Is there an inverse-u relationship between financialisation and investment?: South Africa’s stock market capitalisation in comparative perspective
- Authors: Owen, Michael Robert
- Date: 2021-10
- Subjects: Monetary policy South Africa , Globalization , Economics South Africa , Capital movements South Africa , Stock exchanges South Africa , Investments South Africa , Economic development South Africa , South Africa Economic conditions 1991-
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191084 , vital:45058
- Description: In recent decades, the growth and fluctuations in the financial sector have become increasingly disjointed from events in the real economy. There has been a dramatic increase in global market integration and globalisation since the 2008 financial crisis. The argument presented in the thesis shows perspective from the two general debates in Economics. The Orthodox view, which suggests there is an efficient flow of resources between people and institutions over time, supports the argument that there is a positive relationship between financialisation and economic growth. Alternatively, the Heterodox view argues that financial liberalisation fails to anticipate market effects and requires intervention in order to limit negative consequences. More recent studies have proposed an inverse-U theory between financialisation and investment, which suggests that there is a threshold, above which further financial development and financial globalisation has detrimental effects on the real economy. With South Africa being a developing country that is highly reliant on capital inflows to finance the economy, there is space for more acute research to investigate whether South Africa has surpassed this threshold. This study focusses on one aspect of this relationship, namely the relationship between Stock Market Capitalisation and Investment. It uses panel data analysis and other methods to explore whether such an inverse-U relationship exists internationally, and whether South Africa is suffering from the effects of financialisation. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10
- Authors: Owen, Michael Robert
- Date: 2021-10
- Subjects: Monetary policy South Africa , Globalization , Economics South Africa , Capital movements South Africa , Stock exchanges South Africa , Investments South Africa , Economic development South Africa , South Africa Economic conditions 1991-
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191084 , vital:45058
- Description: In recent decades, the growth and fluctuations in the financial sector have become increasingly disjointed from events in the real economy. There has been a dramatic increase in global market integration and globalisation since the 2008 financial crisis. The argument presented in the thesis shows perspective from the two general debates in Economics. The Orthodox view, which suggests there is an efficient flow of resources between people and institutions over time, supports the argument that there is a positive relationship between financialisation and economic growth. Alternatively, the Heterodox view argues that financial liberalisation fails to anticipate market effects and requires intervention in order to limit negative consequences. More recent studies have proposed an inverse-U theory between financialisation and investment, which suggests that there is a threshold, above which further financial development and financial globalisation has detrimental effects on the real economy. With South Africa being a developing country that is highly reliant on capital inflows to finance the economy, there is space for more acute research to investigate whether South Africa has surpassed this threshold. This study focusses on one aspect of this relationship, namely the relationship between Stock Market Capitalisation and Investment. It uses panel data analysis and other methods to explore whether such an inverse-U relationship exists internationally, and whether South Africa is suffering from the effects of financialisation. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10
The impact of the BBB-EE policy instrument on wealth inequality : A case study on the banking sector of South Africa
- Moshikaro, Kei Kgaogelo Felia
- Authors: Moshikaro, Kei Kgaogelo Felia
- Date: 2021-10
- Subjects: Black Economic Empowerment (Program : South Africa) , Income distribution South Africa , South Africa Economic policy , South Africa Economic conditions 1991- , Banks and banking South Africa , South Africa. Financial Sector Regulation Act, 2017
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191035 , vital:45052
- Description: It has been recognised that, whether measured in terms of income or wealth, South Africa remains as one of the most unequal societies in the world. Reducing these high levels of inequalities has been an important area of focus through the formulation of policy instruments by South African policy makers. Within a specific focus on the South African banking sector, the objective of this research is to ascertaining the extent to which addressing inequalities was in fact achieved through the changing of wealth ownerships under the Broad Based Black Economic Empowerment policy instrument. To contextualise, the thesis surveys literature on two stylised economic hypotheses on both income and wealth to understand the potential causes of their respective inequalities. An exploration of both income, wealth measurements and their distributions in South Africa are presented, in addition to policy instruments designed to ameliorate income and wealth inequalities in South Africa. The thesis further presents brief case studies from the literature on Brazil’s success in reducing its high income inequality and the Malaysian National Economic Policy empowerment program to effect wealth economic transformation, as comparatives to the South African experience. The thesis findings indicate that contrary to the objectives of the BBB-EE instrument and wealth transfers, the program within the banking sector resulted in highly unequal wealth shares and equally high concentration levels. The richest top one per cent of individuals participating in the BEE transactions in the banking sector captured 79 per cent of the total wealth transfers, this providing indications of extremely high concentrations of wealth. Further, wealth meaningfully cumulates at only the 50 percentage level of the wealth distribution, this additionally suggesting that wealth transfers featured less in the bottom half of the wealth distribution. The banking BBB-EE wealth Gini coefficient of 0.88 is evidence of the extremely high levels of inequality that resulted from the BBB-EE program within the banking sector. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10
- Authors: Moshikaro, Kei Kgaogelo Felia
- Date: 2021-10
- Subjects: Black Economic Empowerment (Program : South Africa) , Income distribution South Africa , South Africa Economic policy , South Africa Economic conditions 1991- , Banks and banking South Africa , South Africa. Financial Sector Regulation Act, 2017
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191035 , vital:45052
- Description: It has been recognised that, whether measured in terms of income or wealth, South Africa remains as one of the most unequal societies in the world. Reducing these high levels of inequalities has been an important area of focus through the formulation of policy instruments by South African policy makers. Within a specific focus on the South African banking sector, the objective of this research is to ascertaining the extent to which addressing inequalities was in fact achieved through the changing of wealth ownerships under the Broad Based Black Economic Empowerment policy instrument. To contextualise, the thesis surveys literature on two stylised economic hypotheses on both income and wealth to understand the potential causes of their respective inequalities. An exploration of both income, wealth measurements and their distributions in South Africa are presented, in addition to policy instruments designed to ameliorate income and wealth inequalities in South Africa. The thesis further presents brief case studies from the literature on Brazil’s success in reducing its high income inequality and the Malaysian National Economic Policy empowerment program to effect wealth economic transformation, as comparatives to the South African experience. The thesis findings indicate that contrary to the objectives of the BBB-EE instrument and wealth transfers, the program within the banking sector resulted in highly unequal wealth shares and equally high concentration levels. The richest top one per cent of individuals participating in the BEE transactions in the banking sector captured 79 per cent of the total wealth transfers, this providing indications of extremely high concentrations of wealth. Further, wealth meaningfully cumulates at only the 50 percentage level of the wealth distribution, this additionally suggesting that wealth transfers featured less in the bottom half of the wealth distribution. The banking BBB-EE wealth Gini coefficient of 0.88 is evidence of the extremely high levels of inequality that resulted from the BBB-EE program within the banking sector. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10
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