Government size, labour productivity and economic growth in South Africa
- Authors: Mbaleki, Chuma Innocent
- Date: 2020
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/48915 , vital:41170
- Description: This study investigates short-run and long-run effects of fiscal consolidation on labour productivity in South Africa using the autoregressive distributed lag bounds testing approach of cointegration. We use quarterly data collected in the period of 1994Q3 to 2017Q1. We disaggregate government expenditure as well as revenue and find a positive and significant long run relationship between revenue variables and labour productivity. This relationship is also positive and significant in the short run except for net tax variable, which seems to be growth contractive. The results further suggest a positive and significant long run relationship between government expenditure on health, public safety and order, culture and recreation as well as education and labour productivity. Government expenditure on education and health variables are also positive and significant in the short run, whilst expenditure on defense is negative and not significant both in the short run and long run.
- Full Text:
- Date Issued: 2020
- Authors: Mbaleki, Chuma Innocent
- Date: 2020
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/48915 , vital:41170
- Description: This study investigates short-run and long-run effects of fiscal consolidation on labour productivity in South Africa using the autoregressive distributed lag bounds testing approach of cointegration. We use quarterly data collected in the period of 1994Q3 to 2017Q1. We disaggregate government expenditure as well as revenue and find a positive and significant long run relationship between revenue variables and labour productivity. This relationship is also positive and significant in the short run except for net tax variable, which seems to be growth contractive. The results further suggest a positive and significant long run relationship between government expenditure on health, public safety and order, culture and recreation as well as education and labour productivity. Government expenditure on education and health variables are also positive and significant in the short run, whilst expenditure on defense is negative and not significant both in the short run and long run.
- Full Text:
- Date Issued: 2020
The impact of crime in socio-economic development of Mdantsane township
- Authors: Matyeni, Bukelwa Wendy
- Date: 2013
- Subjects: Crime -- Economic aspects -- South Africa , Economic development -- South Africa , Criminal behavior , Criminal justice, Administration of -- South Africa
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9204 , http://hdl.handle.net/10948/d1020425
- Description: This study examined the impact of crime on socio-economic development in Mdantsane Township which is an urban area under Buffalo city Municipality. The study is concerned with the growing rate of crime, which is perceived to have affected community development. A survey was conducted for this study and questionnaires were administered for data collection. The study found that Mdantsane area is fraught with problems of high unemployment, high crime levels and lack of physical infrastructure. It was shown that the levels of crime like robbery and assault cases are the order of the day. Many crimes are committed either during the day or at night. This study made several recommendations relating to what should be done to ensure that local residents, potential developers and investors feel safe in Mdantsane. Amongst other recommendations put forward are the establishment of community relations with the police, namely community policing forums (CPFs) and development community safety centres.
- Full Text:
- Date Issued: 2013
- Authors: Matyeni, Bukelwa Wendy
- Date: 2013
- Subjects: Crime -- Economic aspects -- South Africa , Economic development -- South Africa , Criminal behavior , Criminal justice, Administration of -- South Africa
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9204 , http://hdl.handle.net/10948/d1020425
- Description: This study examined the impact of crime on socio-economic development in Mdantsane Township which is an urban area under Buffalo city Municipality. The study is concerned with the growing rate of crime, which is perceived to have affected community development. A survey was conducted for this study and questionnaires were administered for data collection. The study found that Mdantsane area is fraught with problems of high unemployment, high crime levels and lack of physical infrastructure. It was shown that the levels of crime like robbery and assault cases are the order of the day. Many crimes are committed either during the day or at night. This study made several recommendations relating to what should be done to ensure that local residents, potential developers and investors feel safe in Mdantsane. Amongst other recommendations put forward are the establishment of community relations with the police, namely community policing forums (CPFs) and development community safety centres.
- Full Text:
- Date Issued: 2013
The effect of real exchange rate volatility on export performance: evidence from South Africa (2000-2011)
- Authors: Chamunorwa, Wilson
- Date: 2014
- Subjects: Monetary policy -- South Africa , Economic development -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11499 , http://hdl.handle.net/10353/d1018600 , Monetary policy -- South Africa , Economic development -- South Africa , Foreign exchange rates -- South Africa
- Description: The effect of real exchange rate volatility on export performance: evidence from South Africa (2000-2011) This study sought to investigate the relationship between exchange rate volatility and export performance in South Africa. The main objective of the study was to examine the impact of exchange rate volatility on export performance in South Africa. This relationship was examined using GARCH methods. Exports were regressed against real effective exchange rate, trade openness and capacity utilisation. The research aimed to establish whether exchange rate volatility impacts negatively on export performance in the manner suggested by the econometric model. The result obtained showed that exchange rate volatility had a significantly negative effect on South African exports in the period 2000-2011.
- Full Text:
- Date Issued: 2014
- Authors: Chamunorwa, Wilson
- Date: 2014
- Subjects: Monetary policy -- South Africa , Economic development -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11499 , http://hdl.handle.net/10353/d1018600 , Monetary policy -- South Africa , Economic development -- South Africa , Foreign exchange rates -- South Africa
- Description: The effect of real exchange rate volatility on export performance: evidence from South Africa (2000-2011) This study sought to investigate the relationship between exchange rate volatility and export performance in South Africa. The main objective of the study was to examine the impact of exchange rate volatility on export performance in South Africa. This relationship was examined using GARCH methods. Exports were regressed against real effective exchange rate, trade openness and capacity utilisation. The research aimed to establish whether exchange rate volatility impacts negatively on export performance in the manner suggested by the econometric model. The result obtained showed that exchange rate volatility had a significantly negative effect on South African exports in the period 2000-2011.
- Full Text:
- Date Issued: 2014
An analysis of the long run comovements between financial system development and mining production in South Africa
- Authors: Ajagbe, Stephen Mayowa
- Date: 2011
- Subjects: Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:955 , http://hdl.handle.net/10962/d1002689 , Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Description: This study examines the nature of the relationship which exists between mining sector production and development of the financial systems in South Africa. This is particularly important in that the mining sector is considered to be one of the major contributors to the country’s overall economic growth. South Africa is also considered to have a very well developed financial system, to the point where the dominance of one over the other is difficult to identify. Therefore offering insight into the nature of this relationship will assist policy makers in identifying the most effective policies in order to ensure that the developments within the financial systems impact appropriately on the mining sector, and ultimately on the economy. In addition to using the conventional proxies of financial system development, this study utilises the principal component analysis (PCA) to construct an index for the entire financial system. The multivariate cointegration approach as proposed by Johansen (1988) and Johansen and Juselius (1990) was then used to estimate the relationship between the development of the financial systems and the mining sector production for the period 1988-2008. The study reveals mixed results for different measures of financial system development. Those involving the banking system show that a negative relationship exists between total mining production and total credit extended to the private sector, while liquid liabilities has a positive relationship. Similarly, with the stock market system, mixed results are also obtained which reveal a negative relationship between total mining production and stock market capitalisation, while a positive relationship is found with secondary market turnover. Of all the financial system variables, only that of stock market capitalisation was found to be significant. The result with the financial development index reveals that a significant negative relationship exists between financial system development and total mining sector production. Results on the other variables controlled in the estimation show that positive and significant relationships exist between total mining production and both nominal exchange rate and political stability respectively. Increased mining production therefore takes place in periods of appreciating exchange rates, and similarly in the post-apartheid era. On the other hand, negative relationships were found for both trade openness and inflation control variables. The impulse response and variance decomposition analyses showed that total mining production explains the largest amount of shocks within itself. Overall, the study reveals that the mining sector might not have benefited much from the development in the South African financial system.
- Full Text:
- Date Issued: 2011
- Authors: Ajagbe, Stephen Mayowa
- Date: 2011
- Subjects: Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:955 , http://hdl.handle.net/10962/d1002689 , Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Description: This study examines the nature of the relationship which exists between mining sector production and development of the financial systems in South Africa. This is particularly important in that the mining sector is considered to be one of the major contributors to the country’s overall economic growth. South Africa is also considered to have a very well developed financial system, to the point where the dominance of one over the other is difficult to identify. Therefore offering insight into the nature of this relationship will assist policy makers in identifying the most effective policies in order to ensure that the developments within the financial systems impact appropriately on the mining sector, and ultimately on the economy. In addition to using the conventional proxies of financial system development, this study utilises the principal component analysis (PCA) to construct an index for the entire financial system. The multivariate cointegration approach as proposed by Johansen (1988) and Johansen and Juselius (1990) was then used to estimate the relationship between the development of the financial systems and the mining sector production for the period 1988-2008. The study reveals mixed results for different measures of financial system development. Those involving the banking system show that a negative relationship exists between total mining production and total credit extended to the private sector, while liquid liabilities has a positive relationship. Similarly, with the stock market system, mixed results are also obtained which reveal a negative relationship between total mining production and stock market capitalisation, while a positive relationship is found with secondary market turnover. Of all the financial system variables, only that of stock market capitalisation was found to be significant. The result with the financial development index reveals that a significant negative relationship exists between financial system development and total mining sector production. Results on the other variables controlled in the estimation show that positive and significant relationships exist between total mining production and both nominal exchange rate and political stability respectively. Increased mining production therefore takes place in periods of appreciating exchange rates, and similarly in the post-apartheid era. On the other hand, negative relationships were found for both trade openness and inflation control variables. The impulse response and variance decomposition analyses showed that total mining production explains the largest amount of shocks within itself. Overall, the study reveals that the mining sector might not have benefited much from the development in the South African financial system.
