The effect of foreign direct investment on economic growth: evidence from South Africa
- Authors: Mazenda, Adrino
- Date: 2012
- Subjects: International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11462 , http://hdl.handle.net/10353/d1007027 , International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Description: Foreign direct investment amongst other mechanisms provides capital inflow meant to stimulate economic growth. Apart from promoting economic growth, FDI can also lead to increase in employment, technology, technical knowhow and managerial skills. South Africa has implemented various policy initiatives in attempts to attract foreign investment. This study investigates on the effect of foreign direct investment on economic growth, with particular reference to the South African economy. The period of study is from 1980 to 2010. The study begins by reviewing literature on economic growth and foreign direct investment. South Africa’s macroeconomic background is examined to determine the trends in FDI inflows and economic growth. An empirical model linking theoretical and empirical literature on the effect of FDI on economic growth is estimated using the Johansen cointegration and VECM framework. Variables specified in the methodology include real gross domestic product (RGDP), foreign direct investment (FDI), domestic investment (INVE), real exchange rate (REXCH) and foreign marketable debt (DEBT). The long run results showed that FDI, REXCH and DEBT have a negative impact on growth. INVE has a positive impact on growth. Short run results indicated that there is no strong pressure on RGDP to restore long-run equilibrium whenever there is a disturbance. The short run lag of FDI was found to exert a positive impact on growth. The impulse response and variance decomposition analysis complemented the long and short-run findings. Shocks on REXCH, and DEBT generated a negative response on RGDP. The shocks were not significantly different from zero and were transitory. Results from the variance decomposition analysis revealed that the fundamentals explain some, but not all, of the variations of RGDP. For the fifth year forecast error variance RGDP explains the largest component of the variation followed by INVE, REXCH, FDI and DEBT. After a period of ten years, the influence of RGDP and INVE declines, whereas REXCH, FDI and DEBT increase. Conclusions and policy recommendations were made using these results.
- Full Text:
- Date Issued: 2012
- Authors: Mazenda, Adrino
- Date: 2012
- Subjects: International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11462 , http://hdl.handle.net/10353/d1007027 , International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Description: Foreign direct investment amongst other mechanisms provides capital inflow meant to stimulate economic growth. Apart from promoting economic growth, FDI can also lead to increase in employment, technology, technical knowhow and managerial skills. South Africa has implemented various policy initiatives in attempts to attract foreign investment. This study investigates on the effect of foreign direct investment on economic growth, with particular reference to the South African economy. The period of study is from 1980 to 2010. The study begins by reviewing literature on economic growth and foreign direct investment. South Africa’s macroeconomic background is examined to determine the trends in FDI inflows and economic growth. An empirical model linking theoretical and empirical literature on the effect of FDI on economic growth is estimated using the Johansen cointegration and VECM framework. Variables specified in the methodology include real gross domestic product (RGDP), foreign direct investment (FDI), domestic investment (INVE), real exchange rate (REXCH) and foreign marketable debt (DEBT). The long run results showed that FDI, REXCH and DEBT have a negative impact on growth. INVE has a positive impact on growth. Short run results indicated that there is no strong pressure on RGDP to restore long-run equilibrium whenever there is a disturbance. The short run lag of FDI was found to exert a positive impact on growth. The impulse response and variance decomposition analysis complemented the long and short-run findings. Shocks on REXCH, and DEBT generated a negative response on RGDP. The shocks were not significantly different from zero and were transitory. Results from the variance decomposition analysis revealed that the fundamentals explain some, but not all, of the variations of RGDP. For the fifth year forecast error variance RGDP explains the largest component of the variation followed by INVE, REXCH, FDI and DEBT. After a period of ten years, the influence of RGDP and INVE declines, whereas REXCH, FDI and DEBT increase. Conclusions and policy recommendations were made using these results.
- Full Text:
- Date Issued: 2012
Financial liberalisation and economic growth in South Africa
- Sibanda, Hlanganani Siqondile.
- Authors: Sibanda, Hlanganani Siqondile.
- Date: 2012
- Subjects: Economic development -- South Africa , Monetary policy -- South Africa , Finance -- Management , Capital movements -- South Africa , Free trade -- South Africa , Expenditures, Public
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11471 , http://hdl.handle.net/10353/d1007131 , Economic development -- South Africa , Monetary policy -- South Africa , Finance -- Management , Capital movements -- South Africa , Free trade -- South Africa , Expenditures, Public
- Description: This study examined the impact of financial liberalisation on economic growth in South Africa. The study used quarterly time series data for the period 1980 to 2010. A vector error correction model was used to determine the short run and long run effects of financial liberalisation on economic growth in South Africa. The other explanatory variables considered in this study were government expenditure, investment ratio, public expenditure on education and trade openness. Results from this study revealed that financial liberalisation, government expenditure and public expenditure on education have a positive impact on economic growth while trade openness negatively affects economic growth in South Africa. Policy recommendations were made using these results.
- Full Text:
- Date Issued: 2012
- Authors: Sibanda, Hlanganani Siqondile.
