The impact of Taxation and corruption on economic growth in South Africa
- Authors: Rabinda, Aluwani Malvin
- Date: 2022-12
- Subjects: Taxation , Corrupt practices , Economic development -- South Africa
- Language: English
- Type: Master's theses , Thesis
- Identifier: http://hdl.handle.net/10948/59832 , vital:62444
- Description: Developing countries, such as South Africa, have been on a mission to reduce corruption, particularly in the public sector, and to collect as much revenue as possible through taxation to fund the government expenditures. Low levels of corruption, preferable zero and higher tax collections, can boost a country's economic growth and development by creating jobs and increasing economic activity, which leads to economic growth. South Africa is one of the economies that are characterised by high levels of corruption. For South Africa to attract more foreign investors in the country, it should ensure that resources are used efficiently and that any act of corruption is punished. This study looked at the effects of taxation and corruption on economic growth from 1975 to 2019. An econometric analysis technique was used in the study to test the impact of taxation and corruption on economic growth. The augmented Dickey–Fuller method was used to test for unit root. According to the results of the tests, unit root l(1) is rejected in favour of the stationarity alternative. The empirical analysis used the Autoregressive Distributed Lag Model (ARDL) bounds testing approach of cointegration advocated by Pesaran, Shin, and Smith (2001) to examine for the longrun equilibrium among taxation and corruption on economic growth. The Wald causality test was also used to investigate the causal relationship between taxation, corruption, and economic growth. According to the Bounds test results, there is long-run co-integrating positive relationship between trade openness and GDP, gross capital formation, Corruption, and income taxation. Furthermore, when dependent variable was tested for longrun impact, the results confirmed that taxation and corruption have insignificant impact on economic growth. Trade openness, as a percentage of GDP, has insignificant positive relationship with economic growth in South Africa. Gross Capital Formation, as a percentage of GDP, is positively related to economic growth. Furthermore, short-run findings suggest a positive significant relationship between trade openness as a percentage of Gross domestic product. Corruption and income taxation have negative and insignificant effect on GDP in the short term. Furthermore, GDP and gross capital formation have negative relationship. V Government should also encourage the culture of transparency and accountability as far as corruption is concerned to stimulate economic growth. This will also create a culture where government officials are called upon to explain their government expenditure patterns and be held accountable for any misuse of any funds flowing into the country. , Thesis (MCom)-- Faculty of Business and Economic Science, 2022
- Full Text:
- Date Issued: 2022-12
- Authors: Rabinda, Aluwani Malvin
- Date: 2022-12
- Subjects: Taxation , Corrupt practices , Economic development -- South Africa
- Language: English
- Type: Master's theses , Thesis
- Identifier: http://hdl.handle.net/10948/59832 , vital:62444
- Description: Developing countries, such as South Africa, have been on a mission to reduce corruption, particularly in the public sector, and to collect as much revenue as possible through taxation to fund the government expenditures. Low levels of corruption, preferable zero and higher tax collections, can boost a country's economic growth and development by creating jobs and increasing economic activity, which leads to economic growth. South Africa is one of the economies that are characterised by high levels of corruption. For South Africa to attract more foreign investors in the country, it should ensure that resources are used efficiently and that any act of corruption is punished. This study looked at the effects of taxation and corruption on economic growth from 1975 to 2019. An econometric analysis technique was used in the study to test the impact of taxation and corruption on economic growth. The augmented Dickey–Fuller method was used to test for unit root. According to the results of the tests, unit root l(1) is rejected in favour of the stationarity alternative. The empirical analysis used the Autoregressive Distributed Lag Model (ARDL) bounds testing approach of cointegration advocated by Pesaran, Shin, and Smith (2001) to examine for the longrun equilibrium among taxation and corruption on economic growth. The Wald causality test was also used to investigate the causal relationship between taxation, corruption, and economic growth. According to the Bounds test results, there is long-run co-integrating positive relationship between trade openness and GDP, gross capital formation, Corruption, and income taxation. Furthermore, when dependent variable was tested for longrun impact, the results confirmed that taxation and corruption have insignificant impact on economic growth. Trade openness, as a percentage of GDP, has insignificant positive relationship with economic growth in South Africa. Gross Capital Formation, as a percentage of GDP, is positively related to economic growth. Furthermore, short-run findings suggest a positive significant relationship between trade openness as a percentage of Gross domestic product. Corruption and income taxation have negative and insignificant effect on GDP in the short term. Furthermore, GDP and gross capital formation have negative relationship. V Government should also encourage the culture of transparency and accountability as far as corruption is concerned to stimulate economic growth. This will also create a culture where government officials are called upon to explain their government expenditure patterns and be held accountable for any misuse of any funds flowing into the country. , Thesis (MCom)-- Faculty of Business and Economic Science, 2022
- Full Text:
- Date Issued: 2022-12
An investigation of the internal challenges that hinder sustainability of the Furntech Nyanga incubates
- Authors: Sakuba, Siyasanga
- Date: 2020
- Subjects: Business incubators -- South Africa -- Cape Town , Business incubators -- Training of -- South Africa -- Cape Town , Entrepreneurship -- South Africa – Cape Town , Unemployment -- South Africa , Rate of return -- South Africa , Economic development -- South Africa , Training needs -- South Africa -- Cape Town , Furntech (Nyanga)
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/142830 , vital:38121
- Description: The South African unemployment rate is currently at 27.6 per cent (Statistics South Africa, 2019). In an effort to combat unemployment, the South African government has implemented various mechanisms to provide opportunities to the people and combat unemployment. One of these mechanisms is to invest in the establishment of entrepreneurship incubators while the Furntech incubator is one of the incubators established for this purpose. It is imperative that the government spending on these mechanisms is justified by a return on investment which, in this case, should be to reduce unemployment and increase the overall entrepreneurial activity. In view of Furntech, with specific reference to the Nyanga incubation centre, there is a high failure rate with very little output of sustainable enterprises from the two-year incubation period. This study seeks to investigate the internal challenges that hinder the sustainability of these entrepreneurs to either drop out before the end of the two-year incubation period or to furnish the two years without becoming sustainable entrepreneurs. This study seeks to investigate this matter by using a semi -structured interview schedule that was geared towards investigating the research problem from the view of the incubates. The findings of the study showed that Furntech can be commended in respect of the transfer of technical skills. Furntech, however, failed to support the entrepreneurs with the other business support services that are part of their services, namely the business advisory, financial support and business skills. These findings provide a guideline of where Furntech needs to improve its service offering to gain a higher output of sustainable entrepreneurs. It is important to note that even though Furntech has representation in three provinces with two incubators in the Western Cape (Cape Town and Nyanga), however, this study was limited to the Furntech Nyanga incubates.
- Full Text:
- Date Issued: 2020
- Authors: Sakuba, Siyasanga
- Date: 2020
- Subjects: Business incubators -- South Africa -- Cape Town , Business incubators -- Training of -- South Africa -- Cape Town , Entrepreneurship -- South Africa – Cape Town , Unemployment -- South Africa , Rate of return -- South Africa , Economic development -- South Africa , Training needs -- South Africa -- Cape Town , Furntech (Nyanga)
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/142830 , vital:38121
- Description: The South African unemployment rate is currently at 27.6 per cent (Statistics South Africa, 2019). In an effort to combat unemployment, the South African government has implemented various mechanisms to provide opportunities to the people and combat unemployment. One of these mechanisms is to invest in the establishment of entrepreneurship incubators while the Furntech incubator is one of the incubators established for this purpose. It is imperative that the government spending on these mechanisms is justified by a return on investment which, in this case, should be to reduce unemployment and increase the overall entrepreneurial activity. In view of Furntech, with specific reference to the Nyanga incubation centre, there is a high failure rate with very little output of sustainable enterprises from the two-year incubation period. This study seeks to investigate the internal challenges that hinder the sustainability of these entrepreneurs to either drop out before the end of the two-year incubation period or to furnish the two years without becoming sustainable entrepreneurs. This study seeks to investigate this matter by using a semi -structured interview schedule that was geared towards investigating the research problem from the view of the incubates. The findings of the study showed that Furntech can be commended in respect of the transfer of technical skills. Furntech, however, failed to support the entrepreneurs with the other business support services that are part of their services, namely the business advisory, financial support and business skills. These findings provide a guideline of where Furntech needs to improve its service offering to gain a higher output of sustainable entrepreneurs. It is important to note that even though Furntech has representation in three provinces with two incubators in the Western Cape (Cape Town and Nyanga), however, this study was limited to the Furntech Nyanga incubates.
- Full Text:
- Date Issued: 2020
Development finance institutions and sustainable economic development : a case of the idc South Africa
- Authors: Mare, Timothy
- Date: 2020
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/48872 , vital:41166
- Description: The purpose of this research study is to assess the extent that the Industrial Development Cooperation (IDC) of South Africa a Development Finance Institution (DFI), has contributed to the sustainable economic development of South Africa. The objective is to quantify the impact that is attributed to the IDC’s activities in South Africa in terms of socio-economic development contributing to sustainable economic development. Social development is fundamentally important in contributing to the economic development of any country. The research constituted the collection and quantitative analysis of data using reports from the IDC. The social output index modelling developed by the World Bank was used to analyse the data and make conclusive arguments regarding the impact that the IDC was having on economic development. The findings indicate that the IDC significantly lends less comparatively to lower income groups thus resulting in a negative contribution in terms of social developmental goals. Further the analysis through social output index model suggests that the IDC in as far as socio-development is concerned did not contributing positively to sustainable economic development between 2014 and 2018 reporting periods. The following recommendations are suggested: Increase awareness about the real impact of each investment across the IDC group, this will ensure that all proposals for investment are assessed with a component focusing on a socio-developmental perspective; reduce the number of mandates that the IDC currently has and establish broader frameworks for DFIs regardless of which government is in power or control.
- Full Text:
- Date Issued: 2020
- Authors: Mare, Timothy
- Date: 2020
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/48872 , vital:41166
- Description: The purpose of this research study is to assess the extent that the Industrial Development Cooperation (IDC) of South Africa a Development Finance Institution (DFI), has contributed to the sustainable economic development of South Africa. The objective is to quantify the impact that is attributed to the IDC’s activities in South Africa in terms of socio-economic development contributing to sustainable economic development. Social development is fundamentally important in contributing to the economic development of any country. The research constituted the collection and quantitative analysis of data using reports from the IDC. The social output index modelling developed by the World Bank was used to analyse the data and make conclusive arguments regarding the impact that the IDC was having on economic development. The findings indicate that the IDC significantly lends less comparatively to lower income groups thus resulting in a negative contribution in terms of social developmental goals. Further the analysis through social output index model suggests that the IDC in as far as socio-development is concerned did not contributing positively to sustainable economic development between 2014 and 2018 reporting periods. The following recommendations are suggested: Increase awareness about the real impact of each investment across the IDC group, this will ensure that all proposals for investment are assessed with a component focusing on a socio-developmental perspective; reduce the number of mandates that the IDC currently has and establish broader frameworks for DFIs regardless of which government is in power or control.
- Full Text:
- Date Issued: 2020
Government size, labour productivity and economic growth in South Africa
- Authors: Mbaleki, Chuma Innocent
- Date: 2020
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/48915 , vital:41170
- Description: This study investigates short-run and long-run effects of fiscal consolidation on labour productivity in South Africa using the autoregressive distributed lag bounds testing approach of cointegration. We use quarterly data collected in the period of 1994Q3 to 2017Q1. We disaggregate government expenditure as well as revenue and find a positive and significant long run relationship between revenue variables and labour productivity. This relationship is also positive and significant in the short run except for net tax variable, which seems to be growth contractive. The results further suggest a positive and significant long run relationship between government expenditure on health, public safety and order, culture and recreation as well as education and labour productivity. Government expenditure on education and health variables are also positive and significant in the short run, whilst expenditure on defense is negative and not significant both in the short run and long run.
