An empirical analysis of the interplay among bank competition, bank stability and regulation: a case study of banks in Zimbabwe
- Nyamuronda, Gracious Varayidzo
- Authors: Nyamuronda, Gracious Varayidzo
- Date: 2023-03-31
- Subjects: Capital adequacy ratio , Autoregression (Statistics) , Panel analysis , Competition Zimbabwe , Banks and banking Zimbabwe , Bank regulation , Economic stabilization Zimbabwe
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419473 , vital:71647
- Description: This study empirically examined the interconnection among bank competition, regulation and stability of eighteen Zimbabwean banks during the period 2011-2017. Zscore, Capital Adequacy Ratio (CAD), and Loans market share and Deposits market share which are proxies for stability, regulation and competition respectively were examined firstly using the Panel Vector Autoregressive (PVAR) model. Model 1 used loans market share as a proxy for competition and model 2 used deposits market share instead. The stability test using Eigenvalue Stability Condition showed that the PVAR model is unstable. Secondly, the above variables and five bank specific variables (i.e., credit risk, management efficiency, liquidity, return on assets and bank size) were estimated using the Feasible Generalised Least Squares (FGLS) model. The study documents that competition positively contributed to stability and regulation negatively influenced the stability of the Zimbabwean banks. Meanwhile, bank size and credit risk have a negative relationship with stability; management efficiency and liquidity have a positive relationship. Return On Assets has a negative and positive relationship with stability in model 1 and model 2, respectively. The findings implied that to enhance stability, banks must experience a competitive environment, reasonably low minimum capital requirements and cautiously designed regulatory frameworks. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-03-31
- Authors: Nyamuronda, Gracious Varayidzo
- Date: 2023-03-31
- Subjects: Capital adequacy ratio , Autoregression (Statistics) , Panel analysis , Competition Zimbabwe , Banks and banking Zimbabwe , Bank regulation , Economic stabilization Zimbabwe
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419473 , vital:71647
- Description: This study empirically examined the interconnection among bank competition, regulation and stability of eighteen Zimbabwean banks during the period 2011-2017. Zscore, Capital Adequacy Ratio (CAD), and Loans market share and Deposits market share which are proxies for stability, regulation and competition respectively were examined firstly using the Panel Vector Autoregressive (PVAR) model. Model 1 used loans market share as a proxy for competition and model 2 used deposits market share instead. The stability test using Eigenvalue Stability Condition showed that the PVAR model is unstable. Secondly, the above variables and five bank specific variables (i.e., credit risk, management efficiency, liquidity, return on assets and bank size) were estimated using the Feasible Generalised Least Squares (FGLS) model. The study documents that competition positively contributed to stability and regulation negatively influenced the stability of the Zimbabwean banks. Meanwhile, bank size and credit risk have a negative relationship with stability; management efficiency and liquidity have a positive relationship. Return On Assets has a negative and positive relationship with stability in model 1 and model 2, respectively. The findings implied that to enhance stability, banks must experience a competitive environment, reasonably low minimum capital requirements and cautiously designed regulatory frameworks. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-03-31
The relationship between economic growth and taxation: an empirical study on optimal taxation in sub-Saharan Africa
- Authors: Kent, Bradley Athol
- Date: 2022-10-14
- Subjects: Taxation Africa, Sub-Saharan , Optimal tax , Economic development Africa, Sub-Saharan , Tax collection Africa, Sub-Saharan
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/403058 , vital:69918
- Description: The relationship between economic growth and taxation is a complex and highly debated issue, this thesis investigates whether a significant relationship can be identified, and whether it is the level that truly matters for fiscal policies aimed at being growth enhancing. Further investigation examines this relationship, in addition to testing whether there is a threshold below which tax collection may be considered ‘growth-enhancing’, and above which is negative for economic growth, and if such a threshold exists, to identify the manner in which taxation negatively impacts economic growth. The study makes use of a panel data approach to autoregressive distributed lag modelling and a generalised least squares regression. The study focuses on a panel data sample for seven (7) countries within Sub-Saharan Africa (SSA) between 1997 – 2017. It found that total tax revenue held a positive and significant relationship with economic growth at the SSA level, whilst at the individual tax level; PAYE and property taxes were found to have a negative influence on growth, with no other fiscal variables significantly influencing growth in the long run in SSA test. Whereas, when analysing at the country-specific level it was found PAYE was only significantly influencing growth in South Africa, where the relationship was found to be negative. Corporate tax revealed a similar significant negative relationship in Swaziland and Cameroon. In addition, property taxes revealed a significant and negative relationship in South Africa, yet in Rwanda the influence was positive. Overall, the study found that there is significant relationship between economic growth and taxation in the SSA context. However, when analysing the countries in isolation, no such relationship was found. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
- Authors: Kent, Bradley Athol
- Date: 2022-10-14
- Subjects: Taxation Africa, Sub-Saharan , Optimal tax , Economic development Africa, Sub-Saharan , Tax collection Africa, Sub-Saharan
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/403058 , vital:69918
- Description: The relationship between economic growth and taxation is a complex and highly debated issue, this thesis investigates whether a significant relationship can be identified, and whether it is the level that truly matters for fiscal policies aimed at being growth enhancing. Further investigation examines this relationship, in addition to testing whether there is a threshold below which tax collection may be considered ‘growth-enhancing’, and above which is negative for economic growth, and if such a threshold exists, to identify the manner in which taxation negatively impacts economic growth. The study makes use of a panel data approach to autoregressive distributed lag modelling and a generalised least squares regression. The study focuses on a panel data sample for seven (7) countries within Sub-Saharan Africa (SSA) between 1997 – 2017. It found that total tax revenue held a positive and significant relationship with economic growth at the SSA level, whilst at the individual tax level; PAYE and property taxes were found to have a negative influence on growth, with no other fiscal variables significantly influencing growth in the long run in SSA test. Whereas, when analysing at the country-specific level it was found PAYE was only significantly influencing growth in South Africa, where the relationship was found to be negative. Corporate tax revealed a similar significant negative relationship in Swaziland and Cameroon. In addition, property taxes revealed a significant and negative relationship in South Africa, yet in Rwanda the influence was positive. Overall, the study found that there is significant relationship between economic growth and taxation in the SSA context. However, when analysing the countries in isolation, no such relationship was found. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
