Local content requirements and the impact on the South African renewable energy sector
- Authors: Ettmayr, Christopher
- Date: 2016
- Subjects: Renewable energy sources -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/6149 , vital:21043
- Description: Economies aim to expand over time, which always implies the need for increased energy availability in support of this growth. Governments can use their procurement of energy generation to further enhance the benefit to their economies via certain policy tools. One such tool is Local Content Requirements (LCR) where procurement of a good dictates that a certain value has to be sourced locally. The argument for this tool is that spend is localised and manufacturing, as well as job creation, can be stimulated due to industry establishing in the host economy. However, this practice is distortionary in effect and it does not create a fair playing field for global trade. Furthermore, if the local content definition is weak, or open to manipulation, the goals of such a policy may not be achieved at all. This study looked into the local content requirements of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and measured the impact of this policy on the renewable energy sector in general. It was found that, in order to implement a policy such as local content, the host economy had to have certain pre-existing conditions in order to avoid any negative welfare effects. Due to SA not holding all supportive pre-conditions for supporting local content policy, the impact and effect of LCRs has not been optimal and it has not been found to be a sustainable mechanism to continue using into the future indefinitely. The pricing of renewable energy was also found to be higher due to local content and such pricing is passed on to the energy consumer. Therefore, the net welfare impact created for South Africa is diminished in exchange for the creation of jobs and manufacturing, but due to the unsustainability and potential manipulation of the system the country is not maximising the welfare potential from the REIPPPP as it should. It was found that SA renewable energy resources do exist and the logistics infrastructure is strong, providing good potential for investment into renewable energy projects. The demand created by the REIPPPP provided a good market, but there was uncertainty in the long term planning and stability. So, from a market perspective this could be further enhanced. Government had created a sufficient platform for investment, but areas of development such as clusters, R&D and skills training would create a better support environment for LCR policy and strict monitoring of this would also be required to prevent any manipulation. The use of LCRs increases project costs and risk, which is passed onto the energy consumers, but this could be reduced if local goods were more readily available at the right price and at the right quality and quantity. Focus on clusters would once again assist in this regard as independent power producers (IPPs) and engineering procurement and construction (EPC) entities would be able to source components and goods locally in a more cost-effective manner. As the LCRs currently stand in the REIPPPP, it would seem that South Africa is making renewable energy more expensive and although it is argued that this is done for the benefit of creating a new industry and jobs, these are not sustainable and so the current LCR policy will only create short term benefits.
- Full Text:
- Date Issued: 2016
- Authors: Ettmayr, Christopher
- Date: 2016
- Subjects: Renewable energy sources -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/6149 , vital:21043
- Description: Economies aim to expand over time, which always implies the need for increased energy availability in support of this growth. Governments can use their procurement of energy generation to further enhance the benefit to their economies via certain policy tools. One such tool is Local Content Requirements (LCR) where procurement of a good dictates that a certain value has to be sourced locally. The argument for this tool is that spend is localised and manufacturing, as well as job creation, can be stimulated due to industry establishing in the host economy. However, this practice is distortionary in effect and it does not create a fair playing field for global trade. Furthermore, if the local content definition is weak, or open to manipulation, the goals of such a policy may not be achieved at all. This study looked into the local content requirements of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and measured the impact of this policy on the renewable energy sector in general. It was found that, in order to implement a policy such as local content, the host economy had to have certain pre-existing conditions in order to avoid any negative welfare effects. Due to SA not holding all supportive pre-conditions for supporting local content policy, the impact and effect of LCRs has not been optimal and it has not been found to be a sustainable mechanism to continue using into the future indefinitely. The pricing of renewable energy was also found to be higher due to local content and such pricing is passed on to the energy consumer. Therefore, the net welfare impact created for South Africa is diminished in exchange for the creation of jobs and manufacturing, but due to the unsustainability and potential manipulation of the system the country is not maximising the welfare potential from the REIPPPP as it should. It was found that SA renewable energy resources do exist and the logistics infrastructure is strong, providing good potential for investment into renewable energy projects. The demand created by the REIPPPP provided a good market, but there was uncertainty in the long term planning and stability. So, from a market perspective this could be further enhanced. Government had created a sufficient platform for investment, but areas of development such as clusters, R&D and skills training would create a better support environment for LCR policy and strict monitoring of this would also be required to prevent any manipulation. The use of LCRs increases project costs and risk, which is passed onto the energy consumers, but this could be reduced if local goods were more readily available at the right price and at the right quality and quantity. Focus on clusters would once again assist in this regard as independent power producers (IPPs) and engineering procurement and construction (EPC) entities would be able to source components and goods locally in a more cost-effective manner. As the LCRs currently stand in the REIPPPP, it would seem that South Africa is making renewable energy more expensive and although it is argued that this is done for the benefit of creating a new industry and jobs, these are not sustainable and so the current LCR policy will only create short term benefits.
