High road or common neoliberal trajectory? Collective bargaining, wage share, and varieties of capitalism
- Mpuku, Mutale Natasha Muchule
- Authors: Mpuku, Mutale Natasha Muchule
- Date: 2022-10-14
- Subjects: Collective bargaining , Globalization , Labor union members , Wages Statistics , Income distribution , Economic development , Neoliberalism , Capitalism
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357611 , vital:64760
- Description: Wage shares have been falling since the 1980s across developing and developed countries. There has also been a downward trend with labour market institutions in these countries, with a few exceptions. This thesis analyzes these trends using firstly an extended literature review and secondly an econometrics analysis of a panel of 36 countries over 39 years. The extended literature review identified two broad competing narratives surrounding this topic: the mainstream and the alternative growth narratives. They both focus on two different growth regimes, the former, posits that growth is profit-led and the latter that growth is wage-led. Both are not ‘zero sum’ processes and seem to offer the same end result (growth and development). However, profit-led growth seems to have two problems. First, at least in the medium run, there is a trade-off between growth and income distribution. And secondly, profit-led growth is contradictory at the global level. Wage-led growth, which offers a ‘high road’ approach, seems far more appealing. Furthermore, several authors, including in South Africa, have claimed that regime-switching (to wage-led growth), is possible, and it seems that labour market institutions may play an important role in facilitating such a switch. However, the empirical literature, especially regarding middle- and low-income countries, is sparse and inconclusive. The panel data analysis provided by this thesis was not conclusive in establishing whether the wage-led, high road path is still viable for countries like South Africa. However, it did not find strong evidence of the contrary. The thesis concluded that there is scope for further research in this field and makes certain suggestions in this regard. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
- Authors: Mpuku, Mutale Natasha Muchule
- Date: 2022-10-14
- Subjects: Collective bargaining , Globalization , Labor union members , Wages Statistics , Income distribution , Economic development , Neoliberalism , Capitalism
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357611 , vital:64760
- Description: Wage shares have been falling since the 1980s across developing and developed countries. There has also been a downward trend with labour market institutions in these countries, with a few exceptions. This thesis analyzes these trends using firstly an extended literature review and secondly an econometrics analysis of a panel of 36 countries over 39 years. The extended literature review identified two broad competing narratives surrounding this topic: the mainstream and the alternative growth narratives. They both focus on two different growth regimes, the former, posits that growth is profit-led and the latter that growth is wage-led. Both are not ‘zero sum’ processes and seem to offer the same end result (growth and development). However, profit-led growth seems to have two problems. First, at least in the medium run, there is a trade-off between growth and income distribution. And secondly, profit-led growth is contradictory at the global level. Wage-led growth, which offers a ‘high road’ approach, seems far more appealing. Furthermore, several authors, including in South Africa, have claimed that regime-switching (to wage-led growth), is possible, and it seems that labour market institutions may play an important role in facilitating such a switch. However, the empirical literature, especially regarding middle- and low-income countries, is sparse and inconclusive. The panel data analysis provided by this thesis was not conclusive in establishing whether the wage-led, high road path is still viable for countries like South Africa. However, it did not find strong evidence of the contrary. The thesis concluded that there is scope for further research in this field and makes certain suggestions in this regard. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
Trade openness, economic growth, income inequality and poverty nexus in SADC countries: 1980-2019
- Gonese, Dorcas https://orcid.org/0000-0003-0774-024X
- Authors: Gonese, Dorcas https://orcid.org/0000-0003-0774-024X
- Date: 2022-01
- Subjects: Economic development , Income distribution
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/23370 , vital:57618
- Description: Trade openness (TO) has been identified as a critical component for sustainable economic growth, income inequality reduction, and poverty reduction in the 2030 Agenda as per the Sustainable Development Goals (SDGs), and the Southern African Development Community (SADC) regional indicative strategic development plan (RISDP). Despite the opening up to the global world, developing countries such as the SADC continue to face exclusive and unstable economic growth, massive income disparity, and poverty. Considering the previous empirical work, many controversies are related to methodologies and measurement issues. The study attempted to examine the impact of trade openness on economic growth of the SADC countries as well as its effect on income inequality and poverty reduction from 1980 to 2019. The study builds on existing studies in the region that have mainly analysed this kind of relationship, assuming that it is only TO and economic growth (EGR) that matters. The study sought to address three analytical objectives. The first objective focused on examining the effects of trade openness on economic growth in the SADC countries. In addressing this objective, the Pooled Mean Group (PMG) was utilised, given the nature of the relationship between the variables of interest. The empirical results revealed that all measures of trade openness (real trade openness, economic globalisation, exports and imports of goods and services) used in the study have a positive effect on economic growth in SADC countries. This implies that the foreign factors account for a share of SADC's economic growth. The PMG indicates that the mediating variables of all measures of trade openness with human capital development have a positive effect on economic growth. This implies that the beneficial impact of the said measures of trade openness, are more effective when investment in human capital increases. The second objective focused on analysing trade openness's direct and indirect impact on income inequality using the PMG model again. The empirical results indicate that trade openness via exports has a negative effect on income inequality. In contrast, real trade openness and imports positively affect income inequality. This implies that the exports of goods and services in SADC are drivers of income inequality reduction