- Full Text:
- Date Issued: 2020
- Authors: Mbaleki, Chuma Innocent
- Date: 2020
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/48915 , vital:41170
- Description: This study investigates short-run and long-run effects of fiscal consolidation on labour productivity in South Africa using the autoregressive distributed lag bounds testing approach of cointegration. We use quarterly data collected in the period of 1994Q3 to 2017Q1. We disaggregate government expenditure as well as revenue and find a positive and significant long run relationship between revenue variables and labour productivity. This relationship is also positive and significant in the short run except for net tax variable, which seems to be growth contractive. The results further suggest a positive and significant long run relationship between government expenditure on health, public safety and order, culture and recreation as well as education and labour productivity. Government expenditure on education and health variables are also positive and significant in the short run, whilst expenditure on defense is negative and not significant both in the short run and long run.
- Full Text:
- Date Issued: 2020
The Effects of exchange rates on bilateral trade balances of SACU members states with their trading partners
- Authors: Mhaka, Simbarashe
- Date: 2020
- Subjects: Economic development -- South Africa , Purchasing power parity -- Econometric models
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/50371 , vital:42152
- Description: The fluctuations of exchange rates prevent countries from achieving stability in their external account records. Appreciation or depreciation has effects on international trade. This thesis examines the relationship between exchange rate fluctuations on bilateral trade balances focusing on the SACU region. There are several theories made to explain the relationship between exchange rate and trade balances. In examining this phenomenon, this thesis will unveil if the purchasing power parity theory, the Marshall-Lerner condition and the J-curve effect holds in the Southern African Customs Union (SACU) countries. This analysis is divided into three parts. The first part examines the stability of the exchange rate in the SACU countries in the long run as given by the purchasing power parity. To test for the Purchasing Power Parity theory, the recently developed powerful unit root test was applied with multiple smooth structural breaks of Omay (2015), based on a Fractional Frequency Flexible Fourier Form (FFFFF) on unique data of SACU countries covering the monthly period of 1995M01-2017M11. The Purchasing Power Parity (PPP) results show that the nominal effective exchange rate (NEER) of all SACU members does not provide evidence for PPP theory. In terms of the real effective exchange rate (REER), the PPP condition holds in the case of South Africa only. Further unit root investigations were carried out using the panel data for all SACU members, NEER and REER. The FFFFF test results for panel data shows strong evidence of the PPP while the standard DF test rejects PPP theory in the SACU’s NEER. Both the standard DF and the FFFFF tests show strong evidence of PPP theory in the case of SACU’s REER. The second section of the analysis examines the Marshall-Lerner condition employing annual data from the period of 1980-2017. The import and export model were examined firstly in a time series format and then in a panel data format. The time series data was examined using the ARDL (PMG) model while the panel data used the panel ARDL, fully modified OLS (FMOLS) method and the Dynamic OLS (DOLS) method of estimation. The PMG/ARDL model shows no evidence to support the existence of the Marshall-Lerner condition in the short run for all SACU members. However, only two out of five countries show evidence of the Marshall-Lerner condition in the long run. There is strong evidence of the Marshall-Lerner condition in Namibia and Botswana in the long run using the PMG/ARDL model.
- Full Text:
- Date Issued: 2020
- Authors: Mhaka, Simbarashe
- Date: 2020
- Subjects: Economic development -- South Africa , Purchasing power parity -- Econometric models
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/50371 , vital:42152
- Description: The fluctuations of exchange rates prevent countries from achieving stability in their external account records. Appreciation or depreciation has effects on international trade. This thesis examines the relationship between exchange rate fluctuations on bilateral trade balances focusing on the SACU region. There are several theories made to explain the relationship between exchange rate and trade balances. In examining this phenomenon, this thesis will unveil if the purchasing power parity theory, the Marshall-Lerner condition and the J-curve effect holds in the Southern African Customs Union (SACU) countries. This analysis is divided into three parts. The first part examines the stability of the exchange rate in the SACU countries in the long run as given by the purchasing power parity. To test for the Purchasing Power Parity theory, the recently developed powerful unit root test was applied with multiple smooth structural breaks of Omay (2015), based on a Fractional Frequency Flexible Fourier Form (FFFFF) on unique data of SACU countries covering the monthly period of 1995M01-2017M11. The Purchasing Power Parity (PPP) results show that the nominal effective exchange rate (NEER) of all SACU members does not provide evidence for PPP theory. In terms of the real effective exchange rate (REER), the PPP condition holds in the case of South Africa only. Further unit root investigations were carried out using the panel data for all SACU members, NEER and REER. The FFFFF test results for panel data shows strong evidence of the PPP while the standard DF test rejects PPP theory in the SACU’s NEER. Both the standard DF and the FFFFF tests show strong evidence of PPP theory in the case of SACU’s REER. The second section of the analysis examines the Marshall-Lerner condition employing annual data from the period of 1980-2017. The import and export model were examined firstly in a time series format and then in a panel data format. The time series data was examined using the ARDL (PMG) model while the panel data used the panel ARDL, fully modified OLS (FMOLS) method and the Dynamic OLS (DOLS) method of estimation. The PMG/ARDL model shows no evidence to support the existence of the Marshall-Lerner condition in the short run for all SACU members. However, only two out of five countries show evidence of the Marshall-Lerner condition in the long run. There is strong evidence of the Marshall-Lerner condition in Namibia and Botswana in the long run using the PMG/ARDL model.
- Full Text:
- Date Issued: 2020
Elasticity of the South African economy towards portfolio investments in BRICS countries
- Authors: Taonezvi, Lovemore
- Date: 2019
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/44537 , vital:38141
- Description: The emerging economies of Brazil, Russia, India, and China (BRIC) have been experiencing high growth rates since the turn of the millennium, whereas economic growth has been elusive in South Africa. As the newest member of BRICS, South Africa is expected to economically benefit through, amongst others, increases in capital flows, foreign investments by local firms, and increases in trade. Such benefits are anticipated to propel the country’s economic growth, thereby helping it to tackle its chronic problems of high unemployment, poverty, and economic inequality. The inclusion of South Africa in BRICS has, however, been viewed by critics as erroneous, since the country has, inter alia, poor economic growth; a small economy and population; and political instability. While foreign portfolio investment (FPI) inflows to South Africa have surged in recent years, economic growth has remained lacklustre. These flows have also faced sudden reversals, especially during the financial crisis of 2007-2009. With the potential to leverage its growth from intra-BRICS FPI inflows, it becomes of paramount significance for policymakers to have knowledge of the South African economy’s responsiveness to such inflows. With a theoretical framework based on the endogenous growth model, an augmented Cobb-Douglas production function was extended in this thesis in order to study the relationship between BRICS growth and intra-BRICS FPI in a dynamic panel data generalised method of moments (GMM) context. Similarly, the South African economy’s elasticity towards intraBRICS FPI was estimated. Vector autoregressive (VAR) analysis was used to evaluate the responsiveness of South Africa’s economy to an innovative shock to intra-BRICS FPI. Annual and quarterly data for the period 2000-2016 were used in panel data and VAR analysis, respectively. It was found that intra-BRICS FPI flows have a positive and statistically significant relationship with BRICS growth, while the elasticity of the South African economy to these flows is estimated at 0.007. Additionally, the efficiency and accessibility dimensions of financial market development do not assist FPI in promoting growth in BRICS, while financial market depth does. South Africa’s BRICS membership has a positive effect on its own growth, while for other BRICS nations, this membership is negative and insignificant. Credit rating downgrades have a negative and insignificant impact on economic growth, while the negative impact for inflation, government expenditure, and total labour employment is significant. Conversely, gross capital formation and trade openness have a positive and significant relationship with BRICS growth. The study also determined that a unit shock on intra-BRICS FPI resulted in negative fluctuations of South Africa’s economy within the first eight quarters before being positive and mostly constant thereafter. By supplementing domestic savings and facilitating the international integration of domestic financial markets, FPI promotes growth in BRICS. The short-term, ease of reversibility, and speculative nature of FPI are amongst some of the reasons for its destabilising effect on South Africa’s economy. Furthermore, inflation is a key determinant of FPI inflows to South Africa. Additional BRIC cooperation in FPI and trade; increased investments in domestic capital; reductions of inflation and corruption; investments in education and skills development; and stock market reforms are some of the recommendations for BRIC, and South Africa in particular. South Africa can consider prudential use of a mix of capital account controls, as well as fiscal and monetary policies to cushion its economy from FPI shocks in the short- to medium-term.
- Full Text:
- Date Issued: 2019
- Authors: Taonezvi, Lovemore
- Date: 2019
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/44537 , vital:38141
- Description: The emerging economies of Brazil, Russia, India, and China (BRIC) have been experiencing high growth rates since the turn of the millennium, whereas economic growth has been elusive in South Africa. As the newest member of BRICS, South Africa is expected to economically benefit through, amongst others, increases in capital flows, foreign investments by local firms, and increases in trade. Such benefits are anticipated to propel the country’s economic growth, thereby helping it to tackle its chronic problems of high unemployment, poverty, and economic inequality. The inclusion of South Africa in BRICS has, however, been viewed by critics as erroneous, since the country has, inter alia, poor economic growth; a small economy and population; and political instability. While foreign portfolio investment (FPI) inflows to South Africa have surged in recent years, economic growth has remained lacklustre. These flows have also faced sudden reversals, especially during the financial crisis of 2007-2009. With the potential to leverage its growth from intra-BRICS FPI inflows, it becomes of paramount significance for policymakers to have knowledge of the South African economy’s responsiveness to such inflows. With a theoretical framework based on the endogenous growth model, an augmented Cobb-Douglas production function was extended in this thesis in order to study the relationship between BRICS growth and intra-BRICS FPI in a dynamic panel data generalised method of moments (GMM) context. Similarly, the South African economy’s elasticity towards intraBRICS FPI was estimated. Vector autoregressive (VAR) analysis was used to evaluate the responsiveness of South Africa’s economy to an innovative shock to intra-BRICS FPI. Annual and quarterly data for the period 2000-2016 were used in panel data and VAR analysis, respectively. It was found that intra-BRICS FPI flows have a positive and statistically significant relationship with BRICS growth, while the elasticity of the South African economy to these flows is estimated at 0.007. Additionally, the efficiency and accessibility dimensions of financial market development do not assist FPI in promoting growth in BRICS, while financial market depth does. South Africa’s BRICS membership has a positive effect on its own growth, while for other BRICS nations, this membership is negative and insignificant. Credit rating downgrades have a negative and insignificant impact on economic growth, while the negative impact for inflation, government expenditure, and total labour employment is significant. Conversely, gross capital formation and trade openness have a positive and significant relationship with BRICS growth. The study also determined that a unit shock on intra-BRICS FPI resulted in negative fluctuations of South Africa’s economy within the first eight quarters before being positive and mostly constant thereafter. By supplementing domestic savings and facilitating the international integration of domestic financial markets, FPI promotes growth in BRICS. The short-term, ease of reversibility, and speculative nature of FPI are amongst some of the reasons for its destabilising effect on South Africa’s economy. Furthermore, inflation is a key determinant of FPI inflows to South Africa. Additional BRIC cooperation in FPI and trade; increased investments in domestic capital; reductions of inflation and corruption; investments in education and skills development; and stock market reforms are some of the recommendations for BRIC, and South Africa in particular. South Africa can consider prudential use of a mix of capital account controls, as well as fiscal and monetary policies to cushion its economy from FPI shocks in the short- to medium-term.
