The application of property value models to assess government housing policy : a Nelson Mandela Bay Case Study
- Authors: Sale, Michael Charles
- Date: 2013
- Subjects: Real property -- Valuation -- South Africa -- Port Elizabeth , Housing policy -- South Africa -- Port Elizabeth , Planned communities -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9023 , http://hdl.handle.net/10948/d1020007
- Description: Two developments that may impact house prices have dominated the residential property landscape in South Africa in recent years, namely government’s planned social housing developments and residential property value assessments carried out by local municipalities across South Africa for property tax purposes. Social housing developments are often plagued by “local opposition”, who argue that subsidised housing units may have a negative effect on adjacent non-subsidised residential housing. Negative preconceptions of social housing form the basis of this argument, which is commonly referred to as the “not-in-my-backyard” (NIMBY) syndrome. International studies conducted have, however, produced mixed results with some concluding that social housing developments lead to a reduction in nearby property prices, whilst others conclude that they lead to an improvement in surrounding property values. Currently, the state of the South African economy and demographics are limiting previously disadvantaged, poor peoples’ access to affordable and safe housing, and for this reason the basis of the NIMBY rationale deserves closer attention. In order to test the validity of the NIMBY rationale, this study examines, by means of the hedonic price method, the effect of an existing housing establishment catering for low-income earners (the Walmer/Gqebera Township) on adjacent property values in the suburb of Walmer, Port Elizabeth, Nelson Mandela Bay in the Eastern Cape. The study concludes that the low-cost housing development exerts a negative impact on the property values of nearby houses - the average owner of a non-subsidised residential property in Walmer would be willing to pay between R38 033 and R46 898 to be situated 200 metres further away from the Walmer Township. This conclusion is subject to three qualifications. The first is that the Walmer Township is not a recognised social housing development but merely a proxy for one. The second qualification is that a relatively small data set was used in this study and only one social housing development was considered. The third qualification is that the study period is from 1995 to 2009, which necessitated the adjustment of market prices to constant 2009 rands. For this purpose, data from the Port Elizabeth and Uitenhage section of the ABSA house price indices were used. It was not possible to disaggregate the indices further to obtain a Walmer-specific index. It is possible that an imperfect correlation exists between the Walmer property trend and the metropolitan (Port Elizabeth and Uitenhage) trend used in this study. Based on the results of this doctoral investigation it is recommended that a monthly rebate on property rates of between R269.40 and R332.19 be implemented for affected Walmer residents. This amount could be sufficient to mitigate the capital loss associated with proximity to the Walmer Township. In terms of the management of social housing projects, it is strongly recommended that the following occur in order to alleviate the NIMBY syndrome: existing dwellings should be renovated, tenants should be monitored, dwellings should be appropriately designed and maintained, the composition of the host neighbourhood should be assessed and the image of social housing should be improved. With regard to the renovation of dwellings, social housing site preference should be given to existing structures in need of renovation, as positive externalities are associated with the renovation of such properties. The monitoring of tenants needs to take place in order to ensure that the financial and behavioural obligations of the tenants are met, and that informal “shack dwellings” do not materialise on site, and finally, that tenant default rates remain low. The appropriate management of these projects will also aid in combating the perception that social housing developments lead to private residential property devaluation. In respect of residential property value assessments, many homeowners have recently argued that there is very little equivalence between the municipality’s valuations and true market values. This study uses, inter alia, the hedonic price model to investigate the accuracy of the Nelson Mandela Bay Municipality’s 2007/2008 valuation roll. The investigation was limited to the valuation roll applicable to the Walmer neighbourhood. The study finds that there is, on average, a 13.89 percent difference between market prices and the 2007/2008 municipal assessed values. In addition, this study finds that an attributebased hedonic price model produces property price predictions that are more in line with true market values. This finding is subject to two qualifications. The first qualification is that only the Walmer neighbourhood’s assessed values were considered, thus limiting the findings. The second qualification is that a relatively small data set was used.
- Full Text:
- Date Issued: 2013
- Authors: Sale, Michael Charles
- Date: 2013
- Subjects: Real property -- Valuation -- South Africa -- Port Elizabeth , Housing policy -- South Africa -- Port Elizabeth , Planned communities -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9023 , http://hdl.handle.net/10948/d1020007
- Description: Two developments that may impact house prices have dominated the residential property landscape in South Africa in recent years, namely government’s planned social housing developments and residential property value assessments carried out by local municipalities across South Africa for property tax purposes. Social housing developments are often plagued by “local opposition”, who argue that subsidised housing units may have a negative effect on adjacent non-subsidised residential housing. Negative preconceptions of social housing form the basis of this argument, which is commonly referred to as the “not-in-my-backyard” (NIMBY) syndrome. International studies conducted have, however, produced mixed results with some concluding that social housing developments lead to a reduction in nearby property prices, whilst others conclude that they lead to an improvement in surrounding property values. Currently, the state of the South African economy and demographics are limiting previously disadvantaged, poor peoples’ access to affordable and safe housing, and for this reason the basis of the NIMBY rationale deserves closer attention. In order to test the validity of the NIMBY rationale, this study examines, by means of the hedonic price method, the effect of an existing housing establishment catering for low-income earners (the Walmer/Gqebera Township) on adjacent property values in the suburb of Walmer, Port Elizabeth, Nelson Mandela Bay in the Eastern Cape. The study concludes that the low-cost housing development exerts a negative impact on the property values of nearby houses - the average owner of a non-subsidised residential property in Walmer would be willing to pay between R38 033 and R46 898 to be situated 200 metres further away from the Walmer Township. This conclusion is subject to three qualifications. The first is that the Walmer Township is not a recognised social housing development but merely a proxy for one. The second qualification is that a relatively small data set was used in this study and only one social housing development was considered. The third qualification is that the study period is from 1995 to 2009, which necessitated the adjustment of market prices to constant 2009 rands. For this purpose, data from the Port Elizabeth and Uitenhage section of the ABSA house price indices were used. It was not possible to disaggregate the indices further to obtain a Walmer-specific index. It is possible that an imperfect correlation exists between the Walmer property trend and the metropolitan (Port Elizabeth and Uitenhage) trend used in this study. Based on the results of this doctoral investigation it is recommended that a monthly rebate on property rates of between R269.40 and R332.19 be implemented for affected Walmer residents. This amount could be sufficient to mitigate the capital loss associated with proximity to the Walmer Township. In terms of the management of social housing projects, it is strongly recommended that the following occur in order to alleviate the NIMBY syndrome: existing dwellings should be renovated, tenants should be monitored, dwellings should be appropriately designed and maintained, the composition of the host neighbourhood should be assessed and the image of social housing should be improved. With regard to the renovation of dwellings, social housing site preference should be given to existing structures in need of renovation, as positive externalities are associated with the renovation of such properties. The monitoring of tenants needs to take place in order to ensure that the financial and behavioural obligations of the tenants are met, and that informal “shack dwellings” do not materialise on site, and finally, that tenant default rates remain low. The appropriate management of these projects will also aid in combating the perception that social housing developments lead to private residential property devaluation. In respect of residential property value assessments, many homeowners have recently argued that there is very little equivalence between the municipality’s valuations and true market values. This study uses, inter alia, the hedonic price model to investigate the accuracy of the Nelson Mandela Bay Municipality’s 2007/2008 valuation roll. The investigation was limited to the valuation roll applicable to the Walmer neighbourhood. The study finds that there is, on average, a 13.89 percent difference between market prices and the 2007/2008 municipal assessed values. In addition, this study finds that an attributebased hedonic price model produces property price predictions that are more in line with true market values. This finding is subject to two qualifications. The first qualification is that only the Walmer neighbourhood’s assessed values were considered, thus limiting the findings. The second qualification is that a relatively small data set was used.