- Date: 2012
- Subjects: Economic development -- South Africa , Monetary policy -- South Africa , Finance -- Management , Capital movements -- South Africa , Free trade -- South Africa , Expenditures, Public
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11471 , http://hdl.handle.net/10353/d1007131 , Economic development -- South Africa , Monetary policy -- South Africa , Finance -- Management , Capital movements -- South Africa , Free trade -- South Africa , Expenditures, Public
- Description: This study examined the impact of financial liberalisation on economic growth in South Africa. The study used quarterly time series data for the period 1980 to 2010. A vector error correction model was used to determine the short run and long run effects of financial liberalisation on economic growth in South Africa. The other explanatory variables considered in this study were government expenditure, investment ratio, public expenditure on education and trade openness. Results from this study revealed that financial liberalisation, government expenditure and public expenditure on education have a positive impact on economic growth while trade openness negatively affects economic growth in South Africa. Policy recommendations were made using these results.
- Full Text:
- Date Issued: 2012
A proposed model for enterprise resource planning benefits for SMEs
- Authors: De Matos, Paulo
- Date: 2017
- Subjects: Small business -- South Africa Enterprise resource planning -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/14971 , vital:28107
- Description: Small to medium sized enterprises (SMEs) play a significant role in global and national economies, both in developed and developing countries, contributing significantly to economic growth and job creation. Yet, SMEs face ongoing survival issues as their limited access to resources often constrains their ability to compete and realise their potential. Enterprise Resource Planning (ERP) systems are known to be a crucial component in realising benefits for any organisation and are seen as significant contributors to an organisation’s performance. However, only a portion of SMEs report that their value expectations have been met in adopting an ERP system. SMEs require a better understanding of how to extract value from ERP adoption in order to remain competitive. An on-going SME problem is a lack of low-level awareness of the benefits that an ERP system is capable of providing them. The problem is stated as “SMEs do not understand the benefits derived from the adoption of an ERP system”. The purpose of this treatise was to determine a clearer understanding of how ERP systems can be considered a technological innovation that may be exploited by an SME to deliver business value by increasing the performance of the SME and thereby increasing the SME’s competitive advantage. A literature review was conducted on ERP and SMEs which identified benefit models grounded in the theories of Diffusion of Innovation (DOI) and Resource Based View (RBV). DOI explains the benefits derived from ERP use as the technology diffuses throughout the social organisation and RBV measures the business value extracted from ERP adoption and use. A model for ERP benefits for SMEs was proposed based on the extant literature and empirical evaluation on a sample of 107 SYSPRO ERP users in South Africa. The model was statistically assessed as to the relationships between the independent variables of ease of use, collaboration, capabilities, efficiencies, analytics, industry sector and maturity against the dependent variable of ERP business value. The variables of analytics, capabilities and ease of use together explain 68.9% of the variance of ERP business value, while analytics and capabilities explain 53.8%. No significant relationship was found for efficiencies, collaboration, industry or maturity, being a measure of length of years’ experience in ERP use. The results indicate that SMEs perceive analytics to be a valuable determinant of ERP value contributing to the competitiveness of SMEs. The higher the SME focuses on analytics, the greater the organisation’s performance increases due to the enhancement of analytical-based decisions aiding in a better decision-making process. Capabilities are the degree to which an ERP system caters for the functional needs of the SME. This treatise argues that SMEs should pay particular focus on their operational requirements and whether the ERP system is capable of providing them as customisation of the ERP is costly. Organisational personnel utilising ERP must be comfortable utilising it. Perceptions as to an ERP’s complexity and usefulness define the ease-of-use. SMEs should consider the inherent aspects of a given ERP system that support the adoption rate of their personnel of an ERP system. Practically, SMEs should assess the degree of system intuitiveness both during ERP selection and during the adoption lifecycle phases. ERP providers should focus on the provisioning of aspects both in the software and during the implementation of an ERP system at an SME in ensuring the system is intuitive, useful, easy to use, functionally addresses the SME requirements simply and surfaces meaningful analytics in support of decision-making process.
- Full Text:
- Date Issued: 2017
- Authors: De Matos, Paulo
- Date: 2017
- Subjects: Small business -- South Africa Enterprise resource planning -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/14971 , vital:28107
- Description: Small to medium sized enterprises (SMEs) play a significant role in global and national economies, both in developed and developing countries, contributing significantly to economic growth and job creation. Yet, SMEs face ongoing survival issues as their limited access to resources often constrains their ability to compete and realise their potential. Enterprise Resource Planning (ERP) systems are known to be a crucial component in realising benefits for any organisation and are seen as significant contributors to an organisation’s performance. However, only a portion of SMEs report that their value expectations have been met in adopting an ERP system. SMEs require a better understanding of how to extract value from ERP adoption in order to remain competitive. An on-going SME problem is a lack of low-level awareness of the benefits that an ERP system is capable of providing them. The problem is stated as “SMEs do not understand the benefits derived from the adoption of an ERP system”. The purpose of this treatise was to determine a clearer understanding of how ERP systems can be considered a technological innovation that may be exploited by an SME to deliver business value by increasing the performance of the SME and thereby increasing the SME’s competitive advantage. A literature review was conducted on ERP and SMEs which identified benefit models grounded in the theories of Diffusion of Innovation (DOI) and Resource Based View (RBV). DOI explains the benefits derived from ERP use as the technology diffuses throughout the social organisation and RBV measures the business value extracted from ERP adoption and use. A model for ERP benefits for SMEs was proposed based on the extant literature and empirical evaluation on a sample of 107 SYSPRO ERP users in South Africa. The model was statistically assessed as to the relationships between the independent variables of ease of use, collaboration, capabilities, efficiencies, analytics, industry sector and maturity against the dependent variable of ERP business value. The variables of analytics, capabilities and ease of use together explain 68.9% of the variance of ERP business value, while analytics and capabilities explain 53.8%. No significant relationship was found for efficiencies, collaboration, industry or maturity, being a measure of length of years’ experience in ERP use. The results indicate that SMEs perceive analytics to be a valuable determinant of ERP value contributing to the competitiveness of SMEs. The higher the SME focuses on analytics, the greater the organisation’s performance increases due to the enhancement of analytical-based decisions aiding in a better decision-making process. Capabilities are the degree to which an ERP system caters for the functional needs of the SME. This treatise argues that SMEs should pay particular focus on their operational requirements and whether the ERP system is capable of providing them as customisation of the ERP is costly. Organisational personnel utilising ERP must be comfortable utilising it. Perceptions as to an ERP’s complexity and usefulness define the ease-of-use. SMEs should consider the inherent aspects of a given ERP system that support the adoption rate of their personnel of an ERP system. Practically, SMEs should assess the degree of system intuitiveness both during ERP selection and during the adoption lifecycle phases. ERP providers should focus on the provisioning of aspects both in the software and during the implementation of an ERP system at an SME in ensuring the system is intuitive, useful, easy to use, functionally addresses the SME requirements simply and surfaces meaningful analytics in support of decision-making process.