- Full Text:
- Date Issued: 2019
Financial development and economic growth in South Africa
- Authors: Mhango, Joseph
- Date: 2019
- Subjects: Finance -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/41117 , vital:36358
- Description: Since the identification of financial development for economic growth by Schumpeter (1911), the importance of financial development has been emphasised. However, the nature of the relationship is unclear, whether financial development is demand-following, supply-leading, feedback relationship or no causal relationship with economic growth. The revolution of the relationship between finance and economic growth has left a void of the exact nature of the relationship and importance of financial development in literature and empirical evidence. In addition, the variation of the nexus between financial development and economic growth in developed and developing countries has left policy makers uncertain on the exact policy to employ. In awe of this, after the discovery of diamonds and gold in South Africa, policy makers have attempted to improve the access, depth and efficiency of the finance sector to spur economic growth. However, South Africa has been subject to apartheid, low economic growth, global financial crises, international sanctions, unemployment and other challenges to the finance sector. In light of this, this study aims to empirically investigate the relationship between financial development and economic growth in South Africa. The study used the recently developed financial institutions index and financial markets index by the International Monetary Fund to represent bank-based and market-based financial development. This study utilises annual data over the period 1980 to 2014. The study applied the Autoregressive Disturbed Lag (ARDL) bounds testing, Vector Error Correction Model (VECM) Granger – Causality, Impulse Response Function (IRF) and Variance Decomposition to uncover the relationship between financial development and economic growth in South Africa. The ARDL was selected over the Johansen Cointegration because the variables can be I (1) or I(0) before carrying out the bounds testing. It is more suitable to a small sample size. It uses a reduced form equation, and it provides unbiased estimates of the long-run model. Lastly, it can be transformed into an error correction model. The VECM Granger-Causality was chosen because it represents the short-run and long-run causalities. After selection of the optimal lag, the ARDL bounds testing shows that economic growth, bank-based financial development, market-based financial development, savings and investment have a long-run relationship in South Africa. However, after estimation of the coefficients, financial development has a positive relationship with economic growth, but insignificant and only savings and investment were significant in determining long-run economic growth. The VECM granger-causality results show that financial development (bank and market), savings and investment granger cause economic growth in the long-run. While, economic growth, market-based financial development, savings and investment granger cause bank-based financial development in the long-run. Therefore, a feedback relationship exists between bank-based financial development and economic growth in the long-run. In the short-run, it was clear that bank-based financial development positively causes economic growth. The causality results show that a feedback relationship exists between bank-based financial development and economic growth in South Africa in the short-run as well. The IRF shows that a shock in economic growth negatively and positively affects bank based and market-based financial development respectively. A shock in bank-based financial development causes a positive effect on economic growth. Lastly, a shock in market-based financial development causes a positive effect on economic growth. Whilst, the variance decomposition shows that fluctuations in economic growth are increasingly explained by financial development (bank and market). While, fluctuations in bank-based financial development are increasingly explained by market-based financial development, savings and investment. The fluctuations in market-based financial development are increasingly caused by economic growth, savings and investment. It is recommended that policy makers utilise bank-based financial development for economic growth and reduced unemployment, to increase savings for long-run economic growth. Furthermore, challenges against market-based financial development should be reduced in order to create a positive relationship between investment and economic growth in the long run.
- Full Text:
- Date Issued: 2019
- Authors: Mhango, Joseph
- Date: 2019
- Subjects: Finance -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/41117 , vital:36358
- Description: Since the identification of financial development for economic growth by Schumpeter (1911), the importance of financial development has been emphasised. However, the nature of the relationship is unclear, whether financial development is demand-following, supply-leading, feedback relationship or no causal relationship with economic growth. The revolution of the relationship between finance and economic growth has left a void of the exact nature of the relationship and importance of financial development in literature and empirical evidence. In addition, the variation of the nexus between financial development and economic growth in developed and developing countries has left policy makers uncertain on the exact policy to employ. In awe of this, after the discovery of diamonds and gold in South Africa, policy makers have attempted to improve the access, depth and efficiency of the finance sector to spur economic growth. However, South Africa has been subject to apartheid, low economic growth, global financial crises, international sanctions, unemployment and other challenges to the finance sector. In light of this, this study aims to empirically investigate the relationship between financial development and economic growth in South Africa. The study used the recently developed financial institutions index and financial markets index by the International Monetary Fund to represent bank-based and market-based financial development. This study utilises annual data over the period 1980 to 2014. The study applied the Autoregressive Disturbed Lag (ARDL) bounds testing, Vector Error Correction Model (VECM) Granger – Causality, Impulse Response Function (IRF) and Variance Decomposition to uncover the relationship between financial development and economic growth in South Africa. The ARDL was selected over the Johansen Cointegration because the variables can be I (1) or I(0) before carrying out the bounds testing. It is more suitable to a small sample size. It uses a reduced form equation, and it provides unbiased estimates of the long-run model. Lastly, it can be transformed into an error correction model. The VECM Granger-Causality was chosen because it represents the short-run and long-run causalities. After selection of the optimal lag, the ARDL bounds testing shows that economic growth, bank-based financial development, market-based financial development, savings and investment have a long-run relationship in South Africa. However, after estimation of the coefficients, financial development has a positive relationship with economic growth, but insignificant and only savings and investment were significant in determining long-run economic growth. The VECM granger-causality results show that financial development (bank and market), savings and investment granger cause economic growth in the long-run. While, economic growth, market-based financial development, savings and investment granger cause bank-based financial development in the long-run. Therefore, a feedback relationship exists between bank-based financial development and economic growth in the long-run. In the short-run, it was clear that bank-based financial development positively causes economic growth. The causality results show that a feedback relationship exists between bank-based financial development and economic growth in South Africa in the short-run as well. The IRF shows that a shock in economic growth negatively and positively affects bank based and market-based financial development respectively. A shock in bank-based financial development causes a positive effect on economic growth. Lastly, a shock in market-based financial development causes a positive effect on economic growth. Whilst, the variance decomposition shows that fluctuations in economic growth are increasingly explained by financial development (bank and market). While, fluctuations in bank-based financial development are increasingly explained by market-based financial development, savings and investment. The fluctuations in market-based financial development are increasingly caused by economic growth, savings and investment. It is recommended that policy makers utilise bank-based financial development for economic growth and reduced unemployment, to increase savings for long-run economic growth. Furthermore, challenges against market-based financial development should be reduced in order to create a positive relationship between investment and economic growth in the long run.
- Full Text:
- Date Issued: 2019
National debt and sovereign credit ratings
- Authors: Orsmond, Daniel
- Date: 2019
- Subjects: Debts, Public -- South Africa , Credit ratings -- South Africa , Gross domestic product -- Africa , Inflation (Finance) -- Africa , Economic development -- South Africa , Economic history , Macroeconomics , Moody's Investors Service , Standard and Poor's Ratings Services , Fitch Ratings (Firm)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/115160 , vital:34083
- Description: In recent years South Africa’s foreign and local denominated debt has been downgraded by the three major global credit agencies, Moody’s, Standard and Poor’s (S&P) and Fitch. The foreign debt has been downgraded to speculative grade or ‘junk’ status by all three agencies. Local debt has been downgraded to ‘junk’ by S& P and Fitch, but Moody’s currently maintains local debt at the lowest level of investment grade. Many economists believe that South Africa’s rapidly rising debt levels are the major contributor to the decisions to downgrade South Africa’s debt. Yet many countries with higher levels of debt continue to be rated investment grade. Clearly, factors other than the actual level of debt are important in determining the credit rating agencies’ rating decisions. The literature suggests several variables are important in determining a country’s sovereign credit rating. These variables include not just the ratio of government debt to gross domestic product, but also a country’s real growth rate, inflation, gross domestic product per capita, external balance to gross domestic product, default history and the level of economic development. In examining the proposition that it is not a country’s debt level per se that matters, but rather the dynamics surrounding that debt, this research also includes three additional variables that are not usually mentioned in the literature. These, based on van der Merwe (1993), are the real GDP growth rate less the real interest rate, the ratio of the fiscal balance to GDP, and the ratio of government interest payments to government expenditure. The purpose of this addition is to examine whether rather than a country’s debt level (debt to GDP variable), it is the sustainability of a country’s ability to service debt, as indicated by the three additional ‘debt dynamic’ variables, that is most important when determining sovereign credit ratings. Panel data analysis for a sample of 12 countries over the period 1996Q1 to 2017Q4 indicates that of the broad macroeconomic variables mentioned in the literature, government debt to GDP, the real growth rate, inflation (cpi), and default history are all statistically significant, with the coefficients having the correct signs in all specification of the model, with the exception of the real growth rate in Models 2 and 3. With regards to the debt dynamic variables, the real growth rate less the real interest rate, as well as the interest payments to government expenditure variables are found to be significant determinants of sovereign credit ratings. Thus, the findings of the research suggest that the level of debt alone is an inadequate determinant of sovereign credit ratings. The dynamics of debt along with other macroeconomic variables are also important determinants of a country’s credit rating. Concerning policy recommendations, it is evident that debt sustainability is important for sovereign credit ratings. Evidence of the direct importance of economic growth in determining credit ratings is mixed, but growth is a key driver of debt dynamics variables and therefore of ratings. This suggests that policy should focus on stimulating growth to reduce the gap between real growth and real interest rates as well as increasing the denominator of the debt to GDP ratio and increase the size of the tax base, which would improve government’s ability to service the interest payments on its debt.
- Full Text:
- Date Issued: 2019
- Authors: Orsmond, Daniel
- Date: 2019
- Subjects: Debts, Public -- South Africa , Credit ratings -- South Africa , Gross domestic product -- Africa , Inflation (Finance) -- Africa , Economic development -- South Africa , Economic history , Macroeconomics , Moody's Investors Service , Standard and Poor's Ratings Services , Fitch Ratings (Firm)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/115160 , vital:34083
- Description: In recent years South Africa’s foreign and local denominated debt has been downgraded by the three major global credit agencies, Moody’s, Standard and Poor’s (S&P) and Fitch. The foreign debt has been downgraded to speculative grade or ‘junk’ status by all three agencies. Local debt has been downgraded to ‘junk’ by S& P and Fitch, but Moody’s currently maintains local debt at the lowest level of investment grade. Many economists believe that South Africa’s rapidly rising debt levels are the major contributor to the decisions to downgrade South Africa’s debt. Yet many countries with higher levels of debt continue to be rated investment grade. Clearly, factors other than the actual level of debt are important in determining the credit rating agencies’ rating decisions. The literature suggests several variables are important in determining a country’s sovereign credit rating. These variables include not just the ratio of government debt to gross domestic product, but also a country’s real growth rate, inflation, gross domestic product per capita, external balance to gross domestic product, default history and the level of economic development. In examining the proposition that it is not a country’s debt level per se that matters, but rather the dynamics surrounding that debt, this research also includes three additional variables that are not usually mentioned in the literature. These, based on van der Merwe (1993), are the real GDP growth rate less the real interest rate, the ratio of the fiscal balance to GDP, and the ratio of government interest payments to government expenditure. The purpose of this addition is to examine whether rather than a country’s debt level (debt to GDP variable), it is the sustainability of a country’s ability to service debt, as indicated by the three additional ‘debt dynamic’ variables, that is most important when determining sovereign credit ratings. Panel data analysis for a sample of 12 countries over the period 1996Q1 to 2017Q4 indicates that of the broad macroeconomic variables mentioned in the literature, government debt to GDP, the real growth rate, inflation (cpi), and default history are all statistically significant, with the coefficients having the correct signs in all specification of the model, with the exception of the real growth rate in Models 2 and 3. With regards to the debt dynamic variables, the real growth rate less the real interest rate, as well as the interest payments to government expenditure variables are found to be significant determinants of sovereign credit ratings. Thus, the findings of the research suggest that the level of debt alone is an inadequate determinant of sovereign credit ratings. The dynamics of debt along with other macroeconomic variables are also important determinants of a country’s credit rating. Concerning policy recommendations, it is evident that debt sustainability is important for sovereign credit ratings. Evidence of the direct importance of economic growth in determining credit ratings is mixed, but growth is a key driver of debt dynamics variables and therefore of ratings. This suggests that policy should focus on stimulating growth to reduce the gap between real growth and real interest rates as well as increasing the denominator of the debt to GDP ratio and increase the size of the tax base, which would improve government’s ability to service the interest payments on its debt.