- Full Text:
- Date Issued: 2011
Assessing the impact of the transition from MIDP to APDP in the South African automotive industry
- Authors: Strydom, Elwin
- Date: 2015
- Subjects: Automobile industry and trade -- South Africa , Sustainable development -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/5908 , vital:21010
- Description: The South African automotive industry is by no means a ―cut and paste‖ version of their overseas counterparts. The industry and the market are very complex. The historical background of the industry is such that companies have difficulty forming partnerships and joint ventures with bigger international conglomerates. The difficulty with this kind of mindset is that it is restricting growth and development of the nation as a whole. Globalisation is a future we cannot be avoided. Should the nation continue to reject it and embrace the mindset of countries in Africa, South Africa (SA) will continue on the path that the rest of Africa is heading, a path that leading to self-destruct and segregation. Even though SA is a developing country, it is in some areas as developed as many other first world countries. For a country to generate wealth it needs to be innovative and develop an entrepreneurial consciousness. A young country like South Africa needs creative thinkers and opportunists that can see into the future, seizing every opportunity, to grow and develop new ideas and business. In order for a country to grow it needs a leadership that is to nurture the baby of innovation. If South Africa wants to be part of the global village it need to develop a trade policy that welcomes trade and at the same time creates stable and sustainable jobs. The environment for investments needs to be cultivated in a problem-free and growth prone nation. This can only happen when the educational level of the nation is improved. The fact that so many skilled workers need to be imported creates tension in the labour market. People with talent need to have a reason to stay in the country. Their salaries should match that of their overseas counterparts. Furthermore, with the same skill level and work ethic, should have the same rewards and remuneration.
- Full Text:
- Date Issued: 2015
- Authors: Strydom, Elwin
- Date: 2015
- Subjects: Automobile industry and trade -- South Africa , Sustainable development -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/5908 , vital:21010
- Description: The South African automotive industry is by no means a ―cut and paste‖ version of their overseas counterparts. The industry and the market are very complex. The historical background of the industry is such that companies have difficulty forming partnerships and joint ventures with bigger international conglomerates. The difficulty with this kind of mindset is that it is restricting growth and development of the nation as a whole. Globalisation is a future we cannot be avoided. Should the nation continue to reject it and embrace the mindset of countries in Africa, South Africa (SA) will continue on the path that the rest of Africa is heading, a path that leading to self-destruct and segregation. Even though SA is a developing country, it is in some areas as developed as many other first world countries. For a country to generate wealth it needs to be innovative and develop an entrepreneurial consciousness. A young country like South Africa needs creative thinkers and opportunists that can see into the future, seizing every opportunity, to grow and develop new ideas and business. In order for a country to grow it needs a leadership that is to nurture the baby of innovation. If South Africa wants to be part of the global village it need to develop a trade policy that welcomes trade and at the same time creates stable and sustainable jobs. The environment for investments needs to be cultivated in a problem-free and growth prone nation. This can only happen when the educational level of the nation is improved. The fact that so many skilled workers need to be imported creates tension in the labour market. People with talent need to have a reason to stay in the country. Their salaries should match that of their overseas counterparts. Furthermore, with the same skill level and work ethic, should have the same rewards and remuneration.
- Full Text:
- Date Issued: 2015
The impact of capital flows on real exchange rates in South Africa
- Authors: Mishi, Syden
- Date: 2012
- Subjects: Capital movements -- South Africa , Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Currency question -- South Africa , Saving and investment -- South Africa , Free trade -- South Africa , Anti-inflationary policies -- South Africa , Cointegration -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11466 , http://hdl.handle.net/10353/d1007089 , Capital movements -- South Africa , Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Currency question -- South Africa , Saving and investment -- South Africa , Free trade -- South Africa , Anti-inflationary policies -- South Africa , Cointegration -- South Africa
- Description: The neoclassical theory suggests that free flows of external capital should be equilibrating and thereby facilitating smoothening of an economy's consumption or production patterns. South Africa has a very low savings rate, making it highly dependent on capital inflows which create instability and volatility in global markets. A policy dilemma is undoubtedly evident: capital inflows help to cater for the domestic low savings and at the same time the inflows pose instability, a threat on competitiveness and volatility challenges to the same economy due to their impact on exchange rates. The question is: are all forms of capital flows equally destabilizing? Since studies based on South Africa considered only the relationship between aggregate capital flows and real exchange rate, modelling individual components of capital flows could enlighten policy formulation even further. The composition of the flows and their effects on the composition of aggregate demand determine the evolution of real exchange rate response to surges in capital flows. Through co-integration and vector error correction modelling techniques applied to South African data between 1990 and 2010, the study found out that foreign portfolio investment exerts the greatest appreciation effect on the South African real exchange rate, followed by other investment and finally foreign direct investment. Thus the impact of capital flows on real exchange rate in South Africa differs by type of capital. This presents varied policy implications.
- Full Text:
- Date Issued: 2012
- Authors: Mishi, Syden
- Date: 2012
- Subjects: Capital movements -- South Africa , Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Currency question -- South Africa , Saving and investment -- South Africa , Free trade -- South Africa , Anti-inflationary policies -- South Africa , Cointegration -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11466 , http://hdl.handle.net/10353/d1007089 , Capital movements -- South Africa , Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Currency question -- South Africa , Saving and investment -- South Africa , Free trade -- South Africa , Anti-inflationary policies -- South Africa , Cointegration -- South Africa
- Description: The neoclassical theory suggests that free flows of external capital should be equilibrating and thereby facilitating smoothening of an economy's consumption or production patterns. South Africa has a very low savings rate, making it highly dependent on capital inflows which create instability and volatility in global markets. A policy dilemma is undoubtedly evident: capital inflows help to cater for the domestic low savings and at the same time the inflows pose instability, a threat on competitiveness and volatility challenges to the same economy due to their impact on exchange rates. The question is: are all forms of capital flows equally destabilizing? Since studies based on South Africa considered only the relationship between aggregate capital flows and real exchange rate, modelling individual components of capital flows could enlighten policy formulation even further. The composition of the flows and their effects on the composition of aggregate demand determine the evolution of real exchange rate response to surges in capital flows. Through co-integration and vector error correction modelling techniques applied to South African data between 1990 and 2010, the study found out that foreign portfolio investment exerts the greatest appreciation effect on the South African real exchange rate, followed by other investment and finally foreign direct investment. Thus the impact of capital flows on real exchange rate in South Africa differs by type of capital. This presents varied policy implications.
- Full Text:
- Date Issued: 2012
The relationship between electricity supply, power outages and economic growth in South Africa
- Authors: Khobai, Hlalefang
- Date: 2013
- Subjects: Economic development -- South Africa , Energy consumption -- Economic aspects
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9024 , http://hdl.handle.net/10948/d1020069
- Description: The economic boom in South Africa following the 1994 democratisation led to increased welfare of the citizens and their purchasing power. This further resulted in increase in electricity consumption. The electricity supply did not increase proportionally to the increase in electricity consumption leading to the 2008 shortage of electricity which nearly damaged the power generating circuit. The literature review has shown that electricity supply and consumption have a positive impact on economic growth. It further showed that employment enhances economic growth. Conversely, it showed that power outages negatively affect economic growth. The research serves to investigate the relationship between electricity supply and economic growth in South Africa and to examine the impact of power outages on economic growth. It also seeks to find the appropriate structure for electricity supply industry that will lead to increase in economic growth. The autoregressive distributed lag (ARDL) bounds approach was used to find the relationship between economic growth, electricity supply, power outages and employment using quarterly data from 2000 to 2012. The ARDL technique was chosen over the conventional models such as Johansen technique for the research because it uses a single reduced form of equation to examine the long run relationship of the variables as opposed to the conventional Johansen test that employs a system of equations. The ARDL technique is also suitable to use to test co-integration when a small sample data is used and does not require the underlying variables to be integrated of similar order. The Vector Error Correction Model (VECM) Granger causality was also employed in the study to establish the causality between economic growth and electricity supply. It was chosen for its ability to develop longer term forecasting, when dealing with an unconstrained model. The results from the ARDL bounds test showed that there is a long run relationship between economic growth, electricity supply, power outages and employment. Based on the causality tests, the findings showed a unidirectional causality flowing from electricity supply to economic growth. This implies that electricity supply affect economic growth in South Africa. The results further showed no causality flowing from economic growth to electricity supply which indicates that when economic growth is booming fewer funds are used for improvement of the electricity generation. Lastly, the results showed that power outages negatively affect economic growth in the long run. To sum up, electricity supply is an important factor for economic growth in South Africa. It is therefore necessary that South Africa must put in place measures aimed at stimulating electricity supply. One of the measures aimed at increasing output of electricity is to unbundle the electricity sector. This process involves allowing entry of the Independent Power Producers (IPPs), Independent System Operator (ISO) and Regional Electricity Distributors (REDs). This will lead to increased supply of electricity and competitively lower prices of electricity. The study further recommends that renewable energy sources should be used to produce electricity instead of coal and nuclear fuels as they failed to produce enough electricity for the nation.