- Full Text:
- Date Issued: 2017
Investigating a positioning strategy for a car wash business in Port Elizabeth : a case study
- Authors: Naidoo-Kurup, Malanie
- Date: 2012
- Subjects: Car wash industry -- South Africa -- Port Elizabeth , Informal sector (Economics) -- South Africa -- Port Elizabeth , Economic development -- South Africa , Small business -- South Africa -- Planning
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8856 , http://hdl.handle.net/10948/d1020148
- Description: The aim of this study was to determine an appropriate positioning strategy for a car wash business in Port Elizabeth to promote its competitive advantage in the market place. To meet this aim the customers' perceptions of the business were examined. It has been widely acknowledged by researchers and development agencies that Small, Medium and Micro Enterprises (SMMEs) and entrepreneurs play a crucial role in the economic development of a nation. This is particularly significant for a developing nation such as South Africa to address its critical challenges of unemployment and poverty which impact on social stability. Research reveals that the failure rate of SMMEs in South Africa is an alarming 75 percent. In this context, the need to explore innovative strategies to support and sustain the SMME sector has become increasingly important. A detailed survey of relevant literature revealed that the attributes of a firm that relate to the quality of service, pricing, attitudes of staff, image of the firm etc. can be considered as important variables which customers use to differentiate a business from its competitors. It is suggested that the success of a firm largely depends on its ability to position itself in a competitive environment by focusing on attributes which customers value the most in relation to similar businesses. This case study was approached from a positivist paradigm and data from 61 customers of the car wash were collected. The quantitative data were statistically analysed to examine the attributes of the business which the respondents of the survey perceived as offering the most value to them when compared to other car washes in the area. These attributes were then used to develop a positioning map for the business. The results showed that the attribute of the business which was most valued by the respondents was the manual washing of vehicles. A positioning strategy for the car wash based on this finding is suggested.
- Full Text:
- Date Issued: 2012
- Authors: Naidoo-Kurup, Malanie
- Date: 2012
- Subjects: Car wash industry -- South Africa -- Port Elizabeth , Informal sector (Economics) -- South Africa -- Port Elizabeth , Economic development -- South Africa , Small business -- South Africa -- Planning
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8856 , http://hdl.handle.net/10948/d1020148
- Description: The aim of this study was to determine an appropriate positioning strategy for a car wash business in Port Elizabeth to promote its competitive advantage in the market place. To meet this aim the customers' perceptions of the business were examined. It has been widely acknowledged by researchers and development agencies that Small, Medium and Micro Enterprises (SMMEs) and entrepreneurs play a crucial role in the economic development of a nation. This is particularly significant for a developing nation such as South Africa to address its critical challenges of unemployment and poverty which impact on social stability. Research reveals that the failure rate of SMMEs in South Africa is an alarming 75 percent. In this context, the need to explore innovative strategies to support and sustain the SMME sector has become increasingly important. A detailed survey of relevant literature revealed that the attributes of a firm that relate to the quality of service, pricing, attitudes of staff, image of the firm etc. can be considered as important variables which customers use to differentiate a business from its competitors. It is suggested that the success of a firm largely depends on its ability to position itself in a competitive environment by focusing on attributes which customers value the most in relation to similar businesses. This case study was approached from a positivist paradigm and data from 61 customers of the car wash were collected. The quantitative data were statistically analysed to examine the attributes of the business which the respondents of the survey perceived as offering the most value to them when compared to other car washes in the area. These attributes were then used to develop a positioning map for the business. The results showed that the attribute of the business which was most valued by the respondents was the manual washing of vehicles. A positioning strategy for the car wash based on this finding is suggested.
