Financial integration in the BRICS countries
- Authors: Nach, Marida Nephertiti
- Date: 2020
- Subjects: Autogression (Statistics) -- mathematical models , Monetary policy -- Econometric models
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/50609 , vital:42278
- Description: An optimum currency area (OCA) owes its definition to Robert Mundell (1961). In his seminal paper, Mundell (1961) defines an OCA as an area for which the costs of relinquishing the exchange rate as an internal instrument of adjustments are outweighed by the benefits of adopting a single currency or a fixed exchange rate regime. Mundell (1961) emphasises two major benefits of adopting a single currency: the elimination of transaction costs and a better performance of money as a medium of exchange and as a unit of account. Thus far, OCA theory has served as the framework for the discussion about monetary integration and has provided an explanation for the monetary integration processes around the world both developed and developing countries in Europe, Asia, Africa, and Latin America. The emergence of the BRICS (Brazil, Russia, India, China, South Africa) countries can be a model and a representation of developing and emerging countries in the global economic and financial system. Hence, this has made the BRICS economies the object of many discussions and recent empirical researches. The research presented in this thesis uses a structural vector autoregression (SVAR) econometric model to explore whether there is a feasibility of macroeconomic convergence among the BRICS economies. The SVAR model permitted to examine the symmetry of shocks (supply, demand and monetary) among the five BRICS countries. The findings of this research showed that there was some degree of symmetry of shocks among the BRICS countries. Nevertheless, there is a need for more policy coordination in order to achieve the desired level of symmetry of shocks among these countries.
- Full Text:
- Date Issued: 2020
- Authors: Nach, Marida Nephertiti
- Date: 2020
- Subjects: Autogression (Statistics) -- mathematical models , Monetary policy -- Econometric models
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/50609 , vital:42278
- Description: An optimum currency area (OCA) owes its definition to Robert Mundell (1961). In his seminal paper, Mundell (1961) defines an OCA as an area for which the costs of relinquishing the exchange rate as an internal instrument of adjustments are outweighed by the benefits of adopting a single currency or a fixed exchange rate regime. Mundell (1961) emphasises two major benefits of adopting a single currency: the elimination of transaction costs and a better performance of money as a medium of exchange and as a unit of account. Thus far, OCA theory has served as the framework for the discussion about monetary integration and has provided an explanation for the monetary integration processes around the world both developed and developing countries in Europe, Asia, Africa, and Latin America. The emergence of the BRICS (Brazil, Russia, India, China, South Africa) countries can be a model and a representation of developing and emerging countries in the global economic and financial system. Hence, this has made the BRICS economies the object of many discussions and recent empirical researches. The research presented in this thesis uses a structural vector autoregression (SVAR) econometric model to explore whether there is a feasibility of macroeconomic convergence among the BRICS economies. The SVAR model permitted to examine the symmetry of shocks (supply, demand and monetary) among the five BRICS countries. The findings of this research showed that there was some degree of symmetry of shocks among the BRICS countries. Nevertheless, there is a need for more policy coordination in order to achieve the desired level of symmetry of shocks among these countries.
- Full Text:
- Date Issued: 2020
Determinants of economic growth in South Africa: an economic analysis of the Keynesian macroeconomic model
- Authors: Nach, Marida Nephertiti
- Date: 2016
- Subjects: South Africa -- Economic conditions Economic development -- South Africa Finance -- South Africa
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10948/12459 , vital:27068
- Description: A country’s performance is commonly measured by its Gross Domestic Product (GDP). The Gross Domestic Product in Developing Countries (DCs) can be seen confusing and unbalanced, with regular and unconditional falls and booms. This study aims at examining the factors that affect the Gross Domestic Product (GDP) of Developing Countries (DCs) whereby South Africa is being selected as a representative. An econometric analysis of the Keynesian model is adopted to test the South African Gross Domestic Product (GDP) over a decade (10 years). The methodology conducted uses quarterly time series data from the South African Reserve Bank (SARB) where the South African Gross Domestic Product (GDP) is modelled as a function of consumption expenditure, domestic investment, government spending and export/import of the country. This is in order to determine which of these factors best explain South African economic growth dynamics. The variables in the model are tested for stationary and the result shows that the variables become stationary at 1st difference, except for consumption which become stationary at 2nd difference. The Ordinary Least Squares (OLS) results confirm that consumption, investment, government spending and net export all have a positive impact on Gross Domestic Product (GDP). The findings suggest that the South African Gross Domestic Product is mainly influenced by consumption, followed by investment. In the recommendation context, the study recommends that South Africa should continue to maintain price stability while at the same time endeavour to attract more investment to the country. Moreover, Developing Countries need to maintain a fiscal discipline without necessarily losing sight of the international dynamics. For further areas of studies, the study recommends more analysis on macroeconomic policies that are comprehensive and can cover all aspects related to the Keynesian model of economic growth. Finally, it is necessary to remind that the findings and recommendations drawn from the study are limited to the concept of South Africa and are based only on the results from the empirical analysis conducted.
- Full Text:
- Date Issued: 2016
- Authors: Nach, Marida Nephertiti
- Date: 2016
- Subjects: South Africa -- Economic conditions Economic development -- South Africa Finance -- South Africa
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10948/12459 , vital:27068
- Description: A country’s performance is commonly measured by its Gross Domestic Product (GDP). The Gross Domestic Product in Developing Countries (DCs) can be seen confusing and unbalanced, with regular and unconditional falls and booms. This study aims at examining the factors that affect the Gross Domestic Product (GDP) of Developing Countries (DCs) whereby South Africa is being selected as a representative. An econometric analysis of the Keynesian model is adopted to test the South African Gross Domestic Product (GDP) over a decade (10 years). The methodology conducted uses quarterly time series data from the South African Reserve Bank (SARB) where the South African Gross Domestic Product (GDP) is modelled as a function of consumption expenditure, domestic investment, government spending and export/import of the country. This is in order to determine which of these factors best explain South African economic growth dynamics. The variables in the model are tested for stationary and the result shows that the variables become stationary at 1st difference, except for consumption which become stationary at 2nd difference. The Ordinary Least Squares (OLS) results confirm that consumption, investment, government spending and net export all have a positive impact on Gross Domestic Product (GDP). The findings suggest that the South African Gross Domestic Product is mainly influenced by consumption, followed by investment. In the recommendation context, the study recommends that South Africa should continue to maintain price stability while at the same time endeavour to attract more investment to the country. Moreover, Developing Countries need to maintain a fiscal discipline without necessarily losing sight of the international dynamics. For further areas of studies, the study recommends more analysis on macroeconomic policies that are comprehensive and can cover all aspects related to the Keynesian model of economic growth. Finally, it is necessary to remind that the findings and recommendations drawn from the study are limited to the concept of South Africa and are based only on the results from the empirical analysis conducted.
- Full Text:
- Date Issued: 2016
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