- Full Text:
- Date Issued: 2013
- Authors: Khobai, Hlalefang
- Date: 2013
- Subjects: Economic development -- South Africa , Energy consumption -- Economic aspects
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9024 , http://hdl.handle.net/10948/d1020069
- Description: The economic boom in South Africa following the 1994 democratisation led to increased welfare of the citizens and their purchasing power. This further resulted in increase in electricity consumption. The electricity supply did not increase proportionally to the increase in electricity consumption leading to the 2008 shortage of electricity which nearly damaged the power generating circuit. The literature review has shown that electricity supply and consumption have a positive impact on economic growth. It further showed that employment enhances economic growth. Conversely, it showed that power outages negatively affect economic growth. The research serves to investigate the relationship between electricity supply and economic growth in South Africa and to examine the impact of power outages on economic growth. It also seeks to find the appropriate structure for electricity supply industry that will lead to increase in economic growth. The autoregressive distributed lag (ARDL) bounds approach was used to find the relationship between economic growth, electricity supply, power outages and employment using quarterly data from 2000 to 2012. The ARDL technique was chosen over the conventional models such as Johansen technique for the research because it uses a single reduced form of equation to examine the long run relationship of the variables as opposed to the conventional Johansen test that employs a system of equations. The ARDL technique is also suitable to use to test co-integration when a small sample data is used and does not require the underlying variables to be integrated of similar order. The Vector Error Correction Model (VECM) Granger causality was also employed in the study to establish the causality between economic growth and electricity supply. It was chosen for its ability to develop longer term forecasting, when dealing with an unconstrained model. The results from the ARDL bounds test showed that there is a long run relationship between economic growth, electricity supply, power outages and employment. Based on the causality tests, the findings showed a unidirectional causality flowing from electricity supply to economic growth. This implies that electricity supply affect economic growth in South Africa. The results further showed no causality flowing from economic growth to electricity supply which indicates that when economic growth is booming fewer funds are used for improvement of the electricity generation. Lastly, the results showed that power outages negatively affect economic growth in the long run. To sum up, electricity supply is an important factor for economic growth in South Africa. It is therefore necessary that South Africa must put in place measures aimed at stimulating electricity supply. One of the measures aimed at increasing output of electricity is to unbundle the electricity sector. This process involves allowing entry of the Independent Power Producers (IPPs), Independent System Operator (ISO) and Regional Electricity Distributors (REDs). This will lead to increased supply of electricity and competitively lower prices of electricity. The study further recommends that renewable energy sources should be used to produce electricity instead of coal and nuclear fuels as they failed to produce enough electricity for the nation.
- Full Text:
- Date Issued: 2013
Financial development and economic growth in South Africa
- Authors: Mhango, Joseph
- Date: 2019
- Subjects: Finance -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/41117 , vital:36358
- Description: Since the identification of financial development for economic growth by Schumpeter (1911), the importance of financial development has been emphasised. However, the nature of the relationship is unclear, whether financial development is demand-following, supply-leading, feedback relationship or no causal relationship with economic growth. The revolution of the relationship between finance and economic growth has left a void of the exact nature of the relationship and importance of financial development in literature and empirical evidence. In addition, the variation of the nexus between financial development and economic growth in developed and developing countries has left policy makers uncertain on the exact policy to employ. In awe of this, after the discovery of diamonds and gold in South Africa, policy makers have attempted to improve the access, depth and efficiency of the finance sector to spur economic growth. However, South Africa has been subject to apartheid, low economic growth, global financial crises, international sanctions, unemployment and other challenges to the finance sector. In light of this, this study aims to empirically investigate the relationship between financial development and economic growth in South Africa. The study used the recently developed financial institutions index and financial markets index by the International Monetary Fund to represent bank-based and market-based financial development. This study utilises annual data over the period 1980 to 2014. The study applied the Autoregressive Disturbed Lag (ARDL) bounds testing, Vector Error Correction Model (VECM) Granger – Causality, Impulse Response Function (IRF) and Variance Decomposition to uncover the relationship between financial development and economic growth in South Africa. The ARDL was selected over the Johansen Cointegration because the variables can be I (1) or I(0) before carrying out the bounds testing. It is more suitable to a small sample size. It uses a reduced form equation, and it provides unbiased estimates of the long-run model. Lastly, it can be transformed into an error correction model. The VECM Granger-Causality was chosen because it represents the short-run and long-run causalities. After selection of the optimal lag, the ARDL bounds testing shows that economic growth, bank-based financial development, market-based financial development, savings and investment have a long-run relationship in South Africa. However, after estimation of the coefficients, financial development has a positive relationship with economic growth, but insignificant and only savings and investment were significant in determining long-run economic growth. The VECM granger-causality results show that financial development (bank and market), savings and investment granger cause economic growth in the long-run. While, economic growth, market-based financial development, savings and investment granger cause bank-based financial development in the long-run. Therefore, a feedback relationship exists between bank-based financial development and economic growth in the long-run. In the short-run, it was clear that bank-based financial development positively causes economic growth. The causality results show that a feedback relationship exists between bank-based financial development and economic growth in South Africa in the short-run as well. The IRF shows that a shock in economic growth negatively and positively affects bank based and market-based financial development respectively. A shock in bank-based financial development causes a positive effect on economic growth. Lastly, a shock in market-based financial development causes a positive effect on economic growth. Whilst, the variance decomposition shows that fluctuations in economic growth are increasingly explained by financial development (bank and market). While, fluctuations in bank-based financial development are increasingly explained by market-based financial development, savings and investment. The fluctuations in market-based financial development are increasingly caused by economic growth, savings and investment. It is recommended that policy makers utilise bank-based financial development for economic growth and reduced unemployment, to increase savings for long-run economic growth. Furthermore, challenges against market-based financial development should be reduced in order to create a positive relationship between investment and economic growth in the long run.
- Full Text:
- Date Issued: 2019
- Authors: Mhango, Joseph
- Date: 2019
- Subjects: Finance -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/41117 , vital:36358
- Description: Since the identification of financial development for economic growth by Schumpeter (1911), the importance of financial development has been emphasised. However, the nature of the relationship is unclear, whether financial development is demand-following, supply-leading, feedback relationship or no causal relationship with economic growth. The revolution of the relationship between finance and economic growth has left a void of the exact nature of the relationship and importance of financial development in literature and empirical evidence. In addition, the variation of the nexus between financial development and economic growth in developed and developing countries has left policy makers uncertain on the exact policy to employ. In awe of this, after the discovery of diamonds and gold in South Africa, policy makers have attempted to improve the access, depth and efficiency of the finance sector to spur economic growth. However, South Africa has been subject to apartheid, low economic growth, global financial crises, international sanctions, unemployment and other challenges to the finance sector. In light of this, this study aims to empirically investigate the relationship between financial development and economic growth in South Africa. The study used the recently developed financial institutions index and financial markets index by the International Monetary Fund to represent bank-based and market-based financial development. This study utilises annual data over the period 1980 to 2014. The study applied the Autoregressive Disturbed Lag (ARDL) bounds testing, Vector Error Correction Model (VECM) Granger – Causality, Impulse Response Function (IRF) and Variance Decomposition to uncover the relationship between financial development and economic growth in South Africa. The ARDL was selected over the Johansen Cointegration because the variables can be I (1) or I(0) before carrying out the bounds testing. It is more suitable to a small sample size. It uses a reduced form equation, and it provides unbiased estimates of the long-run model. Lastly, it can be transformed into an error correction model. The VECM Granger-Causality was chosen because it represents the short-run and long-run causalities. After selection of the optimal lag, the ARDL bounds testing shows that economic growth, bank-based financial development, market-based financial development, savings and investment have a long-run relationship in South Africa. However, after estimation of the coefficients, financial development has a positive relationship with economic growth, but insignificant and only savings and investment were significant in determining long-run economic growth. The VECM granger-causality results show that financial development (bank and market), savings and investment granger cause economic growth in the long-run. While, economic growth, market-based financial development, savings and investment granger cause bank-based financial development in the long-run. Therefore, a feedback relationship exists between bank-based financial development and economic growth in the long-run. In the short-run, it was clear that bank-based financial development positively causes economic growth. The causality results show that a feedback relationship exists between bank-based financial development and economic growth in South Africa in the short-run as well. The IRF shows that a shock in economic growth negatively and positively affects bank based and market-based financial development respectively. A shock in bank-based financial development causes a positive effect on economic growth. Lastly, a shock in market-based financial development causes a positive effect on economic growth. Whilst, the variance decomposition shows that fluctuations in economic growth are increasingly explained by financial development (bank and market). While, fluctuations in bank-based financial development are increasingly explained by market-based financial development, savings and investment. The fluctuations in market-based financial development are increasingly caused by economic growth, savings and investment. It is recommended that policy makers utilise bank-based financial development for economic growth and reduced unemployment, to increase savings for long-run economic growth. Furthermore, challenges against market-based financial development should be reduced in order to create a positive relationship between investment and economic growth in the long run.
- Full Text:
- Date Issued: 2019
Why has South Africa been relatively unsuccessful at attracting inward foreign direct investment since 1994?
- Authors: Fulton, Mark Hugh John
- Date: 2014
- Subjects: Investments, Foreign -- South Africa , Investments, Foreign -- Africa, Southern , Investments, Foreign -- Chile , Investments, Foreign -- Botswana , Economic development -- South Africa , Economic development -- Developing countries , Political corruption -- Economic aspects -- South Africa , South Africa -- Economic policy -- 1994-
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1097 , http://hdl.handle.net/10962/d1013056
- Description: Foreign Direct Investment (FDI) flows into South Africa have been very low for several decades, and this research examines the reason(s) why this has been the case since 1994. There is a common belief amongst economists that there is a positive relationship between the amount of FDI received and economic growth, thus the desire to attract greater FDI inflows. A literature review was conducted to establish the determinants of FDI globally and then data were collected and assessed to test which causes are most important. The performance of developing nations in attracting FDI was first compared with that of the developed nations. Thereafter, a regional breakdown of FDI flows was presented, with a particular focus on the Southern African region. FDI inflows to South Africa since 1994 were compared against the identified determinants of FDI, as well as with FDI inflows into two other major mining economies, Chile and Botswana. The friendliness of the government towards business was identified as a significant determinant of FDI inflows and the importance of this factor in explaining FDI inflows into environment in South Africa was looked at in more depth. It was found that many investors perceive the South African government as hostile towards business and as corrupt and/or inefficient. The empirical results show that this negative perception helps explain the FDI inflows attracted by South Africa since 1994. Therefore, increased friendliness to business by the government should increase future inward FDI flows into South Africa.