- Full Text:
- Date Issued: 2013
The impact of economic freedom on economic growth in the SADC
- Authors: Gorlach, Vsevolod Igorevich
- Date: 2014
- Subjects: Free enterprise -- Africa, Southern , Economic development -- Africa, Southern , Africa, Southern -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9030 , http://hdl.handle.net/10948/d1020786
- Description: The role of institutions – economic freedom – is a critical determinant of economic growth, yet the global distribution of economic freedom is skewed. Economic freedom focuses on personal choice, the ability to make voluntary transactions, the freedom to compete and the security of property rights. The SADC is attempting to alleviate poverty and achieve sustainable development and economic growth. This thesis illustrates that economic freedom, in aggregate, and on an individual component basis, drives economic growth. The annual data for the 12 SADC counties from 2000 to 2009 are used to construct a panel data model to conduct the empirical analyses. Cross-sectional effects, as well as time (period) effects, are valid; and thus, a two-way error-component model is estimated. The Hausman test showed the regressors to be endogenous and correlated with the error term. The Pesaran CD test, suitable for dynamic panels, determined that cross-sections are interdependent; and the cross-correlation coefficient indicated a relatively weak, yet substantial, correlation. The LSDV two-way error-component model is re-estimated using the Driscoll and Kraay standard errors and time-demeaned data to correct for cross-sectional dependence. Given the endogeneity between the idiosyncratic disturbance term and the regressors, the presence of heteroskedasticity and serial correlation, as well as the interdependence amongst the cross-sections, the econometric model is then estimated using the two-step system general method of moments with forward orthogonal deviations – instead of differencing. The results meet all the post-estimation diagnostic requirements: the Arellano and Bond test for second-order serial correlation fails to reject the null hypothesis of no autocorrelation; theSargan test for over-identification fails to reject the null hypothesis that the over-identification restrictions are valid, and the difference-in-Hansen test fails to reject the null hypothesis that the instrument subsets are strictly exogenous. The empirical results confirm the a priori expectations. Economic freedom is a positive and significant driver of economic growth. Investment and economic openness are positively related to growth, whereas government debt decreases growth. Government consumption is an insignificant driver of a country’s growth. The Granger causality test confirmed the direction of causality; economic freedom precedes economic growth; and it is possible for the SADC to improve their growth rates by becoming economically freer. The coefficient of adjustment derived from the error-correction model indicates that the dynamic system takes approximately two years to adjust to the long-run structural level. The Koyck Transformation indicates that the relationship between economic freedom and growth is intertemporal, requiring a lag structure. An impulse-response function shows that a permanent, positive ‘shock’ to economic freedom results in an increase in economic growth, although the extent differs for each country, as well as for the different freedom components. The five individual economic freedom components are all highly significant and positive drivers of growth; however, the magnitude of the elasticity parameters varies. The causality amongst the components indicates that bidirectional causality is present. Therefore, improving economic freedom in one area improves economic freedom in another, creating a multiplier effect.
- Full Text:
- Date Issued: 2014
- Authors: Gorlach, Vsevolod Igorevich
- Date: 2014
- Subjects: Free enterprise -- Africa, Southern , Economic development -- Africa, Southern , Africa, Southern -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9030 , http://hdl.handle.net/10948/d1020786
- Description: The role of institutions – economic freedom – is a critical determinant of economic growth, yet the global distribution of economic freedom is skewed. Economic freedom focuses on personal choice, the ability to make voluntary transactions, the freedom to compete and the security of property rights. The SADC is attempting to alleviate poverty and achieve sustainable development and economic growth. This thesis illustrates that economic freedom, in aggregate, and on an individual component basis, drives economic growth. The annual data for the 12 SADC counties from 2000 to 2009 are used to construct a panel data model to conduct the empirical analyses. Cross-sectional effects, as well as time (period) effects, are valid; and thus, a two-way error-component model is estimated. The Hausman test showed the regressors to be endogenous and correlated with the error term. The Pesaran CD test, suitable for dynamic panels, determined that cross-sections are interdependent; and the cross-correlation coefficient indicated a relatively weak, yet substantial, correlation. The LSDV two-way error-component model is re-estimated using the Driscoll and Kraay standard errors and time-demeaned data to correct for cross-sectional dependence. Given the endogeneity between the idiosyncratic disturbance term and the regressors, the presence of heteroskedasticity and serial correlation, as well as the interdependence amongst the cross-sections, the econometric model is then estimated using the two-step system general method of moments with forward orthogonal deviations – instead of differencing. The results meet all the post-estimation diagnostic requirements: the Arellano and Bond test for second-order serial correlation fails to reject the null hypothesis of no autocorrelation; theSargan test for over-identification fails to reject the null hypothesis that the over-identification restrictions are valid, and the difference-in-Hansen test fails to reject the null hypothesis that the instrument subsets are strictly exogenous. The empirical results confirm the a priori expectations. Economic freedom is a positive and significant driver of economic growth. Investment and economic openness are positively related to growth, whereas government debt decreases growth. Government consumption is an insignificant driver of a country’s growth. The Granger causality test confirmed the direction of causality; economic freedom precedes economic growth; and it is possible for the SADC to improve their growth rates by becoming economically freer. The coefficient of adjustment derived from the error-correction model indicates that the dynamic system takes approximately two years to adjust to the long-run structural level. The Koyck Transformation indicates that the relationship between economic freedom and growth is intertemporal, requiring a lag structure. An impulse-response function shows that a permanent, positive ‘shock’ to economic freedom results in an increase in economic growth, although the extent differs for each country, as well as for the different freedom components. The five individual economic freedom components are all highly significant and positive drivers of growth; however, the magnitude of the elasticity parameters varies. The causality amongst the components indicates that bidirectional causality is present. Therefore, improving economic freedom in one area improves economic freedom in another, creating a multiplier effect.