- Full Text:
- Date Issued: 2016
Risk and portfolio management in microfinace institutional governance in Kampala metropolitan region
- Authors: Kyagulanyi, Ronald
- Date: 2016
- Subjects: Microfinance -- Uganda -- Kampala , Risk management -- Uganda -- Kampala , Portfolio management -- Uganda -- Kampala
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/8532 , vital:26401
- Description: This study was undertaken to examine the issues relating to risk and loan portfolio management in Microfinance institutions in Uganda. The first objective of this study was to establish the extent of governance in MFIs in Kampala, by looking at the overall management of these institutions, assessing how decision are made, and looking at how they are staffed. The second objective is to establish the variables that best explain management of Micro-Finance Institutions (MFIs). The third objective is to identify the risk management of loan portfolios and lastly to provide recommendations based on the findings. The researcher used explanatory and survey research designs. A minimum sample 114 participants from 50 MFIs was used in data collection and analysis. The researcher employed principle component analysis (PCA) basing on Eigen values to identify variables above mean-scores and the nodes on the scree plot (ordered eigenvalues) denotes the number of variables that best explain the dimensions and conclusion on each variables was drawn basing on mean values of descriptive statistical analysis. Furthermore the orthonormal loadings display of the variables is employed basing on the first principle component that identified the names of variables above the mean score and final variable is drown basing on descriptive statistical analysis using mean scores focusing on those above the mean. The analysis is based on three dimensions of assessments, namely; Governance, Human capital and Risk Management. In general 227 variables were observed from the 3 dimensions, however by employing the PCA the researcher was in position to come up with those that best explain the 3 dimensions and in summary 29 out of 131 variables were identified by the PCA that best describes governance, 17 out of 72 variables were extracted that best explain what is taking in place in human capital whilst 5 out of 24 variables were extracted in relation to risk management. Furthermore conclusions are drawn by employing descriptive statistical analysis basing on mean scores of the variables identified by the PCA. Therefore out of the 29 variables identified by PCA on governance dimension, 19 variables on average have mean scores above 3 signifying good performance in those areas. Therefore the strength of MFIs under governance is seen in the following areas; The MFIs surveyed have strong board that is professionally ethical and knowledgeable in the area of managing financial institutions. They are performing better in the area of decision making, they do make timely decisions, and the board keeps on monitoring management and making sure that strategies agreed upon are properly implemented. The board is well committed in filing tax returns which is a legal requirement to all taxpaying institutions. However 10 variables showed sign of weakness because they have mean scores on average below 3. Management of MFIs need to strengthen its self in the area of allowing individual initiative in decision making, recognition of management committees in place, this smoothen the operations of the institution and lastly the board need to mentor the management, most of the personnel managing these institutions lack skills in managing the entity. On the side of human capital management, 17 variables identified by PCA, basing on their mean scores, 13 have mean scores above 3 showing good performance of MFIs. In this case the strength of MFIs lies in having educated human resources in place; MFIs gave the ability to exploit the available opportunities more especially targeting low income earners that for long have been neglected. However mores is needed under human capital dimension more especially in those areas where on average their mean scores was below 3 such as training programs where the respondents revealed that the type of training obtained does not match with the job requirements therefore they do not benefit from these programs. There is still a lot of bureaucracy within the management that slows the operations of the MFIs. This is further explained by having directors commuting as loan officers. Failure to accept risk exposes the entire institution to a vague of collapse. The last dimension is risk management and in this way, 5 variables were identified by the PCA, and basing on their mean scores, 3 variables showed good progress and that is having performance management system in place, there are limited complaints from the clients about the MFIs services offered and lastly all employees are given access rights to organisation resources, the loan schemes are open to all employees and no discrimination in service delivery, however 2 variables were identified with mean scores below 3 showing weaknesses within the systems. Therefore MFIs have to improve technologies used in their operations; the use of file carbines, off line computers exposes the institution to high degree of risk. There is need to strengthen their distribution channels so that the financial services offered reach out to clients at ease. Specifically the research study identified various risks like systematic risk, operational risk, credit risk, counterparty risk and legal risk in that they do affect the gross loan portfolio in MFIs and policy measures have been recommended to mitigate such risks in financial institutions. These risks can be mitigated by; • Having Internal control systems of checks and balances • Hedging of transactions through advance booking and paying cash in advance. • Diversification of portfolio, through investing in as many assets possible • Continuous reminder of their obligations and making a fall up of clients and as well insuring the loans. • Investors are encouraged to form a network of partners in the business • Continuous engagement of a legal adviser to the institutions. The study contributed to better understanding of risk management in MFIs, that no single variable can be relied upon to explain effective management of risks but however in this study three dimensions play a crucial role in management of risks. The MFI management should focus on having an internal audit function operating independently in that financial controls should be regularly updated to cope with the changing environment. Audit committee of the board should be complete enough to supervise and regulate internal control systems, written policies in the organization should be effectively implemented with clear division of responsibilities of middle to top managers and lastly Segregation of powers and authority need to be strongly emphasized as a way of enhancing proper management of risks in MFIs.