- Full Text:
- Date Issued: 2014
- Authors: Fulton, Mark Hugh John
- Date: 2014
- Subjects: Investments, Foreign -- South Africa , Investments, Foreign -- Africa, Southern , Investments, Foreign -- Chile , Investments, Foreign -- Botswana , Economic development -- South Africa , Economic development -- Developing countries , Political corruption -- Economic aspects -- South Africa , South Africa -- Economic policy -- 1994-
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1097 , http://hdl.handle.net/10962/d1013056
- Description: Foreign Direct Investment (FDI) flows into South Africa have been very low for several decades, and this research examines the reason(s) why this has been the case since 1994. There is a common belief amongst economists that there is a positive relationship between the amount of FDI received and economic growth, thus the desire to attract greater FDI inflows. A literature review was conducted to establish the determinants of FDI globally and then data were collected and assessed to test which causes are most important. The performance of developing nations in attracting FDI was first compared with that of the developed nations. Thereafter, a regional breakdown of FDI flows was presented, with a particular focus on the Southern African region. FDI inflows to South Africa since 1994 were compared against the identified determinants of FDI, as well as with FDI inflows into two other major mining economies, Chile and Botswana. The friendliness of the government towards business was identified as a significant determinant of FDI inflows and the importance of this factor in explaining FDI inflows into environment in South Africa was looked at in more depth. It was found that many investors perceive the South African government as hostile towards business and as corrupt and/or inefficient. The empirical results show that this negative perception helps explain the FDI inflows attracted by South Africa since 1994. Therefore, increased friendliness to business by the government should increase future inward FDI flows into South Africa.
- Full Text:
- Date Issued: 2014
Establishing perceptions of an entrepreneur using word associations
- Authors: Goliath, Jasmine Estonia
- Date: 2014
- Subjects: Entrepreneurship -- South Africa , Economic development -- South Africa , Businesspeople -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9321 , http://hdl.handle.net/10948/d1020785
- Description: Entrepreneurship as a source of economic growth and competitiveness as well as job creation and the advancement of social interests is well documented. Despite these important contributions to the economies of countries, a shortage of entrepreneurial activity exists across borders and specifically in developing countries such as South Africa. The purpose of this study was to determine the perception and image of an entrepreneur in the eyes of various stakeholders. The reasoning behind this was that if the image of an entrepreneur could be determined, one could establish whether the image positively or negatively influences entrepreneurial intentions as well as potential future entrepreneurial activity. More specifically, the primary objective was to identify the perception and image that potential entrepreneurs (students) and existing entrepreneurs (small business owners) have of an entrepreneur. In the body of knowledge or general literature on entrepreneurship, the most commonly discussed topics are the nature and importance of entrepreneurship, the attributes (personality traits, characteristics and skills) associated with an entrepreneur, various push and pull factors, various rewards and drawbacks of such a career and the challenges entrepreneurs face. It is these aspects of entrepreneurship that stakeholders will most likely have been exposed to, and that most possibly have influenced their perception and image of an entrepreneur. The aforementioned aspects provided an overview of the theoretical body of knowledge on which the perception and image of an entrepreneur is based. The present study adopted a qualitative research paradigm with a phenomenological approach to achieve the research objectives of the study. Within this context, the study made use of a qualitative method for data collection and a quantitative method for data analysis. As such, a mixed methods approach was adopted. More specifically, a qualitative dominant mixed research method was implemented. A continuous word association test, which is a projective technique, was adopted as the qualitative means of data collection. This test involved asking participants to recall the words that come to mind when presented with the word “entrepreneur”. This method was selected because of its ability to reveal both affective and cognitive associations with the concept “entrepreneur”. A quantitative summative (manifest) content analysis was used as the quantitative research method for analysing the data. The continuous word association test was conducted among three sample groups, namely students prior to commencing, and students after completing a module in entrepreneurship, and small business owners. Student and small business owner participants were asked to write down as many words or phrases as possible that came to mind when they thought of the word “entrepreneur”, which was the stimulus word, within a ten-minute period. These responses were then collated and coded by developing a coding framework based on brand image and entrepreneurship literature. In studies on brand image, the components of image are considered to be tristructured in nature, consisting of cognitive (what the individual knows), affective (how the individual feels) and holistic (overall symbolism, combination of affective and cognitive) evaluations. The words generated by the participants in this study were broadly coded according to these categories and further subcategorised by searching for themes within the broad categories, which was facilitated and guided by an in-depth investigation of the entrepreneurship literature. The findings of this study show that the words generated by all three groups of participants were mostly of a cognitive nature, followed by words of a general or affective nature. As such, the vast majority of words generated by all three groups related to what the participants knew about an entrepreneur (cognitive) versus how they felt about one (affective), and were grounded in the management or entrepreneurship literature. When comparing the top ten words most frequently associated with the term “entrepreneur” by the three groups of participants, the attribute risk-taker was the most frequently recalled word among all three groups. Students prior to undertaking the entrepreneurship module associated an entrepreneur with being creative and a risk-taker, having a business enterprise and being involved in the selling of goods and services. Students after completing the module in entrepreneurship associated an entrepreneur with being profit-orientated, a risk-taker, innovative and original, and being opportunistic. Small business owners, on the other hand, associated an entrepreneur with being a risk-taker, innovative and original, goal- and achievement-orientated and profit-orientated. The findings show that all groups of participants associated an entrepreneur principally with certain attributes rather than with learned skills and competencies, and that all groups had a more positive than negative image of an entrepreneur. It was also found that exposure to entrepreneurship literature has an influence on the perception and image that students have of an entrepreneur. Because the words recalled by students after completing the entrepreneurship module were more in line with those recalled by small business owners, than with those recalled by students before starting the module, it can be suggested that entrepreneurship literature contributes to a more realistic image of an entrepreneur among students. This study has contributed to the field of entrepreneurship research by adopting a qualitative dominant research paradigm in conjunction with quantitative research methods to explore the complexity of the term “entrepreneur”. Furthermore, this study has been able to establish how individuals feel about entrepreneurship, in terms of being either positive or negative, by adding an affective aspect to the cognitive aspect of entrepreneurial decision-making. By conducting a continuous word association test among students prior to beginning and after completing a module in entrepreneurship, the entrepreneurial knowledge of students before being exposed to entrepreneurship literature was established, and subsequently the effectiveness of the entrepreneurship module determined. It is hoped that the findings of this study have added value to the entrepreneurship body of knowledge and can be used in future studies as a tool to address the problem of low entrepreneurial intention and activity among South Africans. Furthermore, it is hoped that by creating a positive image of an entrepreneur, entrepreneurship as a desirable career choice can be promoted and an entrepreneurial culture developed within communities and broader society.
- Full Text:
- Date Issued: 2014
- Authors: Goliath, Jasmine Estonia
- Date: 2014
- Subjects: Entrepreneurship -- South Africa , Economic development -- South Africa , Businesspeople -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9321 , http://hdl.handle.net/10948/d1020785
- Description: Entrepreneurship as a source of economic growth and competitiveness as well as job creation and the advancement of social interests is well documented. Despite these important contributions to the economies of countries, a shortage of entrepreneurial activity exists across borders and specifically in developing countries such as South Africa. The purpose of this study was to determine the perception and image of an entrepreneur in the eyes of various stakeholders. The reasoning behind this was that if the image of an entrepreneur could be determined, one could establish whether the image positively or negatively influences entrepreneurial intentions as well as potential future entrepreneurial activity. More specifically, the primary objective was to identify the perception and image that potential entrepreneurs (students) and existing entrepreneurs (small business owners) have of an entrepreneur. In the body of knowledge or general literature on entrepreneurship, the most commonly discussed topics are the nature and importance of entrepreneurship, the attributes (personality traits, characteristics and skills) associated with an entrepreneur, various push and pull factors, various rewards and drawbacks of such a career and the challenges entrepreneurs face. It is these aspects of entrepreneurship that stakeholders will most likely have been exposed to, and that most possibly have influenced their perception and image of an entrepreneur. The aforementioned aspects provided an overview of the theoretical body of knowledge on which the perception and image of an entrepreneur is based. The present study adopted a qualitative research paradigm with a phenomenological approach to achieve the research objectives of the study. Within this context, the study made use of a qualitative method for data collection and a quantitative method for data analysis. As such, a mixed methods approach was adopted. More specifically, a qualitative dominant mixed research method was implemented. A continuous word association test, which is a projective technique, was adopted as the qualitative means of data collection. This test involved asking participants to recall the words that come to mind when presented with the word “entrepreneur”. This method was selected because of its ability to reveal both affective and cognitive associations with the concept “entrepreneur”. A quantitative summative (manifest) content analysis was used as the quantitative research method for analysing the data. The continuous word association test was conducted among three sample groups, namely students prior to commencing, and students after completing a module in entrepreneurship, and small business owners. Student and small business owner participants were asked to write down as many words or phrases as possible that came to mind when they thought of the word “entrepreneur”, which was the stimulus word, within a ten-minute period. These responses were then collated and coded by developing a coding framework based on brand image and entrepreneurship literature. In studies on brand image, the components of image are considered to be tristructured in nature, consisting of cognitive (what the individual knows), affective (how the individual feels) and holistic (overall symbolism, combination of affective and cognitive) evaluations. The words generated by the participants in this study were broadly coded according to these categories and further subcategorised by searching for themes within the broad categories, which was facilitated and guided by an in-depth investigation of the entrepreneurship literature. The findings of this study show that the words generated by all three groups of participants were mostly of a cognitive nature, followed by words of a general or affective nature. As such, the vast majority of words generated by all three groups related to what the participants knew about an entrepreneur (cognitive) versus how they felt about one (affective), and were grounded in the management or entrepreneurship literature. When comparing the top ten words most frequently associated with the term “entrepreneur” by the three groups of participants, the attribute risk-taker was the most frequently recalled word among all three groups. Students prior to undertaking the entrepreneurship module associated an entrepreneur with being creative and a risk-taker, having a business enterprise and being involved in the selling of goods and services. Students after completing the module in entrepreneurship associated an entrepreneur with being profit-orientated, a risk-taker, innovative and original, and being opportunistic. Small business owners, on the other hand, associated an entrepreneur with being a risk-taker, innovative and original, goal- and achievement-orientated and profit-orientated. The findings show that all groups of participants associated an entrepreneur principally with certain attributes rather than with learned skills and competencies, and that all groups had a more positive than negative image of an entrepreneur. It was also found that exposure to entrepreneurship literature has an influence on the perception and image that students have of an entrepreneur. Because the words recalled by students after completing the entrepreneurship module were more in line with those recalled by small business owners, than with those recalled by students before starting the module, it can be suggested that entrepreneurship literature contributes to a more realistic image of an entrepreneur among students. This study has contributed to the field of entrepreneurship research by adopting a qualitative dominant research paradigm in conjunction with quantitative research methods to explore the complexity of the term “entrepreneur”. Furthermore, this study has been able to establish how individuals feel about entrepreneurship, in terms of being either positive or negative, by adding an affective aspect to the cognitive aspect of entrepreneurial decision-making. By conducting a continuous word association test among students prior to beginning and after completing a module in entrepreneurship, the entrepreneurial knowledge of students before being exposed to entrepreneurship literature was established, and subsequently the effectiveness of the entrepreneurship module determined. It is hoped that the findings of this study have added value to the entrepreneurship body of knowledge and can be used in future studies as a tool to address the problem of low entrepreneurial intention and activity among South Africans. Furthermore, it is hoped that by creating a positive image of an entrepreneur, entrepreneurship as a desirable career choice can be promoted and an entrepreneurial culture developed within communities and broader society.