- Full Text:
- Date Issued: 2012
Development finance institutions and sustainable economic development : a case of the idc South Africa
- Authors: Mare, Timothy
- Date: 2020
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/48872 , vital:41166
- Description: The purpose of this research study is to assess the extent that the Industrial Development Cooperation (IDC) of South Africa a Development Finance Institution (DFI), has contributed to the sustainable economic development of South Africa. The objective is to quantify the impact that is attributed to the IDC’s activities in South Africa in terms of socio-economic development contributing to sustainable economic development. Social development is fundamentally important in contributing to the economic development of any country. The research constituted the collection and quantitative analysis of data using reports from the IDC. The social output index modelling developed by the World Bank was used to analyse the data and make conclusive arguments regarding the impact that the IDC was having on economic development. The findings indicate that the IDC significantly lends less comparatively to lower income groups thus resulting in a negative contribution in terms of social developmental goals. Further the analysis through social output index model suggests that the IDC in as far as socio-development is concerned did not contributing positively to sustainable economic development between 2014 and 2018 reporting periods. The following recommendations are suggested: Increase awareness about the real impact of each investment across the IDC group, this will ensure that all proposals for investment are assessed with a component focusing on a socio-developmental perspective; reduce the number of mandates that the IDC currently has and establish broader frameworks for DFIs regardless of which government is in power or control.
- Full Text:
- Date Issued: 2020
- Authors: Mare, Timothy
- Date: 2020
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/48872 , vital:41166
- Description: The purpose of this research study is to assess the extent that the Industrial Development Cooperation (IDC) of South Africa a Development Finance Institution (DFI), has contributed to the sustainable economic development of South Africa. The objective is to quantify the impact that is attributed to the IDC’s activities in South Africa in terms of socio-economic development contributing to sustainable economic development. Social development is fundamentally important in contributing to the economic development of any country. The research constituted the collection and quantitative analysis of data using reports from the IDC. The social output index modelling developed by the World Bank was used to analyse the data and make conclusive arguments regarding the impact that the IDC was having on economic development. The findings indicate that the IDC significantly lends less comparatively to lower income groups thus resulting in a negative contribution in terms of social developmental goals. Further the analysis through social output index model suggests that the IDC in as far as socio-development is concerned did not contributing positively to sustainable economic development between 2014 and 2018 reporting periods. The following recommendations are suggested: Increase awareness about the real impact of each investment across the IDC group, this will ensure that all proposals for investment are assessed with a component focusing on a socio-developmental perspective; reduce the number of mandates that the IDC currently has and establish broader frameworks for DFIs regardless of which government is in power or control.
- Full Text:
- Date Issued: 2020
Official development assistance (ODA): coordination, management and its impact in the National Department of Science and Technology (DST)
- Authors: Tena, Mokgadi
- Date: 2013
- Subjects: Economic sssistance -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9161 , http://hdl.handle.net/10948/d1020023
- Description: South Africa (SA) has been a recipient of Official Development Assistance (ODA) prior to the democratic elections in 1994. Even though there has been progress in terms of aligning the ODA to SA government priorities and the good aid management principles, it has been a challenge to trace the amount of the ODA received across government departments and its impact thereon. For various reasons, reporting on the impact of the ODA has been very challenging for most of the departments. Some departments do not use government systems such as the Reconstruction and Development Programme (RDP) account, through which it is required by the Policy Framework and Procedural Guidelines for the Management of ODA that all funds are transferred and channelled. As stipulated in the Policy Framework and Procedural Guidelines for the Management of ODA, the ODA is targeted towards innovation, piloting and value-add, as it only constitutes 1.5 percent of the overall budget of the country. As a result, most government departments utilise ODA as a gap-filler, to pay for unplanned activities that would have otherwise not been budgeted for in the government’s fiscal budget. This leads to departments not reporting as they fear that the ODA will then be withdrawn from them (Policy Guidelines2003). The Department of Science and Technology is one of the South African government departments that received high ODA for the period 2005-2011. The department not only spans across all sectors in terms of research and capacity development, but it has also established strategic international partnerships to collaborate in the research arena. In light of the above, it is interesting to explore how coordination is carried out and what impact if any; 2 the ODA has on the proposed Department of Science and Technology projects. This study explores the Department of Science and Technology, which is a recipient and implementer of ODA, and analyses how they co-ordinate, utilise and report on the ODA. The project that will be analysed is a Sector Budget Support Programme that focuses on poverty alleviation within the capacity development sector.
- Full Text:
- Date Issued: 2013
- Authors: Tena, Mokgadi
- Date: 2013
- Subjects: Economic sssistance -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9161 , http://hdl.handle.net/10948/d1020023
- Description: South Africa (SA) has been a recipient of Official Development Assistance (ODA) prior to the democratic elections in 1994. Even though there has been progress in terms of aligning the ODA to SA government priorities and the good aid management principles, it has been a challenge to trace the amount of the ODA received across government departments and its impact thereon. For various reasons, reporting on the impact of the ODA has been very challenging for most of the departments. Some departments do not use government systems such as the Reconstruction and Development Programme (RDP) account, through which it is required by the Policy Framework and Procedural Guidelines for the Management of ODA that all funds are transferred and channelled. As stipulated in the Policy Framework and Procedural Guidelines for the Management of ODA, the ODA is targeted towards innovation, piloting and value-add, as it only constitutes 1.5 percent of the overall budget of the country. As a result, most government departments utilise ODA as a gap-filler, to pay for unplanned activities that would have otherwise not been budgeted for in the government’s fiscal budget. This leads to departments not reporting as they fear that the ODA will then be withdrawn from them (Policy Guidelines2003). The Department of Science and Technology is one of the South African government departments that received high ODA for the period 2005-2011. The department not only spans across all sectors in terms of research and capacity development, but it has also established strategic international partnerships to collaborate in the research arena. In light of the above, it is interesting to explore how coordination is carried out and what impact if any; 2 the ODA has on the proposed Department of Science and Technology projects. This study explores the Department of Science and Technology, which is a recipient and implementer of ODA, and analyses how they co-ordinate, utilise and report on the ODA. The project that will be analysed is a Sector Budget Support Programme that focuses on poverty alleviation within the capacity development sector.