- Full Text:
- Date Issued: 2016
Risk and portfolio management in microfinace institutional governance in Kampala metropolitan region
- Authors: Kyagulanyi, Ronald
- Date: 2016
- Subjects: Microfinance -- Uganda -- Kampala , Risk management -- Uganda -- Kampala , Portfolio management -- Uganda -- Kampala
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/8532 , vital:26401
- Description: This study was undertaken to examine the issues relating to risk and loan portfolio management in Microfinance institutions in Uganda. The first objective of this study was to establish the extent of governance in MFIs in Kampala, by looking at the overall management of these institutions, assessing how decision are made, and looking at how they are staffed. The second objective is to establish the variables that best explain management of Micro-Finance Institutions (MFIs). The third objective is to identify the risk management of loan portfolios and lastly to provide recommendations based on the findings. The researcher used explanatory and survey research designs. A minimum sample 114 participants from 50 MFIs was used in data collection and analysis. The researcher employed principle component analysis (PCA) basing on Eigen values to identify variables above mean-scores and the nodes on the scree plot (ordered eigenvalues) denotes the number of variables that best explain the dimensions and conclusion on each variables was drawn basing on mean values of descriptive statistical analysis. Furthermore the orthonormal loadings display of the variables is employed basing on the first principle component that identified the names of variables above the mean score and final variable is drown basing on descriptive statistical analysis using mean scores focusing on those above the mean. The analysis is based on three dimensions of assessments, namely; Governance, Human capital and Risk Management. In general 227 variables were observed from the 3 dimensions, however by employing the PCA the researcher was in position to come up with those that best explain the 3 dimensions and in summary 29 out of 131 variables were identified by the PCA that best describes governance, 17 out of 72 variables were extracted that best explain what is taking in place in human capital whilst 5 out of 24 variables were extracted in relation to risk management. Furthermore conclusions are drawn by employing descriptive statistical analysis basing on mean scores of the variables identified by the PCA. Therefore out of the 29 variables identified by PCA on governance dimension, 19 variables on average have mean scores above 3 signifying good performance in those areas. Therefore the strength of MFIs under governance is seen in the following areas; The MFIs surveyed have strong board that is professionally ethical and knowledgeable in the area of managing financial institutions. They are performing better in the area of decision making, they do make timely decisions, and the board keeps on monitoring management and making sure that strategies agreed upon are properly implemented. The board is well committed in filing tax returns which is a legal requirement to all taxpaying institutions. However 10 variables showed sign of weakness because they have mean scores on average below 3. Management of MFIs need to strengthen its self in the area of allowing individual initiative in decision making, recognition of management committees in place, this smoothen the operations of the institution and lastly the board need to mentor the management, most of the personnel managing these institutions lack skills in managing the entity. On the side of human capital management, 17 variables identified by PCA, basing on their mean scores, 13 have mean scores above 3 showing good performance of MFIs. In this case the strength of MFIs lies in having educated human resources in place; MFIs gave the ability to exploit the available opportunities more especially targeting low income earners that for long have been neglected. However mores is needed under human capital dimension more especially in those areas where on average their mean scores was below 3 such as training programs where the respondents revealed that the type of training obtained does not match with the job requirements therefore they do not benefit from these programs. There is still a lot of bureaucracy within the management that slows the operations of the MFIs. This is further explained by having directors commuting as loan officers. Failure to accept risk exposes the entire institution to a vague of collapse. The last dimension is risk management and in this way, 5 variables were identified by the PCA, and basing on their mean scores, 3 variables showed good progress and that is having performance management system in place, there are limited complaints from the clients about the MFIs services offered and lastly all employees are given access rights to organisation resources, the loan schemes are open to all employees and no discrimination in service delivery, however 2 variables were identified with mean scores below 3 showing weaknesses within the systems. Therefore MFIs have to improve technologies used in their operations; the use of file carbines, off line computers exposes the institution to high degree of risk. There is need to strengthen their distribution channels so that the financial services offered reach out to clients at ease. Specifically the research study identified various risks like systematic risk, operational risk, credit risk, counterparty risk and legal risk in that they do affect the gross loan portfolio in MFIs and policy measures have been recommended to mitigate such risks in financial institutions. These risks can be mitigated by; • Having Internal control systems of checks and balances • Hedging of transactions through advance booking and paying cash in advance. • Diversification of portfolio, through investing in as many assets possible • Continuous reminder of their obligations and making a fall up of clients and as well insuring the loans. • Investors are encouraged to form a network of partners in the business • Continuous engagement of a legal adviser to the institutions. The study contributed to better understanding of risk management in MFIs, that no single variable can be relied upon to explain effective management of risks but however in this study three dimensions play a crucial role in management of risks. The MFI management should focus on having an internal audit function operating independently in that financial controls should be regularly updated to cope with the changing environment. Audit committee of the board should be complete enough to supervise and regulate internal control systems, written policies in the organization should be effectively implemented with clear division of responsibilities of middle to top managers and lastly Segregation of powers and authority need to be strongly emphasized as a way of enhancing proper management of risks in MFIs.