while real trade openness and imports worsen it. Therefore, the SADC countries must be wary of real trade openness and import policies addressing income inequality. As for the interaction effects, the empirical results indicate that greater openness via real trade openness, economic globalisation, exports and imports reduce income inequality when economic growth increases and when the financial sector is more developed. The final analytical objective focused on analysing the effects of TO on poverty in the SADC region. The PMG model was utilised for trade openness-non-income poverty (NPOV) relationship. However, because there is a scarcity of income-poverty (IPOV) data, the time dimensions for the income poverty-trade openness model are smaller than the cross sections. Therefore, the current study employed the system generalised method of moments (SGMM) estimation technique which is a more effective and efficient estimation technique for controlling for endogeneity when the time dimension is smaller than the cross sections. The findings indicate that real trade openness has a positive effect on NPOV, whereas economic globalisation, exports, and imports negatively affect NPOV. This implies that real trade openness increases poverty reduction while economic globalisation, exports and imports exacerbate non-income poverty in SADC countries. On testing whether trade openness- NPOV relationship changes with economic growth, income inequality, human capital development, financial development and institutional quality, the complementary variable with EGR is positive and significant for real trade openness and exports, implying that real trade openness and exports reduce NPOV when economic growth increases. The SGMM indicates that only economic globalisation and imports have negative impact on income poverty in SADC countries. This implies that economic globalisation and imports are determinants of income poverty reduction in the SADC countries. The SADC governments and policymakers should be mindful about what ways they should globalise, what goods they export or imports to minimise income poverty. , Thesis (PhD) -- Faculty of Management and Commerce, 2022
- Full Text:
- Date Issued: 2022-01
- Authors: Gonese, Dorcas https://orcid.org/0000-0003-0774-024X
- Date: 2022-01
- Subjects: Economic development , Income distribution
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/23370 , vital:57618
- Description: Trade openness (TO) has been identified as a critical component for sustainable economic growth, income inequality reduction, and poverty reduction in the 2030 Agenda as per the Sustainable Development Goals (SDGs), and the Southern African Development Community (SADC) regional indicative strategic development plan (RISDP). Despite the opening up to the global world, developing countries such as the SADC continue to face exclusive and unstable economic growth, massive income disparity, and poverty. Considering the previous empirical work, many controversies are related to methodologies and measurement issues. The study attempted to examine the impact of trade openness on economic growth of the SADC countries as well as its effect on income inequality and poverty reduction from 1980 to 2019. The study builds on existing studies in the region that have mainly analysed this kind of relationship, assuming that it is only TO and economic growth (EGR) that matters. The study sought to address three analytical objectives. The first objective focused on examining the effects of trade openness on economic growth in the SADC countries. In addressing this objective, the Pooled Mean Group (PMG) was utilised, given the nature of the relationship between the variables of interest. The empirical results revealed that all measures of trade openness (real trade openness, economic globalisation, exports and imports of goods and services) used in the study have a positive effect on economic growth in SADC countries. This implies that the foreign factors account for a share of SADC's economic growth. The PMG indicates that the mediating variables of all measures of trade openness with human capital development have a positive effect on economic growth. This implies that the beneficial impact of the said measures of trade openness, are more effective when investment in human capital increases. The second objective focused on analysing trade openness's direct and indirect impact on income inequality using the PMG model again. The empirical results indicate that trade openness via exports has a negative effect on income inequality. In contrast, real trade openness and imports positively affect income inequality. This implies that the exports of goods and services in SADC are drivers of income inequality reduction while real trade openness and imports worsen it. Therefore, the SADC countries must be wary of real trade openness and import policies addressing income inequality. As for the interaction effects, the empirical results indicate that greater openness via real trade openness, economic globalisation, exports and imports reduce income inequality when economic growth increases and when the financial sector is more developed. The final analytical objective focused on analysing the effects of TO on poverty in the SADC region. The PMG model was utilised for trade openness-non-income poverty (NPOV) relationship. However, because there is a scarcity of income-poverty (IPOV) data, the time dimensions for the income poverty-trade openness model are smaller than the cross sections. Therefore, the current study employed the system generalised method of moments (SGMM) estimation technique which is a more effective and efficient estimation technique for controlling for endogeneity when the time dimension is smaller than the cross sections. The findings indicate that real trade openness has a positive effect on NPOV, whereas economic globalisation, exports, and imports negatively affect NPOV. This implies that real trade openness increases poverty reduction while economic globalisation, exports and imports exacerbate non-income poverty in SADC countries. On testing whether trade openness- NPOV relationship changes with economic growth, income inequality, human capital development, financial development and institutional quality, the complementary variable with EGR is positive and significant for real trade openness and exports, implying that real trade openness and exports reduce NPOV when economic growth increases. The SGMM indicates that only economic globalisation and imports have negative impact on income poverty in SADC countries. This implies that economic globalisation and imports are determinants of income poverty reduction in the SADC countries. The SADC governments and policymakers should be mindful about what ways they should globalise, what goods they export or imports to minimise income poverty. , Thesis (PhD) -- Faculty of Management and Commerce, 2022
- Full Text:
- Date Issued: 2022-01
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