- Full Text:
- Date Issued: 2014
The impact of financial developments on economic growth in Ghana: evidence from the manufacturing industries
- Authors: Brafi, Paul Osei
- Date: 2019
- Subjects: Economic development -- Ghana , Finance -- Ghana Manufactures -- Finance -- Ghana
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/37184 , vital:34135
- Description: This study provides an analysis of financial and growth dynamics with a view to assess the impact of financial development on economic growth in Ghana. The study also examines the extent to which financial developments in Ghana are affecting capital accumulation and industrial sector growth. The analysis was performed by examining the financial development indicators and economic growth data for Ghana over the period from 1965 to 2016. The study was motivated by the theoretical indications that improvements in financial intermediation within the economy can induce growth of the real sector and thus lead to economic growth. There have been notable structural and financial sector reforms in Ghana since the early and late 1980s. The indications in the financial sector portray improvement in the measures of financial development in the post-reform era as compared to the years before. The findings of the study complement existing research findings and information on finance-growth association as well as the influence that finance has on the sources of growth. The study adopted real per capita gross domestic product (GDP) as a measure of economic growth. In addition, three real sector indicators serving as the sources of growth, included; capital accumulation, industrial value-added and manufacturing value added. The analysis also adopts four financial indicators, expressed as percentage shares of GDP, namely; domestic credit to private sector, total domestic credit provided by financial sector, broad money supply and financial sector deposits—as measures of financial development. The analysis of the impact of the financial development on capital accumulation, industrial output growth, manufacturing productivity and economic growth were estimated using the linear regression estimation techniques within the GMM estimation approach. The study, additionally, examined the short-run and long-run impacts of financial development on economic growth indicators by employing the Vector Autoregressive Regression (VAR) within the Autoregressive Distributed Lag (ARDL) approach. The study further assesses the direction of causality between financial development and economic growth indicators using the cointegration and Engle-Granger causality testing approach within VAR models. The Bayesian Vector Auto Regression (BVAR) models were applied to examine the drivers of economic growth and to assess the sensitivity of economic growth to financial development and macro-economic shocks. This assessment was carried out to examine the maximising behaviour of financial development and to find out if there exists threshold point beyond which finance adversely affects economic growth in Ghana. The results showed that credit to private sector shows a strong positive persistence in promoting economic growth in Ghana. The results show that financial development dynamics in Ghana positively affect long run economic growth and further indicate that the rate of impact was relatively higher in the post reform period of 1984 to 2016. The study further found a bi-directional causal association between financial development and economic growth. Regarding the sources of growth, the study found that financial development strongly contributes positively to capital accumulation in the long-term, however, the findings further suggested that, to some extent, the growing size of finance dampens capital formation and economic growth. This suggested the existence of inefficiencies in the expanding size of total credit offered by the financial system in Ghana. The study further found a long-run positive association between financial development and industrial productivity (except for manufacturing) growth in Ghana, with industry growth substantially determined by private credit. The results of the assessment on the sensitivity of economic growth to shocks in financial development indicators show that Ghana ‘s economic growth is, to a larger extent, influenced by domestic credit provided to the private sector. Also, the results showed that economic growth has been highly responsive to macro-economic shocks such as government expenditure and industrial sector growth although industrial growth seems to show a strong negative persistence on Ghana ‘s economy. The results from the analysis of finance and economic growth shows that existence of different optimal growth maximising points domestic credit, broad money, financial sector deposits and the overall financial development ratios as depicted by the various inverted U-shaped relationship between the financial development indicators and economic growth. The optimal size or maximising positions or thresholds for private credit and total credit were found to be at approximately 20.0 per cent and 28.0 per cent of GDP, respectively. On the other hand, the optimal size or minimum positions or thresholds for broad money supply and total financial sector deposits were found to be at approximately 19.0 per cent and 10.0 per cent of GDP, respectively. With regards to broad money supply-to-GDP and financial sector deposit-to-GDP ratios, the respective averages of 23.19 per cent and 13.77 per cent for the period 1965-2015 are higher than the minimum required thresholds of 19.00 per cent and 10.00 per cent, respectively. The findings show that financial developments have a strong positive association with economic growth, but the results also give the indication that although financial development can enhance growth and inefficiencies in the financial system can equally dampen growth at some levels. overall, the study found that financial reforms have positively contributed to economic growth in Ghana and the impacts of financial development on economic growth in Ghana have been higher in the post-reform era. The effect of financial reforms on capital accumulation was not significant although the study established that the impact of structural reforms was strong and adversely affected capital accumulation in Ghana. With regards to the industrial productivity growth, the study found a positive association between financial development and industry growth in Ghana. It was, however, observed that financial reforms have fails to significantly affect growth of industrial productivity and the impact of financial development on industry sector growth in Ghana are low but the sector experienced relatively higher growth in the pre-reform era.