- Full Text:
- Date Issued: 2019
Social movements and economic development in post apartheid South Africa: lessons from Latin America
- Authors: Makoni, Tinotenda Charity
- Date: 2019
- Subjects: South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994- , Social movements -- South Africa , Social movements -- Latin America , Economic development -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/76420 , vital:30561
- Description: The aim of this research is to bring the literature on political agency and economics together in an analysis of whether social movements can play an important role in economic development in post-apartheid South Africa. The entrenched discourse of sluggish growth and high inequality in post-apartheid South Africa can largely be attributed to the political decision to implement a neoliberal economic development orthodoxy. On the one hand, there is an urgent need to shift the economic development model to an alternate developmentalist model. However, no clearly articulated alternative developmental model has emerged. As a result, economically, South Africa is seemingly stuck. On the other hand, the selection of an economic development model and change in macroeconomic policies requires a political shift. Politically, formal politics has assumed the form of neoliberal democracy, characterised by a largely centralised state and the usurpation of the state and institutions by a national bourgeoisie. Social movements have emerged in response to the failure of neoliberalism to fulfil the promises of early post independent periods. They have been largely successful at highlighting the injustices and the inequalities in the country. However their ability to influence structural economic development has come into question. Firstly, social movements and their “politically destabilising distributive demands” have faced repression from the state as the state and institutions are aligned behind the interests of capital under a neoliberal democracy. Secondly, social movements in South Africa have been largely ideologically under-developed. They have been largely fragmented and tended to contest specific single issues rather than aiming to shift the deeper underlying systemic drivers behind the symptomatic immediate discomforts. The economic dimensions of such a shift are particularly unclear. This fragmentation and apparent lack of economic pragmatism make management or suppression of disruptive movements by the state relatively easy. The research uses a contrast between the Latin American social movements against a South African background in order to see what lessons South Africa can draw from social movements in Latin America. The Latin American case is cautiously more positive and provides comparably more sanguine lessons. In this way, this research seeks to construct a more comprehensive framework for the further study of social movements in South Africa and their potential impact on economic development in South Africa.
- Full Text:
- Date Issued: 2019
Social movements and economic development in post apartheid South Africa: lessons from Latin America
- Authors: Makoni, Tinotenda Charity
- Date: 2019
- Subjects: South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994- , Social movements -- South Africa , Social movements -- Latin America , Economic development -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/76420 , vital:30561
- Description: The aim of this research is to bring the literature on political agency and economics together in an analysis of whether social movements can play an important role in economic development in post-apartheid South Africa. The entrenched discourse of sluggish growth and high inequality in post-apartheid South Africa can largely be attributed to the political decision to implement a neoliberal economic development orthodoxy. On the one hand, there is an urgent need to shift the economic development model to an alternate developmentalist model. However, no clearly articulated alternative developmental model has emerged. As a result, economically, South Africa is seemingly stuck. On the other hand, the selection of an economic development model and change in macroeconomic policies requires a political shift. Politically, formal politics has assumed the form of neoliberal democracy, characterised by a largely centralised state and the usurpation of the state and institutions by a national bourgeoisie. Social movements have emerged in response to the failure of neoliberalism to fulfil the promises of early post independent periods. They have been largely successful at highlighting the injustices and the inequalities in the country. However their ability to influence structural economic development has come into question. Firstly, social movements and their “politically destabilising distributive demands” have faced repression from the state as the state and institutions are aligned behind the interests of capital under a neoliberal democracy. Secondly, social movements in South Africa have been largely ideologically under-developed. They have been largely fragmented and tended to contest specific single issues rather than aiming to shift the deeper underlying systemic drivers behind the symptomatic immediate discomforts. The economic dimensions of such a shift are particularly unclear. This fragmentation and apparent lack of economic pragmatism make management or suppression of disruptive movements by the state relatively easy. The research uses a contrast between the Latin American social movements against a South African background in order to see what lessons South Africa can draw from social movements in Latin America. The Latin American case is cautiously more positive and provides comparably more sanguine lessons. In this way, this research seeks to construct a more comprehensive framework for the further study of social movements in South Africa and their potential impact on economic development in South Africa.
- Full Text:
- Date Issued: 2019
A proposed model for enterprise resource planning benefits for SMEs
- Authors: De Matos, Paulo
- Date: 2017
- Subjects: Small business -- South Africa Enterprise resource planning -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/14971 , vital:28107
- Description: Small to medium sized enterprises (SMEs) play a significant role in global and national economies, both in developed and developing countries, contributing significantly to economic growth and job creation. Yet, SMEs face ongoing survival issues as their limited access to resources often constrains their ability to compete and realise their potential. Enterprise Resource Planning (ERP) systems are known to be a crucial component in realising benefits for any organisation and are seen as significant contributors to an organisation’s performance. However, only a portion of SMEs report that their value expectations have been met in adopting an ERP system. SMEs require a better understanding of how to extract value from ERP adoption in order to remain competitive. An on-going SME problem is a lack of low-level awareness of the benefits that an ERP system is capable of providing them. The problem is stated as “SMEs do not understand the benefits derived from the adoption of an ERP system”. The purpose of this treatise was to determine a clearer understanding of how ERP systems can be considered a technological innovation that may be exploited by an SME to deliver business value by increasing the performance of the SME and thereby increasing the SME’s competitive advantage. A literature review was conducted on ERP and SMEs which identified benefit models grounded in the theories of Diffusion of Innovation (DOI) and Resource Based View (RBV). DOI explains the benefits derived from ERP use as the technology diffuses throughout the social organisation and RBV measures the business value extracted from ERP adoption and use. A model for ERP benefits for SMEs was proposed based on the extant literature and empirical evaluation on a sample of 107 SYSPRO ERP users in South Africa. The model was statistically assessed as to the relationships between the independent variables of ease of use, collaboration, capabilities, efficiencies, analytics, industry sector and maturity against the dependent variable of ERP business value. The variables of analytics, capabilities and ease of use together explain 68.9% of the variance of ERP business value, while analytics and capabilities explain 53.8%. No significant relationship was found for efficiencies, collaboration, industry or maturity, being a measure of length of years’ experience in ERP use. The results indicate that SMEs perceive analytics to be a valuable determinant of ERP value contributing to the competitiveness of SMEs. The higher the SME focuses on analytics, the greater the organisation’s performance increases due to the enhancement of analytical-based decisions aiding in a better decision-making process. Capabilities are the degree to which an ERP system caters for the functional needs of the SME. This treatise argues that SMEs should pay particular focus on their operational requirements and whether the ERP system is capable of providing them as customisation of the ERP is costly. Organisational personnel utilising ERP must be comfortable utilising it. Perceptions as to an ERP’s complexity and usefulness define the ease-of-use. SMEs should consider the inherent aspects of a given ERP system that support the adoption rate of their personnel of an ERP system. Practically, SMEs should assess the degree of system intuitiveness both during ERP selection and during the adoption lifecycle phases. ERP providers should focus on the provisioning of aspects both in the software and during the implementation of an ERP system at an SME in ensuring the system is intuitive, useful, easy to use, functionally addresses the SME requirements simply and surfaces meaningful analytics in support of decision-making process.
- Full Text:
- Date Issued: 2017
- Authors: De Matos, Paulo
- Date: 2017
- Subjects: Small business -- South Africa Enterprise resource planning -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/14971 , vital:28107
- Description: Small to medium sized enterprises (SMEs) play a significant role in global and national economies, both in developed and developing countries, contributing significantly to economic growth and job creation. Yet, SMEs face ongoing survival issues as their limited access to resources often constrains their ability to compete and realise their potential. Enterprise Resource Planning (ERP) systems are known to be a crucial component in realising benefits for any organisation and are seen as significant contributors to an organisation’s performance. However, only a portion of SMEs report that their value expectations have been met in adopting an ERP system. SMEs require a better understanding of how to extract value from ERP adoption in order to remain competitive. An on-going SME problem is a lack of low-level awareness of the benefits that an ERP system is capable of providing them. The problem is stated as “SMEs do not understand the benefits derived from the adoption of an ERP system”. The purpose of this treatise was to determine a clearer understanding of how ERP systems can be considered a technological innovation that may be exploited by an SME to deliver business value by increasing the performance of the SME and thereby increasing the SME’s competitive advantage. A literature review was conducted on ERP and SMEs which identified benefit models grounded in the theories of Diffusion of Innovation (DOI) and Resource Based View (RBV). DOI explains the benefits derived from ERP use as the technology diffuses throughout the social organisation and RBV measures the business value extracted from ERP adoption and use. A model for ERP benefits for SMEs was proposed based on the extant literature and empirical evaluation on a sample of 107 SYSPRO ERP users in South Africa. The model was statistically assessed as to the relationships between the independent variables of ease of use, collaboration, capabilities, efficiencies, analytics, industry sector and maturity against the dependent variable of ERP business value. The variables of analytics, capabilities and ease of use together explain 68.9% of the variance of ERP business value, while analytics and capabilities explain 53.8%. No significant relationship was found for efficiencies, collaboration, industry or maturity, being a measure of length of years’ experience in ERP use. The results indicate that SMEs perceive analytics to be a valuable determinant of ERP value contributing to the competitiveness of SMEs. The higher the SME focuses on analytics, the greater the organisation’s performance increases due to the enhancement of analytical-based decisions aiding in a better decision-making process. Capabilities are the degree to which an ERP system caters for the functional needs of the SME. This treatise argues that SMEs should pay particular focus on their operational requirements and whether the ERP system is capable of providing them as customisation of the ERP is costly. Organisational personnel utilising ERP must be comfortable utilising it. Perceptions as to an ERP’s complexity and usefulness define the ease-of-use. SMEs should consider the inherent aspects of a given ERP system that support the adoption rate of their personnel of an ERP system. Practically, SMEs should assess the degree of system intuitiveness both during ERP selection and during the adoption lifecycle phases. ERP providers should focus on the provisioning of aspects both in the software and during the implementation of an ERP system at an SME in ensuring the system is intuitive, useful, easy to use, functionally addresses the SME requirements simply and surfaces meaningful analytics in support of decision-making process.