- Full Text:
- Date Issued: 2013
Appraising the national road transport system in the light of the South African economic development plan
- Authors: Potgieter, Andries Hendrik
- Date: 2016
- Subjects: Transportation -- South Africa , Economic development -- South Africa , Infrastructure (Economics) -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/3655 , vital:20450
- Description: Since the mid 70’s politicians have realized how important transport has become in the economy of South Africa and the advantages it has on growth, job creation and infrastructure. The result was involvement in the rules and regulations that govern South African transport in our country today. Economic growth has become a critical factor for the survival of economies as well as the future prospects of generations to come. The global recession which had a direct and indirect effect on South Africa has highlighted the importance. The question on how the National Development Plan could have an influence on local and national economic growth has developed as well as what the impact will be of the contribution road transport can make on the growth of the South African society and the economy. When the current road transport sector is taken into consideration, the need for a constructive plan that can assist transporters, drivers and businesses to grow and expand has been identified. The purpose of this study is thus to determine what the current economic situation in the world and in South Africa is as well as how the current political spheres are contributing to the national economy. An in-depth analysis of the National Development Plan has been done with emphasis on the effect on transport in general and the effect on road transport in South Africa. In order to accomplish this objective a detailed literature study was done which highlighted the academics information that pertains to the above mentioned topics. An empirical study that would measure the thought process and feelings about the National Development Plan and road transport has been conducted by means of a questionnaire. The results of the study have indicated that the National Development Plan could be an important tool and could have an enormous positive effect on the overall economic situation of South Africa and its citizens. In addition, the study has revealed that in the long term the effect of the plan could be to the advantage of the road transport sector. Factors that could contribute to the success would be features such as the planned improvements on the main transport corridors, upgrade of infrastructure and the controlling of environmental matters would have give a positive ring to it. On the other hand, recommendations to rectify and improve other issues such as corruption, leadership, maintenance backlogs and stricter laws and policies have been identified that are hindering businesses to grow and expand. Literature and data gained through the empirical study has indicated that the National Development Plan will improve South Africa’s economic situation. Respondents were optimistic about the plan and the overall feeling were that the plan will succeed in improving the road transport sector thus contribute to the National Development Plan objective to eliminate poverty and inequality by 2030.
- Full Text:
- Date Issued: 2016
- Authors: Potgieter, Andries Hendrik
- Date: 2016
- Subjects: Transportation -- South Africa , Economic development -- South Africa , Infrastructure (Economics) -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/3655 , vital:20450
- Description: Since the mid 70’s politicians have realized how important transport has become in the economy of South Africa and the advantages it has on growth, job creation and infrastructure. The result was involvement in the rules and regulations that govern South African transport in our country today. Economic growth has become a critical factor for the survival of economies as well as the future prospects of generations to come. The global recession which had a direct and indirect effect on South Africa has highlighted the importance. The question on how the National Development Plan could have an influence on local and national economic growth has developed as well as what the impact will be of the contribution road transport can make on the growth of the South African society and the economy. When the current road transport sector is taken into consideration, the need for a constructive plan that can assist transporters, drivers and businesses to grow and expand has been identified. The purpose of this study is thus to determine what the current economic situation in the world and in South Africa is as well as how the current political spheres are contributing to the national economy. An in-depth analysis of the National Development Plan has been done with emphasis on the effect on transport in general and the effect on road transport in South Africa. In order to accomplish this objective a detailed literature study was done which highlighted the academics information that pertains to the above mentioned topics. An empirical study that would measure the thought process and feelings about the National Development Plan and road transport has been conducted by means of a questionnaire. The results of the study have indicated that the National Development Plan could be an important tool and could have an enormous positive effect on the overall economic situation of South Africa and its citizens. In addition, the study has revealed that in the long term the effect of the plan could be to the advantage of the road transport sector. Factors that could contribute to the success would be features such as the planned improvements on the main transport corridors, upgrade of infrastructure and the controlling of environmental matters would have give a positive ring to it. On the other hand, recommendations to rectify and improve other issues such as corruption, leadership, maintenance backlogs and stricter laws and policies have been identified that are hindering businesses to grow and expand. Literature and data gained through the empirical study has indicated that the National Development Plan will improve South Africa’s economic situation. Respondents were optimistic about the plan and the overall feeling were that the plan will succeed in improving the road transport sector thus contribute to the National Development Plan objective to eliminate poverty and inequality by 2030.
