
- Lawana, Nozuko https://orcid.org/0000-0003-0027-4725
- Authors: Lawana, Nozuko https://orcid.org/0000-0003-0027-4725
- Date: 2020-12
- Subjects: Labor economics , Environmental health
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/20340 , vital:45656
- Description: South Africa has experienced a high and rising burden of non-communicable diseases (NCDs) and lifestyle risk factors over the past decade. Health as a category of human capital is generally ex-pected to influence an individual’s labour supply and productivity. Despite the increasing burden of non-communicable diseases, the high rate of economically inactive population and persistent wage inequalities in South Africa, there is limited empirical research on the effect of NCDs on labour force participation, employment status and wage differentials. Given this, the main object-ive of this study was to determine the effects of NCDs on three labour market outcomes: labour force participation, employment status and wage differentials in South Africa. This was divided into three major analytical objectives. Data used was extracted from the five waves of the National Income Dynamics Study, a nationally representative survey collected by the South African Labour and Development Research Unit (SALDRU). Several econometric tests, including cross-sectional data analysis, panel data analysis and the Blinder-Oaxaca decomposition methods, were used in the study. The first analytical objective focused on estimating the effect of lifestyle risk factors on labour force participation through NCDs by gender. Endogenous multivariate probit models with a recur-sive simultaneous structure were employed as a method of analysis. The empirical findings suggested that NCDs and associated risk factors have detrimental effect on labour force participation. The analysis was further expanded to analyse the effect of gender differences, considering that the effect of NCDs may be gender-specific. The results revealed that the effect of stroke and heart diseases were significant only for men, while diabetes and high blood pressure were only significant for women. The results also emphasised the significant indirect influence of obesity, physical inactivity, and alcohol consumption on labour force participation through NCDs, especially for men. The second analytical chapter focused on investigating the effect of NCDs on employment status – that is, those employed, unemployed and economically inactive in the population of South Africa by gender. The estimation technique known as generalised linear latent and mixed methods (GLLAMM) was employed to fit the multinomial logit model with correlated random intercept. The findings suggest that NCDs affect the economically inactive population significantly relative to those employed, and the magnitude is larger for women than for men. There was no significant difference found in the effect of NCDs on the unemployed relative to the employed segment of the population. In addition, the results revealed gender differences on the effect of NCDs on employment status and that stroke had a significant influence on the employment status of both sexes, while heart diseases had significant influence only in men, whereas diabetes had significant effects only in women. The last analytical chapter focuses on estimating the effect of NCDs on wage differentials in South Africa by gender. The recentred influence function regression model and Blinder-Oaxaca de-composition with RIF were used in the chapter. The empirical results revealed that the effect of NCDs on earnings differ by gender. It was found that women with NCDs earn less than those without NCDs, while men with NCDs were found to earn more than their counterparts without NCDs. The results further revealed that women with NCDs suffer from wage discrimination in South Africa. The policy implications of this study are gender-specific. The results highlight the necessity for undertaking a massive awareness campaign regarding the prevention and control of NCDs, espe-cially among women. This can be achieved through specific female health programmes, including maternal healthcare. The findings of the study imply largely that calls for gender-responsive health approaches which take into account gender-specific needs and priorities should be promoted, compared to a blanket approach. In addition, there is a need for the government to complement education policies to promote labour market outcomes. Policies aimed at increasing access to education should continue to improve access to higher education and so to enhance participation in the labour force and reduce wage gaps. , Thesis (PhD) -- Faculty of Management and Commerce, 2020
- Full Text:
- Date Issued: 2020-12
- Authors: Lawana, Nozuko https://orcid.org/0000-0003-0027-4725
- Date: 2020-12
- Subjects: Labor economics , Environmental health
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/20340 , vital:45656
- Description: South Africa has experienced a high and rising burden of non-communicable diseases (NCDs) and lifestyle risk factors over the past decade. Health as a category of human capital is generally ex-pected to influence an individual’s labour supply and productivity. Despite the increasing burden of non-communicable diseases, the high rate of economically inactive population and persistent wage inequalities in South Africa, there is limited empirical research on the effect of NCDs on labour force participation, employment status and wage differentials. Given this, the main object-ive of this study was to determine the effects of NCDs on three labour market outcomes: labour force participation, employment status and wage differentials in South Africa. This was divided into three major analytical objectives. Data used was extracted from the five waves of the National Income Dynamics Study, a nationally representative survey collected by the South African Labour and Development Research Unit (SALDRU). Several econometric tests, including cross-sectional data analysis, panel data analysis and the Blinder-Oaxaca decomposition methods, were used in the study. The first analytical objective focused on estimating the effect of lifestyle risk factors on labour force participation through NCDs by gender. Endogenous multivariate probit models with a recur-sive simultaneous structure were employed as a method of analysis. The empirical findings suggested that NCDs and associated risk factors have detrimental effect on labour force participation. The analysis was further expanded to analyse the effect of gender differences, considering that the effect of NCDs may be gender-specific. The results revealed that the effect of stroke and heart diseases were significant only for men, while diabetes and high blood pressure were only significant for women. The results also emphasised the significant indirect influence of obesity, physical inactivity, and alcohol consumption on labour force participation through NCDs, especially for men. The second analytical chapter focused on investigating the effect of NCDs on employment status – that is, those employed, unemployed and economically inactive in the population of South Africa by gender. The estimation technique known as generalised linear latent and mixed methods (GLLAMM) was employed to fit the multinomial logit model with correlated random intercept. The