- 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
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
A longitudinal investigation into employability : student transition and experiences from tertiary education into the labour market
- Authors: Harry, Tinashe Timothy
- Date: 2018
- Subjects: Employability Graduate students Labor market
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10353/11053 , vital:37015
- Description: Orientation: Several policies have been formulated by the government to redress the inequalities of apartheid. However, the policies have not yielded any positive results as many graduates from Historically Disadvantaged Institutes (HDIs) continue to struggle in the open labour market as compared to graduates from Historically Advantaged Institutes (HAIs). This has been mainly attributed to the legacy of apartheid in several previous studies. As a result, most of these previously disadvantaged individuals (mostly Black Africans) struggle to make the transition from higher education into the world of work. Research Purpose: This study thus explores the journeys of these Black African students from HDIs to understand the transition and experiences from tertiary education into the labour market. Further, the research sought to understand how these transitions and experiences manifest in a context of high unemployment. Finally, the resolution tactics used by students in such a context are given attention. Research approach, design and method: A longitudinal qualitative approach was deemed appropriate for the study as the aim was to understand the changes that occurred over time. The data was collected over a two-year period. A narrative inquiry was utilized as it allowed the participants to share their perceptions without limitations. A total of 30 participants partook in the study. The participants were selected using a purposive sampling to ensure the right participants were involved in the study. The main criteria for selection to participate was that the participants had to be enrolled with a HDI. Main findings: The narratives of the participants led to the formulation of six main themes that were regarded as affecting the transitions and experiences of the Black graduates from HDIs; namely, (1) socio-economic background, (2) education system, (3) labour market experiences, (4) geographical location, (5) social capital and (6) student resolutions to the challenges of employability. A previously disadvantaged background resulted in the participants being recipients of poor education quality, no social networks or information to navigate the labour market and limited access to the labour market due to secluded residential areas. Subsequently, most participants were unable to take responsibility of enhancing their own employability. Contribution: It is not the sole responsibility of the higher education institutes to produce employable graduates, but it's a process that should also involve government, students and employers. As long as the social inequality remains an issue in the country all the efforts to improve employability and transition into the open labour market will be in vain. Furthermore, employers must work together with higher education institutes by offering programs such as internships and career expos to enhance the employability of the graduates. A Graduate Transition Model (GTM) is suggested based on the findings of this research.