Institutional innovations for improved water security in smallholder irrigation schemes in KwaZulu-Natal and Eastern Cape Provinces, South Africa
- Authors: Phakathi, Sandile
- Date: 2022-04-06
- Subjects: Water security South Africa , Rural development projects South Africa , Institutional cooperation South Africa , Irrigation farming South Africa , Food security South Africa , Agricultural innovations South Africa , Irrigation Technological innovations South Africa , Smallholder irrigation schemes
- Language: English
- Type: Doctoral thesis , text
- Identifier: http://hdl.handle.net/10962/232341 , vital:49983 , DOI 10.21504/10962/232341
- Description: Smallholder irrigation schemes are regarded as a key strategy to eliminate poverty and increase food security in rural areas in South Africa. While the South African government has invested heavily in rural development schemes, most irrigation schemes face a myriad of challenges, including deficient infrastructure, weak institutional arrangements and water insecurity. Weak institutions have been identified as a major bottleneck in the performance of smallholder irrigation schemes in developing countries, including South Africa. Two main reasons have been identified for this challenge. Firstly, the agency of the irrigators was ignored during the design of the schemes. Treating farmers as passive rather than active agents resulted in institutional arrangements that were not context-specific, as well as weak farmer commitment to the ownership and management of the schemes, leading to system breakdown. Despite being noble in intention or design, institutions designed by outsiders often fail due to a lack of legitimacy. Secondly, institutions have failed to evolve to cope with dynamic challenges and opportunities in the sector. Stability over a reasonable period is required for institutions to effectively perform their crucial role of establishing reasonable expectations in dealings among people. Institutional innovations are required to keep up with the changing nature of development. In particular, farmer-led institutional innovations have been touted as key to improving the management of water resources in irrigation schemes. Farmer-led institutional innovation refers to a process, in which farmers themselves initiate, establish, and improve institutions based on their context-specific challenges or opportunities. Farmers’ groups are regarded as an important institutional arrangement to reduce transaction costs, improve social networks, and increase livelihood outcomes. However, little is known about the internal dynamics of these farmer groups, how they operate, and whether or not they are inclusive and innovative, as well as what makes certain groups more successful than others. Furthermore, there is a paucity of research on whether these farmer groups embrace institutional innovations to improve water security and strengthen their design principles that are crucial for collective action. It is against this background that this study aimed to examine the internal group dynamics within the farmer groups; determine whether smallholder farmers are capable of implementing institutional innovations that are novel, useful and legitimate; determine the nature of these innovations (incremental or radical) and their role in improving water security. The main theories that underpinned the study were induced institutional innovation theory, collective action theory, random utility theory and Ostrom’s eight design principles. Multistage sampling was used to collect data from 28 farmer groups and 401 irrigators in smallholder irrigation schemes in KwaZulu-Natal (Tugela Ferry and Mooi River) and the Eastern Cape (Qamata and Zanyokwe). Data were gathered by means of focus group discussions, key informant interviews and household surveys. Several empirical tools were employed to analyse the data (descriptive statistics, thematic analysis, logit model, propensity score matching, PCA and OLS). The study found that group membership was associated with higher levels of water access, adoption of inorganic fertiliser, incomes and assets. Group members had an additional four days’ access to water in a month and applied at least 130 kg/ha more inorganic fertiliser than non-group members. Group members also had a higher household income per capita and more assets than non-group members. However, the results revealed a heterogeneous effect among group members, with the benefits varying according to members’ socio-economic characteristics as well as internal group dynamics. The results suggest that organising farmers into groups should be promoted to improve farmers’ access to productive assets such as water, technology adoption and welfare outcomes. However, the study findings also indicate that smaller groups should be promoted, programmes targeted at empowering women should be prioritised, and that it is imperative to invest in improving farmers’ human capital through various training initiatives. The results indicated that farmers could develop and implement institutional innovations that are novel, useful and legitimate. Of the 28 groups, 21 (75%) had implemented institutional innovations in the past three years. Examples of innovations include, among others, the introduction of a secret voting system to improve marginalised people’s participation in decision-making processes, designing daily rotation rosters to reduce conflict, using an attendance register for participation in group activities, and rewarding members according to their participation levels. Most of these innovations were designed to improve the graduated sanction mechanism (22.2%), enhance the penalty system for non-compliance; improve collective action arrangements (27.8%); monitor attendance of group meetings (18.5%); democratise decision making; and ensure equitable water distribution. However, they mainly focused on addressing challenges rather than exploiting opportunities and were largely incremental (94%), involving an adjustment or reinterpretation of rules and regulations. Furthermore, the innovative groups were small in size and were dominated by male farmers. Based on these results, it is recommended that the government should build on the irrigators’ agency to improve the effectiveness and legitimacy of institutional arrangements in irrigation schemes. The findings also suggest that small groups should be actively