- Full Text:
- Date Issued: 2014
Exploring a capacity development framework for South African foreign economic representatives
- Authors: Williams, Mario Rene
- Date: 2017
- Subjects: Economic development -- South Africa , Finance, Public South Africa -- Economic aspects
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/13491 , vital:27210
- Description: Commercial trading in various formats has characterised relations between humans for centuries. However, in a world driven by higher levels of consumption, and where citizens demand higher returns for their hard-earned taxes, governments are becoming more active in ensuring favourable conditions for their own enterprises, either operating or seeking to operate, in foreign markets, as well as local enterprises that seek to extract value from foreign markets. The past failure of the markets to self-regulate, with the recent events of the 2008/09 market crash, gave fresh impetus for governments to play a more active role in ensuring favourable outcomes for their local economies. To be effective, requires the deployments of capable officials to fulfil this mandate. However, given that governments have traditionally not operated in the sphere of what is termed as ‘commercial diplomacy’, it is evident that a concerted effort needs to be made to have a skilled and capable workforce which can function in both the commercial and diplomatic market spaces across the world. Against the background sketched above, the South African government, with the dti spearheading the initiative, has been running capacity building programmes to train officials as designate FERs, to function as commercial diplomats in targeted foreign markets. This contrasts with its sister-department, DIRCO, which has established 126 foreign missions focusing on political diplomacy. Anecdotal evidence, and previous capacity building reports, have highlighted the need for a framework to regulate and inform the development of officials. Due to the framework’s broader focus, and the acknowledgement of the rich experiences of the officials being trained in the programme, it has been termed as capacity development. An initial review of the topic, revealed that there had been limited research into a framework that regulates the capacity development of foreign economic representatives (FERs), the term used for commercial diplomats of the South African government. Thus, the purpose of this study was to explore a capacity development framework (CDF) for South African FERs. This exploratory capacity development framework will then be tested, to inform the capacity development programme used for the training of designated FERs. To achieve this goal, a literature review of academic sources of information regarding the concepts of commercial diplomacy, capacity development and conceptual frameworks, was conducted. This led to the development of a qualitative questionnaire which was then distributed to all currently posted (27) and returned FERs (33), with 18 completed questionnaires returned. The questionnaire contained both closed and open-ended statements that delved deeper into the experiences and opinions held by the respondents. Using the dti as a case study, the content analysis method, which uses open coding, was applied to identify the theme and codes emanating from the data. This was assessed against the research questions (RQs) constructed in the research proposal, and was found to be in line with the sentiments flowing from the research data. The theme, indicated as capacity development and its concomitant codes (Process, Content, Technology and Management Support), thus formed the basis and skeleton of the exploratory capacity development framework. The codes were further analysed and sub-codes identified, which were incorporated into the exploratory capacity development framework. The analysis further revealed that, while the dti is committed to ensuring the designate FERs are adequately capacitated before being posted, much more could be done to improve the efficacy of the training provided. To this end, a number of gaps were identified from the data and these will need to be addressed to ensure that an effective capacity development programme is developed.
- Full Text:
- Date Issued: 2017
- Authors: Williams, Mario Rene
- Date: 2017
- Subjects: Economic development -- South Africa , Finance, Public South Africa -- Economic aspects
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/13491 , vital:27210
- Description: Commercial trading in various formats has characterised relations between humans for centuries. However, in a world driven by higher levels of consumption, and where citizens demand higher returns for their hard-earned taxes, governments are becoming more active in ensuring favourable conditions for their own enterprises, either operating or seeking to operate, in foreign markets, as well as local enterprises that seek to extract value from foreign markets. The past failure of the markets to self-regulate, with the recent events of the 2008/09 market crash, gave fresh impetus for governments to play a more active role in ensuring favourable outcomes for their local economies. To be effective, requires the deployments of capable officials to fulfil this mandate. However, given that governments have traditionally not operated in the sphere of what is termed as ‘commercial diplomacy’, it is evident that a concerted effort needs to be made to have a skilled and capable workforce which can function in both the commercial and diplomatic market spaces across the world. Against the background sketched above, the South African government, with the dti spearheading the initiative, has been running capacity building programmes to train officials as designate FERs, to function as commercial diplomats in targeted foreign markets. This contrasts with its sister-department, DIRCO, which has established 126 foreign missions focusing on political diplomacy. Anecdotal evidence, and previous capacity building reports, have highlighted the need for a framework to regulate and inform the development of officials. Due to the framework’s broader focus, and the acknowledgement of the rich experiences of the officials being trained in the programme, it has been termed as capacity development. An initial review of the topic, revealed that there had been limited research into a framework that regulates the capacity development of foreign economic representatives (FERs), the term used for commercial diplomats of the South African government. Thus, the purpose of this study was to explore a capacity development framework (CDF) for South African FERs. This exploratory capacity development framework will then be tested, to inform the capacity development programme used for the training of designated FERs. To achieve this goal, a literature review of academic sources of information regarding the concepts of commercial diplomacy, capacity development and conceptual frameworks, was conducted. This led to the development of a qualitative questionnaire which was then distributed to all currently posted (27) and returned FERs (33), with 18 completed questionnaires returned. The questionnaire contained both closed and open-ended statements that delved deeper into the experiences and opinions held by the respondents. Using the dti as a case study, the content analysis method, which uses open coding, was applied to identify the theme and codes emanating from the data. This was assessed against the research questions (RQs) constructed in the research proposal, and was found to be in line with the sentiments flowing from the research data. The theme, indicated as capacity development and its concomitant codes (Process, Content, Technology and Management Support), thus formed the basis and skeleton of the exploratory capacity development framework. The codes were further analysed and sub-codes identified, which were incorporated into the exploratory capacity development framework. The analysis further revealed that, while the dti is committed to ensuring the designate FERs are adequately capacitated before being posted, much more could be done to improve the efficacy of the training provided. To this end, a number of gaps were identified from the data and these will need to be addressed to ensure that an effective capacity development programme is developed.
- Full Text:
- Date Issued: 2017
The effect of bond market on economic growth in South Africa
- Authors: Dingela, Siyasanga
- Date: 2016
- Subjects: Bond market -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/7218 , vital:21306
- Description: This paper investigates the effect of bond market on economic growth in South Africa. Quarterly data for South Africa for the period 2003-2014 was used to develop a general- to- specific Auto-Regressive Distribution Lag (ARDL) approach. The empirical results confirm that there is a positive relationship between Bond market and economic growth in South Africa. A co-integrated relationship between economic growth, stock market and banking sector was noticed in both the long-run and short-runs.
- Full Text:
- Date Issued: 2016
- Authors: Dingela, Siyasanga
- Date: 2016
- Subjects: Bond market -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/7218 , vital:21306
- Description: This paper investigates the effect of bond market on economic growth in South Africa. Quarterly data for South Africa for the period 2003-2014 was used to develop a general- to- specific Auto-Regressive Distribution Lag (ARDL) approach. The empirical results confirm that there is a positive relationship between Bond market and economic growth in South Africa. A co-integrated relationship between economic growth, stock market and banking sector was noticed in both the long-run and short-runs.
- Full Text:
- Date Issued: 2016
The impact of private capital flows on economic growth in South Africa
- Authors: Dzangare, Gillian
- Date: 2012
- Subjects: Economic development -- South Africa , Capital movements -- South Africa , Investments, Foreign -- South Africa , Development economics -- South Africa , Interest rates -- South Africa , Free trade -- South Africa , Cointegration -- South Africa , South Africa -- Commercial policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11472 , http://hdl.handle.net/10353/d1007134 , Economic development -- South Africa , Capital movements -- South Africa , Investments, Foreign -- South Africa , Development economics -- South Africa , Interest rates -- South Africa , Free trade -- South Africa , Cointegration -- South Africa , South Africa -- Commercial policy
- Description: In this study an analysis of the long-term equilibrium relationship between economic growth measured as real GDP growth and private capital inflows is explored. The link between private capital inflows and economic growth is well-documented in the literature. However, a void in the literature relates to examining the cointegrating relationship between private capital inflows and economic growth particularly for South Africa. It is widely claimed that private capital inflows foster economic growth by closing the savings/investment gap. However, clarity on this point is necessary because of the seemingly unclear nature of the relationship in the literature. The exact form of this relationship as well as the nature of capital flows that could impact on real growth requires further investigation. Moreover, what exactly happens to this relationship in an economic crisis such as recently recorded in the global financial crisis is not clear. The analysis is undertaken by employing cointegration and vector error correction modeling approach using quarterly data for the period 1989q4-2009q4. This study employs the Johansen (1998) cointegration test. This technique distinguishes itself since it establishes the long run relationship between variables. Thereafter, residual diagnostic checks are performed on the variables. Our results show among others, that private capital inflows have impacted positively on the growth of the South African economy. The areas for further research that emerge from this study include the effect of some government policies on economic growth that should also receive more attention in the future since political instability slows down investment.