- Full Text:
- Date Issued: 2018
- Authors: Harry, Tinashe Timothy
- Date: 2018
- Subjects: Employability Graduate students Labor market
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10353/11053 , vital:37015
- Description: Orientation: Several policies have been formulated by the government to redress the inequalities of apartheid. However, the policies have not yielded any positive results as many graduates from Historically Disadvantaged Institutes (HDIs) continue to struggle in the open labour market as compared to graduates from Historically Advantaged Institutes (HAIs). This has been mainly attributed to the legacy of apartheid in several previous studies. As a result, most of these previously disadvantaged individuals (mostly Black Africans) struggle to make the transition from higher education into the world of work. Research Purpose: This study thus explores the journeys of these Black African students from HDIs to understand the transition and experiences from tertiary education into the labour market. Further, the research sought to understand how these transitions and experiences manifest in a context of high unemployment. Finally, the resolution tactics used by students in such a context are given attention. Research approach, design and method: A longitudinal qualitative approach was deemed appropriate for the study as the aim was to understand the changes that occurred over time. The data was collected over a two-year period. A narrative inquiry was utilized as it allowed the participants to share their perceptions without limitations. A total of 30 participants partook in the study. The participants were selected using a purposive sampling to ensure the right participants were involved in the study. The main criteria for selection to participate was that the participants had to be enrolled with a HDI. Main findings: The narratives of the participants led to the formulation of six main themes that were regarded as affecting the transitions and experiences of the Black graduates from HDIs; namely, (1) socio-economic background, (2) education system, (3) labour market experiences, (4) geographical location, (5) social capital and (6) student resolutions to the challenges of employability. A previously disadvantaged background resulted in the participants being recipients of poor education quality, no social networks or information to navigate the labour market and limited access to the labour market due to secluded residential areas. Subsequently, most participants were unable to take responsibility of enhancing their own employability. Contribution: It is not the sole responsibility of the higher education institutes to produce employable graduates, but it's a process that should also involve government, students and employers. As long as the social inequality remains an issue in the country all the efforts to improve employability and transition into the open labour market will be in vain. Furthermore, employers must work together with higher education institutes by offering programs such as internships and career expos to enhance the employability of the graduates. A Graduate Transition Model (GTM) is suggested based on the findings of this research.
- Full Text:
- Date Issued: 2018
Parental influences on the next generation’s intention to join the family business
- Authors: Saunders, Shelley Beryl
- Date: 2018
- Subjects: Family-owned business enterprises -- Succession , Family-owned business enterprises -- Management Family corporations -- Management Success in business
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/35072 , vital:33612
- Description: Family businesses play an important role worldwide and in South Africa, in terms of their economic contribution and their ability to create jobs. However, the unwillingness of next generation family members (NGFMs) to join the family business seriously jeopardises its long-term survival. This is a matter of great concern for family business owners who in general have a strong desire to pass on the business to the next generation and to preserve the family’s legacy. Of the many factors relating to a person’s choice of career, parents are by far the most influential. Against this background, the purpose of this study was to gain a better understanding of the influence that parents have on the NGFM’s intentions to join the family business as well as the factors that moderate this influence. Establishing how parents influence an NGFM’s intention to join the family business makes an important theoretical contribution to family business, succession and entrepreneurial literatures, and holds both practical and theoretical relevance. The literature review provided an overview of the field of family business and discussed the nature of these businesses. Several frameworks, theories and perspectives relating to family businesses were elaborated on. The important role that family businesses play in the economies of countries and the unique challenges they face were highlighted. One of the most important challenges facing family businesses is that of transgenerational succession and the willingness of the next generation to make the family business their career choice. Several behaviour and career choice theories were discussed, particularly in relation to the South African context, and a summary of all the factors influencing career choice in terms of these theories was presented. Several parental influences on career choice were identified and examined in detail, namely Parent–child relationship, Parents’ job characteristics, Parental financial security, Parental job satisfaction, Parental identification, Parental expectations, Parental support and Parental style. Additionally, the influence of each parental influences on NGFMs, in a family business context, was highlighted. Based on anecdotal and empirical support, these parental influences were hypothesised as influencing the dependent variable in this study, namely Intention to join the family business. Based on the social cognitive career theory, Self-efficacy and Outcome expectations were hypothesised as moderating the aforementioned relationships. This study adopted a positivist research paradigm and a quantitative methodological approach that was deductive in nature. The methodology adopted to collect primary data was a cross-sectional analytical survey. A structured questionnaire was distributed to respondents who were identified by means of judgemental sampling and 453 completed questionnaires were subjected to statistical analysis. The validity of the scales measuring the dependent, moderating and independent variables was assessed by means of factor analysis and the reliability thereof by calculating Cronbach’s alpha coefficients. Both descriptive and inferential statistics were calculated. Multiple regression analysis (MRA) was used to assess the hypothesised relationships. The findings show that only one third of the respondents agreed that they had Intentions to join the family business. Furthermore, the results of the MRA reported significant and positive relationships between the independent variables Parental expectations, Perceived parental outcomes, and Parental identification, and the dependent variable Intention to join the family business. The results of the moderated regression analysis revealed that Self-efficacy and Outcome expectations do not moderate the relationships between all the parental influences investigated and Intention to join the family business as hypothesised. However, a significant positive relationship at the ten per cent confidence level was reported between the interaction effect, Self-efficacy x Perceived parental outcomes, and Intention to join the family business. A significant positive relationship at the five per cent confidence level was also reported between the interaction effect Outcome expectations x Parental identification, and Intention to join the family business. Based on the findings of this study, numerous recommendations were made. This study makes a contribution to both theory and practice. In terms of theory, the results have highlighted the applicability of both the theory of planned behaviour and the social cognitive career theory in explaining an NGFM’s Intention to join the family business. In addition, the applicability of these theories in the family business context has been confirmed. This study also contributes to the family business literature in that it provides new insights into how parents influence one of family businesses’ biggest challenges, namely their children not wanting to take over the family business. In terms of practice, the findings show that that several of the parental influences investigated do indeed increase the intention of NGFMs to join the family business. It is anticipated that these findings will encourage parents who own family businesses to take note of how they influence their children’s decision whether to join them in the family business, and ultimately to contribute to its possible long-term survival and success.