- Full Text:
- Date Issued: 2017
Exploring a capacity development framework for South African foreign economic representatives
- Authors: Williams, Mario Rene
- Date: 2017
- Subjects: Economic development -- South Africa , Finance, Public South Africa -- Economic aspects
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/13491 , vital:27210
- Description: Commercial trading in various formats has characterised relations between humans for centuries. However, in a world driven by higher levels of consumption, and where citizens demand higher returns for their hard-earned taxes, governments are becoming more active in ensuring favourable conditions for their own enterprises, either operating or seeking to operate, in foreign markets, as well as local enterprises that seek to extract value from foreign markets. The past failure of the markets to self-regulate, with the recent events of the 2008/09 market crash, gave fresh impetus for governments to play a more active role in ensuring favourable outcomes for their local economies. To be effective, requires the deployments of capable officials to fulfil this mandate. However, given that governments have traditionally not operated in the sphere of what is termed as ‘commercial diplomacy’, it is evident that a concerted effort needs to be made to have a skilled and capable workforce which can function in both the commercial and diplomatic market spaces across the world. Against the background sketched above, the South African government, with the dti spearheading the initiative, has been running capacity building programmes to train officials as designate FERs, to function as commercial diplomats in targeted foreign markets. This contrasts with its sister-department, DIRCO, which has established 126 foreign missions focusing on political diplomacy. Anecdotal evidence, and previous capacity building reports, have highlighted the need for a framework to regulate and inform the development of officials. Due to the framework’s broader focus, and the acknowledgement of the rich experiences of the officials being trained in the programme, it has been termed as capacity development. An initial review of the topic, revealed that there had been limited research into a framework that regulates the capacity development of foreign economic representatives (FERs), the term used for commercial diplomats of the South African government. Thus, the purpose of this study was to explore a capacity development framework (CDF) for South African FERs. This exploratory capacity development framework will then be tested, to inform the capacity development programme used for the training of designated FERs. To achieve this goal, a literature review of academic sources of information regarding the concepts of commercial diplomacy, capacity development and conceptual frameworks, was conducted. This led to the development of a qualitative questionnaire which was then distributed to all currently posted (27) and returned FERs (33), with 18 completed questionnaires returned. The questionnaire contained both closed and open-ended statements that delved deeper into the experiences and opinions held by the respondents. Using the dti as a case study, the content analysis method, which uses open coding, was applied to identify the theme and codes emanating from the data. This was assessed against the research questions (RQs) constructed in the research proposal, and was found to be in line with the sentiments flowing from the research data. The theme, indicated as capacity development and its concomitant codes (Process, Content, Technology and Management Support), thus formed the basis and skeleton of the exploratory capacity development framework. The codes were further analysed and sub-codes identified, which were incorporated into the exploratory capacity development framework. The analysis further revealed that, while the dti is committed to ensuring the designate FERs are adequately capacitated before being posted, much more could be done to improve the efficacy of the training provided. To this end, a number of gaps were identified from the data and these will need to be addressed to ensure that an effective capacity development programme is developed.
- Full Text:
- Date Issued: 2017
- Authors: Williams, Mario Rene
- Date: 2017
- Subjects: Economic development -- South Africa , Finance, Public South Africa -- Economic aspects
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/13491 , vital:27210
- Description: Commercial trading in various formats has characterised relations between humans for centuries. However, in a world driven by higher levels of consumption, and where citizens demand higher returns for their hard-earned taxes, governments are becoming more active in ensuring favourable conditions for their own enterprises, either operating or seeking to operate, in foreign markets, as well as local enterprises that seek to extract value from foreign markets. The past failure of the markets to self-regulate, with the recent events of the 2008/09 market crash, gave fresh impetus for governments to play a more active role in ensuring favourable outcomes for their local economies. To be effective, requires the deployments of capable officials to fulfil this mandate. However, given that governments have traditionally not operated in the sphere of what is termed as ‘commercial diplomacy’, it is evident that a concerted effort needs to be made to have a skilled and capable workforce which can function in both the commercial and diplomatic market spaces across the world. Against the background sketched above, the South African government, with the dti spearheading the initiative, has been running capacity building programmes to train officials as designate FERs, to function as commercial diplomats in targeted foreign markets. This contrasts with its sister-department, DIRCO, which has established 126 foreign missions focusing on political diplomacy. Anecdotal evidence, and previous capacity building reports, have highlighted the need for a framework to regulate and inform the development of officials. Due to the framework’s broader focus, and the acknowledgement of the rich experiences of the officials being trained in the programme, it has been termed as capacity development. An initial review of the topic, revealed that there had been limited research into a framework that regulates the capacity development of foreign economic representatives (FERs), the term used for commercial diplomats of the South African government. Thus, the purpose of this study was to explore a capacity development framework (CDF) for South African FERs. This exploratory capacity development framework will then be tested, to inform the capacity development programme used for the training of designated FERs. To achieve this goal, a literature review of academic sources of information regarding the concepts of commercial diplomacy, capacity development and conceptual frameworks, was conducted. This led to the development of a qualitative questionnaire which was then distributed to all currently posted (27) and returned FERs (33), with 18 completed questionnaires returned. The questionnaire contained both closed and open-ended statements that delved deeper into the experiences and opinions held by the respondents. Using the dti as a case study, the content analysis method, which uses open coding, was applied to identify the theme and codes emanating from the data. This was assessed against the research questions (RQs) constructed in the research proposal, and was found to be in line with the sentiments flowing from the research data. The theme, indicated as capacity development and its concomitant codes (Process, Content, Technology and Management Support), thus formed the basis and skeleton of the exploratory capacity development framework. The codes were further analysed and sub-codes identified, which were incorporated into the exploratory capacity development framework. The analysis further revealed that, while the dti is committed to ensuring the designate FERs are adequately capacitated before being posted, much more could be done to improve the efficacy of the training provided. To this end, a number of gaps were identified from the data and these will need to be addressed to ensure that an effective capacity development programme is developed.
- Full Text:
- Date Issued: 2017
Appraising the national road transport system in the light of the South African economic development plan
- Authors: Potgieter, Andries Hendrik
- Date: 2016
- Subjects: Transportation -- South Africa , Economic development -- South Africa , Infrastructure (Economics) -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/3655 , vital:20450
- Description: Since the mid 70’s politicians have realized how important transport has become in the economy of South Africa and the advantages it has on growth, job creation and infrastructure. The result was involvement in the rules and regulations that govern South African transport in our country today. Economic growth has become a critical factor for the survival of economies as well as the future prospects of generations to come. The global recession which had a direct and indirect effect on South Africa has highlighted the importance. The question on how the National Development Plan could have an influence on local and national economic growth has developed as well as what the impact will be of the contribution road transport can make on the growth of the South African society and the economy. When the current road transport sector is taken into consideration, the need for a constructive plan that can assist transporters, drivers and businesses to grow and expand has been identified. The purpose of this study is thus to determine what the current economic situation in the world and in South Africa is as well as how the current political spheres are contributing to the national economy. An in-depth analysis of the National Development Plan has been done with emphasis on the effect on transport in general and the effect on road transport in South Africa. In order to accomplish this objective a detailed literature study was done which highlighted the academics information that pertains to the above mentioned topics. An empirical study that would measure the thought process and feelings about the National Development Plan and road transport has been conducted by means of a questionnaire. The results of the study have indicated that the National Development Plan could be an important tool and could have an enormous positive effect on the overall economic situation of South Africa and its citizens. In addition, the study has revealed that in the long term the effect of the plan could be to the advantage of the road transport sector. Factors that could contribute to the success would be features such as the planned improvements on the main transport corridors, upgrade of infrastructure and the controlling of environmental matters would have give a positive ring to it. On the other hand, recommendations to rectify and improve other issues such as corruption, leadership, maintenance backlogs and stricter laws and policies have been identified that are hindering businesses to grow and expand. Literature and data gained through the empirical study has indicated that the National Development Plan will improve South Africa’s economic situation. Respondents were optimistic about the plan and the overall feeling were that the plan will succeed in improving the road transport sector thus contribute to the National Development Plan objective to eliminate poverty and inequality by 2030.
- Full Text:
- Date Issued: 2016
- Authors: Potgieter, Andries Hendrik
- Date: 2016
- Subjects: Transportation -- South Africa , Economic development -- South Africa , Infrastructure (Economics) -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/3655 , vital:20450
- Description: Since the mid 70’s politicians have realized how important transport has become in the economy of South Africa and the advantages it has on growth, job creation and infrastructure. The result was involvement in the rules and regulations that govern South African transport in our country today. Economic growth has become a critical factor for the survival of economies as well as the future prospects of generations to come. The global recession which had a direct and indirect effect on South Africa has highlighted the importance. The question on how the National Development Plan could have an influence on local and national economic growth has developed as well as what the impact will be of the contribution road transport can make on the growth of the South African society and the economy. When the current road transport sector is taken into consideration, the need for a constructive plan that can assist transporters, drivers and businesses to grow and expand has been identified. The purpose of this study is thus to determine what the current economic situation in the world and in South Africa is as well as how the current political spheres are contributing to the national economy. An in-depth analysis of the National Development Plan has been done with emphasis on the effect on transport in general and the effect on road transport in South Africa. In order to accomplish this objective a detailed literature study was done which highlighted the academics information that pertains to the above mentioned topics. An empirical study that would measure the thought process and feelings about the National Development Plan and road transport has been conducted by means of a questionnaire. The results of the study have indicated that the National Development Plan could be an important tool and could have an enormous positive effect on the overall economic situation of South Africa and its citizens. In addition, the study has revealed that in the long term the effect of the plan could be to the advantage of the road transport sector. Factors that could contribute to the success would be features such as the planned improvements on the main transport corridors, upgrade of infrastructure and the controlling of environmental matters would have give a positive ring to it. On the other hand, recommendations to rectify and improve other issues such as corruption, leadership, maintenance backlogs and stricter laws and policies have been identified that are hindering businesses to grow and expand. Literature and data gained through the empirical study has indicated that the National Development Plan will improve South Africa’s economic situation. Respondents were optimistic about the plan and the overall feeling were that the plan will succeed in improving the road transport sector thus contribute to the National Development Plan objective to eliminate poverty and inequality by 2030.
- Full Text:
- Date Issued: 2016
The effect of bond market on economic growth in South Africa
- Authors: Dingela, Siyasanga
- Date: 2016
- Subjects: Bond market -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/7218 , vital:21306
- Description: This paper investigates the effect of bond market on economic growth in South Africa. Quarterly data for South Africa for the period 2003-2014 was used to develop a general- to- specific Auto-Regressive Distribution Lag (ARDL) approach. The empirical results confirm that there is a positive relationship between Bond market and economic growth in South Africa. A co-integrated relationship between economic growth, stock market and banking sector was noticed in both the long-run and short-runs.
- Full Text:
- Date Issued: 2016
- Authors: Dingela, Siyasanga
- Date: 2016
- Subjects: Bond market -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/7218 , vital:21306
- Description: This paper investigates the effect of bond market on economic growth in South Africa. Quarterly data for South Africa for the period 2003-2014 was used to develop a general- to- specific Auto-Regressive Distribution Lag (ARDL) approach. The empirical results confirm that there is a positive relationship between Bond market and economic growth in South Africa. A co-integrated relationship between economic growth, stock market and banking sector was noticed in both the long-run and short-runs.