- Full Text:
- Date Issued: 2019
- Authors: Brafi, Paul Osei
- Date: 2019
- Subjects: Economic development -- Ghana , Finance -- Ghana Manufactures -- Finance -- Ghana
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/37184 , vital:34135
- Description: This study provides an analysis of financial and growth dynamics with a view to assess the impact of financial development on economic growth in Ghana. The study also examines the extent to which financial developments in Ghana are affecting capital accumulation and industrial sector growth. The analysis was performed by examining the financial development indicators and economic growth data for Ghana over the period from 1965 to 2016. The study was motivated by the theoretical indications that improvements in financial intermediation within the economy can induce growth of the real sector and thus lead to economic growth. There have been notable structural and financial sector reforms in Ghana since the early and late 1980s. The indications in the financial sector portray improvement in the measures of financial development in the post-reform era as compared to the years before. The findings of the study complement existing research findings and information on finance-growth association as well as the influence that finance has on the sources of growth. The study adopted real per capita gross domestic product (GDP) as a measure of economic growth. In addition, three real sector indicators serving as the sources of growth, included; capital accumulation, industrial value-added and manufacturing value added. The analysis also adopts four financial indicators, expressed as percentage shares of GDP, namely; domestic credit to private sector, total domestic credit provided by financial sector, broad money supply and financial sector deposits—as measures of financial development. The analysis of the impact of the financial development on capital accumulation, industrial output growth, manufacturing productivity and economic growth were estimated using the linear regression estimation techniques within the GMM estimation approach. The study, additionally, examined the short-run and long-run impacts of financial development on economic growth indicators by employing the Vector Autoregressive Regression (VAR) within the Autoregressive Distributed Lag (ARDL) approach. The study further assesses the direction of causality between financial development and economic growth indicators using the cointegration and Engle-Granger causality testing approach within VAR models. The Bayesian Vector Auto Regression (BVAR) models were applied to examine the drivers of economic growth and to assess the sensitivity of economic growth to financial development and macro-economic shocks. This assessment was carried out to examine the maximising behaviour of financial development and to find out if there exists threshold point beyond which finance adversely affects economic growth in Ghana. The results showed that credit to private sector shows a strong positive persistence in promoting economic growth in Ghana. The results show that financial development dynamics in Ghana positively affect long run economic growth and further indicate that the rate of impact was relatively higher in the post reform period of 1984 to 2016. The study further found a bi-directional causal association between financial development and economic growth. Regarding the sources of growth, the study found that financial development strongly contributes positively to capital accumulation in the long-term, however, the findings further suggested that, to some extent, the growing size of finance dampens capital formation and economic growth. This suggested the existence of inefficiencies in the expanding size of total credit offered by the financial system in Ghana. The study further found a long-run positive association between financial development and industrial productivity (except for manufacturing) growth in Ghana, with industry growth substantially determined by private credit. The results of the assessment on the sensitivity of economic growth to shocks in financial development indicators show that Ghana ‘s economic growth is, to a larger extent, influenced by domestic credit provided to the private sector. Also, the results showed that economic growth has been highly responsive to macro-economic shocks such as government expenditure and industrial sector growth although industrial growth seems to show a strong negative persistence on Ghana ‘s economy. The results from the analysis of finance and economic growth shows that existence of different optimal growth maximising points domestic credit, broad money, financial sector deposits and the overall financial development ratios as depicted by the various inverted U-shaped relationship between the financial development indicators and economic growth. The optimal size or maximising positions or thresholds for private credit and total credit were found to be at approximately 20.0 per cent and 28.0 per cent of GDP, respectively. On the other hand, the optimal size or minimum positions or thresholds for broad money supply and total financial sector deposits were found to be at approximately 19.0 per cent and 10.0 per cent of GDP, respectively. With regards to broad money supply-to-GDP and financial sector deposit-to-GDP ratios, the respective averages of 23.19 per cent and 13.77 per cent for the period 1965-2015 are higher than the minimum required thresholds of 19.00 per cent and 10.00 per cent, respectively. The findings show that financial developments have a strong positive association with economic growth, but the results also give the indication that although financial development can enhance growth and inefficiencies in the financial system can equally dampen growth at some levels. overall, the study found that financial reforms have positively contributed to economic growth in Ghana and the impacts of financial development on economic growth in Ghana have been higher in the post-reform era. The effect of financial reforms on capital accumulation was not significant although the study established that the impact of structural reforms was strong and adversely affected capital accumulation in Ghana. With regards to the industrial productivity growth, the study found a positive association between financial development and industry growth in Ghana. It was, however, observed that financial reforms have fails to significantly affect growth of industrial productivity and the impact of financial development on industry sector growth in Ghana are low but the sector experienced relatively higher growth in the pre-reform era.
- Full Text:
- Date Issued: 2019
The impact of intra- and inter- regional integration on trade flows in Africa
- Authors: Taylor, Nina-Mari
- Date: 2017
- Subjects: International trade Trade blocs Regionalism
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10353/12408 , vital:39260
- Description: Regional integration is regarded as a formation which would allow African countries to improve their trade performance and economic growth. By subscribing to such a regional integration grouping, successful regional trade integration could assist African countries in achieving economies of scale, expand respective domestic markets, reduce marginalisation as well as the collective utilisation and exploitation of resources. Such achievements could, gradually, raise the competitiveness of African countries in respect of the global market. By collaborating in regional integration agreements, groups of countries are sought to increase their collective bargaining power and co-operation amongst the member countries. Regional integration can, therefore, be regarded as a necessary means by which economic development, growth and trade can be enhanced amongst African countries. The associated advantages and benefits of regional integration could improve the productive capacity of African counties and strengthen both their individual and continental position in the process of globalisation and integration into the world economy. This study endeavours to examine the impact of intra-regional integration and inter-regional integration on trade flows among and between: SADC, COMESA, ECOWAS and the EAC. The relevant theoretical and empirical literature regarding regional integration is considered as well as the challenges faced by regional economic communities in Africa. The study is based on an Augmented Gravity Model and it employs Panel Data Estimation Techniques and Panel Unit Root Tests. The Hausman test results proved the Fixed Effects Model to be the most applicable to the study. The empirical findings revealed that both intra-regional integration and inter-regional integration had a positive bearing on trade flows and between: SADC, COMESA, ECOWAS and the EAC. Hence, regional integration is concluded as having a prominent role in promoting trade flows in Africa and the study recommends that African countries and regional economic communities should pursue deeper economic integration and continental integration.