- Full Text:
- Date Issued: 2018
- Authors: Saunders, Shelley Beryl
- Date: 2018
- Subjects: Family-owned business enterprises -- Succession , Family-owned business enterprises -- Management Family corporations -- Management Success in business
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/35072 , vital:33612
- Description: Family businesses play an important role worldwide and in South Africa, in terms of their economic contribution and their ability to create jobs. However, the unwillingness of next generation family members (NGFMs) to join the family business seriously jeopardises its long-term survival. This is a matter of great concern for family business owners who in general have a strong desire to pass on the business to the next generation and to preserve the family’s legacy. Of the many factors relating to a person’s choice of career, parents are by far the most influential. Against this background, the purpose of this study was to gain a better understanding of the influence that parents have on the NGFM’s intentions to join the family business as well as the factors that moderate this influence. Establishing how parents influence an NGFM’s intention to join the family business makes an important theoretical contribution to family business, succession and entrepreneurial literatures, and holds both practical and theoretical relevance. The literature review provided an overview of the field of family business and discussed the nature of these businesses. Several frameworks, theories and perspectives relating to family businesses were elaborated on. The important role that family businesses play in the economies of countries and the unique challenges they face were highlighted. One of the most important challenges facing family businesses is that of transgenerational succession and the willingness of the next generation to make the family business their career choice. Several behaviour and career choice theories were discussed, particularly in relation to the South African context, and a summary of all the factors influencing career choice in terms of these theories was presented. Several parental influences on career choice were identified and examined in detail, namely Parent–child relationship, Parents’ job characteristics, Parental financial security, Parental job satisfaction, Parental identification, Parental expectations, Parental support and Parental style. Additionally, the influence of each parental influences on NGFMs, in a family business context, was highlighted. Based on anecdotal and empirical support, these parental influences were hypothesised as influencing the dependent variable in this study, namely Intention to join the family business. Based on the social cognitive career theory, Self-efficacy and Outcome expectations were hypothesised as moderating the aforementioned relationships. This study adopted a positivist research paradigm and a quantitative methodological approach that was deductive in nature. The methodology adopted to collect primary data was a cross-sectional analytical survey. A structured questionnaire was distributed to respondents who were identified by means of judgemental sampling and 453 completed questionnaires were subjected to statistical analysis. The validity of the scales measuring the dependent, moderating and independent variables was assessed by means of factor analysis and the reliability thereof by calculating Cronbach’s alpha coefficients. Both descriptive and inferential statistics were calculated. Multiple regression analysis (MRA) was used to assess the hypothesised relationships. The findings show that only one third of the respondents agreed that they had Intentions to join the family business. Furthermore, the results of the MRA reported significant and positive relationships between the independent variables Parental expectations, Perceived parental outcomes, and Parental identification, and the dependent variable Intention to join the family business. The results of the moderated regression analysis revealed that Self-efficacy and Outcome expectations do not moderate the relationships between all the parental influences investigated and Intention to join the family business as hypothesised. However, a significant positive relationship at the ten per cent confidence level was reported between the interaction effect, Self-efficacy x Perceived parental outcomes, and Intention to join the family business. A significant positive relationship at the five per cent confidence level was also reported between the interaction effect Outcome expectations x Parental identification, and Intention to join the family business. Based on the findings of this study, numerous recommendations were made. This study makes a contribution to both theory and practice. In terms of theory, the results have highlighted the applicability of both the theory of planned behaviour and the social cognitive career theory in explaining an NGFM’s Intention to join the family business. In addition, the applicability of these theories in the family business context has been confirmed. This study also contributes to the family business literature in that it provides new insights into how parents influence one of family businesses’ biggest challenges, namely their children not wanting to take over the family business. In terms of practice, the findings show that that several of the parental influences investigated do indeed increase the intention of NGFMs to join the family business. It is anticipated that these findings will encourage parents who own family businesses to take note of how they influence their children’s decision whether to join them in the family business, and ultimately to contribute to its possible long-term survival and success.