findings suggest that NCDs affect the economically inactive population significantly relative to those employed, and the magnitude is larger for women than for men. There was no significant difference found in the effect of NCDs on the unemployed relative to the employed segment of the population. In addition, the results revealed gender differences on the effect of NCDs on employment status and that stroke had a significant influence on the employment status of both sexes, while heart diseases had significant influence only in men, whereas diabetes had significant effects only in women. The last analytical chapter focuses on estimating the effect of NCDs on wage differentials in South Africa by gender. The recentred influence function regression model and Blinder-Oaxaca de-composition with RIF were used in the chapter. The empirical results revealed that the effect of NCDs on earnings differ by gender. It was found that women with NCDs earn less than those without NCDs, while men with NCDs were found to earn more than their counterparts without NCDs. The results further revealed that women with NCDs suffer from wage discrimination in South Africa. The policy implications of this study are gender-specific. The results highlight the necessity for undertaking a massive awareness campaign regarding the prevention and control of NCDs, espe-cially among women. This can be achieved through specific female health programmes, including maternal healthcare. The findings of the study imply largely that calls for gender-responsive health approaches which take into account gender-specific needs and priorities should be promoted, compared to a blanket approach. In addition, there is a need for the government to complement education policies to promote labour market outcomes. Policies aimed at increasing access to education should continue to improve access to higher education and so to enhance participation in the labour force and reduce wage gaps. , Thesis (PhD) -- Faculty of Management and Commerce, 2020
- Full Text:
- Date Issued: 2020-12
The determinants of the currency deposit ratio of South Africa: an econometric analysis
- Authors: Chiwota, Richard
- Date: 2020-02
- Subjects: Econometricshttp://id.loc.gov/authorities/subjects/sh85040763
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/19694 , vital:43169
- Description: The main objective of the study was to investigate the determinants of the currency deposit ratio of South Africa. The stability of the demand for money has been a recurring area of interest of empirical research on the South African economy. Underlying this interest in the behavior of money demand is the potential role of movement in monetary aggregates as indicators of future developments in inflation. Specifically, if a stable relationship exists between the demand for money and its determinants, changes in the money supply can provide useful information in the longer terms. While there has been considerable empirical research on estimating the money demand function for many less developed countries (LDCs), the currency demand function has been largely ignored. The study used secondary data sourced from the South African Reserve Bank, Statistics South Africa and Quantec. It also used annual data from 2000 to 2018 with an autoregressive distributed lag (ARDL) technique used for regression purposes. The study opted for this model because the variables were a mixture of me (0) and me (1). The empirical results show that income had a positive relationship with currency deposit ratio. In other words, when income increases, the amount of currency in circulation increases relative to deposits. Results show that there is a negative relationship between inflation and currency demand ratio. The SARB has to monitor changes in income in order to keep pace with the demand for cash. They must also use other monetary policy operational variables such as M3 to ensure that there is a match between income and money demand and money supply. , Thesis (MCom) -- Faculty of Management and Commerce, 2020
- Full Text:
- Date Issued: 2020-02
- Authors: Chiwota, Richard
- Date: 2020-02
- Subjects: Econometricshttp://id.loc.gov/authorities/subjects/sh85040763
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/19694 , vital:43169
- Description: The main objective of the study was to investigate the determinants of the currency deposit ratio of South Africa. The stability of the demand for money has been a recurring area of interest of empirical research on the South African economy. Underlying this interest in the behavior of money demand is the potential role of movement in monetary aggregates as indicators of future developments in inflation. Specifically, if a stable relationship exists between the demand for money and its determinants, changes in the money supply can provide useful information in the longer terms. While there has been considerable empirical research on estimating the money demand function for many less developed countries (LDCs), the currency demand function has been largely ignored. The study used secondary data sourced from the South African Reserve Bank, Statistics South Africa and Quantec. It also used annual data from 2000 to 2018 with an autoregressive distributed lag (ARDL) technique used for regression purposes. The study opted for this model because the variables were a mixture of me (0) and me (1). The empirical results show that income had a positive relationship with currency deposit ratio. In other words, when income increases, the amount of currency in circulation increases relative to deposits. Results show that there is a negative relationship between inflation and currency demand ratio. The SARB has to monitor changes in income in order to keep pace with the demand for cash. They must also use other monetary policy operational variables such as M3 to ensure that there is a match between income and money demand and money supply. , Thesis (MCom) -- Faculty of Management and Commerce, 2020
- Full Text:
- Date Issued: 2020-02
The effects of exchange rate volatility on manufacturing exports in South Africa
- Authors: Munyu, Yibanati
- Date: 2020-01
- Subjects: Foreign exchange rates
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/20208 , vital:45411
- Description: The study examined the effect of exchange rate volatility on manufacturing exports in South Africa utilizing quarterly time series data from 1990 to 2018. Manufacturing exports (MX), foreign income (GDPf), input costs (C01), the real effective exchange rate (REER) and exchange rate volatility (V) were the key parameters. The study employed two alternative measures of exchange rate volatility. The first measure is the moving average standard deviation of the logarithm of the real effective exchange rate (MASDlnREER) based on the raw monthly data of the real effective exchange rate. The second measure is a dummy variable intended to capture the unexpected variation of the exchange rate. The study utilized the Autoregressive Distributed Lag (ARDL) and the Error Correction Method (ECM) to examine the both the long run and short-run relationships. The empirical results revealed that in the long run, the real effective exchange rate volatility measure (MASDlnREER) has a negative and significant effect on manufacturing exports in South Africa. This result suggests that policy makers need to make an effort to moderate, the volatility of the Rand in an attempt to contain the adverse effects on manufacturing exports. , Thesis (MCom) -- Faculty of Management and Commerce, 2020