promoted, while tailored training should be offered based on the groups’ specific needs to improve institutional innovations in the smallholder irrigation sector in South Africa. A positive association was established between belonging to an innovative group and water security, highlighting the importance of institutional innovations in water security. The propensity score matching indicated that water secure irrigators produced an additional 569-622 kg of maize and earned additional income of R2 037.81. The study’s findings suggest that organising farmers into groups is a promising strategy to improve farmers livelihoods and water security. The government and private donors should thus continue to promote the formation and organisation of farmers into groups. The innovative agency of the irrigators should be acknowledged and harnessed to strengthen institutional innovations. The focus should be on strengthening the institutions designed by farmers themselves, as these are locally contextualised and socially embedded, and hence legitimate. It is recommended that small groups should be actively promoted, while tailored training should be offered based on groups’ specific needs to improve institutional innovations in the smallholder irrigation sector in South Africa. , Thesis (PhD) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
- Authors: Phakathi, Sandile
- Date: 2022-04-06
- Subjects: Water security South Africa , Rural development projects South Africa , Institutional cooperation South Africa , Irrigation farming South Africa , Food security South Africa , Agricultural innovations South Africa , Irrigation Technological innovations South Africa , Smallholder irrigation schemes
- Language: English
- Type: Doctoral thesis , text
- Identifier: http://hdl.handle.net/10962/232341 , vital:49983 , DOI 10.21504/10962/232341
- Description: Smallholder irrigation schemes are regarded as a key strategy to eliminate poverty and increase food security in rural areas in South Africa. While the South African government has invested heavily in rural development schemes, most irrigation schemes face a myriad of challenges, including deficient infrastructure, weak institutional arrangements and water insecurity. Weak institutions have been identified as a major bottleneck in the performance of smallholder irrigation schemes in developing countries, including South Africa. Two main reasons have been identified for this challenge. Firstly, the agency of the irrigators was ignored during the design of the schemes. Treating farmers as passive rather than active agents resulted in institutional arrangements that were not context-specific, as well as weak farmer commitment to the ownership and management of the schemes, leading to system breakdown. Despite being noble in intention or design, institutions designed by outsiders often fail due to a lack of legitimacy. Secondly, institutions have failed to evolve to cope with dynamic challenges and opportunities in the sector. Stability over a reasonable period is required for institutions to effectively perform their crucial role of establishing reasonable expectations in dealings among people. Institutional innovations are required to keep up with the changing nature of development. In particular, farmer-led institutional innovations have been touted as key to improving the management of water resources in irrigation schemes. Farmer-led institutional innovation refers to a process, in which farmers themselves initiate, establish, and improve institutions based on their context-specific challenges or opportunities. Farmers’ groups are regarded as an important institutional arrangement to reduce transaction costs, improve social networks, and increase livelihood outcomes. However, little is known about the internal dynamics of these farmer groups, how they operate, and whether or not they are inclusive and innovative, as well as what makes certain groups more successful than others. Furthermore, there is a paucity of research on whether these farmer groups embrace institutional innovations to improve water security and strengthen their design principles that are crucial for collective action. It is against this background that this study aimed to examine the internal group dynamics within the farmer groups; determine whether smallholder farmers are capable of implementing institutional innovations that are novel, useful and legitimate; determine the nature of these innovations (incremental or radical) and their role in improving water security. The main theories that underpinned the study were induced institutional innovation theory, collective action theory, random utility theory and Ostrom’s eight design principles. Multistage sampling was used to collect data from 28 farmer groups and 401 irrigators in smallholder irrigation schemes in KwaZulu-Natal (Tugela Ferry and Mooi River) and the Eastern Cape (Qamata and Zanyokwe). Data were gathered by means of focus group discussions, key informant interviews and household surveys. Several empirical tools were employed to analyse the data (descriptive statistics, thematic analysis, logit model, propensity score matching, PCA and OLS). The study found that group membership was associated with higher levels of water access, adoption of inorganic fertiliser, incomes and assets. Group members had an additional four days’ access to water in a month and applied at least 130 kg/ha more inorganic fertiliser than non-group members. Group members also had a higher household income per capita and more assets than non-group members. However, the results revealed a heterogeneous effect among group members, with the benefits varying according to members’ socio-economic characteristics as well as internal group dynamics. The results suggest that organising farmers into groups should be promoted to improve farmers’ access to productive assets such as water, technology adoption and welfare outcomes. However, the study findings also indicate that smaller groups should be promoted, programmes targeted at empowering women should be prioritised, and that it is imperative to invest in improving farmers’ human capital through various training initiatives. The results indicated that farmers could develop and implement institutional innovations that are novel, useful and legitimate. Of the 28 groups, 21 (75%) had implemented institutional innovations in the past three years. Examples of innovations include, among others, the introduction of a secret voting system to improve marginalised people’s participation in decision-making processes, designing daily rotation rosters to reduce conflict, using an attendance register for participation in group activities, and rewarding members according to their participation levels. Most of these innovations were designed to improve the graduated sanction mechanism (22.2%), enhance the penalty system for non-compliance; improve collective action arrangements (27.8%); monitor attendance of group meetings (18.5%); democratise decision making; and ensure equitable water distribution. However, they mainly focused on addressing challenges rather than exploiting opportunities and were largely incremental (94%), involving an adjustment or reinterpretation of rules