- Full Text:
- Date Issued: 2018
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
A framework for enhancing the transgenerational potential of indigenous african family businesses
- Authors: Matchaba-Hove, Mtonhodzi
- Date: 2020
- Subjects: Family-owned business enterprises -- Succession Indigenous peoples -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/48894 , vital:41168
- Description: Family businesses are the backbone of many economies around the globe and are believed to constitute over two-thirds of all businesses worldwide. For nearly 300 years, the Southern African economy has been developing as a consequence of the contribution of family businesses to the region’s economy. Despite their importance to the economies of countries, their overall failure rate remains high. Given the important economic and societal contribution that family businesses make, their survival rates are a matter of concern. As far as can be established, little research has been conducted among indigenous African family businesses. The research done to date lacks depth in terms of the topics covered and the countries sampled. The majority of studies on family businesses have been done in European, American and Asian settings. Notably, the research project on Successful Transgenerational Entrepreneurship Practices (STEP) has investigated transgenerational entrepreneurship among family businesses around the world. The STEP project proposes a theoretical framework, known as the STEP framework, which to date has not been applied to the indigenous African context. There is a great need for deeper insights into, and an increased understanding of the practices implemented among indigenous African family businesses that have survived across the generations, and of the context in which these businesses operate. Therefore, the primary objective of this study is to explore and describe the factors that influence the transgenerational potential of indigenous African family businesses so as to assess the appropriateness of an existing non-African framework, namely the STEP framework, and to reconfigure it for the African context. The STEP framework proposes that various contextual factors influence both the entrepreneurial orientation and the familiness resource pools of family businesses, which in turn influence each other, and ultimately the transgenerational potential of the family business. The underlying theory applied in the study is Hofstede’s Cultural Dimensions model. Hofstede’s model provides theoretical support for the belief that the context in which a theory or framework is applied has a big influence on the successful application of such a framework. Therefore, a need exists to contextualise the STEP framework to the context in which it is being applied. An interpretivist research paradigm and a qualitative methodological approach were deemed the most suitable for the current study, as this paradigm and approach enabled the researcher to address the dynamics and invisible issues within family businesses. The current study adopted a multiple case study methodology. Adopting this methodology allowed for a deeper understanding of the object of interest. The three cases were systematically selected, using purposive sampling, to ensure that a credible and indicative sample was obtained. The criteria used for selection were based on the STEP project guidelines and the three businesses selected were from South Africa, Zimbabwe and Botswana, of indigenous African heritage and have showed sustained growth and success since their establishment. The reason for these selection criteria was to ensure that the study appropriately addressed the defined research objectives and the gap in the body of knowledge on transgenerational entrepreneurship in the African context. The instrument used to guide the key-informant interviews in this research was a semi-structured interview schedule adapted from the STEP project interview schedule. Once all the data was collected, a combination of directed content analysis and explanation building was used to analyse the data. A framework for enhancing the transgenerational potential of indigenous African family businesses is proposed in this study, based on the practices adopted by the successful indigenous African family businesses which participated. The framework developed adapts the STEP framework for the indigenous African family business context. As in the STEP framework, the framework proposed for indigenous African family businesses highlights several external contextual factors as influencing both the familiness resource pools and the dimensions of entrepreneurial orientation. In the context of indigenous African family businesses, the external contextual factors most influential are the philosophy of Ubuntu, the collectivist national culture, as well as the community and extended family commitments. The external contextual factors, namely, the business environment and the industry in which the business operates, were found to be particularly influential on the entrepreneurial orientation displayed by the participating family businesses. All eight familiness resource pools, as well as the five dimensions of entrepreneurial orientation as proposed in the STEP framework, still form part of the framework proposed for indigenous African family businesses. However, for some the nature thereof differed somewhat from the original descriptions. Therefore, the original names were adapted to better describe these concepts as applicable to an indigenous African family business context. The proposed framework supports the multi-dimensional nature of performance outcomes among indigenous African family businesses. It proposes that in an indigenous African family business context, entrepreneurial performance outcomes are important to the extent that they contribute to achieving the financial performance outcomes, while the financial performance outcomes are important to the extent that they contribute to achieving the social performance outcomes. This study contributes to a greater understanding of successful indigenous African family businesses and their best practices, specifically an understanding of the practices adopted with regards to the familiness resource pools and entrepreneurial orientation. Furthermore, this study has expanded on the understanding of paternalism in that it has provides greater clarity on the nature of this leadership style, as well as the positive outcomes associated with it, in an African context. The study also has significance for educators, who can incorporate the lessons learned from it into their entrepreneurship and family business teaching.