- Full Text:
- Date Issued: 2020-01
- Authors: Munyu, Yibanati
- Date: 2020-01
- Subjects: Foreign exchange rates
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/20208 , vital:45411
- Description: The study examined the effect of exchange rate volatility on manufacturing exports in South Africa utilizing quarterly time series data from 1990 to 2018. Manufacturing exports (MX), foreign income (GDPf), input costs (C01), the real effective exchange rate (REER) and exchange rate volatility (V) were the key parameters. The study employed two alternative measures of exchange rate volatility. The first measure is the moving average standard deviation of the logarithm of the real effective exchange rate (MASDlnREER) based on the raw monthly data of the real effective exchange rate. The second measure is a dummy variable intended to capture the unexpected variation of the exchange rate. The study utilized the Autoregressive Distributed Lag (ARDL) and the Error Correction Method (ECM) to examine the both the long run and short-run relationships. The empirical results revealed that in the long run, the real effective exchange rate volatility measure (MASDlnREER) has a negative and significant effect on manufacturing exports in South Africa. This result suggests that policy makers need to make an effort to moderate, the volatility of the Rand in an attempt to contain the adverse effects on manufacturing exports. , Thesis (MCom) -- Faculty of Management and Commerce, 2020
- Full Text:
- Date Issued: 2020-01
The relationship between financial development and economic growth in Eswatini (formerly Swaziland)
- Fakudze, Siphe-okuhlehttps://orcid.org/0000-0001-7928-5552
- Authors: Fakudze, Siphe-okuhlehttps://orcid.org/0000-0001-7928-5552
- Date: 2019-12
- Subjects: Economic development -- Eswatini , Eswatini -- Economic conditions
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/19704 , vital:43170
- Description: The study empirically examined the relationship between financial development and economic growth in Eswatini using quarterly time series data covering the period 1996 to 2018. Auto Regressive Distributed Lag bounds test technique and Granger causality test were used. The ratio of credit to the private sector to economic growth, openness to trade, revealed a positive relationship with economic growth in the long-run and short-run dynamics. Money supply displayed a negative association with real output in the long-run and short-run. Government size as a ratio of GDP highlighted a negative linkage with economic growth in the long-run and temporary positive association in the short-run. The Granger Causality test results displayed unidirectional causality running from financial development to economic growth, supporting the demand following causality hypothesis in Eswatini. The study recommends developing policies aimed at enhancing credit to the private sector to stimulate investment; reprioritise Government expenditure to minimise fiscal gap and support supply side reforms focusing on infrastructure development; control domestic liquidity and develop market securities attractive to the private sector; strengthen trade intensity to bolster growth; and improve regulatory framework to develop the non-bank financial industry. , Thesis (MCom) -- Faculty of Management and Commerce, 2019
- Full Text:
- Date Issued: 2019-12
- Authors: Fakudze, Siphe-okuhlehttps://orcid.org/0000-0001-7928-5552
- Date: 2019-12
- Subjects: Economic development -- Eswatini , Eswatini -- Economic conditions
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/19704 , vital:43170
- Description: The study empirically examined the relationship between financial development and economic growth in Eswatini using quarterly time series data covering the period 1996 to 2018. Auto Regressive Distributed Lag bounds test technique and Granger causality test were used. The ratio of credit to the private sector to economic growth, openness to trade, revealed a positive relationship with economic growth in the long-run and short-run dynamics. Money supply displayed a negative association with real output in the long-run and short-run. Government size as a ratio of GDP highlighted a negative linkage with economic growth in the long-run and temporary positive association in the short-run. The Granger Causality test results displayed unidirectional causality running from financial development to economic growth, supporting the demand following causality hypothesis in Eswatini. The study recommends developing policies aimed at enhancing credit to the private sector to stimulate investment; reprioritise Government expenditure to minimise fiscal gap and support supply side reforms focusing on infrastructure development; control domestic liquidity and develop market securities attractive to the private sector; strengthen trade intensity to bolster growth; and improve regulatory framework to develop the non-bank financial industry. , Thesis (MCom) -- Faculty of Management and Commerce, 2019
- Full Text:
- Date Issued: 2019-12
The impact of capital adequacy requirements on loan pricing : the case of South African Commercial Banks
- Authors: Mgxekwa, Bahle
- Date: 2018
- Subjects: Bank loans Banks and banking -- State supervision Financial institutions -- State supervision
- Language: English
- Type: Thesis , Masters , (MCom) Economics
- Identifier: http://hdl.handle.net/10353/10188 , vital:35373
- Description: Capital adequacy requirements are viewed as an important form of regulation within the banking sector and they represent a major change in banking regulation. The capital accord is a globalised regulation which seeks to reduce banking failures and achieve a stable and efficient financial system for the growth of the global economies. Through the adoption of the capital adequacy requirement in the South African banking system as well as having internationally active financial institutions, the South African economy is no exception to the benefits ensued by this regulation to the global economies. In light of this, this study examined the impact of capital adequacy requirements on loan pricing of South African commercial banks, using quarterly time series econometric analysis over the time period 2000-2016. The study used interest rate on loan, the dependent variable as a measure of loan pricing and the following independent variables: risk of default, market structure, Treasury bill and capital adequacy ratio. To confirm the level of integration, the study employed the Augmented Dickey-Fuller and Phillips-Perron tests. The Johansen co-integration and the Vector Error Correction Model were employed to obtain long-run and short-run coefficients. The findings of this study show that the measure of capital adequacy requirements CCAR is negatively related to real interest rate on loans CRL. This agrees with theory and expected priori. In addition, past studies in the developing countries’ context support these findings. Estimation of results reveals that all other variables such as market structure CMS, Treasury bill rate TB and loan loss provisions GLLP have a positive impact on interest rate on loans.
