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
The role of cooperatives in local economic development in Buffalo City Metropolitan Municipality: A participatory monitoring and evaluation approach
- Gxabuza, Fundiswa https://orcid.org/0000-0003-2654-7365
- Authors: Gxabuza, Fundiswa https://orcid.org/0000-0003-2654-7365
- Date: 2021-06
- Subjects: Cooperative societies , Economic development , Participatory monitoring and evaluation (Project management)
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/20273 , vital:45645
- Description: The goal to halve unemployment in South Africa by 2014 has remained, to date, elusive. In the particular case of the Eastern Cape Province, the challenge of combating unemployment is even more daunting, as it currently faces high unemployment rates. However, while there is evidence that initiatives to promote employment generation could be reinforced through Local Economic Development (LED) and, in particular, cooperatives, not much has been reported on how cooperatives contribute in minimising unemployment in the Province. The Department of Trade and Industry (DTI) points to the inadequacy of the Monitoring and Evaluation (M&E) of cooperatives as a critical challenge that has largely remained unaddressed. The inadequacy of M&E in respect to the role of cooperatives in employment and LED has affected cooperatives, generally, and those operating in the Eastern Cape, particularly. This study argues for a participatory approach to relevant M&E frameworks and, thus, presents a participatory monitoring and evaluation (PM&E) framework for evaluating cooperatives’ impact on LED. The testable framework for PM&E is partially derived from participatory action research (PAR) methodologies, where the researcher and cooperatives identify and define the problem to be solved. The thesis then develops the framework by integrating PM&E and PAR approaches in the evaluation of cooperatives’ role in employment creation and LED. By reviewing relevant literature, this study identified, assessed, and synthesized important elements for its suggested framework. Research on cooperatives has tended to focus on their role as agents of development, and much has already focussed on sharing relevant lessons learnt. Fewer studies have, by contrast, focussed on an engaged methodology for the evaluation of cooperatives’ efforts in development. The findings of this current study show that a PM&E/PAR framework must be a joint effort of all affected parties; where the researcher and/or facilitator assumes the role of a change agent, and where participants are leaders of the movement in the course for action. This study was based in East London, and the target population consisted of primary cooperatives. Primary cooperatives are defined by the Buffalo City Integrated Cooperative Development Strategy (BCMM ICDS, 2016) are cooperative that have at least five members, and whose aim is providing employment to said members. The research design for this study was exploratory and inductive. As noted previously, this study adopted a qualitative research approach that combined PAR and PM&E. Two sets of data collection were utilised, namely focus group interviews (FGIs) and an emailed questionnaire (EQ). The FGIs were conducted with the overall study population, namely 14 cooperatives. The EQ was given to specific individual participants, namely senior government and municipal officials who are responsible for the noted cooperatives. The underlying theoretical framework for this research was empowerment, agency, and the theory of community development. A qualitative data analysis was utilised based on the translation of meaning not frequency. The search for meaning elicited rich insights pertaining to participants’ views and interpretations. In all, this study established that the participating Eastern Cape cooperatives have not yet achieved their desired contributory role of promoting LED; specifically, in terms of job creation. , Thesis (DPhil) -- Faculty of Management and Commerce, 2021
- Full Text:
- Date Issued: 2021-06
- Authors: Gxabuza, Fundiswa https://orcid.org/0000-0003-2654-7365
- Date: 2021-06
- Subjects: Cooperative societies , Economic development , Participatory monitoring and evaluation (Project management)
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/20273 , vital:45645
- Description: The goal to halve unemployment in South Africa by 2014 has remained, to date, elusive. In the particular case of the Eastern Cape Province, the challenge of combating unemployment is even more daunting, as it currently faces high unemployment rates. However, while there is evidence that initiatives to promote employment generation could be reinforced through Local Economic Development (LED) and, in particular, cooperatives, not much has been reported on how cooperatives contribute in minimising unemployment in the Province. The Department of Trade and Industry (DTI) points to the inadequacy of the Monitoring and Evaluation (M&E) of cooperatives as a critical challenge that has largely remained unaddressed. The inadequacy of M&E in respect to the role of cooperatives in employment and LED has affected cooperatives, generally, and those operating in the Eastern Cape, particularly. This study argues for a participatory approach to relevant M&E frameworks and, thus, presents a participatory monitoring and evaluation (PM&E) framework for evaluating cooperatives’ impact on LED. The testable framework for PM&E is partially derived from participatory action research (PAR) methodologies, where the researcher and cooperatives identify