- Full Text:
- Date Issued: 2016
The relationship between electricity supply and economic growth in South Africa
- Authors: Khobai, Hlalefang
- Date: 2016
- Subjects: Economic development -- South Africa , Electric power failures -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/9251 , vital:26483
- Description: Since democratisation of South Africa in 1994, the economy of South Africa underwent significant structural changes. Among these structural changes was electrification for the poor rural areas. During the apartheid era, about two-thirds of the nation lacked access to electricity and hence, provision for electricity to everyone was considered a crucial part of the economic development, post 1994. Since then economic growth and the demand for electricity in South Africa have been increasing at an unprecedented rate. The electricity supply did not increase proportionally to the increase in the consumption of electricity. In responding to the high increase in the demand for electricity, the electricity utility planned to build new power stations and put back in use the ones which were mothballed. But unfortunately the plan for investment in these power stations was late and in 2008, the existing power stations could not manage to supply enough electricity. The demand for electricity was such that it nearly damaged the power generating circuit and the electricity supply utility had to resort to load shedding. The imbalance between electricity supply and demand led to industrial sectors losing on production and as a result led to a downturn in economic growth. It also led to an increase in electricity prices which had a negative effect on individual and private sectors’ purchasing power. It is against this background that this study is designed to investigate the long term relationship between economic growth and electricity supply. The additional variables such as electricity prices, trade openness, capital and employment were included as intermittent variables to form a multivariate framework. This study also assesses the Granger causality between these variables to determine which variable supersedes the other. Two models were applied in this study: The Auto-regressive Distributed Lag (ARDL) bounds approach and the Vector Error Correction Model (VECM) Granger-causality. The ARDL bounds technique was used to detect the long term relationship between economic growth, electricity supply, electricity prices, trade openness, capital and employment using annual data from 1985 to 2014. The ARDL technique was chosen over the conventional models such as Engle and Granger (1987) and Johansen (1988) for the research for the following reasons: Firstly, the ARDL technique uses a single reduced form of equation to examine the long term relationship of the variables as opposed to the conventional Johansen test that employs a system of equations. Secondly, it is suitable to use for testing co-integration when a small sample data is used. Thirdly, it does not require the underlying variables to be integrated of similar order e.g. integrated of order zero I(0), integrated of order one I(1) or fractionally integrated, for it to be applicable. Lastly, it does not rely on the properties of unit root datasets and this makes it possible for the Granger-causality to be applied in testing the long term relationships between the variables. The VECM Granger-causality is used to examine the Granger-causality between the chosen variables. It was chosen for its ability to develop longer term forecasting when dealing with an unconstrained model. The unit root results confirmed that the variables were stationary at first difference using Augmented Dickey Fuller (ADF), Phillips and Perron (PP) and Kwiatkowski-Phillips-Schmidt-Shit (KPSS). The ARDL bound approach outcomes revealed that economic growth, electricity supply, trade openness, electricity prices, employment and capital move together in the long term. There were three co-integrated equations under the export and trade models while under the import model there was one co-integrated equation. The results are such that electricity prices have a negative impact on economic growth. The results further evidenced that; electricity supply, trade openness, employment and capital have a positive impact on economic growth in the long term. The VECM Granger causality findings suggested a unidirectional causality flowing from electricity supply, trade, exports, electricity prices, employment and capital to economic growth in the long term. There was another unidirectional causality established flowing from economic growth, trade openness, electricity prices, employment and capital to electricity supply. A one-way causality flowing from economic growth, electricity supply, electricity prices, employment and capital to export was evidenced. Overall, the study’s results of bidirectional Granger-causality between electricity supply and economic growth have a number of implications for forecasters and policy makers. This feedback hypothesis implies that the high level of economic growth leads to a high level of electricity supply, which would stimulate economic growth. Hence, South Africa demonstrates a kind of electricity dependence in a manner that a sufficiently large supply of electricity seems to ensure high economic growth. Electricity supply is a vitally important factor for economic growth in South Africa. It is therefore necessary that South African policy makers formulate investor friendly policies that will encourage, promote and attract capital inflows to stimulate electricity supply. The South African government needs to primarily deregulate the electricity supply industry which is owned by Eskom (a monopoly), and allow more investors into this industry. The government should promote a change to other forms of energy sources such as renewable energy sources which will play an important role in restoring the balance between electricity supply and consumption. Moreover, it is recommended that the electricity regulator should take steps to curb the severe electricity price increases and to ensure prices affordable to the poor communities. The policy makers need to implement some investor friendly policies that will encourage and promote capital formation. Furthermore, the government should invest towards more job creating sectors such as (Small and Medium Enterprises) SMEs. Finally, the government should take into consideration the importance of trade openness to attract international investments into the economy. It is hoped that the findings of this study would prove beneficial to policy makers in South Africa and elsewhere in the world where power outages are experienced, and assist them in combating the problem.
- Full Text:
- Date Issued: 2016
- Authors: Khobai, Hlalefang
- Date: 2016
- Subjects: Economic development -- South Africa , Electric power failures -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/9251 , vital:26483
- Description: Since democratisation of South Africa in 1994, the economy of South Africa underwent significant structural changes. Among these structural changes was electrification for the poor rural areas. During the apartheid era, about two-thirds of the nation lacked access to electricity and hence, provision for electricity to everyone was considered a crucial part of the economic development, post 1994. Since then economic growth and the demand for electricity in South Africa have been increasing at an unprecedented rate. The electricity supply did not increase proportionally to the increase in the consumption of electricity. In responding to the high increase in the demand for electricity, the electricity utility planned to build new power stations and put back in use the ones which were mothballed. But unfortunately the plan for investment in these power stations was late and in 2008, the existing power stations could not manage to supply enough electricity. The demand for electricity was such that it nearly damaged the power generating circuit and the electricity supply utility had to resort to load shedding. The imbalance between electricity supply and demand led to industrial sectors losing on production and as a result led to a downturn in economic growth. It also led to an increase in electricity prices which had a negative effect on individual and private sectors’ purchasing power. It is against this background that this study is designed to investigate the long term relationship between economic growth and electricity supply. The additional variables such as electricity prices, trade openness, capital and employment were included as intermittent variables to form a multivariate framework. This study also assesses the Granger causality between these variables to determine which variable supersedes the other. Two models were applied in this study: The Auto-regressive Distributed Lag (ARDL) bounds approach and the Vector Error Correction Model (VECM) Granger-causality. The ARDL bounds technique was used to detect the long term relationship between economic growth, electricity supply, electricity prices, trade openness, capital and employment using annual data from 1985 to 2014. The ARDL technique was chosen over the conventional models such as Engle and Granger (1987) and Johansen (1988) for the research for the following reasons: Firstly, the ARDL technique uses a single reduced form of equation to examine the long term relationship of the variables as opposed to the conventional Johansen test that employs a system of equations. Secondly, it is suitable to use for testing co-integration when a small sample data is used. Thirdly, it does not require the underlying variables to be integrated of similar order e.g. integrated of order zero I(0), integrated of order one I(1) or fractionally integrated, for it to be applicable. Lastly, it does not rely on the properties of unit root datasets and this makes it possible for the Granger-causality to be applied in testing the long term relationships between the variables. The VECM Granger-causality is used to examine the Granger-causality between the chosen variables. It was chosen for its ability to develop longer term forecasting when dealing with an unconstrained model. The unit root results confirmed that the variables were stationary at first difference using Augmented Dickey Fuller (ADF), Phillips and Perron (PP) and Kwiatkowski-Phillips-Schmidt-Shit (KPSS). The ARDL bound approach outcomes revealed that economic growth, electricity supply, trade openness, electricity prices, employment and capital move together in the long term. There were three co-integrated equations under the export and trade models while under the import model there was one co-integrated equation. The results are such that electricity prices have a negative impact on economic growth. The results further evidenced that; electricity supply, trade openness, employment and capital have a positive impact on economic growth in the long term. The VECM Granger causality findings suggested a unidirectional causality flowing from electricity supply, trade, exports, electricity prices, employment and capital to economic growth in the long term. There was another unidirectional causality established flowing from economic growth, trade openness, electricity prices, employment and capital to electricity supply. A one-way causality flowing from economic growth, electricity supply, electricity prices, employment and capital to export was evidenced. Overall, the study’s results of bidirectional Granger-causality between electricity supply and economic growth have a number of implications for forecasters and policy makers. This feedback hypothesis implies that the high level of economic growth leads to a high level of electricity supply, which would stimulate economic growth. Hence, South Africa demonstrates a kind of electricity dependence in a manner that a sufficiently large supply of electricity seems to ensure high economic growth. Electricity supply is a vitally important factor for economic growth in South Africa. It is therefore necessary that South African policy makers formulate investor friendly policies that will encourage, promote and attract capital inflows to stimulate electricity supply. The South African government needs to primarily deregulate the electricity supply industry which is owned by Eskom (a monopoly), and allow more investors into this industry. The government should promote a change to other forms of energy sources such as renewable energy sources which will play an important role in restoring the balance between electricity supply and consumption. Moreover, it is recommended that the electricity regulator should take steps to curb the severe electricity price increases and to ensure prices affordable to the poor communities. The policy makers need to implement some investor friendly policies that will encourage and promote capital formation. Furthermore, the government should invest towards more job creating sectors such as (Small and Medium Enterprises) SMEs. Finally, the government should take into consideration the importance of trade openness to attract international investments into the economy. It is hoped that the findings of this study would prove beneficial to policy makers in South Africa and elsewhere in the world where power outages are experienced, and assist them in combating the problem.
- Full Text:
- Date Issued: 2016
Assessing the impact of the transition from MIDP to APDP in the South African automotive industry
- Authors: Strydom, Elwin
- Date: 2015
- Subjects: Automobile industry and trade -- South Africa , Sustainable development -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/5908 , vital:21010
- Description: The South African automotive industry is by no means a ―cut and paste‖ version of their overseas counterparts. The industry and the market are very complex. The historical background of the industry is such that companies have difficulty forming partnerships and joint ventures with bigger international conglomerates. The difficulty with this kind of mindset is that it is restricting growth and development of the nation as a whole. Globalisation is a future we cannot be avoided. Should the nation continue to reject it and embrace the mindset of countries in Africa, South Africa (SA) will continue on the path that the rest of Africa is heading, a path that leading to self-destruct and segregation. Even though SA is a developing country, it is in some areas as developed as many other first world countries. For a country to generate wealth it needs to be innovative and develop an entrepreneurial consciousness. A young country like South Africa needs creative thinkers and opportunists that can see into the future, seizing every opportunity, to grow and develop new ideas and business. In order for a country to grow it needs a leadership that is to nurture the baby of innovation. If South Africa wants to be part of the global village it need to develop a trade policy that welcomes trade and at the same time creates stable and sustainable jobs. The environment for investments needs to be cultivated in a problem-free and growth prone nation. This can only happen when the educational level of the nation is improved. The fact that so many skilled workers need to be imported creates tension in the labour market. People with talent need to have a reason to stay in the country. Their salaries should match that of their overseas counterparts. Furthermore, with the same skill level and work ethic, should have the same rewards and remuneration.
- Full Text:
- Date Issued: 2015
- Authors: Strydom, Elwin
- Date: 2015
- Subjects: Automobile industry and trade -- South Africa , Sustainable development -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/5908 , vital:21010
- Description: The South African automotive industry is by no means a ―cut and paste‖ version of their overseas counterparts. The industry and the market are very complex. The historical background of the industry is such that companies have difficulty forming partnerships and joint ventures with bigger international conglomerates. The difficulty with this kind of mindset is that it is restricting growth and development of the nation as a whole. Globalisation is a future we cannot be avoided. Should the nation continue to reject it and embrace the mindset of countries in Africa, South Africa (SA) will continue on the path that the rest of Africa is heading, a path that leading to self-destruct and segregation. Even though SA is a developing country, it is in some areas as developed as many other first world countries. For a country to generate wealth it needs to be innovative and develop an entrepreneurial consciousness. A young country like South Africa needs creative thinkers and opportunists that can see into the future, seizing every opportunity, to grow and develop new ideas and business. In order for a country to grow it needs a leadership that is to nurture the baby of innovation. If South Africa wants to be part of the global village it need to develop a trade policy that welcomes trade and at the same time creates stable and sustainable jobs. The environment for investments needs to be cultivated in a problem-free and growth prone nation. This can only happen when the educational level of the nation is improved. The fact that so many skilled workers need to be imported creates tension in the labour market. People with talent need to have a reason to stay in the country. Their salaries should match that of their overseas counterparts. Furthermore, with the same skill level and work ethic, should have the same rewards and remuneration.