and regulations. Furthermore, the innovative groups were small in size and were dominated by male farmers. Based on these results, it is recommended that the government should build on the irrigators’ agency to improve the effectiveness and legitimacy of institutional arrangements in irrigation schemes. The findings also suggest that small groups should be actively promoted, while tailored training should be offered based on the groups’ specific needs to improve institutional innovations in the smallholder irrigation sector in South Africa. A positive association was established between belonging to an innovative group and water security, highlighting the importance of institutional innovations in water security. The propensity score matching indicated that water secure irrigators produced an additional 569-622 kg of maize and earned additional income of R2 037.81. The study’s findings suggest that organising farmers into groups is a promising strategy to improve farmers livelihoods and water security. The government and private donors should thus continue to promote the formation and organisation of farmers into groups. The innovative agency of the irrigators should be acknowledged and harnessed to strengthen institutional innovations. The focus should be on strengthening the institutions designed by farmers themselves, as these are locally contextualised and socially embedded, and hence legitimate. It is recommended that small groups should be actively promoted, while tailored training should be offered based on groups’ specific needs to improve institutional innovations in the smallholder irrigation sector in South Africa. , Thesis (PhD) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
The role of a national system of innovation in facilitating development in South Africa from a comparative BRICS perspective
- Authors: Sibhukwana, Andiswa
- Date: 2022-04-06
- Subjects: BRIC countries , Technological innovations Economic aspects South Africa , Economic development South Africa , Economics Mathematical models , Neoclassical school of economics , South Africa Economic conditions , South Africa Economic policy , National systems of innovation
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/284616 , vital:56079
- Description: The aim of the dissertation was to investigate whether the adoption of a national system of innovation has helped facilitate development in South Africa from a comparative BRICS perspective. South Africa has an expanding focus on science and technology, as per the Science and Technology White Paper (1996). There appeared to be innovation that had left out much of the citizenry. There continued to be poverty, inequality, and joblessness. The study aimed to understand how the NSI approach could be used to foster inclusive and transformative development. The study used a mixed-methods approach. The qualitative aspect of the research focused on an innovation and public policy study which assessed the various policies and initiatives implemented in each of the BRICS countries to drive innovation and foster development. The qualitative aspect of the study found that the innovation paradigm required governments to adopt a more holistic approach to public policy design and analysis. The quantitative aspect of the research focused on a trend, correlation, and regression analysis. The trend analysis revealed that China and Brazil increased their allocation of resources towards R&D compared to the other countries. Brazil is regarded as a social investment state, while China is a developmental state: this means the state plays an extraordinarily strong coordinative and financing role in the NSI. On the other hand, the correlation matrix for South Africa revealed a statistically significant positive linear association between various NSI indicators and human development. This suggested that the innovation benefits are trickling down to the general citizenry. In essence the study articulated key elements of the understanding of current and potential impacts of technological change in productivity and growth, employment and inequality that can be used for policy making. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
- Authors: Sibhukwana, Andiswa
- Date: 2022-04-06
- Subjects: BRIC countries , Technological innovations Economic aspects South Africa , Economic development South Africa , Economics Mathematical models , Neoclassical school of economics , South Africa Economic conditions , South Africa Economic policy , National systems of innovation
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/284616 , vital:56079
- Description: The aim of the dissertation was to investigate whether the adoption of a national system of innovation has helped facilitate development in South Africa from a comparative BRICS perspective. South Africa has an expanding focus on science and technology, as per the Science and Technology White Paper (1996). There appeared to be innovation that had left out much of the citizenry. There continued to be poverty, inequality, and joblessness. The study aimed to understand how the NSI approach could be used to foster inclusive and transformative development. The study used a mixed-methods approach. The qualitative aspect of the research focused on an innovation and public policy study which assessed the various policies and initiatives implemented in each of the BRICS countries to drive innovation and foster development. The qualitative aspect of the study found that the innovation paradigm required governments to adopt a more holistic approach to public policy design and analysis. The quantitative aspect of the research focused on a trend, correlation, and regression analysis. The trend analysis revealed that China and Brazil increased their allocation of resources towards R&D compared to the other countries. Brazil is regarded as a social investment state, while China is a developmental state: this means the state plays an extraordinarily strong coordinative and financing role in the NSI. On the other hand, the correlation matrix for South Africa revealed a statistically significant positive linear association between various NSI indicators and human development. This suggested that the innovation benefits are trickling down to the general citizenry. In essence the study articulated key elements of the understanding of current and potential impacts of technological change in productivity and growth, employment and inequality that can be used for policy making. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
Impact of sovereign credit ratings on emerging bond and stock market returns
- Authors: Mkhonto, Zoyisile
- Date: 2021-04
- Subjects: Rating agencies (Finance) , Credit ratings , Bond market
- Language: English
- Type: thesis , text , Masters , MCom
- Identifier: http://hdl.handle.net/10962/177170 , vital:42796