- Full Text:
- Date Issued: 2016
The impact of financial development on private investment in south Africa
- Authors: Mukuya, Prisca R
- Date: 2014
- Subjects: Economic development -- South Africa , Gross domestic product -- South Africa , Investments, Foreign -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11488 , http://hdl.handle.net/10353/d1018210 , Economic development -- South Africa , Gross domestic product -- South Africa , Investments, Foreign -- South Africa
- Description: Empirical evidence and theoretical propositions suggest that financial development is strongly correlated to private investment because financial development positively affects investments by affecting capital accumulation, altering savings rate or by channelizing savings to various capital producing technologies. This study empirically investigated the impact of financial development on private investment in South Africa using quarterly data for the period 1994/01 to 2011/04. This study assess whether the theoretical and empirical propositions can be supported in South Africa. Cointegration tests using the Johansen approach (1988) were conducted to examine if there is a stable relationship in the level of private investment and financial development in South Africa. As a proxy for financial sector development, credit to private sector as per cent of GDP and stock market development were employed. Other variables that affect investment such as real interest rates and real GDP were also included in the model. Results of the study indicate that stock market development and real GDP have a positive relationship with private investment. Bank credit to the private sector however showed a negative relationship with private investment. A negative relationship was also noted for the relationship between private investment and real interest rates.
- Full Text:
- Date Issued: 2014
- Authors: Mukuya, Prisca R
- Date: 2014
- Subjects: Economic development -- South Africa , Gross domestic product -- South Africa , Investments, Foreign -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11488 , http://hdl.handle.net/10353/d1018210 , Economic development -- South Africa , Gross domestic product -- South Africa , Investments, Foreign -- South Africa
- Description: Empirical evidence and theoretical propositions suggest that financial development is strongly correlated to private investment because financial development positively affects investments by affecting capital accumulation, altering savings rate or by channelizing savings to various capital producing technologies. This study empirically investigated the impact of financial development on private investment in South Africa using quarterly data for the period 1994/01 to 2011/04. This study assess whether the theoretical and empirical propositions can be supported in South Africa. Cointegration tests using the Johansen approach (1988) were conducted to examine if there is a stable relationship in the level of private investment and financial development in South Africa. As a proxy for financial sector development, credit to private sector as per cent of GDP and stock market development were employed. Other variables that affect investment such as real interest rates and real GDP were also included in the model. Results of the study indicate that stock market development and real GDP have a positive relationship with private investment. Bank credit to the private sector however showed a negative relationship with private investment. A negative relationship was also noted for the relationship between private investment and real interest rates.
- Full Text:
- Date Issued: 2014
The impact of globalization on economic growth in South Africa
- Authors: Maronga, Vimbai Linah
- Date: 2015
- Subjects: Economic development -- South Africa , International economic integration , International trade
- Language: English
- Type: text
- Identifier: http://hdl.handle.net/10353/25861 , vital:64552
- Description: The dissertation investigated the impact of globalization on the economic growth of South Africa using annual South African data covering the period 1975 to 2011. The study used Johansen cointegration and vector error correction model to determine the impact of globalization on economic growth in South Africa. The VECM model with South African variables was specified and used to assess the effects of globalization on South Africa’s economic growth. Results of the study suggested that the South African economic growth was negatively impacted by globalization in the long run. Using the results conclusions and policy recommendations were made using these results. , Thesis (MCom) -- Faculty of Management and Commerce, 2015
- Full Text:
- Date Issued: 2015
- Authors: Maronga, Vimbai Linah
- Date: 2015
- Subjects: Economic development -- South Africa , International economic integration , International trade
- Language: English
- Type: text
- Identifier: http://hdl.handle.net/10353/25861 , vital:64552
- Description: The dissertation investigated the impact of globalization on the economic growth of South Africa using annual South African data covering the period 1975 to 2011. The study used Johansen cointegration and vector error correction model to determine the impact of globalization on economic growth in South Africa. The VECM model with South African variables was specified and used to assess the effects of globalization on South Africa’s economic growth. Results of the study suggested that the South African economic growth was negatively impacted by globalization in the long run. Using the results conclusions and policy recommendations were made using these results. , Thesis (MCom) -- Faculty of Management and Commerce, 2015
- Full Text:
- Date Issued: 2015
The impact of stock market development on economic growth: evidence from South Africa
- Authors: Vacu, Nomfundo Portia
- Date: 2013
- Subjects: Stock exchanges -- South Africa , Economic development -- South Africa , Stocks -- Economic aspects -- South Africa , South Africa -- Economic conditions , Stock market development , Economic growth , South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11655 , http://hdl.handle.net/10353/d1006983 , Stock exchanges -- South Africa , Economic development -- South Africa , Stocks -- Economic aspects -- South Africa , South Africa -- Economic conditions , Stock market development , Economic growth , South Africa
- Description: The main objective of this study is to examine the long run relationship between stock market development and economic growth in the case of South Africa. The study used quarterly data covering the period from 1990Q1 to 2010Q4. To empirically test the link between the two variables, the study used the Johnson’s cointegration approach and Granger causality so as to test the direction of the relationship. The Vector Error Correction Model was also employed to capture both short run and long run dynamics. Generally, the results reveal that a long run relationship exists between the two variables and the causality flows from economic growth to stock market development. Also, the extent to which of stock market development impacts on growth is statistically weak.