- Full Text:
- Date Issued: 2018
- Authors: Mgxekwa, Bahle
- Date: 2018
- Subjects: Bank loans Banks and banking -- State supervision Financial institutions -- State supervision
- Language: English
- Type: Thesis , Masters , (MCom) Economics
- Identifier: http://hdl.handle.net/10353/10188 , vital:35373
- Description: Capital adequacy requirements are viewed as an important form of regulation within the banking sector and they represent a major change in banking regulation. The capital accord is a globalised regulation which seeks to reduce banking failures and achieve a stable and efficient financial system for the growth of the global economies. Through the adoption of the capital adequacy requirement in the South African banking system as well as having internationally active financial institutions, the South African economy is no exception to the benefits ensued by this regulation to the global economies. In light of this, this study examined the impact of capital adequacy requirements on loan pricing of South African commercial banks, using quarterly time series econometric analysis over the time period 2000-2016. The study used interest rate on loan, the dependent variable as a measure of loan pricing and the following independent variables: risk of default, market structure, Treasury bill and capital adequacy ratio. To confirm the level of integration, the study employed the Augmented Dickey-Fuller and Phillips-Perron tests. The Johansen co-integration and the Vector Error Correction Model were employed to obtain long-run and short-run coefficients. The findings of this study show that the measure of capital adequacy requirements CCAR is negatively related to real interest rate on loans CRL. This agrees with theory and expected priori. In addition, past studies in the developing countries’ context support these findings. Estimation of results reveals that all other variables such as market structure CMS, Treasury bill rate TB and loan loss provisions GLLP have a positive impact on interest rate on loans.
- Full Text:
- Date Issued: 2018
Exhaustible resources and the hotelling rule : an empirical test of the hotelling rule's significance to gold production in South Africa
- Authors: Mlambo, Courage
- Date: 2017
- Subjects: Natural resources -- Mathematical models Econometrics
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/4738 , vital:28507
- Description: The study sought to test the applicability of the Hotelling rule in South Africa. In environmental economics, the Hotelling rule has come to be a pillar of the exhaustible resources framework and in addition to this, it has presented essential insights into the consumption and extraction of non-renewable resources. Hotelling sought to address one important question which had been unanswered regarding the depletion of exhaustible resources: How much of the natural resource in question should be consumed presently and how much of it should be stocked up for future generations? The focus was to find a solution for those involved in the exploitation of natural resources to choose between the current value of the natural resource if extracted and sold and the future increased value of the asset if left unexploited. According to the Hotelling rule, the extraction path in competitive market economies will, under certain circumstances, be socially optimal. An extraction path that is not socially optimal compromises the welfare of future generations. The welfare of South Africa’s present population and more especially in the future will be greatly determined by the stock of natural resources available and the quality of the environment. Currently, the production processes deplete natural resources. Concern with the supposed increasing scarcity of gold in South Africa, and the possibility of running out of gold, has become a source of concern. South Africa’s gold reserves (gold in the ground that can be extracted profitably) are becoming depleted at an alarming rate. Most reserves are already exhausted; and the costs involved in mining lower-grade ore, and deposits located very deep in the ground, are becoming excessive. In light of this, this study sought to test the applicability of the Hotelling rule in South Africa. In order to empirically test the Hotelling rule, the study was guided by previous literature that had sought to test it. In this regard, the study used both descriptive and inferential statistics. The study has three data analysis chapters. The first two presented and examined the time series properties of gold prices, gold production and gold consumption. The third data analysis chapter examined the relationship between gold price and interest rates. In the first two data analysis chapters, visual inspection, growth rates, variance ratio tests and advanced unit root tests were used to examine the time series properties of gold prices, gold production and gold consumption. Results showed that the behaviour of the gold price series and gold production series in South Africa have a behaviour that is socially optimal. This is in line with the Hotelling rule. The rule predicts exponentially increasing resource prices and this result in mineral resources following the path of the positive trend. The positive trend is prompted by the increasing price reflecting the increasing scarcity of the resource. However, consumption trends were seen to be violating the Hotelling rule. The Hotelling rule predicts that the price increases until it eventually reaches the choke price, where the quantity demanded decreases to zero. However, in contrast to this, results showed that the demand for gold has been increasing instead of decreasing. This is not in line with the Hotelling rule. Furthermore the relationship between interest rate and gold price was negative and this suggested that the price of gold was not rising at the rate of the interest rate. The results of the study suggested that gold production is not following a social optimally path. The study recommended that the government come up with measures that prolong the lifespan of the gold reserves. These included research and development to promote technological innovations in the mining sector. This may make it possible for firms to access lower-grade ores. The study also recommended that since the Hotelling rule partly applied in the gold sector, there is a need to adopt some other theoretical measures that can ensure that the proceeds from the gold taxes are used in the most effective way.
- Full Text:
- Date Issued: 2017
- Authors: Mlambo, Courage
- Date: 2017
- Subjects: Natural resources -- Mathematical models Econometrics
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/4738 , vital:28507
- Description: The study sought to test the applicability of the Hotelling rule in South Africa. In environmental economics, the Hotelling rule has come to be a pillar of the exhaustible resources framework and in addition to this, it has presented essential insights into the consumption and extraction of non-renewable resources. Hotelling sought to address one important question which had been unanswered regarding the depletion of exhaustible resources: How much of the natural resource in question should be consumed presently and how much of it should be stocked up for future generations? The focus was to find a solution for those involved in the exploitation of natural resources to choose between the current value of the natural resource if extracted and sold and the future increased value of the asset if left unexploited. According to the Hotelling rule, the extraction path in competitive market economies will, under certain circumstances, be socially optimal. An extraction path that is not socially optimal compromises the welfare of future generations. The welfare of South Africa’s present population and more especially in the future will be greatly determined by the stock of natural resources available and the quality of the environment. Currently, the production processes deplete natural resources. Concern with the supposed increasing scarcity of gold in South Africa, and the possibility of running out of gold, has become a source of concern. South Africa’s gold reserves (gold in the ground that can be extracted profitably) are becoming depleted at an alarming rate. Most reserves are already exhausted; and the costs involved in mining lower-grade ore, and deposits located very deep in the ground, are becoming excessive. In light of this, this study sought to test the applicability of the Hotelling rule in South Africa. In order to empirically test the Hotelling rule, the study was guided by previous literature that had sought to test it. In this regard, the study used both descriptive and inferential statistics. The study has three data analysis chapters. The first two presented and examined the time series properties of gold prices, gold production and gold consumption. The third data analysis chapter examined the relationship between gold price and interest rates. In the first two data analysis chapters, visual inspection, growth rates, variance ratio tests and advanced unit root tests were used to examine the time series properties of gold prices, gold production and gold consumption. Results showed that the behaviour of the gold price series and gold production series in South Africa have a behaviour that is socially optimal. This is in line with the Hotelling rule. The rule predicts exponentially increasing resource prices and this result in mineral resources following the path of the positive trend. The positive trend is prompted by the increasing price reflecting the increasing scarcity of the resource. However, consumption trends were seen to be violating the Hotelling rule. The Hotelling rule predicts that the price increases until it eventually reaches the choke price, where the quantity demanded decreases to zero. However, in contrast to this, results showed that the demand for gold has been increasing instead of decreasing. This is not in line with the Hotelling rule. Furthermore the relationship between interest rate and gold price was negative and this suggested that the price of gold was not rising at the rate of the interest rate. The results of the study suggested that gold production is not following a social optimally path. The study recommended that the government come up with measures that prolong the lifespan of the gold reserves. These included research and development to promote technological innovations in the mining sector. This may make it possible for firms to access lower-grade ores. The study also recommended that since the Hotelling rule partly applied in the gold sector, there is a need to adopt some other theoretical measures that can ensure that the proceeds from the gold taxes are used in the most effective way.