- Description: The primary role of credit rating agencies is to reduce asymmetric information between the parties in a lending relationship. The three major rating agencies have received extensive criticism over the years. These rating agencies have been accused of providing inaccurate ratings which ultimately led to various financial calamities. Late rating action has also been blamed for exacerbating financial and economic cycles. Moreover, there is an argument that emerging markets are unfairly rated in comparison to developed economies. Hence, the reliability and informational value of the assessments provided by credit rating agencies is met with scepticism. Despite these criticisms, rating agencies are characterised as gatekeepers to capital and credit ratings remain essential financial market indicators. Albeit, the literature regarding the impact of sovereign credit ratings on bond and stock markets is inconclusive. This study aims to add to the body of literature and provide insights into the informational value of sovereign credit ratings in emerging markets. More specifically to estimate the relationship between various sovereign credit rating announcements, and bond and stock market returns. Also, to examine whether sovereign credit ratings have a differential impact between bond and stock markets. As well as address the question does it matter who provides the rating? Using an event study, abnormal returns surrounding rating announcements from 2009 to 2019 for 24 emerging markets were analyzed. Firstly, this study concluded that sovereign credit ratings are informative. Secondly, the degree of informativeness differs between the bond and stock markets. Thirdly, an asymmetrical impact was observed between the types of rating announcements. Lastly, that it does matter which rating agency provides the rating because each agency has a unique reputation. The findings of this research have implications on how investors and portfolio managers decide on asset allocation. Furthermore, policymakers may find our investment grade analysis of value when evaluating regulatory reform. It’s recommended that future research refines the event methodology and examines country specific characteristics within each of the emerging markets. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Mkhonto, Zoyisile
- Date: 2021-04
- Subjects: Rating agencies (Finance) , Credit ratings , Bond market
- Language: English
- Type: thesis , text , Masters , MCom
- Identifier: http://hdl.handle.net/10962/177170 , vital:42796
- Description: The primary role of credit rating agencies is to reduce asymmetric information between the parties in a lending relationship. The three major rating agencies have received extensive criticism over the years. These rating agencies have been accused of providing inaccurate ratings which ultimately led to various financial calamities. Late rating action has also been blamed for exacerbating financial and economic cycles. Moreover, there is an argument that emerging markets are unfairly rated in comparison to developed economies. Hence, the reliability and informational value of the assessments provided by credit rating agencies is met with scepticism. Despite these criticisms, rating agencies are characterised as gatekeepers to capital and credit ratings remain essential financial market indicators. Albeit, the literature regarding the impact of sovereign credit ratings on bond and stock markets is inconclusive. This study aims to add to the body of literature and provide insights into the informational value of sovereign credit ratings in emerging markets. More specifically to estimate the relationship between various sovereign credit rating announcements, and bond and stock market returns. Also, to examine whether sovereign credit ratings have a differential impact between bond and stock markets. As well as address the question does it matter who provides the rating? Using an event study, abnormal returns surrounding rating announcements from 2009 to 2019 for 24 emerging markets were analyzed. Firstly, this study concluded that sovereign credit ratings are informative. Secondly, the degree of informativeness differs between the bond and stock markets. Thirdly, an asymmetrical impact was observed between the types of rating announcements. Lastly, that it does matter which rating agency provides the rating because each agency has a unique reputation. The findings of this research have implications on how investors and portfolio managers decide on asset allocation. Furthermore, policymakers may find our investment grade analysis of value when evaluating regulatory reform. It’s recommended that future research refines the event methodology and examines country specific characteristics within each of the emerging markets. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-04
A Veblenian Dichotomy re-examination of labour brokerage and South African labour market functionality
- Authors: Haaketa, Bernadatte Tina
- Date: 2020
- Subjects: Veblen, Thorstein, 1857-1929 , Contracting out -- South Africa , Temporary employment -- South Africa , Industrial relations -- South Africa , Labor supply -- South Africa , Labor supply -- Effect of technological innovations on -- South Africa , Manpower policy -- South Africa , Labor market -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/168446 , vital:41583
- Description: Labour markets ar ound the world have witnessed a great change in labour relations. The introduction of globa lisation, increased competition and technological advancements has caused business organisations to change their employment methods. While trying to survive and remain profitable, employers have adopted a new form of triangular employment relationship. Thi s form of employment relationship known as labour broking and which forms part of the Temporary Employment Services (TES) involves a relationship between the worker, labour agent (broker) and a client c ompany. Although it may seem like a good strategy for business organisations, the change in employment relationships has had negative effects and contributed to labour market dysfunctionalities . This has resulted in critics of labour broking calling or an end in labour broking and supporters of labour broking asking for better regulation of the industry. Labour markets are me When it comes to analysing labour broking and its impact on labour market functionality in South Africa. Scholars and analysts such as Budlender ( 2013 ) and Bhorat, Lil enstein, Oosthuizen , and Thornton ( 2016 ) have used the Neoclassical , New Institutional Economics and Marxist approach es. The current views on labour broking and the current schools of thought fail to look at the underlying behavioural aspect of labour brokers and the client c ompanies. Hence making it easy for labour brokers and their client companies to continue with their unscrupulous activities. However, this t hesis adapted the Veblenian Dichotomy framework which focuses on understanding the role of the evolutionary proce ss and the role of institutions in shaping economic behaviour. The Veblenian dichotomy shows that power plays an important role in how labour markets are run. Similarly, behaviour also influences the manner in which labour brokers and client companies trea t workers. And lastly the Veblenian dichotomy shows that in order for the industry to be run better there has to be change in the behaviour and cultu re of the labour brokers and client companies . This view allows for deeper analysis of the reasons for the flour ishing nature of labour broking and the rationale behind the