- Full Text:
- Date Issued: 2017
- Authors: Taylor, Nina-Mari
- Date: 2017
- Subjects: International trade Trade blocs Regionalism
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10353/12408 , vital:39260
- Description: Regional integration is regarded as a formation which would allow African countries to improve their trade performance and economic growth. By subscribing to such a regional integration grouping, successful regional trade integration could assist African countries in achieving economies of scale, expand respective domestic markets, reduce marginalisation as well as the collective utilisation and exploitation of resources. Such achievements could, gradually, raise the competitiveness of African countries in respect of the global market. By collaborating in regional integration agreements, groups of countries are sought to increase their collective bargaining power and co-operation amongst the member countries. Regional integration can, therefore, be regarded as a necessary means by which economic development, growth and trade can be enhanced amongst African countries. The associated advantages and benefits of regional integration could improve the productive capacity of African counties and strengthen both their individual and continental position in the process of globalisation and integration into the world economy. This study endeavours to examine the impact of intra-regional integration and inter-regional integration on trade flows among and between: SADC, COMESA, ECOWAS and the EAC. The relevant theoretical and empirical literature regarding regional integration is considered as well as the challenges faced by regional economic communities in Africa. The study is based on an Augmented Gravity Model and it employs Panel Data Estimation Techniques and Panel Unit Root Tests. The Hausman test results proved the Fixed Effects Model to be the most applicable to the study. The empirical findings revealed that both intra-regional integration and inter-regional integration had a positive bearing on trade flows and between: SADC, COMESA, ECOWAS and the EAC. Hence, regional integration is concluded as having a prominent role in promoting trade flows in Africa and the study recommends that African countries and regional economic communities should pursue deeper economic integration and continental integration.
- Full Text:
- Date Issued: 2017
The relationship between authentic leadership, psychological capital, psychological climate, team commitment and the intention to quit in a South African manufacturing organisation
- Authors: Munyaka, Sharon Audley
- Date: 2012
- Subjects: Leadership -- South Africa , Organizational commitment -- South Africa , Work environment -- South Africa , Employees -- Resignation -- South Africa , Tire industry workers -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9418 , http://hdl.handle.net/10948/d1021088
- Description: Grounded in the positive psychology paradigm the recently recognised core construct of psychological capital was focussed in a South African study. A non-experimental, correlational study (n=204) examined the relationship between authentic leadership, psychological capital, psychological climate, team commitment and intention to quit. The present study was exploratory in nature and the pattern of relationships being investigated had not been previously tested in a South African context. A self-administered composite questionnaire consisting of five psychological scales were distributed to employees in the junior to senior management level at a global tyre manufacturing organisation based in Port Elizabeth, South Africa. The five scales were the Authentic Leadership Questionnaire by Walumbwa, Psychological Capital Questionnaire by Luthans, Psychological Climate by Koys and DeCotiis, Team Commitment by Bennett and the Intention to Quit Scale by Cohen. All the measures applied on the South African sample were developed outside South Africa and model equivalence had to be established. The content and structure of the measures were investigated through confirmatory factor analysis and exploratory factor analysis. With the exception of the Cohen scale of intention to quit, all other measures changed their factorial structures to suit the present data. The propositions in the study were tested through descriptive statistics, t-tests, ANOVA, post hoc tests, Cohen’s d, Pearson product-moment correlation and multiple regressions. Structural equation models were built to test the relationships between the scales and sub scales of authentic leadership, psychological capital, psychological climate, team commitment and intention to quit. Results of the analyses carried out, show significantly strong relationships between the variables. Of note is the marked relationship between authentic leadership and psychological climate. Most of the propositions were accepted in light of the relationships that emerged. The proposition indicating structural equation models was rejected because none of the models built in the study successfully produced an adequate fit on the data. Contributions of the study were in terms of the portability of the measurement instruments applied in the study as well as the relationships that emerged. Re-validation of the measures is required to enable clarity on how the variables in the study are interpreted across cultural contexts. Directions for future research include extending the study to other samples and other cultures. Measuring social desirability of the instruments could possibly provide clarity on how the different samples respond to the measures. Studies that compare the reading ability as well as the ability to comprehend the items in the measures would provide valuable information.
- Full Text:
- Date Issued: 2012
- Authors: Munyaka, Sharon Audley
- Date: 2012
- Subjects: Leadership -- South Africa , Organizational commitment -- South Africa , Work environment -- South Africa , Employees -- Resignation -- South Africa , Tire industry workers -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9418 , http://hdl.handle.net/10948/d1021088
- Description: Grounded in the positive psychology paradigm the recently recognised core construct of psychological capital was focussed in a South African study. A non-experimental, correlational study (n=204) examined the relationship between authentic leadership, psychological capital, psychological climate, team commitment and intention to quit. The present study was exploratory in nature and the pattern of relationships being investigated had not been previously tested in a South African context. A self-administered composite questionnaire consisting of five psychological scales were distributed to employees in the junior to senior management level at a global tyre manufacturing organisation based in Port Elizabeth, South Africa. The five scales were the Authentic Leadership Questionnaire by Walumbwa, Psychological Capital Questionnaire by Luthans, Psychological Climate by Koys and DeCotiis, Team Commitment by Bennett and the Intention to Quit Scale by Cohen. All the measures applied on the South African sample were developed outside South Africa and model equivalence had to be established. The content and structure of the measures were investigated through confirmatory factor analysis and exploratory factor analysis. With the exception of the Cohen scale of intention to quit, all other measures changed their factorial structures to suit the present data. The propositions in the study were tested through descriptive statistics, t-tests, ANOVA, post hoc tests, Cohen’s d, Pearson product-moment correlation and multiple regressions. Structural equation models were built to test the relationships between the scales and sub scales of authentic leadership, psychological capital, psychological climate, team commitment and intention to quit. Results of the analyses carried out, show significantly strong relationships between the variables. Of note is the marked relationship between authentic leadership and psychological climate. Most of the propositions were accepted in light of the relationships that emerged. The proposition indicating structural equation models was rejected because none of the models built in the study successfully produced an adequate fit on the data. Contributions of the study were in terms of the portability of the measurement instruments applied in the study as well as the relationships that emerged. Re-validation of the measures is required to enable clarity on how the variables in the study are interpreted across cultural contexts. Directions for future research include extending the study to other samples and other cultures. Measuring social desirability of the instruments could possibly provide clarity on how the different samples respond to the measures. Studies that compare the reading ability as well as the ability to comprehend the items in the measures would provide valuable information.