- Full Text:
- Date Issued: 2012
- Authors: Dzangare, Gillian
- Date: 2012
- Subjects: Economic development -- South Africa , Capital movements -- South Africa , Investments, Foreign -- South Africa , Development economics -- South Africa , Interest rates -- South Africa , Free trade -- South Africa , Cointegration -- South Africa , South Africa -- Commercial policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11472 , http://hdl.handle.net/10353/d1007134 , Economic development -- South Africa , Capital movements -- South Africa , Investments, Foreign -- South Africa , Development economics -- South Africa , Interest rates -- South Africa , Free trade -- South Africa , Cointegration -- South Africa , South Africa -- Commercial policy
- Description: In this study an analysis of the long-term equilibrium relationship between economic growth measured as real GDP growth and private capital inflows is explored. The link between private capital inflows and economic growth is well-documented in the literature. However, a void in the literature relates to examining the cointegrating relationship between private capital inflows and economic growth particularly for South Africa. It is widely claimed that private capital inflows foster economic growth by closing the savings/investment gap. However, clarity on this point is necessary because of the seemingly unclear nature of the relationship in the literature. The exact form of this relationship as well as the nature of capital flows that could impact on real growth requires further investigation. Moreover, what exactly happens to this relationship in an economic crisis such as recently recorded in the global financial crisis is not clear. The analysis is undertaken by employing cointegration and vector error correction modeling approach using quarterly data for the period 1989q4-2009q4. This study employs the Johansen (1998) cointegration test. This technique distinguishes itself since it establishes the long run relationship between variables. Thereafter, residual diagnostic checks are performed on the variables. Our results show among others, that private capital inflows have impacted positively on the growth of the South African economy. The areas for further research that emerge from this study include the effect of some government policies on economic growth that should also receive more attention in the future since political instability slows down investment.
- Full Text:
- Date Issued: 2012
Trade union investment schemes: a blemish on the social movement unionism outlook of South African unions?
- Authors: Rubushe, Melikaya
- Date: 2010
- Subjects: Labor unions -- South Africa , Labor unions and communism , Cosatu , Economic development -- South Africa , National Union of Mineworkers (South Africa) , Labor unions -- Finance , Business enterprises, Black -- South Africa , Investments -- South Africa
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: vital:3331 , http://hdl.handle.net/10962/d1003119 , Labor unions -- South Africa , Labor unions and communism , Cosatu , Economic development -- South Africa , National Union of Mineworkers (South Africa) , Labor unions -- Finance , Business enterprises, Black -- South Africa , Investments -- South Africa
- Description: South African trade unions affiliated to Congress of South African Trade Unions (COSATU) have taken advantage of the arrival of democracy and newly found opportunities available through Black Economic Empowerment to venture into the world of business by setting up their own investment companies. The declared desire behind these ventures was to break the stranglehold of white capital on the economy and to extend participation in the economic activities of the country to previously disadvantaged communities. Using the National Union of Mineworkers and the Mineworkers’ Investment Company as case studies, this dissertation seeks to determine whether unions affiliated to the Congress of South African Trade Unions (COSATU) are advancing the struggle for socialism through their investment schemes. Secondly, the dissertation determines whether, in the activities of the schemes, internal democracy is preserved and strengthened. The theoretical framework of this dissertation emerges from arguments advanced by Lenin and Gramsci on the limitations of trade unions in terms of their role in the struggle against capitalism. In addition, the argument draws on the assertions by Michels regarding the proneness of trade union leadership to adopt oligarchic tendencies in their approach to leadership. Of interest is how, according to Gramsci, trade unions are prone to accepting concessions from the capitalist system that renders them ameliorative rather than transformative. Drawing from Michels’ ‘iron law of oligarchy’, the thesis examines whether there is space for ordinary members of the unions to express views on the working of the union investment companies. By looking at the extent to which the investment initiatives of the companies mirror the preferences of the ordinary members of the unions, one can determine the level of disjuncture between the two. The study relies on data collected through interviews and documentary material. Interviews provide first-hand knowledge of how respondents experience the impact of the investment schemes. This provides a balanced analysis given that documents reflect policy stances whereas interviews provide data on whether these have the stated impact. What the study shows is a clear absence of space for ordinary members to directly influence the workings of union investment companies. It is also established that, in their current form, the schemes operate more as a perpetuation of the capitalist logic than offering an alternative system.
- Full Text:
- Date Issued: 2010
- Authors: Rubushe, Melikaya
- Date: 2010
- Subjects: Labor unions -- South Africa , Labor unions and communism , Cosatu , Economic development -- South Africa , National Union of Mineworkers (South Africa) , Labor unions -- Finance , Business enterprises, Black -- South Africa , Investments -- South Africa
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: vital:3331 , http://hdl.handle.net/10962/d1003119 , Labor unions -- South Africa , Labor unions and communism , Cosatu , Economic development -- South Africa , National Union of Mineworkers (South Africa) , Labor unions -- Finance , Business enterprises, Black -- South Africa , Investments -- South Africa
- Description: South African trade unions affiliated to Congress of South African Trade Unions (COSATU) have taken advantage of the arrival of democracy and newly found opportunities available through Black Economic Empowerment to venture into the world of business by setting up their own investment companies. The declared desire behind these ventures was to break the stranglehold of white capital on the economy and to extend participation in the economic activities of the country to previously disadvantaged communities. Using the National Union of Mineworkers and the Mineworkers’ Investment Company as case studies, this dissertation seeks to determine whether unions affiliated to the Congress of South African Trade Unions (COSATU) are advancing the struggle for socialism through their investment schemes. Secondly, the dissertation determines whether, in the activities of the schemes, internal democracy is preserved and strengthened. The theoretical framework of this dissertation emerges from arguments advanced by Lenin and Gramsci on the limitations of trade unions in terms of their role in the struggle against capitalism. In addition, the argument draws on the assertions by Michels regarding the proneness of trade union leadership to adopt oligarchic tendencies in their approach to leadership. Of interest is how, according to Gramsci, trade unions are prone to accepting concessions from the capitalist system that renders them ameliorative rather than transformative. Drawing from Michels’ ‘iron law of oligarchy’, the thesis examines whether there is space for ordinary members of the unions to express views on the working of the union investment companies. By looking at the extent to which the investment initiatives of the companies mirror the preferences of the ordinary members of the unions, one can determine the level of disjuncture between the two. The study relies on data collected through interviews and documentary material. Interviews provide first-hand knowledge of how respondents experience the impact of the investment schemes. This provides a balanced analysis given that documents reflect policy stances whereas interviews provide data on whether these have the stated impact. What the study shows is a clear absence of space for ordinary members to directly influence the workings of union investment companies. It is also established that, in their current form, the schemes operate more as a perpetuation of the capitalist logic than offering an alternative system.
- Full Text:
- Date Issued: 2010
The effect of foreign direct investment on economic growth: evidence from South Africa
- Authors: Mazenda, Adrino
- Date: 2012
- Subjects: International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11462 , http://hdl.handle.net/10353/d1007027 , International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Description: Foreign direct investment amongst other mechanisms provides capital inflow meant to stimulate economic growth. Apart from promoting economic growth, FDI can also lead to increase in employment, technology, technical knowhow and managerial skills. South Africa has implemented various policy initiatives in attempts to attract foreign investment. This study investigates on the effect of foreign direct investment on economic growth, with particular reference to the South African economy. The period of study is from 1980 to 2010. The study begins by reviewing literature on economic growth and foreign direct investment. South Africa’s macroeconomic background is examined to determine the trends in FDI inflows and economic growth. An empirical model linking theoretical and empirical literature on the effect of FDI on economic growth is estimated using the Johansen cointegration and VECM framework. Variables specified in the methodology include real gross domestic product (RGDP), foreign direct investment (FDI), domestic investment (INVE), real exchange rate (REXCH) and foreign marketable debt (DEBT). The long run results showed that FDI, REXCH and DEBT have a negative impact on growth. INVE has a positive impact on growth. Short run results indicated that there is no strong pressure on RGDP to restore long-run equilibrium whenever there is a disturbance. The short run lag of FDI was found to exert a positive impact on growth. The impulse response and variance decomposition analysis complemented the long and short-run findings. Shocks on REXCH, and DEBT generated a negative response on RGDP. The shocks were not significantly different from zero and were transitory. Results from the variance decomposition analysis revealed that the fundamentals explain some, but not all, of the variations of RGDP. For the fifth year forecast error variance RGDP explains the largest component of the variation followed by INVE, REXCH, FDI and DEBT. After a period of ten years, the influence of RGDP and INVE declines, whereas REXCH, FDI and DEBT increase. Conclusions and policy recommendations were made using these results.