behaviour of economic players and attempts to provide solutions on how labour brok ing can be correctly administered in South Africa. The Veblenian Dichotomy categorises institutions into t wo sets, namely the ceremonial institutions and instrumental institutions. Where Ceremonial institutions are said to be institutions that foster the interests of business such as profitability and earning of free income, even if there is no corresponding i ncrease in production. While Instrumental institutions, usually working through the influence of technology, address the interests of the common pers on and the labourer as well as business (Waller, 1982; Foster, 1981; Veblen, 1919). These two systems of va lues and institutions are antagonistic and the relative strength of one to the other determines economic outcomes and in whose interests the outcomes would be (Waller, 1982; Foster, 1981; Veblen, 1919). The Veblenian Dichotomy further looks at ceremonial encapsulation which occurs when ceremonial systems prevail over instrumental systems. Ceremonial encapsulation presents the hypothesis that the insti tutional structure will absorb new technology only to the extent that it can do so without disrupting the e xisting value structure (Waller, 1987; Bush, 1979.) The thesis use d various sources , such as working papers, public hearings, court cases, trade union submissions, integrated reports from companies, employee submissions and media publications on the debate about labour broking whether labour broking and applied the Interpretative Phenomenological Analysi s (IPA) research approach, in the process of data collection and analysis . The thesis further applied thematic analysis to derive themes that would be used to analyse the impact of labour broking on labour market functionality in South Africa. The emergent themes and subthemes were Exploitative lab our relations subthemes; job Insecurity, increased financial burden and no skills development. The second theme was; Competitive advantage and the subthemes were; i ncreased profits and organisational efficiency. The third theme was l abour market efficiency and the subthemes were. E mployment creation and labour market flexibility. And, the last theme was a mbiguous l abour regulation s with subthemes; n o freedom of association and a tool for circumventing labour regulations . Lastly, Tool’s (1994) criteria of j udgement for institutional adjustments was used to evaluate the emergent themes and to evaluate the impact of l abour broking on the overall welfare of individuals, which includes determining whether employees in the TES sector gain skills and improved stan dards of living. The findings of the research the TES sector is characterised by ceremonial values. Ceremonial values (as mentioned in section 3.3) are those values that are warranted by the ways of life that prescribe status and hierarchies and unpleasant distinctions to apply value and status on other people (Bush, 1987, 1988; Ayres, 1967). Thus changing the way in which labour brokers conduct themselves or handle labour broking activities would prove to be difficult . T he power that is mostly used in TES employment sectors is condign power. Condign power is explained as the form of power that is predominantly used in ceremonially encapsulated markets. And it involves making use of punishment or fear in order to get people to do something. This is because w orkers in the TES sector are forced to submit to conditions that they would not normally have submitted to if t hey did not have a fear of losing their jobs. This supports existing literature which shows that in the TES sector, TES employers use force and p ower in order to get the workers to do something, and this results in a master - servant relationship between the employer and the employee. Furthermore, the protests that erupt in the TES sector agree with Marxist theory which notes that the frustrations in the way workers are treated would result in a revolution of the working class against the employers. However, now, workers have not been able to overcome the employers and take over the industry. In addition to what current literature says, the research found that some managers make use of labour broking as a way of manifesting their exploitative characteristics on the labour market, thus creating information asymmetries in order to advance their own personal needs. Situations such as these reve al characteristics of opportunistic behaviour, which is perpetuated by the imperfect flow of information. This means th at the market is imperfect, and imperfect markets are characteristics of dysfunctional labour markets. The research also found that it i s the South African Constitution that protects labour brokers and client companies from accounting for the unfair treatm ent of workers. Labour brokers and client companies rely on the South African Constitution to defend them when it comes to banning labou r broking. This is because section 22 of the Constitution talks about the right of every individual to trade freely in S outh Africa (Kutumela, 2015). When institutional adjustments do not meet the requirements of the progressive criteria, it means they are regressive. Based on the data that was collected and the responses and remarks of the workers, trade unions, and trade union federations, it can be said that TES employment and labour broking hinders labour market functionality. Hence, it can be concluded that, due to the characteristics mentioned, labour broking does indeed have a regressive element which hinders labour m arket functionality. An area for further research for TES employment would be to look at the impact of the amendments to the Labour Rela tions Act. Specifically focusing on the Constitutional Court ruling, which forces labour brokers to treat employees who have been employed for longer than three months as permanent employees.
- Full Text:
- Date Issued: 2020
- Authors: Haaketa, Bernadatte Tina
- Date: 2020
- Subjects: Veblen, Thorstein, 1857-1929 , Contracting out -- South Africa , Temporary employment -- South Africa , Industrial relations -- South Africa , Labor supply -- South Africa , Labor supply -- Effect of technological innovations on -- South Africa , Manpower policy -- South Africa , Labor market -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/168446 , vital:41583