and define the problem to be solved. The thesis then develops the framework by integrating PM&E and PAR approaches in the evaluation of cooperatives’ role in employment creation and LED. By reviewing relevant literature, this study identified, assessed, and synthesized important elements for its suggested framework. Research on cooperatives has tended to focus on their role as agents of development, and much has already focussed on sharing relevant lessons learnt. Fewer studies have, by contrast, focussed on an engaged methodology for the evaluation of cooperatives’ efforts in development. The findings of this current study show that a PM&E/PAR framework must be a joint effort of all affected parties; where the researcher and/or facilitator assumes the role of a change agent, and where participants are leaders of the movement in the course for action. This study was based in East London, and the target population consisted of primary cooperatives. Primary cooperatives are defined by the Buffalo City Integrated Cooperative Development Strategy (BCMM ICDS, 2016) are cooperative that have at least five members, and whose aim is providing employment to said members. The research design for this study was exploratory and inductive. As noted previously, this study adopted a qualitative research approach that combined PAR and PM&E. Two sets of data collection were utilised, namely focus group interviews (FGIs) and an emailed questionnaire (EQ). The FGIs were conducted with the overall study population, namely 14 cooperatives. The EQ was given to specific individual participants, namely senior government and municipal officials who are responsible for the noted cooperatives. The underlying theoretical framework for this research was empowerment, agency, and the theory of community development. A qualitative data analysis was utilised based on the translation of meaning not frequency. The search for meaning elicited rich insights pertaining to participants’ views and interpretations. In all, this study established that the participating Eastern Cape cooperatives have not yet achieved their desired contributory role of promoting LED; specifically, in terms of job creation. , Thesis (DPhil) -- Faculty of Management and Commerce, 2021
- Full Text:
- Date Issued: 2021-06
An appraisal of the East London Industrial Development Zone’s role in local innovation, entrepreneurship, and industrial development
- Authors: Masiwa, George Bonginkosi
- Date: 2021-02
- Subjects: Industrialization , Economic development , South Africa -- Economic conditions
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/21213 , vital:47406
- Description: This study focuses on the East London Industrial Development Zone (ELIDZ) in South Africa. The ELIDZ strategy came as a response to the need for a robust catalyst for sustainable regional economic development, industrial diversification and to create meaningful employment opportunities in the country. It was supposed to provide customised solutions for various industries including automotive, agro-processing and aqua-culture. However, an Industrial Development Zone should promote innovati on and entrepreneurship to stimulate economic growth and global competitiveness. Economic stagnation, joblessness and inequality continue to be a reality for the previously marginalised groups after 16 years of the ELIDZ despite significant investments in the automotive sector, the growth of companies that supply Mercedes Benz with parts and the establishment and growth of innovative start-up companies at the ELIDZ Science and Technology Park (STP). Massive joblessness, poverty and economic stagnation had followed the collapse of the old industrial parks. The ELIDZ strategy of industrial development came as a response to the demise of the old parks and was meant to become the main vehicle for job creation, local innovation and global competitiveness. This study therefore investigated the extent to which innovation and entrepreneurship have fared in driving sustainable local economic development and how they have impacted jobs at the ELIDZ and within the East London community. The study was qualitative in nature and employed the non-probability sampling technique. In-depth semi-structured interviews were conducted with key informants that included Industrialists, Business Executives that were tenants at the ELIDZ, the Buffalo City Municipal Metro and community members with knowledge of and association with the ELIDZ. This was augmented by desktop and observational data. It was found that innovation and entrepreneurship was still a fairly new phenomenon at the ELIDZ and their flagships had the vision but were not yet driving sustainable local economic development to a large extent. The model lacks adequate diversification as most of the innovation projects are in the renewable energy and information communication spaces. Very few have made it to mass production with downstream industry employment creation for plumbers, artisans and marketers involved in the supply, distribution, instalment and maintenance of the Hotspot and Thin-film solar panels. New industrialists like YEKANI Technologies and Manufacturing and KGI Holdings, already employ some people and have the vision to employ thousands more of young people. The main innovation and entrepreneurship projects of the ELIDZ have had some impact at the grassroots level even though it is still limited. Too few jobs have been created compared to the old industrial parks model. The ELIDZ is therefore playing an important (albeit limited) role as a local employment creator, even