- Full Text:
- Date Issued: 2012
- Authors: Mazenda, Adrino
- Date: 2012
- Subjects: International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11462 , http://hdl.handle.net/10353/d1007027 , International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Description: Foreign direct investment amongst other mechanisms provides capital inflow meant to stimulate economic growth. Apart from promoting economic growth, FDI can also lead to increase in employment, technology, technical knowhow and managerial skills. South Africa has implemented various policy initiatives in attempts to attract foreign investment. This study investigates on the effect of foreign direct investment on economic growth, with particular reference to the South African economy. The period of study is from 1980 to 2010. The study begins by reviewing literature on economic growth and foreign direct investment. South Africa’s macroeconomic background is examined to determine the trends in FDI inflows and economic growth. An empirical model linking theoretical and empirical literature on the effect of FDI on economic growth is estimated using the Johansen cointegration and VECM framework. Variables specified in the methodology include real gross domestic product (RGDP), foreign direct investment (FDI), domestic investment (INVE), real exchange rate (REXCH) and foreign marketable debt (DEBT). The long run results showed that FDI, REXCH and DEBT have a negative impact on growth. INVE has a positive impact on growth. Short run results indicated that there is no strong pressure on RGDP to restore long-run equilibrium whenever there is a disturbance. The short run lag of FDI was found to exert a positive impact on growth. The impulse response and variance decomposition analysis complemented the long and short-run findings. Shocks on REXCH, and DEBT generated a negative response on RGDP. The shocks were not significantly different from zero and were transitory. Results from the variance decomposition analysis revealed that the fundamentals explain some, but not all, of the variations of RGDP. For the fifth year forecast error variance RGDP explains the largest component of the variation followed by INVE, REXCH, FDI and DEBT. After a period of ten years, the influence of RGDP and INVE declines, whereas REXCH, FDI and DEBT increase. Conclusions and policy recommendations were made using these results.
- Full Text:
- Date Issued: 2012
Financial liberalisation and economic growth in South Africa
- Sibanda, Hlanganani Siqondile.
- Authors: Sibanda, Hlanganani Siqondile.
- Date: 2012
- Subjects: Economic development -- South Africa , Monetary policy -- South Africa , Finance -- Management , Capital movements -- South Africa , Free trade -- South Africa , Expenditures, Public
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11471 , http://hdl.handle.net/10353/d1007131 , Economic development -- South Africa , Monetary policy -- South Africa , Finance -- Management , Capital movements -- South Africa , Free trade -- South Africa , Expenditures, Public
- Description: This study examined the impact of financial liberalisation on economic growth in South Africa. The study used quarterly time series data for the period 1980 to 2010. A vector error correction model was used to determine the short run and long run effects of financial liberalisation on economic growth in South Africa. The other explanatory variables considered in this study were government expenditure, investment ratio, public expenditure on education and trade openness. Results from this study revealed that financial liberalisation, government expenditure and public expenditure on education have a positive impact on economic growth while trade openness negatively affects economic growth in South Africa. Policy recommendations were made using these results.
- Full Text:
- Date Issued: 2012
- Authors: Sibanda, Hlanganani Siqondile.
- Date: 2012
- Subjects: Economic development -- South Africa , Monetary policy -- South Africa , Finance -- Management , Capital movements -- South Africa , Free trade -- South Africa , Expenditures, Public
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11471 , http://hdl.handle.net/10353/d1007131 , Economic development -- South Africa , Monetary policy -- South Africa , Finance -- Management , Capital movements -- South Africa , Free trade -- South Africa , Expenditures, Public
- Description: This study examined the impact of financial liberalisation on economic growth in South Africa. The study used quarterly time series data for the period 1980 to 2010. A vector error correction model was used to determine the short run and long run effects of financial liberalisation on economic growth in South Africa. The other explanatory variables considered in this study were government expenditure, investment ratio, public expenditure on education and trade openness. Results from this study revealed that financial liberalisation, government expenditure and public expenditure on education have a positive impact on economic growth while trade openness negatively affects economic growth in South Africa. Policy recommendations were made using these results.
- Full Text:
- Date Issued: 2012
A proposed model for enterprise resource planning benefits for SMEs
- Authors: De Matos, Paulo
- Date: 2017
- Subjects: Small business -- South Africa Enterprise resource planning -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/14971 , vital:28107
- Description: Small to medium sized enterprises (SMEs) play a significant role in global and national economies, both in developed and developing countries, contributing significantly to economic growth and job creation. Yet, SMEs face ongoing survival issues as their limited access to resources often constrains their ability to compete and realise their potential. Enterprise Resource Planning (ERP) systems are known to be a crucial component in realising benefits for any organisation and are seen as significant contributors to an organisation’s performance. However, only a portion of SMEs report that their value expectations have been met in adopting an ERP system. SMEs require a better understanding of how to extract value from ERP adoption in order to remain competitive. An on-going SME problem is a lack of low-level awareness of the benefits that an ERP system is capable of providing them. The problem is stated as “SMEs do not understand the benefits derived from the adoption of an ERP system”. The purpose of this treatise was to determine a clearer understanding of how ERP systems can be considered a technological innovation that may be exploited by an SME to deliver business value by increasing the performance of the SME and thereby increasing the SME’s competitive advantage. A literature review was conducted on ERP and SMEs which identified benefit models grounded in the theories of Diffusion of Innovation (DOI) and Resource Based View (RBV). DOI explains the benefits derived from ERP use as the technology diffuses throughout the social organisation and RBV measures the business value extracted from ERP adoption and use. A model for ERP benefits for SMEs was proposed based on the extant literature and empirical evaluation on a sample of 107 SYSPRO ERP users in South Africa. The model was statistically assessed as to the relationships between the independent variables of ease of use, collaboration, capabilities, efficiencies, analytics, industry sector and maturity against the dependent variable of ERP business value. The variables of analytics, capabilities and ease of use together explain 68.9% of the variance of ERP business value, while analytics and capabilities explain 53.8%. No significant relationship was found for efficiencies, collaboration, industry or maturity, being a measure of length of years’ experience in ERP use. The results indicate that SMEs perceive analytics to be a valuable determinant of ERP value contributing to the competitiveness of SMEs. The higher the SME focuses on analytics, the greater the organisation’s performance increases due to the enhancement of analytical-based decisions aiding in a better decision-making process. Capabilities are the degree to which an ERP system caters for the functional needs of the SME. This treatise argues that SMEs should pay particular focus on their operational requirements and whether the ERP system is capable of providing them as customisation of the ERP is costly. Organisational personnel utilising ERP must be comfortable utilising it. Perceptions as to an ERP’s complexity and usefulness define the ease-of-use. SMEs should consider the inherent aspects of a given ERP system that support the adoption rate of their personnel of an ERP system. Practically, SMEs should assess the degree of system intuitiveness both during ERP selection and during the adoption lifecycle phases. ERP providers should focus on the provisioning of aspects both in the software and during the implementation of an ERP system at an SME in ensuring the system is intuitive, useful, easy to use, functionally addresses the SME requirements simply and surfaces meaningful analytics in support of decision-making process.
- Full Text:
- Date Issued: 2017
- Authors: De Matos, Paulo
- Date: 2017
- Subjects: Small business -- South Africa Enterprise resource planning -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/14971 , vital:28107
- Description: Small to medium sized enterprises (SMEs) play a significant role in global and national economies, both in developed and developing countries, contributing significantly to economic growth and job creation. Yet, SMEs face ongoing survival issues as their limited access to resources often constrains their ability to compete and realise their potential. Enterprise Resource Planning (ERP) systems are known to be a crucial component in realising benefits for any organisation and are seen as significant contributors to an organisation’s performance. However, only a portion of SMEs report that their value expectations have been met in adopting an ERP system. SMEs require a better understanding of how to extract value from ERP adoption in order to remain competitive. An on-going SME problem is a lack of low-level awareness of the benefits that an ERP system is capable of providing them. The problem is stated as “SMEs do not understand the benefits derived from the adoption of an ERP system”. The purpose of this treatise was to determine a clearer understanding of how ERP systems can be considered a technological innovation that may be exploited by an SME to deliver business value by increasing the performance of the SME and thereby increasing the SME’s competitive advantage. A literature review was conducted on ERP and SMEs which identified benefit models grounded in the theories of Diffusion of Innovation (DOI) and Resource Based View (RBV). DOI explains the benefits derived from ERP use as the technology diffuses throughout the social organisation and RBV measures the business value extracted from ERP adoption and use. A model for ERP benefits for SMEs was proposed based on the extant literature and empirical evaluation on a sample of 107 SYSPRO ERP users in South Africa. The model was statistically assessed as to the relationships between the independent variables of ease of use, collaboration, capabilities, efficiencies, analytics, industry sector and maturity against the dependent variable of ERP business value. The variables of analytics, capabilities and ease of use together explain 68.9% of the variance of ERP business value, while analytics and capabilities explain 53.8%. No significant relationship was found for efficiencies, collaboration, industry or maturity, being a measure of length of years’ experience in ERP use. The results indicate that SMEs perceive analytics to be a valuable determinant of ERP value contributing to the competitiveness of SMEs. The higher the SME focuses on analytics, the greater the organisation’s performance increases due to the enhancement of analytical-based decisions aiding in a better decision-making process. Capabilities are the degree to which an ERP system caters for the functional needs of the SME. This treatise argues that SMEs should pay particular focus on their operational requirements and whether the ERP system is capable of providing them as customisation of the ERP is costly. Organisational personnel utilising ERP must be comfortable utilising it. Perceptions as to an ERP’s complexity and usefulness define the ease-of-use. SMEs should consider the inherent aspects of a given ERP system that support the adoption rate of their personnel of an ERP system. Practically, SMEs should assess the degree of system intuitiveness both during ERP selection and during the adoption lifecycle phases. ERP providers should focus on the provisioning of aspects both in the software and during the implementation of an ERP system at an SME in ensuring the system is intuitive, useful, easy to use, functionally addresses the SME requirements simply and surfaces meaningful analytics in support of decision-making process.