- Full Text:
- Date Issued: 2020
- Authors: Matchaba-Hove, Mtonhodzi
- Date: 2020
- Subjects: Family-owned business enterprises -- Succession Indigenous peoples -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: http://hdl.handle.net/10948/48894 , vital:41168
- Description: Family businesses are the backbone of many economies around the globe and are believed to constitute over two-thirds of all businesses worldwide. For nearly 300 years, the Southern African economy has been developing as a consequence of the contribution of family businesses to the region’s economy. Despite their importance to the economies of countries, their overall failure rate remains high. Given the important economic and societal contribution that family businesses make, their survival rates are a matter of concern. As far as can be established, little research has been conducted among indigenous African family businesses. The research done to date lacks depth in terms of the topics covered and the countries sampled. The majority of studies on family businesses have been done in European, American and Asian settings. Notably, the research project on Successful Transgenerational Entrepreneurship Practices (STEP) has investigated transgenerational entrepreneurship among family businesses around the world. The STEP project proposes a theoretical framework, known as the STEP framework, which to date has not been applied to the indigenous African context. There is a great need for deeper insights into, and an increased understanding of the practices implemented among indigenous African family businesses that have survived across the generations, and of the context in which these businesses operate. Therefore, the primary objective of this study is to explore and describe the factors that influence the transgenerational potential of indigenous African family businesses so as to assess the appropriateness of an existing non-African framework, namely the STEP framework, and to reconfigure it for the African context. The STEP framework proposes that various contextual factors influence both the entrepreneurial orientation and the familiness resource pools of family businesses, which in turn influence each other, and ultimately the transgenerational potential of the family business. The underlying theory applied in the study is Hofstede’s Cultural Dimensions model. Hofstede’s model provides theoretical support for the belief that the context in which a theory or framework is applied has a big influence on the successful application of such a framework. Therefore, a need exists to contextualise the STEP framework to the context in which it is being applied. An interpretivist research paradigm and a qualitative methodological approach were deemed the most suitable for the current study, as this paradigm and approach enabled the researcher to address the dynamics and invisible issues within family businesses. The current study adopted a multiple case study methodology. Adopting this methodology allowed for a deeper understanding of the object of interest. The three cases were systematically selected, using purposive sampling, to ensure that a credible and indicative sample was obtained. The criteria used for selection were based on the STEP project guidelines and the three businesses selected were from South Africa, Zimbabwe and Botswana, of indigenous African heritage and have showed sustained growth and success since their establishment. The reason for these selection criteria was to ensure that the study appropriately addressed the defined research objectives and the gap in the body of knowledge on transgenerational entrepreneurship in the African context. The instrument used to guide the key-informant interviews in this research was a semi-structured interview schedule adapted from the STEP project interview schedule. Once all the data was collected, a combination of directed content analysis and explanation building was used to analyse the data. A framework for enhancing the transgenerational potential of indigenous African family businesses is proposed in this study, based on the practices adopted by the successful indigenous African family businesses which participated. The framework developed adapts the STEP framework for the indigenous African family business context. As in the STEP framework, the framework proposed for indigenous African family businesses highlights several external contextual factors as influencing both the familiness resource pools and the dimensions of entrepreneurial orientation. In the context of indigenous African family businesses, the external contextual factors most influential are the philosophy of Ubuntu, the collectivist national culture, as well as the community and extended family commitments. The external contextual factors, namely, the business environment and the industry in which the business operates, were found to be particularly influential on the entrepreneurial orientation displayed by the participating family businesses. All eight familiness resource pools, as well as the five dimensions of entrepreneurial orientation as proposed in the STEP framework, still form part of the framework proposed for indigenous African family businesses. However, for some the nature thereof differed somewhat from the original descriptions. Therefore, the original names were adapted to better describe these concepts as applicable to an indigenous African family business context. The proposed framework supports the multi-dimensional nature of performance outcomes among indigenous African family businesses. It proposes that in an indigenous African family business context, entrepreneurial performance outcomes are important to the extent that they contribute to achieving the financial performance outcomes, while the financial performance outcomes are important to the extent that they contribute to achieving the social performance outcomes. This study contributes to a greater understanding of successful indigenous African family businesses and their best practices, specifically an understanding of the practices adopted with regards to the familiness resource pools and entrepreneurial orientation. Furthermore, this study has expanded on the understanding of paternalism in that it has provides greater clarity on the nature of this leadership style, as well as the positive outcomes associated with it, in an African context. The study also has significance for educators, who can incorporate the lessons learned from it into their entrepreneurship and family business teaching.
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- Date Issued: 2020