- Full Text:
- Date Issued: 2012
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
The survival strategies of unemployed rural women : a case study of Wooldridge
- Authors: Dyubhele, Noluntu Stella
- Date: 2011
- Subjects: Women in rural development -- South Africa -- Eastern Cape , Rural women -- South Africa -- Eastern Cape , Unemployment -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Poverty -- Government policy -- South Africa -- Eastern Cape , Rural poor -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:8982 , http://hdl.handle.net/10948/1651 , Women in rural development -- South Africa -- Eastern Cape , Rural women -- South Africa -- Eastern Cape , Unemployment -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Poverty -- Government policy -- South Africa -- Eastern Cape , Rural poor -- South Africa -- Eastern Cape
- Description: Despite decades of gender research and public action by civil society, policy makers continue to neglect the role of women as breadwinners who work at improving the socio-economic conditions in rural areas such as Wooldridge, a traditional rural village in the Amathole district of the Eastern Cape Province. The apartheid system created an environment that continues to perpetuate both poverty and gender inequality in rural areas. Hence, rural women in Wooldridge still experience poverty, despite welfare benefits. They are located in a poverty-stricken area without basic infrastructure and with little or no access to economic assets. They use primitive methods and indigenous knowledge to develop survival strategies. This study argues that unemployed rural women in Wooldridge cannot survive without assistance from government. Indigenous knowledge and agricultural as well as non-agricultural activities are critical to household livelihoods in Wooldridge. These activities are an important route through which these rural women can escape poverty. The primary objective of this research was to obtain a better understanding of how unemployed rural women survive in Wooldridge. Furthermore, the necessary conditions required to sustain livelihood in the rural areas were identified. This was mainly done to help alleviate the plight of rural women in Wooldridge and to improve the quality of life of the rural population. The aim is to generate a policy response to rural women that is economically development-oriented. The study was based on five research objectives. The first objective was to identify the survival strategies of unemployed rural women in Wooldridge; the second to ascertain what can be done to alleviate the plight of rural women in Wooldridge. The third objective was to ascertain what has been v done to address the needs of rural women in the Wooldridge area by actors of development, such as government and non-governmental organisations. The fourth objective was to identify the constraints faced by unemployed rural women in Wooldridge in achieving food security and generating income, with the last objective to make recommendations regarding policies that can enhance rural economic development and assist unemployed rural women to reduce poverty. The main finding in terms of the first research objective is that the survival strategies of unemployed rural women are welfare benefits, the selling of assets, remittances, handicraft production and vegetable gardens. In terms of the second research objective, the main finding is that investment in human capital through the empowerment of women will assist them in improving the quality of life of the Wooldridge community. Empowerment involves skills and training, education and access to basic services, expertise regarding credit, land, the growing of vegetables and income-generating projects. The main finding in terms of the third research objective is that the Peddie Women Support Centre that is located in the city centre of Ngqushwa does not have the capacity to reach out to rural areas. Rural women in Wooldridge have not received responses to their plights from government or from development practitioners. These actors of development play an important role in empowerment. In terms of the fourth research objective, the main finding is that structural constraints hinder the economic activity of rural women in Wooldridge. Government policy that encourages investment in infrastructure using labour-intensive methods will eliminate service backlogs in underserviced areas such as Wooldridge. The main finding in terms of the fifth research objective is to ascertain the impact that new legislation can have to ensure that rural women have the same access and entitlement to land and resources as women from urban areas. Furthermore, service-improvement programmes should be developed and micro-enterprises and agricultural and non-agricultural activities that will generate income and employment should be encouraged in order to reduce poverty in Wooldridge.
- Full Text:
- Date Issued: 2011
- Authors: Dyubhele, Noluntu Stella
- Date: 2011
- Subjects: Women in rural development -- South Africa -- Eastern Cape , Rural women -- South Africa -- Eastern Cape , Unemployment -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Poverty -- Government policy -- South Africa -- Eastern Cape , Rural poor -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:8982 , http://hdl.handle.net/10948/1651 , Women in rural development -- South Africa -- Eastern Cape , Rural women -- South Africa -- Eastern Cape , Unemployment -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Poverty -- Government policy -- South Africa -- Eastern Cape , Rural poor -- South Africa -- Eastern Cape
- Description: Despite decades of gender research and public action by civil society, policy makers continue to neglect the role of women as breadwinners who work at improving the socio-economic conditions in rural areas such as Wooldridge, a traditional rural village in the Amathole district of the Eastern Cape Province. The apartheid system created an environment that continues to perpetuate both poverty and gender inequality in rural areas. Hence, rural women in Wooldridge still experience poverty, despite welfare benefits. They are located in a poverty-stricken area without basic infrastructure and with little or no access to economic assets. They use primitive methods and indigenous knowledge to develop survival strategies. This study argues that unemployed rural women in Wooldridge cannot survive without assistance from government. Indigenous knowledge and agricultural as well as non-agricultural activities are critical to household livelihoods in Wooldridge. These activities are an important route through which these rural women can escape poverty. The primary objective of this research was to obtain a better understanding of how unemployed rural women survive in Wooldridge. Furthermore, the necessary conditions required to sustain livelihood in the rural areas were identified. This was mainly done to help alleviate the plight of rural women in Wooldridge and to improve the quality of life of the rural population. The aim is to generate a policy response to rural women that is economically development-oriented. The study was based on five research objectives. The first objective was to identify the survival strategies of unemployed rural women in Wooldridge; the second to ascertain what can be done to alleviate the plight of rural women in Wooldridge. The third objective was to ascertain what has been v done to address the needs of rural women in the Wooldridge area by actors of development, such as government and non-governmental organisations. The fourth objective was to identify the constraints faced by unemployed rural women in Wooldridge in achieving food security and generating income, with the last objective to make recommendations regarding policies that can enhance rural economic development and assist unemployed rural women to reduce poverty. The main finding in terms of the first research objective is that the survival strategies of unemployed rural women are welfare benefits, the selling of assets, remittances, handicraft production and vegetable gardens. In terms of the second research objective, the main finding is that investment in human capital through the empowerment of women will assist them in improving the quality of life of the Wooldridge community. Empowerment involves skills and training, education and access to basic services, expertise regarding credit, land, the growing of vegetables and income-generating projects. The main finding in terms of the third research objective is that the Peddie Women Support Centre that is located in the city centre of Ngqushwa does not have the capacity to reach out to rural areas. Rural women in Wooldridge have not received responses to their plights from government or from development practitioners. These actors of development play an important role in empowerment. In terms of the fourth research objective, the main finding is that structural constraints hinder the economic activity of rural women in Wooldridge. Government policy that encourages investment in infrastructure using labour-intensive methods will eliminate service backlogs in underserviced areas such as Wooldridge. The main finding in terms of the fifth research objective is to ascertain the impact that new legislation can have to ensure that rural women have the same access and entitlement to land and resources as women from urban areas. Furthermore, service-improvement programmes should be developed and micro-enterprises and agricultural and non-agricultural activities that will generate income and employment should be encouraged in order to reduce poverty in Wooldridge.