- Full Text:
- Date Issued: 2017
Impact of business confidence on private investments in South Africa
- Authors: Madzivire, Venna Wadzanayi
- Date: 2017
- Subjects: Success in business Confidence Investments
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/8910 , vital:33955
- Description: A wide range of theoretical and empirical studies have been carried out on various determinants of private investments in different economies. This dissertation specifically focuses on the impact business confidence on private investments with regards to the South African economy for the period between 1990 and 2014. The private investment sector in South Africa has, to a greater extent contributed to the overall GDP of the economy. Even though business confidence has a considerable impact on private investments, this study also took into consideration other variables that affect the private investment sector such as interest rates, exchange range and GDP To determine short-run and long-run relationships of business confidence on private Investments in South Africa, a vector error correction model was employed. In order to avoid spurious regression, the ADF test and the PP test were used to test for stationarity. Results of the study indicate that private investments are subject to permanent changes because of changes in business confidence. In addition to that, not all variables have a long-term relationship with private investments but business confidence has a significant long run relationship with private investment. After conducting an econometric analysis, results revealed that Business Confidence and Gross Domestic Product have a positive impact on private investments. On the other hand, interest rates and exchange rates have a negative impact on private investments in South Africa. Various policy recommendations were established on both Private Investments and Business Confidence.
- Full Text:
- Date Issued: 2017
- Authors: Madzivire, Venna Wadzanayi
- Date: 2017
- Subjects: Success in business Confidence Investments
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/8910 , vital:33955
- Description: A wide range of theoretical and empirical studies have been carried out on various determinants of private investments in different economies. This dissertation specifically focuses on the impact business confidence on private investments with regards to the South African economy for the period between 1990 and 2014. The private investment sector in South Africa has, to a greater extent contributed to the overall GDP of the economy. Even though business confidence has a considerable impact on private investments, this study also took into consideration other variables that affect the private investment sector such as interest rates, exchange range and GDP To determine short-run and long-run relationships of business confidence on private Investments in South Africa, a vector error correction model was employed. In order to avoid spurious regression, the ADF test and the PP test were used to test for stationarity. Results of the study indicate that private investments are subject to permanent changes because of changes in business confidence. In addition to that, not all variables have a long-term relationship with private investments but business confidence has a significant long run relationship with private investment. After conducting an econometric analysis, results revealed that Business Confidence and Gross Domestic Product have a positive impact on private investments. On the other hand, interest rates and exchange rates have a negative impact on private investments in South Africa. Various policy recommendations were established on both Private Investments and Business Confidence.
- Full Text:
- Date Issued: 2017
The impact of intra- and inter- regional integration on trade flows in Africa
- Authors: Taylor, Nina-Mari
- Date: 2017
- Subjects: International trade Trade blocs Regionalism
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10353/12408 , vital:39260
- Description: Regional integration is regarded as a formation which would allow African countries to improve their trade performance and economic growth. By subscribing to such a regional integration grouping, successful regional trade integration could assist African countries in achieving economies of scale, expand respective domestic markets, reduce marginalisation as well as the collective utilisation and exploitation of resources. Such achievements could, gradually, raise the competitiveness of African countries in respect of the global market. By collaborating in regional integration agreements, groups of countries are sought to increase their collective bargaining power and co-operation amongst the member countries. Regional integration can, therefore, be regarded as a necessary means by which economic development, growth and trade can be enhanced amongst African countries. The associated advantages and benefits of regional integration could improve the productive capacity of African counties and strengthen both their individual and continental position in the process of globalisation and integration into the world economy. This study endeavours to examine the impact of intra-regional integration and inter-regional integration on trade flows among and between: SADC, COMESA, ECOWAS and the EAC. The relevant theoretical and empirical literature regarding regional integration is considered as well as the challenges faced by regional economic communities in Africa. The study is based on an Augmented Gravity Model and it employs Panel Data Estimation Techniques and Panel Unit Root Tests. The Hausman test results proved the Fixed Effects Model to be the most applicable to the study. The empirical findings revealed that both intra-regional integration and inter-regional integration had a positive bearing on trade flows and between: SADC, COMESA, ECOWAS and the EAC. Hence, regional integration is concluded as having a prominent role in promoting trade flows in Africa and the study recommends that African countries and regional economic communities should pursue deeper economic integration and continental integration.