- Full Text:
- Date Issued: 2017
Investigating a positioning strategy for a car wash business in Port Elizabeth : a case study
- Authors: Naidoo-Kurup, Malanie
- Date: 2012
- Subjects: Car wash industry -- South Africa -- Port Elizabeth , Informal sector (Economics) -- South Africa -- Port Elizabeth , Economic development -- South Africa , Small business -- South Africa -- Planning
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8856 , http://hdl.handle.net/10948/d1020148
- Description: The aim of this study was to determine an appropriate positioning strategy for a car wash business in Port Elizabeth to promote its competitive advantage in the market place. To meet this aim the customers' perceptions of the business were examined. It has been widely acknowledged by researchers and development agencies that Small, Medium and Micro Enterprises (SMMEs) and entrepreneurs play a crucial role in the economic development of a nation. This is particularly significant for a developing nation such as South Africa to address its critical challenges of unemployment and poverty which impact on social stability. Research reveals that the failure rate of SMMEs in South Africa is an alarming 75 percent. In this context, the need to explore innovative strategies to support and sustain the SMME sector has become increasingly important. A detailed survey of relevant literature revealed that the attributes of a firm that relate to the quality of service, pricing, attitudes of staff, image of the firm etc. can be considered as important variables which customers use to differentiate a business from its competitors. It is suggested that the success of a firm largely depends on its ability to position itself in a competitive environment by focusing on attributes which customers value the most in relation to similar businesses. This case study was approached from a positivist paradigm and data from 61 customers of the car wash were collected. The quantitative data were statistically analysed to examine the attributes of the business which the respondents of the survey perceived as offering the most value to them when compared to other car washes in the area. These attributes were then used to develop a positioning map for the business. The results showed that the attribute of the business which was most valued by the respondents was the manual washing of vehicles. A positioning strategy for the car wash based on this finding is suggested.
- Full Text:
- Date Issued: 2012
- Authors: Naidoo-Kurup, Malanie
- Date: 2012
- Subjects: Car wash industry -- South Africa -- Port Elizabeth , Informal sector (Economics) -- South Africa -- Port Elizabeth , Economic development -- South Africa , Small business -- South Africa -- Planning
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8856 , http://hdl.handle.net/10948/d1020148
- Description: The aim of this study was to determine an appropriate positioning strategy for a car wash business in Port Elizabeth to promote its competitive advantage in the market place. To meet this aim the customers' perceptions of the business were examined. It has been widely acknowledged by researchers and development agencies that Small, Medium and Micro Enterprises (SMMEs) and entrepreneurs play a crucial role in the economic development of a nation. This is particularly significant for a developing nation such as South Africa to address its critical challenges of unemployment and poverty which impact on social stability. Research reveals that the failure rate of SMMEs in South Africa is an alarming 75 percent. In this context, the need to explore innovative strategies to support and sustain the SMME sector has become increasingly important. A detailed survey of relevant literature revealed that the attributes of a firm that relate to the quality of service, pricing, attitudes of staff, image of the firm etc. can be considered as important variables which customers use to differentiate a business from its competitors. It is suggested that the success of a firm largely depends on its ability to position itself in a competitive environment by focusing on attributes which customers value the most in relation to similar businesses. This case study was approached from a positivist paradigm and data from 61 customers of the car wash were collected. The quantitative data were statistically analysed to examine the attributes of the business which the respondents of the survey perceived as offering the most value to them when compared to other car washes in the area. These attributes were then used to develop a positioning map for the business. The results showed that the attribute of the business which was most valued by the respondents was the manual washing of vehicles. A positioning strategy for the car wash based on this finding is suggested.
- Full Text:
- Date Issued: 2012
Development finance institutions and sustainable economic development : a case of the idc South Africa
- Authors: Mare, Timothy
- Date: 2020
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/48872 , vital:41166
- Description: The purpose of this research study is to assess the extent that the Industrial Development Cooperation (IDC) of South Africa a Development Finance Institution (DFI), has contributed to the sustainable economic development of South Africa. The objective is to quantify the impact that is attributed to the IDC’s activities in South Africa in terms of socio-economic development contributing to sustainable economic development. Social development is fundamentally important in contributing to the economic development of any country. The research constituted the collection and quantitative analysis of data using reports from the IDC. The social output index modelling developed by the World Bank was used to analyse the data and make conclusive arguments regarding the impact that the IDC was having on economic development. The findings indicate that the IDC significantly lends less comparatively to lower income groups thus resulting in a negative contribution in terms of social developmental goals. Further the analysis through social output index model suggests that the IDC in as far as socio-development is concerned did not contributing positively to sustainable economic development between 2014 and 2018 reporting periods. The following recommendations are suggested: Increase awareness about the real impact of each investment across the IDC group, this will ensure that all proposals for investment are assessed with a component focusing on a socio-developmental perspective; reduce the number of mandates that the IDC currently has and establish broader frameworks for DFIs regardless of which government is in power or control.
- Full Text:
- Date Issued: 2020
- Authors: Mare, Timothy
- Date: 2020
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/48872 , vital:41166
- Description: The purpose of this research study is to assess the extent that the Industrial Development Cooperation (IDC) of South Africa a Development Finance Institution (DFI), has contributed to the sustainable economic development of South Africa. The objective is to quantify the impact that is attributed to the IDC’s activities in South Africa in terms of socio-economic development contributing to sustainable economic development. Social development is fundamentally important in contributing to the economic development of any country. The research constituted the collection and quantitative analysis of data using reports from the IDC. The social output index modelling developed by the World Bank was used to analyse the data and make conclusive arguments regarding the impact that the IDC was having on economic development. The findings indicate that the IDC significantly lends less comparatively to lower income groups thus resulting in a negative contribution in terms of social developmental goals. Further the analysis through social output index model suggests that the IDC in as far as socio-development is concerned did not contributing positively to sustainable economic development between 2014 and 2018 reporting periods. The following recommendations are suggested: Increase awareness about the real impact of each investment across the IDC group, this will ensure that all proposals for investment are assessed with a component focusing on a socio-developmental perspective; reduce the number of mandates that the IDC currently has and establish broader frameworks for DFIs regardless of which government is in power or control.
- Full Text:
- Date Issued: 2020
Official development assistance (ODA): coordination, management and its impact in the National Department of Science and Technology (DST)
- Authors: Tena, Mokgadi
- Date: 2013
- Subjects: Economic sssistance -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9161 , http://hdl.handle.net/10948/d1020023
- Description: South Africa (SA) has been a recipient of Official Development Assistance (ODA) prior to the democratic elections in 1994. Even though there has been progress in terms of aligning the ODA to SA government priorities and the good aid management principles, it has been a challenge to trace the amount of the ODA received across government departments and its impact thereon. For various reasons, reporting on the impact of the ODA has been very challenging for most of the departments. Some departments do not use government systems such as the Reconstruction and Development Programme (RDP) account, through which it is required by the Policy Framework and Procedural Guidelines for the Management of ODA that all funds are transferred and channelled. As stipulated in the Policy Framework and Procedural Guidelines for the Management of ODA, the ODA is targeted towards innovation, piloting and value-add, as it only constitutes 1.5 percent of the overall budget of the country. As a result, most government departments utilise ODA as a gap-filler, to pay for unplanned activities that would have otherwise not been budgeted for in the government’s fiscal budget. This leads to departments not reporting as they fear that the ODA will then be withdrawn from them (Policy Guidelines2003). The Department of Science and Technology is one of the South African government departments that received high ODA for the period 2005-2011. The department not only spans across all sectors in terms of research and capacity development, but it has also established strategic international partnerships to collaborate in the research arena. In light of the above, it is interesting to explore how coordination is carried out and what impact if any; 2 the ODA has on the proposed Department of Science and Technology projects. This study explores the Department of Science and Technology, which is a recipient and implementer of ODA, and analyses how they co-ordinate, utilise and report on the ODA. The project that will be analysed is a Sector Budget Support Programme that focuses on poverty alleviation within the capacity development sector.
- Full Text:
- Date Issued: 2013
- Authors: Tena, Mokgadi
- Date: 2013
- Subjects: Economic sssistance -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9161 , http://hdl.handle.net/10948/d1020023
- Description: South Africa (SA) has been a recipient of Official Development Assistance (ODA) prior to the democratic elections in 1994. Even though there has been progress in terms of aligning the ODA to SA government priorities and the good aid management principles, it has been a challenge to trace the amount of the ODA received across government departments and its impact thereon. For various reasons, reporting on the impact of the ODA has been very challenging for most of the departments. Some departments do not use government systems such as the Reconstruction and Development Programme (RDP) account, through which it is required by the Policy Framework and Procedural Guidelines for the Management of ODA that all funds are transferred and channelled. As stipulated in the Policy Framework and Procedural Guidelines for the Management of ODA, the ODA is targeted towards innovation, piloting and value-add, as it only constitutes 1.5 percent of the overall budget of the country. As a result, most government departments utilise ODA as a gap-filler, to pay for unplanned activities that would have otherwise not been budgeted for in the government’s fiscal budget. This leads to departments not reporting as they fear that the ODA will then be withdrawn from them (Policy Guidelines2003). The Department of Science and Technology is one of the South African government departments that received high ODA for the period 2005-2011. The department not only spans across all sectors in terms of research and capacity development, but it has also established strategic international partnerships to collaborate in the research arena. In light of the above, it is interesting to explore how coordination is carried out and what impact if any; 2 the ODA has on the proposed Department of Science and Technology projects. This study explores the Department of Science and Technology, which is a recipient and implementer of ODA, and analyses how they co-ordinate, utilise and report on the ODA. The project that will be analysed is a Sector Budget Support Programme that focuses on poverty alleviation within the capacity development sector.
- Full Text:
- Date Issued: 2013