though it has not revitalised the Eastern Cape manufacturing landscape. Due to its highly technology driven and specialised skills nature, the ELIDZ model is benefiting the few and therefore has not yet been an effective instrument to resolve the disturbing levels of inequality, poverty and unemployment, that underlie racial, class and gender dynamics in East London. The study concluded that innovation and entrepreneurship projects at the ELIDZ were contributing towards driving sustainable local economic development to some degree. However, due to its narrow industrial focus and highly technical and specialised skills driven business model, it excludes most historically disadvantaged communities and the local academic institutions need to do more to produce the skills relevant to support local innovation and local industrial development in a time when economies rely more on intellectual capabilities rather than natural resources. , Thesis (PhD) -- Faculty of Social Sciences and Humanities, 2021
- Full Text:
- Date Issued: 2021-02
- Authors: Masiwa, George Bonginkosi
- Date: 2021-02
- Subjects: Industrialization , Economic development , South Africa -- Economic conditions
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/21213 , vital:47406
- Description: This study focuses on the East London Industrial Development Zone (ELIDZ) in South Africa. The ELIDZ strategy came as a response to the need for a robust catalyst for sustainable regional economic development, industrial diversification and to create meaningful employment opportunities in the country. It was supposed to provide customised solutions for various industries including automotive, agro-processing and aqua-culture. However, an Industrial Development Zone should promote innovati on and entrepreneurship to stimulate economic growth and global competitiveness. Economic stagnation, joblessness and inequality continue to be a reality for the previously marginalised groups after 16 years of the ELIDZ despite significant investments in the automotive sector, the growth of companies that supply Mercedes Benz with parts and the establishment and growth of innovative start-up companies at the ELIDZ Science and Technology Park (STP). Massive joblessness, poverty and economic stagnation had followed the collapse of the old industrial parks. The ELIDZ strategy of industrial development came as a response to the demise of the old parks and was meant to become the main vehicle for job creation, local innovation and global competitiveness. This study therefore investigated the extent to which innovation and entrepreneurship have fared in driving sustainable local economic development and how they have impacted jobs at the ELIDZ and within the East London community. The study was qualitative in nature and employed the non-probability sampling technique. In-depth semi-structured interviews were conducted with key informants that included Industrialists, Business Executives that were tenants at the ELIDZ, the Buffalo City Municipal Metro and community members with knowledge of and association with the ELIDZ. This was augmented by desktop and observational data. It was found that innovation and entrepreneurship was still a fairly new phenomenon at the ELIDZ and their flagships had the vision but were not yet driving sustainable local economic development to a large extent. The model lacks adequate diversification as most of the innovation projects are in the renewable energy and information communication spaces. Very few have made it to mass production with downstream industry employment creation for plumbers, artisans and marketers involved in the supply, distribution, instalment and maintenance of the Hotspot and Thin-film solar panels. New industrialists like YEKANI Technologies and Manufacturing and KGI Holdings, already employ some people and have the vision to employ thousands more of young people. The main innovation and entrepreneurship projects of the ELIDZ have had some impact at the grassroots level even though it is still limited. Too few jobs have been created compared to the old industrial parks model. The ELIDZ is therefore playing an important (albeit limited) role as a local employment creator, even though it has not revitalised the Eastern Cape manufacturing landscape. Due to its highly technology driven and specialised skills nature, the ELIDZ model is benefiting the few and therefore has not yet been an effective instrument to resolve the disturbing levels of inequality, poverty and unemployment, that underlie racial, class and gender dynamics in East London. The study concluded that innovation and entrepreneurship projects at the ELIDZ were contributing towards driving sustainable local economic development to some degree. However, due to its narrow industrial focus and highly technical and specialised skills driven business model, it excludes most historically disadvantaged communities and the local academic institutions need to do more to produce the skills relevant to support local innovation and local industrial development in a time when economies rely more on intellectual capabilities rather than natural resources. , Thesis (PhD) -- Faculty of Social Sciences and Humanities, 2021
- Full Text:
- Date Issued: 2021-02
Social intrepreneurship and millennium development goals in developing countries: case study of Zimbabwe
- Ngorora, Grace P K https://orcid.org/0000-0003-4756-313
- Authors: Ngorora, Grace P K https://orcid.org/0000-0003-4756-313
- Date: 2014-11
- Subjects: Social entrepreneurship , Economic development , Poverty