- Full Text:
- Date Issued: 2017
- Authors: Taylor, Nina-Mari
- Date: 2017
- Subjects: International trade Trade blocs Regionalism
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10353/12408 , vital:39260
- Description: Regional integration is regarded as a formation which would allow African countries to improve their trade performance and economic growth. By subscribing to such a regional integration grouping, successful regional trade integration could assist African countries in achieving economies of scale, expand respective domestic markets, reduce marginalisation as well as the collective utilisation and exploitation of resources. Such achievements could, gradually, raise the competitiveness of African countries in respect of the global market. By collaborating in regional integration agreements, groups of countries are sought to increase their collective bargaining power and co-operation amongst the member countries. Regional integration can, therefore, be regarded as a necessary means by which economic development, growth and trade can be enhanced amongst African countries. The associated advantages and benefits of regional integration could improve the productive capacity of African counties and strengthen both their individual and continental position in the process of globalisation and integration into the world economy. This study endeavours to examine the impact of intra-regional integration and inter-regional integration on trade flows among and between: SADC, COMESA, ECOWAS and the EAC. The relevant theoretical and empirical literature regarding regional integration is considered as well as the challenges faced by regional economic communities in Africa. The study is based on an Augmented Gravity Model and it employs Panel Data Estimation Techniques and Panel Unit Root Tests. The Hausman test results proved the Fixed Effects Model to be the most applicable to the study. The empirical findings revealed that both intra-regional integration and inter-regional integration had a positive bearing on trade flows and between: SADC, COMESA, ECOWAS and the EAC. Hence, regional integration is concluded as having a prominent role in promoting trade flows in Africa and the study recommends that African countries and regional economic communities should pursue deeper economic integration and continental integration.
- Full Text:
- Date Issued: 2017
External financial flows, domestic savings and economic growth in the Southern African development community (SADC)(1980-2013)
- Authors: kapingura, Forget Mingri
- Date: 2016
- Subjects: International finance Saving and investment -- South Africa Capital movements
- Language: English
- Type: Thesis , Doctoral , Degree
- Identifier: http://hdl.handle.net/10353/5198 , vital:29100
- Description: .Most countries in the SADC region experience low levels of domestic savings. This calls for the need to explore other sources of financial flows to bridge the gap between domestic capital demand and supply, and one such source is external financial flows. It is with this background that this study examined the relationship between the different forms of external financial flows, domestic savings and economic growth in the SADC region for the period from 1980 to 2013. Firstly the study examined the impact of the different forms of external financial flows on economic growth in the region. The empirical results revealed that FDI, CBF and remittances have a significant impact on economic growth in the SADC region. ODA was however found to be insignificant. When the different types of external financial flows were interacted with institutions they all became significant in explaining economic growth in the region. The second aspect was to examine the extent to which external financial flows complement or displace domestic saving. The empirical results revealed that external financial flows with the exception of ODA complement domestic savings in the region. In addition, there is evidence of investment generating additional savings in the region, which is likely to be through the economic growth channel. The last objective of the study was to examine the determinants of external financial flows to the SADC region. The empirical results revealed that both push and pull factors are important in determining external financial flows in the region. Of great importance was the observation that events in the source country determine financial flows to the region. Proxy for financial integration was found to be positive though insignificant, pointing out that the region may not be benefiting from cross-border bank flows due to the region being disintegrated. This suggests that the region may benefit from increased cross-border bank flows if the region is integrated. Overall, the results from the study suggest that external financial flows are important to the region in providing the much needed development finance. However this also suggests that the foreign capital channel is another source in which a crisis from a developed country can be transmitted to the SADC region.
- Full Text:
- Date Issued: 2016
- Authors: kapingura, Forget Mingri
- Date: 2016
- Subjects: International finance Saving and investment -- South Africa Capital movements
- Language: English
- Type: Thesis , Doctoral , Degree
- Identifier: http://hdl.handle.net/10353/5198 , vital:29100
- Description: .Most countries in the SADC region experience low levels of domestic savings. This calls for the need to explore other sources of financial flows to bridge the gap between domestic capital demand and supply, and one such source is external financial flows. It is with this background that this study examined the relationship between the different forms of external financial flows, domestic savings and economic growth in the SADC region for the period from 1980 to 2013. Firstly the study examined the impact of the different forms of external financial flows on economic growth in the region. The empirical results revealed that FDI, CBF and remittances have a significant impact on economic growth in the SADC region. ODA was however found to be insignificant. When the different types of external financial flows were interacted with institutions they all became significant in explaining economic growth in the region. The second aspect was to examine the extent to which external financial flows complement or displace domestic saving. The empirical results revealed that external financial flows with the exception of ODA complement domestic savings in the region. In addition, there is evidence of investment generating additional savings in the region, which is likely to be through the economic growth channel. The last objective of the study was to examine the determinants of external financial flows to the SADC region. The empirical results revealed that both push and pull factors are important in determining external financial flows in the region. Of great importance was the observation that events in the source country determine financial flows to the region. Proxy for financial integration was found to be positive though insignificant, pointing out that the region may not be benefiting from cross-border bank flows due to the region being disintegrated. This suggests that the region may benefit from increased cross-border bank flows if the region is integrated. Overall, the results from the study suggest that external financial flows are important to the region in providing the much needed development finance. However this also suggests that the foreign capital channel is another source in which a crisis from a developed country can be transmitted to the SADC region.