- Description: Labour markets ar ound the world have witnessed a great change in labour relations. The introduction of globa lisation, increased competition and technological advancements has caused business organisations to change their employment methods. While trying to survive and remain profitable, employers have adopted a new form of triangular employment relationship. Thi s form of employment relationship known as labour broking and which forms part of the Temporary Employment Services (TES) involves a relationship between the worker, labour agent (broker) and a client c ompany. Although it may seem like a good strategy for business organisations, the change in employment relationships has had negative effects and contributed to labour market dysfunctionalities . This has resulted in critics of labour broking calling or an end in labour broking and supporters of labour broking asking for better regulation of the industry. Labour markets are me When it comes to analysing labour broking and its impact on labour market functionality in South Africa. Scholars and analysts such as Budlender ( 2013 ) and Bhorat, Lil enstein, Oosthuizen , and Thornton ( 2016 ) have used the Neoclassical , New Institutional Economics and Marxist approach es. The current views on labour broking and the current schools of thought fail to look at the underlying behavioural aspect of labour brokers and the client c ompanies. Hence making it easy for labour brokers and their client companies to continue with their unscrupulous activities. However, this t hesis adapted the Veblenian Dichotomy framework which focuses on understanding the role of the evolutionary proce ss and the role of institutions in shaping economic behaviour. The Veblenian dichotomy shows that power plays an important role in how labour markets are run. Similarly, behaviour also influences the manner in which labour brokers and client companies trea t workers. And lastly the Veblenian dichotomy shows that in order for the industry to be run better there has to be change in the behaviour and cultu re of the labour brokers and client companies . This view allows for deeper analysis of the reasons for the flour ishing nature of labour broking and the rationale behind the behaviour of economic players and attempts to provide solutions on how labour brok ing can be correctly administered in South Africa. The Veblenian Dichotomy categorises institutions into t wo sets, namely the ceremonial institutions and instrumental institutions. Where Ceremonial institutions are said to be institutions that foster the interests of business such as profitability and earning of free income, even if there is no corresponding i ncrease in production. While Instrumental institutions, usually working through the influence of technology, address the interests of the common pers on and the labourer as well as business (Waller, 1982; Foster, 1981; Veblen, 1919). These two systems of va lues and institutions are antagonistic and the relative strength of one to the other determines economic outcomes and in whose interests the outcomes would be (Waller, 1982; Foster, 1981; Veblen, 1919). The Veblenian Dichotomy further looks at ceremonial encapsulation which occurs when ceremonial systems prevail over instrumental systems. Ceremonial encapsulation presents the hypothesis that the insti tutional structure will absorb new technology only to the extent that it can do so without disrupting the e xisting value structure (Waller, 1987; Bush, 1979.) The thesis use d various sources , such as working papers, public hearings, court cases, trade union submissions, integrated reports from companies, employee submissions and media publications on the debate about labour broking whether labour broking and applied the Interpretative Phenomenological Analysi s (IPA) research approach, in the process of data collection and analysis . The thesis further applied thematic analysis to derive themes that would be used to analyse the impact of labour broking on labour market functionality in South Africa. The emergent themes and subthemes were Exploitative lab our relations subthemes; job Insecurity, increased financial burden and no skills development. The second theme was; Competitive advantage and the subthemes were; i ncreased profits and organisational efficiency. The third theme was l abour market efficiency and the subthemes were. E mployment creation and labour market flexibility. And, the last theme was a mbiguous l abour regulation s with subthemes; n o freedom of association and a tool for circumventing labour regulations . Lastly, Tool’s (1994) criteria of j udgement for institutional adjustments was used to evaluate the emergent themes and to evaluate the impact of l abour broking on the overall welfare of individuals, which includes determining whether employees in the TES sector gain skills and improved stan dards of living. The findings of the research the TES sector is characterised by ceremonial values. Ceremonial values (as mentioned in section 3.3) are those values that are warranted by the ways of life that prescribe status and hierarchies and unpleasant distinctions to apply value and status on other people (Bush, 1987, 1988; Ayres, 1967). Thus changing the way in which labour brokers conduct themselves or handle labour broking activities would prove to be difficult . T he power that is mostly used in TES employment sectors is condign power. Condign power is explained as the form of power that is predominantly used in ceremonially encapsulated markets. And it involves making use of punishment or fear in order to get people to do something. This is because w orkers in the TES sector are forced to submit to conditions that they would not normally have submitted to if t hey did not have a fear of losing their jobs. This supports existing literature which shows that in the TES sector, TES employers use force and p ower in order to get the workers to do something, and this results in a master - servant relationship between the employer and the employee. Furthermore, the protests that erupt in the TES sector agree with Marxist theory which notes that the frustrations in the way workers are treated would result in a revolution of the working class against the employers. However, now, workers have not been able to overcome the employers and take over the industry. In addition to what current literature says, the research found that some managers make use of labour broking as a way of manifesting their exploitative characteristics on the labour market, thus creating information asymmetries in order to advance their own personal needs. Situations such as these reve al characteristics of opportunistic behaviour, which is perpetuated by the imperfect flow of information. This means th at the market is imperfect, and imperfect markets are characteristics of dysfunctional labour markets. The research also found that it i s the South African Constitution that protects labour brokers and client companies from accounting for the unfair treatm ent of workers. Labour brokers and client companies rely on the South African Constitution to defend them when it comes to banning labou r broking. This is because section 22 of the Constitution talks about the right of every individual to trade freely in S outh Africa (Kutumela, 2015). When institutional adjustments do not meet the requirements of the progressive criteria, it means they are regressive. Based on the data that was collected and the responses and remarks of the workers, trade unions, and trade union federations, it can be said that TES employment and labour broking hinders labour market functionality. Hence, it can be concluded that, due to the characteristics mentioned, labour broking does indeed have a regressive element which hinders labour m arket functionality. An area for further research for TES employment would be to look at the impact of the amendments to the Labour Rela tions Act. Specifically focusing on the Constitutional Court ruling, which forces labour brokers to treat employees who have been employed for longer than three months as permanent employees.