- Full Text:
- Date Issued: 2011
Travelling shoppers' perceptions on the comprehensive servicescape within the South African retail environment
- Authors: Zinhumwe, Cephas
- Date: 2012
- Subjects: Retail trade -- Customer services -- South Africa , Consumer satisfaction -- South Africa , Consumption (Economics) -- Social aspects , Consumer behavior
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9296 , http://hdl.handle.net/10948/d1013610
- Description: The study is on the influence of comprehensive servicescape on shopping behaviour of road and rail travelling shoppers. The comprehensive servicescape is referred to as synchronization of the multidimensional servicescape dimensions, which are the physical environment, social environment, socially symbolic and the natural dimensions into one entity that the travellers encounter during the shopping exercise. The servicescape cues that include shoppers and the physical set-up of the service firm are important in influencing service quality evaluation and consumer satisfaction. The aim of this study was to establish the impact of servicescape on travelling shoppers’ buying behaviour and shopping motivations amongst different shoppers that were identified within the South African bus and railway stations. The bus and railway station environment induces an interesting type of shopping behaviour amongst the travelers. The purpose of the study was also to explore the travelling shoppers’ expectations and perceptions on the comprehensive servicescape within the bus station’s retail environment. Additionally the study attempted to address important gaps in the South African literature in respect of the influence of socialservicescape on the buyer behaviour and hedonic motivation of travelling shopper. The questionnaires used in the study were constructed along five dimensions of service quality containing statements linked to a five-point Likert-type interval scale anchored by “strongly agree” and “strongly disagree. Self administered questionnaires were used for data collection from the travelling shoppers through “mall intercept technique” and 300 questionnaires were collected from respondents. The academia benefits from this study from the comprehensive servicescape model of the South African bus and railway stations that was developed. The study built on literature by nvestigating the influence of the comprehensive servicescapes as perceived by travelling shoppers within the South African retail environment. Additionally it was shown both theoretically and empirically, that, that service quality in high contact service environment like the bus and railway station can best be explained by an analysis of the comprehensive servicescape or the multidimensional and hierarchical model. As a result of this study retailers will have a full picture on the specific needs, perception and expectations of road and rail travellers in relation to the quality of the stations’ servicescape, which retailers have to improve in order to increase customer patronage. It is assumed that retailers will be aware that store image and the store ambience should meet the challenges of the perceptions, motivations and consumer behaviour of travellers within the comprehensive servicescape of the station. This study provides a trigger effect to spatial planners to design high quality servicescape that will attract travellers for both hedonic and utilitarian shopping. Hirschman and Holbrook (1982) believed that shoppers derive pleasure from the experience of shopping itself, regardless of the joy from acquiring goods, this more so with travelling shoppers. A bus station can be both a growth node and a tourist attraction, if its features are attractive, therefore planners can benefit from this study. In this study theory that forms the bases of the influence of social servicescape on the behaviour of travelling shoppers that frequently visit and participate in shopping at various South African bus station retail outlets is provided. Additionally, this study provided empirical information on the relationships that exist amongst the characteristics of the South African Park Stations’ physical retail environments, user perceptions and interpersonal encounters. The behaviour of shopping travellers was extensively discussed to provide the background of theories and various models concerning shopping behaviour of travellers. Through this work, clarity on consumer behavioural trends of travelling shoppers in the South African retail sector is provided, which assist in differentiating retail products, services and segmentation of markets in a way that could enhance marketing effectiveness amongst the travelling shopping segment. Special attention was paid to factors that motivate road travellers’ choice of stores; the type of products they purchase and their decision making processes. Effort were made to identify, categorize and segment shopper typologies and their shopping behaviours. Effort was also made to discuss extensively the social and physical influences of environments in a retail environment such as that of the bus and railway station. The discussions in this study focussed on describing the comprehensive servicescape model dimensions which shoppers encountered during their shopping activity. The study also indicated the significance of the interaction of service staff with the customers in determining the service quality, customer satisfaction and the future intention of travelers. Additionally this study emphasised the importance of social encounters and perceptiveness to cues within the station, which determine whether they actively or passively are involved in the shopping encounter. The research findings reveal that, travellers perceive the servicescape within the bus station as unattractive and lack appropriate facilities. Furthermore travelers considered the two dimensions (store image and store ambience) of the store’s servicescape as one composite unit of the servicescape. This position is supported in literature, where it is argued that people respond to their environment holistically, rather than to individual stimuli. The travelling shoppers reveal that although they always find the shops from the bus station clean and neat, consumers expect a certain level of ambient environmental conditions to be present. The empirical findings in this study indicate that travelling shoppers are not interested in visiting the stores at the bus and railway station for shopping because merchandise from the bus station stores is poor in quality and unreliable; the surroundings at the station as unpleasant and the bus and railway station stores are congested. Thus, hasty shopping and spending more time or stay longer than planned for shopping at the bus and railway station is not useful to travelling shoppers. Therefore, travellers feel strongly that the shopping environment of the station is not conducive to shopping. These facilities (stations) are only used for travelling purposes; therefore there is a need for improvement in the retail and station facilities in order to increase shopping activities within this servicescape. The research findings reveal that shopping at the bus station seems to be driven by traditional needs such as functional and experiential motivations as well as travelrelated needs such as busstation-atmosphere-related and bus station-infrastructurerelated motivations. It was difficult to deduce a particular typology of shoppers in this environment, but due to the stress related to travelling. Passive shopping was observed amongst travellers, which is not a positive shopping behaviour for retailers.