- Full Text:
- Date Issued: 2016
The impact of inflation on financial development in South Africa
- Authors: Muzvanya, Kudzai Fungai
- Date: 2016
- Subjects: Economic development Monetary policy Consumer price indexes
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/13045 , vital:39440
- Description: Growing theoretical and empirical studies have predicted different influences that inflation has on financial development in different economies. This dissertation observes the impact South Africa’s inflation has on financial development over the period between 1990 and 2012. Monetary policy framework in South Africa has, to a greater extent, assisted in monitoring the movement of the consumer price index. Although inflation does affect financial sector performance, the study also looked into other variables that have an effect like private credit, money supply and gross domestic product. To test for stationarity to avoid spurious regression, the ADF test and the PP test were used. To determine the long- and short-run relationship, the Johansen Maximum Likelihood test and VECM models were used. Results of the study indicated that money supply and inflation have a negative effect on financial development. In addition, apart from money supply and inflation the findings revealed that private credit and gross domestic product play a significant part in financial sector performance. The study recommends that the South African Reserve Bank should keep the inflation rate within its target range (3-6percent). This would ensure price stability and restore investor confidence in the financial sector, which then improves financial sector development.
- Full Text:
- Date Issued: 2016
- Authors: Muzvanya, Kudzai Fungai
- Date: 2016
- Subjects: Economic development Monetary policy Consumer price indexes
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/13045 , vital:39440
- Description: Growing theoretical and empirical studies have predicted different influences that inflation has on financial development in different economies. This dissertation observes the impact South Africa’s inflation has on financial development over the period between 1990 and 2012. Monetary policy framework in South Africa has, to a greater extent, assisted in monitoring the movement of the consumer price index. Although inflation does affect financial sector performance, the study also looked into other variables that have an effect like private credit, money supply and gross domestic product. To test for stationarity to avoid spurious regression, the ADF test and the PP test were used. To determine the long- and short-run relationship, the Johansen Maximum Likelihood test and VECM models were used. Results of the study indicated that money supply and inflation have a negative effect on financial development. In addition, apart from money supply and inflation the findings revealed that private credit and gross domestic product play a significant part in financial sector performance. The study recommends that the South African Reserve Bank should keep the inflation rate within its target range (3-6percent). This would ensure price stability and restore investor confidence in the financial sector, which then improves financial sector development.
- Full Text:
- Date Issued: 2016
The relationship between household debt and consumption spending in South Africa (1994 - 2013)
- Authors: Nkala, Patience
- Date: 2016
- Subjects: Finance, Personal Financial services industry Consumption (Economics)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/14022 , vital:39798
- Description: Consumption has been and remains the main contributor to gross domestic product (GDP) growth in South Africa. Household debt on the other side has remained high over the years. This study examined the relationship between household debt and consumption spending, for the period between 1994 and 2013. The Johansen cointegration technique and the Vector error correction model (VECM) were utilised to test the long run and short run relationships between the variables. The Granger causality test was also employed to test the direction of causality between the variables. Results from this study have revealed that a relationship exists between household debt and consumption spending in South Africa and they have also showed that this relationship flows from household debt to consumption spending. The implications of these results are that consumption spending may be increased through other measures rather than through increasing debt. The study therefore recommends that policy makers avail more investment opportunities for households and to also create employment in a bid to increase the income of households which can then be used to increase household consumption rather than the use of debt.
- Full Text:
- Date Issued: 2016
- Authors: Nkala, Patience
- Date: 2016
- Subjects: Finance, Personal Financial services industry Consumption (Economics)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/14022 , vital:39798
- Description: Consumption has been and remains the main contributor to gross domestic product (GDP) growth in South Africa. Household debt on the other side has remained high over the years. This study examined the relationship between household debt and consumption spending, for the period between 1994 and 2013. The Johansen cointegration technique and the Vector error correction model (VECM) were utilised to test the long run and short run relationships between the variables. The Granger causality test was also employed to test the direction of causality between the variables. Results from this study have revealed that a relationship exists between household debt and consumption spending in South Africa and they have also showed that this relationship flows from household debt to consumption spending. The implications of these results are that consumption spending may be increased through other measures rather than through increasing debt. The study therefore recommends that policy makers avail more investment opportunities for households and to also create employment in a bid to increase the income of households which can then be used to increase household consumption rather than the use of debt.
- Full Text:
- Date Issued: 2016
The impact of biofuels on food prices, lessons from the experiences of Brazil and U.S. (1995-2013)
- Authors: Ncube, Free P
- Date: 2015
- Subjects: Biomass energy -- Economic aspects Food prices -- Brazil Food prices -- United States , Energy crops -- Economic aspects|zBrazil
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/2150 , vital:27616
- Description: Using crops for fuel generates concerns over competition with food uses. As Rajagopal et al (2009) asserts, “In 2008 the world entered a food crisis amid record-high commodity and energy prices that induced hunger and political unrest in developing countries, by export restrictions in top grain-producing countries”. This took place at the same time when biofuel production, reached its pinnacle in developed countries. This paper examines the effect that biofuel prices and or production has had on food prices in Brazil and U.S. by employing the panel cointegration and Dynamic Ordinary Least Squares (DOLS) method of analysis. In regressing food prices as a function of demand and supply factors, such as oil prices, biofuel prices, interest rates and biofuel production, the study found that the increase in biofuels production over the past eighteen years has had a significant impact on food prices. Over the period January 1995- December 2013, the study estimates that a one hundred percent increase in biofuels production across time and between countries results in the increase of food prices by 21,9%. The study therefore rejects the null hypothesis that states, biofuel production does not have a statistically significant negative impact on food prices in U.S. and Brazil. , and accepts the alternative that biofuel production does have a statistically significant negative impact on food prices in U.S. and Brazil. Other predictors of food prices that the study revealed as significant were oil and interest rates. Policy recommendations for other countries like South Africa are therefore, made based on the results obtained.