- Full Text:
- Date Issued: 2013
- Authors: Vacu, Nomfundo Portia
- Date: 2013
- Subjects: Stock exchanges -- South Africa , Economic development -- South Africa , Stocks -- Economic aspects -- South Africa , South Africa -- Economic conditions , Stock market development , Economic growth , South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11655 , http://hdl.handle.net/10353/d1006983 , Stock exchanges -- South Africa , Economic development -- South Africa , Stocks -- Economic aspects -- South Africa , South Africa -- Economic conditions , Stock market development , Economic growth , South Africa
- Description: The main objective of this study is to examine the long run relationship between stock market development and economic growth in the case of South Africa. The study used quarterly data covering the period from 1990Q1 to 2010Q4. To empirically test the link between the two variables, the study used the Johnson’s cointegration approach and Granger causality so as to test the direction of the relationship. The Vector Error Correction Model was also employed to capture both short run and long run dynamics. Generally, the results reveal that a long run relationship exists between the two variables and the causality flows from economic growth to stock market development. Also, the extent to which of stock market development impacts on growth is statistically weak.
- Full Text:
- Date Issued: 2013
An econometric analysis of the impact of economic freedom on economic growth in the SADC
- Authors: Gorlach, Vsevolod Igorevich
- Date: 2011
- Subjects: Economic development -- South Africa , Economic development
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8983 , http://hdl.handle.net/10948/1539 , Economic development -- South Africa , Economic development
- Description: The conventional approach to increasing economic growth - increasing inputs, such as labour and capital, is not always possible. The wider, fundamental sources of economic growth need to be considered too. Foreign aid is a temporary lifeline and does not spur economic growth. Conversely, financial assistance negatively affects growth and can hamper development prospects. Economic freedom and economically freer countries have been associated with higher growth rates, higher per capita incomes, greater volumes of trade, prosperity and overall wellbeing. By improving their economic freedom, deregulating the economy and allowing economic freedom to prosper, countries can experience sustained GDP growth. Previous studies have shown that economic freedom and economic growth are exponentially related - and that by initially becoming freer, countires can increase their growth rates at higher rates. The main objective of the SADC is to achieve development and economic growth, to alleviate poverty and enhance the standard and quality of life for the peoples of Southern Africa. The SADC is attempting to achieve economic integration through macroeconomic convergence. A number of macroeconomic variables have been set to act as primary indicators. These include inflation, fiscal balance, public debt and the current account balance. By introducing the concept that economic freedom can lead to higher growth rates and being able to identify economic freedom, it makes it possible to investigate how the SADC can achieve its set goals by becoming freer. By investigating individual components that constitute the overall freedom index, it becomes possible to establish the relationship that exists between this viriable and economic growth. This will illustrate where deregulation and freedom are most effective and where policy decisions need to be highlighted. The 2008 economic crisis revealed that countries that decreased their economic freedom have fared worse than countries allowing freedom to prosper. Government fiscal stimulus has had no positive impact on growth rates; the negative effects of reducing economic freedom will onlky be fully seen in future years. However, the majority of the SADC countries showed a relatively strong fiscal stance during the recession. This study established whether that a positive relationship between economic freedom and economic growth in the SADC. Secondly, the direction of causality that economic freedom leads to economic growth. The findings reveal that economic freedom fosters economic growth in general, and for the SADC in particular. Empirical evidence has been found for the SADC; and the implications of becoming freer are more fully explained.
- Full Text:
- Date Issued: 2011
- Authors: Gorlach, Vsevolod Igorevich
- Date: 2011
- Subjects: Economic development -- South Africa , Economic development
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8983 , http://hdl.handle.net/10948/1539 , Economic development -- South Africa , Economic development
- Description: The conventional approach to increasing economic growth - increasing inputs, such as labour and capital, is not always possible. The wider, fundamental sources of economic growth need to be considered too. Foreign aid is a temporary lifeline and does not spur economic growth. Conversely, financial assistance negatively affects growth and can hamper development prospects. Economic freedom and economically freer countries have been associated with higher growth rates, higher per capita incomes, greater volumes of trade, prosperity and overall wellbeing. By improving their economic freedom, deregulating the economy and allowing economic freedom to prosper, countries can experience sustained GDP growth. Previous studies have shown that economic freedom and economic growth are exponentially related - and that by initially becoming freer, countires can increase their growth rates at higher rates. The main objective of the SADC is to achieve development and economic growth, to alleviate poverty and enhance the standard and quality of life for the peoples of Southern Africa. The SADC is attempting to achieve economic integration through macroeconomic convergence. A number of macroeconomic variables have been set to act as primary indicators. These include inflation, fiscal balance, public debt and the current account balance. By introducing the concept that economic freedom can lead to higher growth rates and being able to identify economic freedom, it makes it possible to investigate how the SADC can achieve its set goals by becoming freer. By investigating individual components that constitute the overall freedom index, it becomes possible to establish the relationship that exists between this viriable and economic growth. This will illustrate where deregulation and freedom are most effective and where policy decisions need to be highlighted. The 2008 economic crisis revealed that countries that decreased their economic freedom have fared worse than countries allowing freedom to prosper. Government fiscal stimulus has had no positive impact on growth rates; the negative effects of reducing economic freedom will onlky be fully seen in future years. However, the majority of the SADC countries showed a relatively strong fiscal stance during the recession. This study established whether that a positive relationship between economic freedom and economic growth in the SADC. Secondly, the direction of causality that economic freedom leads to economic growth. The findings reveal that economic freedom fosters economic growth in general, and for the SADC in particular. Empirical evidence has been found for the SADC; and the implications of becoming freer are more fully explained.