- Full Text:
- Date Issued: 2020
The relationship between stock market development and economic growth in Africa
- Authors: Mkhize, Siyanda
- Date: 2019
- Subjects: Stock exchanges -- Africa , Africa -- Economic conditions -- 21st century , Economic development -- Africa -- 21st century , Capital market -- Africa , Finance -- Africa -- 21st century , Developing countries -- Economic conditions -- 21st century
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/115149 , vital:34082
- Description: Over the years there has been a substantial increase in the number of African stock markets. This has generated much interest from local and foreign investors, as these stock markets have had high returns. These conditions have created an interesting scenario for investigating the relationship between stock market development and economic growth. However, this opportunity has largely been neglected as the research on African stock market development is limited in developing economies relative to research conducted in developed countries. Furthermore, the research that has been conducted on the relationship between stock market development and economic growth in Africa, has generated inconclusive and conflicting results, in addition to this, the institutional quality of African countries is disregarded in most studies when the stock market development and economic growth nexus is analysed. Therefore, this study aims to explore the relationship between stock market development and economic growth, incorporating institution variables to account for the institutional quality of African countries to provide clarity in this context. To achieve this, two sets of research hypotheses were created the first set aims to determine whether stock development has an influence on economic growth. The second set is to determine if there is any causal relationship between stock market development and economic growth. The study utilizes System Generalized Method of Moments models to examine the effect of stock market development on economic growth, in 18 African countries for the period 2003- 2016. The results indicate that market capitalization has a positive influence on economic growth whilst, contrastingly liquidity in the form of value traded has a negative effect on economic growth. The study further analyses the causal relationship between stock market development and economic growth, by employing the recently developed PVAR-Granger causality test. However, before this is done several Pedroni cointegration tests were first conducted to establish whether a long-term relationship exists between stock market development and economic growth, which revealed that no strong evidence of cointegration exists necessitating the use of a PVAR-Granger causality test. The PVAR-Granger causality test reveals that stock market development granger causes economic growth, irrespective of the stock market development measure used and there is no feedback effect from economic growth. The unilateral causality established in this study flowing from stock market development to economic growth supports the supply-leading hypothesis. The overall results of this study demonstrate that there is ambiguity on the impact of stock market development on economic growth, as the measures of stock market development have contrasting impacts on economic growth. The size component of stock market development in the form of market capitalization has positive influence whilst, liquidity in form of total value traded has a negative effect. However, the causal relationship is clearly shown to be unilaterally flowing from stock market development to economic growth.
- Full Text:
- Date Issued: 2019
- Authors: Mkhize, Siyanda
- Date: 2019
- Subjects: Stock exchanges -- Africa , Africa -- Economic conditions -- 21st century , Economic development -- Africa -- 21st century , Capital market -- Africa , Finance -- Africa -- 21st century , Developing countries -- Economic conditions -- 21st century
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/115149 , vital:34082
- Description: Over the years there has been a substantial increase in the number of African stock markets. This has generated much interest from local and foreign investors, as these stock markets have had high returns. These conditions have created an interesting scenario for investigating the relationship between stock market development and economic growth. However, this opportunity has largely been neglected as the research on African stock market development is limited in developing economies relative to research conducted in developed countries. Furthermore, the research that has been conducted on the relationship between stock market development and economic growth in Africa, has generated inconclusive and conflicting results, in addition to this, the institutional quality of African countries is disregarded in most studies when the stock market development and economic growth nexus is analysed. Therefore, this study aims to explore the relationship between stock market development and economic growth, incorporating institution variables to account for the institutional quality of African countries to provide clarity in this context. To achieve this, two sets of research hypotheses were created the first set aims to determine whether stock development has an influence on economic growth. The second set is to determine if there is any causal relationship between stock market development and economic growth. The study utilizes System Generalized Method of Moments models to examine the effect of stock market development on economic growth, in 18 African countries for the period 2003- 2016. The results indicate that market capitalization has a positive influence on economic growth whilst, contrastingly liquidity in the form of value traded has a negative effect on economic growth. The study further analyses the causal relationship between stock market development and economic growth, by employing the recently developed PVAR-Granger causality test. However, before this is done several Pedroni cointegration tests were first conducted to establish whether a long-term relationship exists between stock market development and economic growth, which revealed that no strong evidence of cointegration exists necessitating the use of a PVAR-Granger causality test. The PVAR-Granger causality test reveals that stock market development granger causes economic growth, irrespective of the stock market development measure used and there is no feedback effect from economic growth. The unilateral causality established in this study flowing from stock market development to economic growth supports the supply-leading hypothesis. The overall results of this study demonstrate that there is ambiguity on the impact of stock market development on economic growth, as the measures of stock market development have contrasting impacts on economic growth. The size component of stock market development in the form of market capitalization has positive influence whilst, liquidity in form of total value traded has a negative effect. However, the causal relationship is clearly shown to be unilaterally flowing from stock market development to economic growth.
- Full Text:
- Date Issued: 2019
Modelling the causality between FDI and Zimbabwe’s economic growth
- Authors: Mashamhanda, Tendai
- Date: 2017
- Subjects: Investments, Foreign -- Zimbabwe , Zimbabwe -- Economic conditions -- 1965-1980 , Zimbabwe -- Economic conditions -- 1980-
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/50260 , vital:25970
- Description: The study investigates the causal nexus between economic growth and FDI in Zimbabwe for the period spanning 1976 to 2011. The bounds testing approach to cointegration and Granger causality methodology was applied and results suggest a bi-directional causal relationship between FDI and economic growth in the long run. However, the causal effect from economic growth to FDI was weak. Domestic investment, human capital and trade openness were also found to be crucial determinants of economic growth in Zimbabwe. Implementing policies that promote inflow of FDI into Zimbabwe are recommended.
- Full Text:
- Date Issued: 2017
- Authors: Mashamhanda, Tendai
- Date: 2017
- Subjects: Investments, Foreign -- Zimbabwe , Zimbabwe -- Economic conditions -- 1965-1980 , Zimbabwe -- Economic conditions -- 1980-
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/50260 , vital:25970
- Description: The study investigates the causal nexus between economic growth and FDI in Zimbabwe for the period spanning 1976 to 2011. The bounds testing approach to cointegration and Granger causality methodology was applied and results suggest a bi-directional causal relationship between FDI and economic growth in the long run. However, the causal effect from economic growth to FDI was weak. Domestic investment, human capital and trade openness were also found to be crucial determinants of economic growth in Zimbabwe. Implementing policies that promote inflow of FDI into Zimbabwe are recommended.
- Full Text:
- Date Issued: 2017
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