- Full Text:
- Date Issued: 2015
- Authors: Ncube, Free P
- Date: 2015
- Subjects: Biomass energy -- Economic aspects Food prices -- Brazil Food prices -- United States , Energy crops -- Economic aspects|zBrazil
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10353/2150 , vital:27616
- Description: Using crops for fuel generates concerns over competition with food uses. As Rajagopal et al (2009) asserts, “In 2008 the world entered a food crisis amid record-high commodity and energy prices that induced hunger and political unrest in developing countries, by export restrictions in top grain-producing countries”. This took place at the same time when biofuel production, reached its pinnacle in developed countries. This paper examines the effect that biofuel prices and or production has had on food prices in Brazil and U.S. by employing the panel cointegration and Dynamic Ordinary Least Squares (DOLS) method of analysis. In regressing food prices as a function of demand and supply factors, such as oil prices, biofuel prices, interest rates and biofuel production, the study found that the increase in biofuels production over the past eighteen years has had a significant impact on food prices. Over the period January 1995- December 2013, the study estimates that a one hundred percent increase in biofuels production across time and between countries results in the increase of food prices by 21,9%. The study therefore rejects the null hypothesis that states, biofuel production does not have a statistically significant negative impact on food prices in U.S. and Brazil. , and accepts the alternative that biofuel production does have a statistically significant negative impact on food prices in U.S. and Brazil. Other predictors of food prices that the study revealed as significant were oil and interest rates. Policy recommendations for other countries like South Africa are therefore, made based on the results obtained.
- Full Text:
- Date Issued: 2015
Social intrepreneurship and millennium development goals in developing countries: case study of Zimbabwe
- Ngorora, Grace P K https://orcid.org/0000-0003-4756-313
- Authors: Ngorora, Grace P K https://orcid.org/0000-0003-4756-313
- Date: 2014-11
- Subjects: Social entrepreneurship , Economic development , Poverty
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/26661 , vital:65847
- Description: The study set out to examine the contribution of social entrepreneurship to the achievement of Millennium Development Goals (MDGs), particularly MDG 1, the eradication of extreme poverty and hunger. Poverty reduction occurred when social entrepreneurial activities resulted in the improvement of the socio-economic well-being of social entrepreneurs and their beneficiaries. The problem this study sought to research on was that, despite the impact of social entrepreneurship, there has been inadequate attention to and discussion of its contribution to attaining the MDGs in Zimbabwe. The population were social entrepreneurs in Harare, Zimbabwe. The random sampling method was used to determine the sample size. Semi-structured questionnaires were used to collect primary data in Harare, Zimbabwe from 132 social entrepreneurs and 200 beneficiaries of social entrepreneurial activities. Secondary information was obtained from textbooks and various internet sources. The data collected was analyzed through SPSS Version 22 because of its appropriateness and wide use. The null hypothesis that social entrepreneurship does not contribute to the achievement of MDGs was rejected in favor of the alternative hypothesis that social entrepreneurship provides an alternative to the achievement of MDGs. Findings from the study suggest that social entrepreneurs contribute immensely to poverty reduction. They also contribute towards research and development, promoting gender equality and empowerment, education for all as well as access to health facilities. The segments of the population benefiting from social entrepreneurship include the poor, socially excluded, discriminated, the unemployed and disabled. The impact on poverty and hunger was achieved through microfinance initiatives, income generation activities, empowerment and capacity building. Results showed that social entrepreneurship activities solve social problems through providing food, shelter, water, education and collateral to access finance. The study concluded that social entrepreneurship is a plausible approach to promote implementation of policies to reduce extreme poverty and hunger by using readily available resources to bring sustainable solutions to problems. The strategies to make social entrepreneurship more effective included creating a conducive legal and policy environment, financial provision, political support, and government support, publicity of the contribution of social entrepreneurship, mentorship and collaboration among stakeholders. , Thesis (PhD) -- Faculty of Social Sciences and Humanities, 2014
- Full Text:
- Date Issued: 2014-11
- Authors: Ngorora, Grace P K https://orcid.org/0000-0003-4756-313
- Date: 2014-11
- Subjects: Social entrepreneurship , Economic development , Poverty
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/26661 , vital:65847
- Description: The study set out to examine the contribution of social entrepreneurship to the achievement of Millennium Development Goals (MDGs), particularly MDG 1, the eradication of extreme poverty and hunger. Poverty reduction occurred when social entrepreneurial activities resulted in the improvement of the socio-economic well-being of social entrepreneurs and their beneficiaries. The problem this study sought to research on was that, despite the impact of social entrepreneurship, there has been inadequate attention to and discussion of its contribution to attaining the MDGs in Zimbabwe. The population were social entrepreneurs in Harare, Zimbabwe. The random sampling method was used to determine the sample size. Semi-structured questionnaires were used to collect primary data in Harare, Zimbabwe from 132 social entrepreneurs and 200 beneficiaries of social entrepreneurial activities. Secondary information was obtained from textbooks and various internet sources. The data collected was analyzed through SPSS Version 22 because of its appropriateness and wide use. The null hypothesis that social entrepreneurship does not contribute to the achievement of MDGs was rejected in favor of the alternative hypothesis that social entrepreneurship provides an alternative to the achievement of MDGs. Findings from the study suggest that social entrepreneurs contribute immensely to poverty reduction. They also contribute towards research and development, promoting gender equality and empowerment, education for all as well as access to health facilities. The segments of the population benefiting from social entrepreneurship include the poor, socially excluded, discriminated, the unemployed and disabled. The impact on poverty and hunger was achieved through microfinance initiatives, income generation activities, empowerment and capacity building. Results showed that social entrepreneurship activities solve social problems through providing food, shelter, water, education and collateral to access finance. The study concluded that social entrepreneurship is a plausible approach to promote implementation of policies to reduce extreme poverty and hunger by using readily available resources to bring sustainable solutions to problems. The strategies to make social entrepreneurship more effective included creating a conducive legal and policy environment, financial provision, political support, and government support, publicity of the contribution of social entrepreneurship, mentorship and collaboration among stakeholders. , Thesis (PhD) -- Faculty of Social Sciences and Humanities, 2014
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- Date Issued: 2014-11