- Full Text:
- Date Issued: 2015
Impact of the global financial crisis on economic growth: implications for South Africa and other developing economies
- Authors: Savy, Neil Edward
- Date: 2015
- Subjects: Global Financial Crisis, 2008-2009 , Gross domestic product -- Developing countries , Gross domestic product -- South Africa , Economic forecasting -- South Africa , Economic forecasting -- Developing countries , Economic development -- South Africa , Economic development -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1117 , http://hdl.handle.net/10962/d1017542
- Description: This paper examines the impact of the recent global financial crisis on economic growth in developing economies and South Africa in particular. It explores whether the events experienced by developing countries conform to what would be anticipated from economic theory. This is done by firstly comparing country growth forecasts for 2012 captured in 2008 at the beginning of the crisis to actual 2012 GDP growth data. Secondly, panel data analysis is used to investigate three important transmission channels, namely those of Trade, Capital Flows and Exchange Rates for 25 developing economies. The results suggest that economic forecasters in 2008 on average overestimated GDP growth for 2012 by -21.6 percent (excluding Venezuela). The only important transmission channel identified using Trend analysis to explain this negative impact on growth was capital flows. However when using Panel regression analysis all three channels were found to explain the economic impact of the crisis on GDP growth for developing countries, conforming to economic theory. It was discovered that, contrary to what was initially expected, portfolio inflows actually increased for most developing countries during the crisis. This possibly can be explained by the impact of quantitative easing in the USA. South Africa was found to have been negatively impacted by the global financial crisis, but to a lesser extent when compared to most other developing countries. The findings are important for global investors looking for new investment opportunities. The extent to which individual economies are “decoupled” from developed economies’ performance provides possible opportunities for diversifying risk through a geographic spread of investor portfolios.
- Full Text:
- Date Issued: 2015
- Authors: Savy, Neil Edward
- Date: 2015
- Subjects: Global Financial Crisis, 2008-2009 , Gross domestic product -- Developing countries , Gross domestic product -- South Africa , Economic forecasting -- South Africa , Economic forecasting -- Developing countries , Economic development -- South Africa , Economic development -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1117 , http://hdl.handle.net/10962/d1017542
- Description: This paper examines the impact of the recent global financial crisis on economic growth in developing economies and South Africa in particular. It explores whether the events experienced by developing countries conform to what would be anticipated from economic theory. This is done by firstly comparing country growth forecasts for 2012 captured in 2008 at the beginning of the crisis to actual 2012 GDP growth data. Secondly, panel data analysis is used to investigate three important transmission channels, namely those of Trade, Capital Flows and Exchange Rates for 25 developing economies. The results suggest that economic forecasters in 2008 on average overestimated GDP growth for 2012 by -21.6 percent (excluding Venezuela). The only important transmission channel identified using Trend analysis to explain this negative impact on growth was capital flows. However when using Panel regression analysis all three channels were found to explain the economic impact of the crisis on GDP growth for developing countries, conforming to economic theory. It was discovered that, contrary to what was initially expected, portfolio inflows actually increased for most developing countries during the crisis. This possibly can be explained by the impact of quantitative easing in the USA. South Africa was found to have been negatively impacted by the global financial crisis, but to a lesser extent when compared to most other developing countries. The findings are important for global investors looking for new investment opportunities. The extent to which individual economies are “decoupled” from developed economies’ performance provides possible opportunities for diversifying risk through a geographic spread of investor portfolios.
- Full Text:
- Date Issued: 2015
Development finance in small and medium enterprises in Matjhabeng Municipality
- Babalola, Oluwanifesimi Omolade
- Authors: Babalola, Oluwanifesimi Omolade
- Date: 2014
- Subjects: Business enterprises -- South Africa -- Finance , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9187 , http://hdl.handle.net/10948/d1020215
- Description: It has been generally accepted within the developed and developing countries of the world that SMES contributes significantly to employment creation as the world population increases and that it also contributes to the economic growth of the areas they are situated in. Finance is the blood (life) of any business, for a business to be successful it needs steady successful access to funds and post financial support which leads to actualization of ideas, leads to investment and expansion, improves access to market amongst others. This is why the impact of development finance can never be over emphasized. The aims of the study are: To understand the extent to which small and medium businesses are supported through the availability of financial assistance in Matjabeng Municipality. To establish the survival rates of businesses that has been funded and or supported and whether they are or not sustainable. In achieving the aims and objectives of the research, the researcher looked at development funds both from the supply side and the demand side. The supply side which involved semi structured interviews with consultants of government parastatals (the FDC and DETEA) who are involved in financing Small Medium Enterprises in Matjhabeng municipality. The demand side involved administering of questionnaires to Entrepreneurs in the municipality who are registered with the Local Economic Department (LED), which led to the acceptance of the hypothesis of the research that development finance actually helps in the growth of small medium enterprises but in conjunction with post financial support such as bookkeeping, accounting, monitoring and evaluation. The researcher also discovered some findings amongst others which includes: The most effective ways entrepreneurs heard about funding in the municipality are through the media and word of mouth. Most of the entrepreneurs that received some type of funding are startups. More entrepreneurs that had access to funds also got some post financial business support. Financial assistance to entrepreneurs yielded improvements after respondents received financial assistance, the range of goods offered was improved and more jobs were created, entrepreneurs were able to obtain better business premises either by renting or buying and entrepreneurs had access to better equipment. Some of the recommendations of this study includes; The municipal government should help small and medium enterprises in the municipality by linking them to new markets. Effective monitoring and evaluation systems should be put in place by development funders and non-financial support services. Entrepreneurial skills development should be provided by the public and private agencies by organizing workshops for aspiring entrepreneurs in order to expose them to business opportunities that are sustainable and viable.
- Full Text:
- Date Issued: 2014
- Authors: Babalola, Oluwanifesimi Omolade
- Date: 2014
- Subjects: Business enterprises -- South Africa -- Finance , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9187 , http://hdl.handle.net/10948/d1020215
- Description: It has been generally accepted within the developed and developing countries of the world that SMES contributes significantly to employment creation as the world population increases and that it also contributes to the economic growth of the areas they are situated in. Finance is the blood (life) of any business, for a business to be successful it needs steady successful access to funds and post financial support which leads to actualization of ideas, leads to investment and expansion, improves access to market amongst others. This is why the impact of development finance can never be over emphasized. The aims of the study are: To understand the extent to which small and medium businesses are supported through the availability of financial assistance in Matjabeng Municipality. To establish the survival rates of businesses that has been funded and or supported and whether they are or not sustainable. In achieving the aims and objectives of the research, the researcher looked at development funds both from the supply side and the demand side. The supply side which involved semi structured interviews with consultants of government parastatals (the FDC and DETEA) who are involved in financing Small Medium Enterprises in Matjhabeng municipality. The demand side involved administering of questionnaires to Entrepreneurs in the municipality who are registered with the Local Economic Department (LED), which led to the acceptance of the hypothesis of the research that development finance actually helps in the growth of small medium enterprises but in conjunction with post financial support such as bookkeeping, accounting, monitoring and evaluation. The researcher also discovered some findings amongst others which includes: The most effective ways entrepreneurs heard about funding in the municipality are through the media and word of mouth. Most of the entrepreneurs that received some type of funding are startups. More entrepreneurs that had access to funds also got some post financial business support. Financial assistance to entrepreneurs yielded improvements after respondents received financial assistance, the range of goods offered was improved and more jobs were created, entrepreneurs were able to obtain better business premises either by renting or buying and entrepreneurs had access to better equipment. Some of the recommendations of this study includes; The municipal government should help small and medium enterprises in the municipality by linking them to new markets. Effective monitoring and evaluation systems should be put in place by development funders and non-financial support services. Entrepreneurial skills development should be provided by the public and private agencies by organizing workshops for aspiring entrepreneurs in order to expose them to business opportunities that are sustainable and viable.
- Full Text:
- Date Issued: 2014
Establishing perceptions of an entrepreneur using word associations
- Authors: Goliath, Jasmine Estonia
- Date: 2014
- Subjects: Entrepreneurship -- South Africa , Economic development -- South Africa , Businesspeople -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9321 , http://hdl.handle.net/10948/d1020785
- Description: Entrepreneurship as a source of economic growth and competitiveness as well as job creation and the advancement of social interests is well documented. Despite these important contributions to the economies of countries, a shortage of entrepreneurial activity exists across borders and specifically in developing countries such as South Africa. The purpose of this study was to determine the perception and image of an entrepreneur in the eyes of various stakeholders. The reasoning behind this was that if the image of an entrepreneur could be determined, one could establish whether the image positively or negatively influences entrepreneurial intentions as well as potential future entrepreneurial activity. More specifically, the primary objective was to identify the perception and image that potential entrepreneurs (students) and existing entrepreneurs (small business owners) have of an entrepreneur. In the body of knowledge or general literature on entrepreneurship, the most commonly discussed topics are the nature and importance of entrepreneurship, the attributes (personality traits, characteristics and skills) associated with an entrepreneur, various push and pull factors, various rewards and drawbacks of such a career and the challenges entrepreneurs face. It is these aspects of entrepreneurship that stakeholders will most likely have been exposed to, and that most possibly have influenced their perception and image of an entrepreneur. The aforementioned aspects provided an overview of the theoretical body of knowledge on which the perception and image of an entrepreneur is based. The present study adopted a qualitative research paradigm with a phenomenological approach to achieve the research objectives of the study. Within this context, the study made use of a qualitative method for data collection and a quantitative method for data analysis. As such, a mixed methods approach was adopted. More specifically, a qualitative dominant mixed research method was implemented. A continuous word association test, which is a projective technique, was adopted as the qualitative means of data collection. This test involved asking participants to recall the words that come to mind when presented with the word “entrepreneur”. This method was selected because of its ability to reveal both affective and cognitive associations with the concept “entrepreneur”. A quantitative summative (manifest) content analysis was used as the quantitative research method for analysing the data. The continuous word association test was conducted among three sample groups, namely students prior to commencing, and students after completing a module in entrepreneurship, and small business owners. Student and small business owner participants were asked to write down as many words or phrases as possible that came to mind when they thought of the word “entrepreneur”, which was the stimulus word, within a ten-minute period. These responses were then collated and coded by developing a coding framework based on brand image and entrepreneurship literature. In studies on brand image, the components of image are considered to be tristructured in nature, consisting of cognitive (what the individual knows), affective (how the individual feels) and holistic (overall symbolism, combination of affective and cognitive) evaluations. The words generated by the participants in this study were broadly coded according to these categories and further subcategorised by searching for themes within the broad categories, which was facilitated and guided by an in-depth investigation of the entrepreneurship literature. The findings of this study show that the words generated by all three groups of participants were mostly of a cognitive nature, followed by words of a general or affective nature. As such, the vast majority of words generated by all three groups related to what the participants knew about an entrepreneur (cognitive) versus how they felt about one (affective), and were grounded in the management or entrepreneurship literature. When comparing the top ten words most frequently associated with the term “entrepreneur” by the three groups of participants, the attribute risk-taker was the most frequently recalled word among all three groups. Students prior to undertaking the entrepreneurship module associated an entrepreneur with being creative and a risk-taker, having a business enterprise and being involved in the selling of goods and services. Students after completing the module in entrepreneurship associated an entrepreneur with being profit-orientated, a risk-taker, innovative and original, and being opportunistic. Small business owners, on the other hand, associated an entrepreneur with being a risk-taker, innovative and original, goal- and achievement-orientated and profit-orientated. The findings show that all groups of participants associated an entrepreneur principally with certain attributes rather than with learned skills and competencies, and that all groups had a more positive than negative image of an entrepreneur. It was also found that exposure to entrepreneurship literature has an influence on the perception and image that students have of an entrepreneur. Because the words recalled by students after completing the entrepreneurship module were more in line with those recalled by small business owners, than with those recalled by students before starting the module, it can be suggested that entrepreneurship literature contributes to a more realistic image of an entrepreneur among students. This study has contributed to the field of entrepreneurship research by adopting a qualitative dominant research paradigm in conjunction with quantitative research methods to explore the complexity of the term “entrepreneur”. Furthermore, this study has been able to establish how individuals feel about entrepreneurship, in terms of being either positive or negative, by adding an affective aspect to the cognitive aspect of entrepreneurial decision-making. By conducting a continuous word association test among students prior to beginning and after completing a module in entrepreneurship, the entrepreneurial knowledge of students before being exposed to entrepreneurship literature was established, and subsequently the effectiveness of the entrepreneurship module determined. It is hoped that the findings of this study have added value to the entrepreneurship body of knowledge and can be used in future studies as a tool to address the problem of low entrepreneurial intention and activity among South Africans. Furthermore, it is hoped that by creating a positive image of an entrepreneur, entrepreneurship as a desirable career choice can be promoted and an entrepreneurial culture developed within communities and broader society.