- Full Text:
- Date Issued: 2012
- Authors: Zinhumwe, Cephas
- Date: 2012
- Subjects: Retail trade -- Customer services -- South Africa , Consumer satisfaction -- South Africa , Consumption (Economics) -- Social aspects , Consumer behavior
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9296 , http://hdl.handle.net/10948/d1013610
- Description: The study is on the influence of comprehensive servicescape on shopping behaviour of road and rail travelling shoppers. The comprehensive servicescape is referred to as synchronization of the multidimensional servicescape dimensions, which are the physical environment, social environment, socially symbolic and the natural dimensions into one entity that the travellers encounter during the shopping exercise. The servicescape cues that include shoppers and the physical set-up of the service firm are important in influencing service quality evaluation and consumer satisfaction. The aim of this study was to establish the impact of servicescape on travelling shoppers’ buying behaviour and shopping motivations amongst different shoppers that were identified within the South African bus and railway stations. The bus and railway station environment induces an interesting type of shopping behaviour amongst the travelers. The purpose of the study was also to explore the travelling shoppers’ expectations and perceptions on the comprehensive servicescape within the bus station’s retail environment. Additionally the study attempted to address important gaps in the South African literature in respect of the influence of socialservicescape on the buyer behaviour and hedonic motivation of travelling shopper. The questionnaires used in the study were constructed along five dimensions of service quality containing statements linked to a five-point Likert-type interval scale anchored by “strongly agree” and “strongly disagree. Self administered questionnaires were used for data collection from the travelling shoppers through “mall intercept technique” and 300 questionnaires were collected from respondents. The academia benefits from this study from the comprehensive servicescape model of the South African bus and railway stations that was developed. The study built on literature by nvestigating the influence of the comprehensive servicescapes as perceived by travelling shoppers within the South African retail environment. Additionally it was shown both theoretically and empirically, that, that service quality in high contact service environment like the bus and railway station can best be explained by an analysis of the comprehensive servicescape or the multidimensional and hierarchical model. As a result of this study retailers will have a full picture on the specific needs, perception and expectations of road and rail travellers in relation to the quality of the stations’ servicescape, which retailers have to improve in order to increase customer patronage. It is assumed that retailers will be aware that store image and the store ambience should meet the challenges of the perceptions, motivations and consumer behaviour of travellers within the comprehensive servicescape of the station. This study provides a trigger effect to spatial planners to design high quality servicescape that will attract travellers for both hedonic and utilitarian shopping. Hirschman and Holbrook (1982) believed that shoppers derive pleasure from the experience of shopping itself, regardless of the joy from acquiring goods, this more so with travelling shoppers. A bus station can be both a growth node and a tourist attraction, if its features are attractive, therefore planners can benefit from this study. In this study theory that forms the bases of the influence of social servicescape on the behaviour of travelling shoppers that frequently visit and participate in shopping at various South African bus station retail outlets is provided. Additionally, this study provided empirical information on the relationships that exist amongst the characteristics of the South African Park Stations’ physical retail environments, user perceptions and interpersonal encounters. The behaviour of shopping travellers was extensively discussed to provide the background of theories and various models concerning shopping behaviour of travellers. Through this work, clarity on consumer behavioural trends of travelling shoppers in the South African retail sector is provided, which assist in differentiating retail products, services and segmentation of markets in a way that could enhance marketing effectiveness amongst the travelling shopping segment. Special attention was paid to factors that motivate road travellers’ choice of stores; the type of products they purchase and their decision making processes. Effort were made to identify, categorize and segment shopper typologies and their shopping behaviours. Effort was also made to discuss extensively the social and physical influences of environments in a retail environment such as that of the bus and railway station. The discussions in this study focussed on describing the comprehensive servicescape model dimensions which shoppers encountered during their shopping activity. The study also indicated the significance of the interaction of service staff with the customers in determining the service quality, customer satisfaction and the future intention of travelers. Additionally this study emphasised the importance of social encounters and perceptiveness to cues within the station, which determine whether they actively or passively are involved in the shopping encounter. The research findings reveal that, travellers perceive the servicescape within the bus station as unattractive and lack appropriate facilities. Furthermore travelers considered the two dimensions (store image and store ambience) of the store’s servicescape as one composite unit of the servicescape. This position is supported in literature, where it is argued that people respond to their environment holistically, rather than to individual stimuli. The travelling shoppers reveal that although they always find the shops from the bus station clean and neat, consumers expect a certain level of ambient environmental conditions to be present. The empirical findings in this study indicate that travelling shoppers are not interested in visiting the stores at the bus and railway station for shopping because merchandise from the bus station stores is poor in quality and unreliable; the surroundings at the station as unpleasant and the bus and railway station stores are congested. Thus, hasty shopping and spending more time or stay longer than planned for shopping at the bus and railway station is not useful to travelling shoppers. Therefore, travellers feel strongly that the shopping environment of the station is not conducive to shopping. These facilities (stations) are only used for travelling purposes; therefore there is a need for improvement in the retail and station facilities in order to increase shopping activities within this servicescape. The research findings reveal that shopping at the bus station seems to be driven by traditional needs such as functional and experiential motivations as well as travelrelated needs such as busstation-atmosphere-related and bus station-infrastructurerelated motivations. It was difficult to deduce a particular typology of shoppers in this environment, but due to the stress related to travelling. Passive shopping was observed amongst travellers, which is not a positive shopping behaviour for retailers.
- Full Text:
- Date Issued: 2012