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/26661 , vital:65847
- Description: The study set out to examine the contribution of social entrepreneurship to the achievement of Millennium Development Goals (MDGs), particularly MDG 1, the eradication of extreme poverty and hunger. Poverty reduction occurred when social entrepreneurial activities resulted in the improvement of the socio-economic well-being of social entrepreneurs and their beneficiaries. The problem this study sought to research on was that, despite the impact of social entrepreneurship, there has been inadequate attention to and discussion of its contribution to attaining the MDGs in Zimbabwe. The population were social entrepreneurs in Harare, Zimbabwe. The random sampling method was used to determine the sample size. Semi-structured questionnaires were used to collect primary data in Harare, Zimbabwe from 132 social entrepreneurs and 200 beneficiaries of social entrepreneurial activities. Secondary information was obtained from textbooks and various internet sources. The data collected was analyzed through SPSS Version 22 because of its appropriateness and wide use. The null hypothesis that social entrepreneurship does not contribute to the achievement of MDGs was rejected in favor of the alternative hypothesis that social entrepreneurship provides an alternative to the achievement of MDGs. Findings from the study suggest that social entrepreneurs contribute immensely to poverty reduction. They also contribute towards research and development, promoting gender equality and empowerment, education for all as well as access to health facilities. The segments of the population benefiting from social entrepreneurship include the poor, socially excluded, discriminated, the unemployed and disabled. The impact on poverty and hunger was achieved through microfinance initiatives, income generation activities, empowerment and capacity building. Results showed that social entrepreneurship activities solve social problems through providing food, shelter, water, education and collateral to access finance. The study concluded that social entrepreneurship is a plausible approach to promote implementation of policies to reduce extreme poverty and hunger by using readily available resources to bring sustainable solutions to problems. The strategies to make social entrepreneurship more effective included creating a conducive legal and policy environment, financial provision, political support, and government support, publicity of the contribution of social entrepreneurship, mentorship and collaboration among stakeholders. , Thesis (PhD) -- Faculty of Social Sciences and Humanities, 2014
- Full Text:
- Date Issued: 2014-11
- Authors: Ngorora, Grace P K https://orcid.org/0000-0003-4756-313
- Date: 2014-11
- Subjects: Social entrepreneurship , Economic development , Poverty
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/26661 , vital:65847
- Description: The study set out to examine the contribution of social entrepreneurship to the achievement of Millennium Development Goals (MDGs), particularly MDG 1, the eradication of extreme poverty and hunger. Poverty reduction occurred when social entrepreneurial activities resulted in the improvement of the socio-economic well-being of social entrepreneurs and their beneficiaries. The problem this study sought to research on was that, despite the impact of social entrepreneurship, there has been inadequate attention to and discussion of its contribution to attaining the MDGs in Zimbabwe. The population were social entrepreneurs in Harare, Zimbabwe. The random sampling method was used to determine the sample size. Semi-structured questionnaires were used to collect primary data in Harare, Zimbabwe from 132 social entrepreneurs and 200 beneficiaries of social entrepreneurial activities. Secondary information was obtained from textbooks and various internet sources. The data collected was analyzed through SPSS Version 22 because of its appropriateness and wide use. The null hypothesis that social entrepreneurship does not contribute to the achievement of MDGs was rejected in favor of the alternative hypothesis that social entrepreneurship provides an alternative to the achievement of MDGs. Findings from the study suggest that social entrepreneurs contribute immensely to poverty reduction. They also contribute towards research and development, promoting gender equality and empowerment, education for all as well as access to health facilities. The segments of the population benefiting from social entrepreneurship include the poor, socially excluded, discriminated, the unemployed and disabled. The impact on poverty and hunger was achieved through microfinance initiatives, income generation activities, empowerment and capacity building. Results showed that social entrepreneurship activities solve social problems through providing food, shelter, water, education and collateral to access finance. The study concluded that social entrepreneurship is a plausible approach to promote implementation of policies to reduce extreme poverty and hunger by using readily available resources to bring sustainable solutions to problems. The strategies to make social entrepreneurship more effective included creating a conducive legal and policy environment, financial provision, political support, and government support, publicity of the contribution of social entrepreneurship, mentorship and collaboration among stakeholders. , Thesis (PhD) -- Faculty of Social Sciences and Humanities, 2014
- Full Text:
- Date Issued: 2014-11
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