- Full Text:
- Date Issued: 2014
- Authors: Goliath, Jasmine Estonia
- Date: 2014
- Subjects: Entrepreneurship -- South Africa , Economic development -- South Africa , Businesspeople -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9321 , http://hdl.handle.net/10948/d1020785
- Description: Entrepreneurship as a source of economic growth and competitiveness as well as job creation and the advancement of social interests is well documented. Despite these important contributions to the economies of countries, a shortage of entrepreneurial activity exists across borders and specifically in developing countries such as South Africa. The purpose of this study was to determine the perception and image of an entrepreneur in the eyes of various stakeholders. The reasoning behind this was that if the image of an entrepreneur could be determined, one could establish whether the image positively or negatively influences entrepreneurial intentions as well as potential future entrepreneurial activity. More specifically, the primary objective was to identify the perception and image that potential entrepreneurs (students) and existing entrepreneurs (small business owners) have of an entrepreneur. In the body of knowledge or general literature on entrepreneurship, the most commonly discussed topics are the nature and importance of entrepreneurship, the attributes (personality traits, characteristics and skills) associated with an entrepreneur, various push and pull factors, various rewards and drawbacks of such a career and the challenges entrepreneurs face. It is these aspects of entrepreneurship that stakeholders will most likely have been exposed to, and that most possibly have influenced their perception and image of an entrepreneur. The aforementioned aspects provided an overview of the theoretical body of knowledge on which the perception and image of an entrepreneur is based. The present study adopted a qualitative research paradigm with a phenomenological approach to achieve the research objectives of the study. Within this context, the study made use of a qualitative method for data collection and a quantitative method for data analysis. As such, a mixed methods approach was adopted. More specifically, a qualitative dominant mixed research method was implemented. A continuous word association test, which is a projective technique, was adopted as the qualitative means of data collection. This test involved asking participants to recall the words that come to mind when presented with the word “entrepreneur”. This method was selected because of its ability to reveal both affective and cognitive associations with the concept “entrepreneur”. A quantitative summative (manifest) content analysis was used as the quantitative research method for analysing the data. The continuous word association test was conducted among three sample groups, namely students prior to commencing, and students after completing a module in entrepreneurship, and small business owners. Student and small business owner participants were asked to write down as many words or phrases as possible that came to mind when they thought of the word “entrepreneur”, which was the stimulus word, within a ten-minute period. These responses were then collated and coded by developing a coding framework based on brand image and entrepreneurship literature. In studies on brand image, the components of image are considered to be tristructured in nature, consisting of cognitive (what the individual knows), affective (how the individual feels) and holistic (overall symbolism, combination of affective and cognitive) evaluations. The words generated by the participants in this study were broadly coded according to these categories and further subcategorised by searching for themes within the broad categories, which was facilitated and guided by an in-depth investigation of the entrepreneurship literature. The findings of this study show that the words generated by all three groups of participants were mostly of a cognitive nature, followed by words of a general or affective nature. As such, the vast majority of words generated by all three groups related to what the participants knew about an entrepreneur (cognitive) versus how they felt about one (affective), and were grounded in the management or entrepreneurship literature. When comparing the top ten words most frequently associated with the term “entrepreneur” by the three groups of participants, the attribute risk-taker was the most frequently recalled word among all three groups. Students prior to undertaking the entrepreneurship module associated an entrepreneur with being creative and a risk-taker, having a business enterprise and being involved in the selling of goods and services. Students after completing the module in entrepreneurship associated an entrepreneur with being profit-orientated, a risk-taker, innovative and original, and being opportunistic. Small business owners, on the other hand, associated an entrepreneur with being a risk-taker, innovative and original, goal- and achievement-orientated and profit-orientated. The findings show that all groups of participants associated an entrepreneur principally with certain attributes rather than with learned skills and competencies, and that all groups had a more positive than negative image of an entrepreneur. It was also found that exposure to entrepreneurship literature has an influence on the perception and image that students have of an entrepreneur. Because the words recalled by students after completing the entrepreneurship module were more in line with those recalled by small business owners, than with those recalled by students before starting the module, it can be suggested that entrepreneurship literature contributes to a more realistic image of an entrepreneur among students. This study has contributed to the field of entrepreneurship research by adopting a qualitative dominant research paradigm in conjunction with quantitative research methods to explore the complexity of the term “entrepreneur”. Furthermore, this study has been able to establish how individuals feel about entrepreneurship, in terms of being either positive or negative, by adding an affective aspect to the cognitive aspect of entrepreneurial decision-making. By conducting a continuous word association test among students prior to beginning and after completing a module in entrepreneurship, the entrepreneurial knowledge of students before being exposed to entrepreneurship literature was established, and subsequently the effectiveness of the entrepreneurship module determined. It is hoped that the findings of this study have added value to the entrepreneurship body of knowledge and can be used in future studies as a tool to address the problem of low entrepreneurial intention and activity among South Africans. Furthermore, it is hoped that by creating a positive image of an entrepreneur, entrepreneurship as a desirable career choice can be promoted and an entrepreneurial culture developed within communities and broader society.
- Full Text:
- Date Issued: 2014
The effect of real exchange rate volatility on export performance: evidence from South Africa (2000-2011)
- Authors: Chamunorwa, Wilson
- Date: 2014
- Subjects: Monetary policy -- South Africa , Economic development -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11499 , http://hdl.handle.net/10353/d1018600 , Monetary policy -- South Africa , Economic development -- South Africa , Foreign exchange rates -- South Africa
- Description: The effect of real exchange rate volatility on export performance: evidence from South Africa (2000-2011) This study sought to investigate the relationship between exchange rate volatility and export performance in South Africa. The main objective of the study was to examine the impact of exchange rate volatility on export performance in South Africa. This relationship was examined using GARCH methods. Exports were regressed against real effective exchange rate, trade openness and capacity utilisation. The research aimed to establish whether exchange rate volatility impacts negatively on export performance in the manner suggested by the econometric model. The result obtained showed that exchange rate volatility had a significantly negative effect on South African exports in the period 2000-2011.
- Full Text:
- Date Issued: 2014
- Authors: Chamunorwa, Wilson
- Date: 2014
- Subjects: Monetary policy -- South Africa , Economic development -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11499 , http://hdl.handle.net/10353/d1018600 , Monetary policy -- South Africa , Economic development -- South Africa , Foreign exchange rates -- South Africa
- Description: The effect of real exchange rate volatility on export performance: evidence from South Africa (2000-2011) This study sought to investigate the relationship between exchange rate volatility and export performance in South Africa. The main objective of the study was to examine the impact of exchange rate volatility on export performance in South Africa. This relationship was examined using GARCH methods. Exports were regressed against real effective exchange rate, trade openness and capacity utilisation. The research aimed to establish whether exchange rate volatility impacts negatively on export performance in the manner suggested by the econometric model. The result obtained showed that exchange rate volatility had a significantly negative effect on South African exports in the period 2000-2011.
- Full Text:
- Date Issued: 2014
The impact of financial development on private investment in south Africa
- Authors: Mukuya, Prisca R
- Date: 2014
- Subjects: Economic development -- South Africa , Gross domestic product -- South Africa , Investments, Foreign -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11488 , http://hdl.handle.net/10353/d1018210 , Economic development -- South Africa , Gross domestic product -- South Africa , Investments, Foreign -- South Africa
- Description: Empirical evidence and theoretical propositions suggest that financial development is strongly correlated to private investment because financial development positively affects investments by affecting capital accumulation, altering savings rate or by channelizing savings to various capital producing technologies. This study empirically investigated the impact of financial development on private investment in South Africa using quarterly data for the period 1994/01 to 2011/04. This study assess whether the theoretical and empirical propositions can be supported in South Africa. Cointegration tests using the Johansen approach (1988) were conducted to examine if there is a stable relationship in the level of private investment and financial development in South Africa. As a proxy for financial sector development, credit to private sector as per cent of GDP and stock market development were employed. Other variables that affect investment such as real interest rates and real GDP were also included in the model. Results of the study indicate that stock market development and real GDP have a positive relationship with private investment. Bank credit to the private sector however showed a negative relationship with private investment. A negative relationship was also noted for the relationship between private investment and real interest rates.
- Full Text:
- Date Issued: 2014
- Authors: Mukuya, Prisca R
- Date: 2014
- Subjects: Economic development -- South Africa , Gross domestic product -- South Africa , Investments, Foreign -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11488 , http://hdl.handle.net/10353/d1018210 , Economic development -- South Africa , Gross domestic product -- South Africa , Investments, Foreign -- South Africa
- Description: Empirical evidence and theoretical propositions suggest that financial development is strongly correlated to private investment because financial development positively affects investments by affecting capital accumulation, altering savings rate or by channelizing savings to various capital producing technologies. This study empirically investigated the impact of financial development on private investment in South Africa using quarterly data for the period 1994/01 to 2011/04. This study assess whether the theoretical and empirical propositions can be supported in South Africa. Cointegration tests using the Johansen approach (1988) were conducted to examine if there is a stable relationship in the level of private investment and financial development in South Africa. As a proxy for financial sector development, credit to private sector as per cent of GDP and stock market development were employed. Other variables that affect investment such as real interest rates and real GDP were also included in the model. Results of the study indicate that stock market development and real GDP have a positive relationship with private investment. Bank credit to the private sector however showed a negative relationship with private investment. A negative relationship was also noted for the relationship between private investment and real interest rates.
- Full Text:
- Date Issued: 2014