- Full Text:
- Date Issued: 2011
Development finance in small and medium enterprises in Matjhabeng Municipality
- Babalola, Oluwanifesimi Omolade
- Authors: Babalola, Oluwanifesimi Omolade
- Date: 2014
- Subjects: Business enterprises -- South Africa -- Finance , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9187 , http://hdl.handle.net/10948/d1020215
- Description: It has been generally accepted within the developed and developing countries of the world that SMES contributes significantly to employment creation as the world population increases and that it also contributes to the economic growth of the areas they are situated in. Finance is the blood (life) of any business, for a business to be successful it needs steady successful access to funds and post financial support which leads to actualization of ideas, leads to investment and expansion, improves access to market amongst others. This is why the impact of development finance can never be over emphasized. The aims of the study are: To understand the extent to which small and medium businesses are supported through the availability of financial assistance in Matjabeng Municipality. To establish the survival rates of businesses that has been funded and or supported and whether they are or not sustainable. In achieving the aims and objectives of the research, the researcher looked at development funds both from the supply side and the demand side. The supply side which involved semi structured interviews with consultants of government parastatals (the FDC and DETEA) who are involved in financing Small Medium Enterprises in Matjhabeng municipality. The demand side involved administering of questionnaires to Entrepreneurs in the municipality who are registered with the Local Economic Department (LED), which led to the acceptance of the hypothesis of the research that development finance actually helps in the growth of small medium enterprises but in conjunction with post financial support such as bookkeeping, accounting, monitoring and evaluation. The researcher also discovered some findings amongst others which includes: The most effective ways entrepreneurs heard about funding in the municipality are through the media and word of mouth. Most of the entrepreneurs that received some type of funding are startups. More entrepreneurs that had access to funds also got some post financial business support. Financial assistance to entrepreneurs yielded improvements after respondents received financial assistance, the range of goods offered was improved and more jobs were created, entrepreneurs were able to obtain better business premises either by renting or buying and entrepreneurs had access to better equipment. Some of the recommendations of this study includes; The municipal government should help small and medium enterprises in the municipality by linking them to new markets. Effective monitoring and evaluation systems should be put in place by development funders and non-financial support services. Entrepreneurial skills development should be provided by the public and private agencies by organizing workshops for aspiring entrepreneurs in order to expose them to business opportunities that are sustainable and viable.
- Full Text:
- Date Issued: 2014
- Authors: Babalola, Oluwanifesimi Omolade
- Date: 2014
- Subjects: Business enterprises -- South Africa -- Finance , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9187 , http://hdl.handle.net/10948/d1020215
- Description: It has been generally accepted within the developed and developing countries of the world that SMES contributes significantly to employment creation as the world population increases and that it also contributes to the economic growth of the areas they are situated in. Finance is the blood (life) of any business, for a business to be successful it needs steady successful access to funds and post financial support which leads to actualization of ideas, leads to investment and expansion, improves access to market amongst others. This is why the impact of development finance can never be over emphasized. The aims of the study are: To understand the extent to which small and medium businesses are supported through the availability of financial assistance in Matjabeng Municipality. To establish the survival rates of businesses that has been funded and or supported and whether they are or not sustainable. In achieving the aims and objectives of the research, the researcher looked at development funds both from the supply side and the demand side. The supply side which involved semi structured interviews with consultants of government parastatals (the FDC and DETEA) who are involved in financing Small Medium Enterprises in Matjhabeng municipality. The demand side involved administering of questionnaires to Entrepreneurs in the municipality who are registered with the Local Economic Department (LED), which led to the acceptance of the hypothesis of the research that development finance actually helps in the growth of small medium enterprises but in conjunction with post financial support such as bookkeeping, accounting, monitoring and evaluation. The researcher also discovered some findings amongst others which includes: The most effective ways entrepreneurs heard about funding in the municipality are through the media and word of mouth. Most of the entrepreneurs that received some type of funding are startups. More entrepreneurs that had access to funds also got some post financial business support. Financial assistance to entrepreneurs yielded improvements after respondents received financial assistance, the range of goods offered was improved and more jobs were created, entrepreneurs were able to obtain better business premises either by renting or buying and entrepreneurs had access to better equipment. Some of the recommendations of this study includes; The municipal government should help small and medium enterprises in the municipality by linking them to new markets. Effective monitoring and evaluation systems should be put in place by development funders and non-financial support services. Entrepreneurial skills development should be provided by the public and private agencies by organizing workshops for aspiring entrepreneurs in order to expose them to business opportunities that are sustainable and viable.
- Full Text:
- Date Issued: 2014
Social movements and economic development in post apartheid South Africa: lessons from Latin America
- Authors: Makoni, Tinotenda Charity
- Date: 2019
- Subjects: South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994- , Social movements -- South Africa , Social movements -- Latin America , Economic development -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/76420 , vital:30561
- Description: The aim of this research is to bring the literature on political agency and economics together in an analysis of whether social movements can play an important role in economic development in post-apartheid South Africa. The entrenched discourse of sluggish growth and high inequality in post-apartheid South Africa can largely be attributed to the political decision to implement a neoliberal economic development orthodoxy. On the one hand, there is an urgent need to shift the economic development model to an alternate developmentalist model. However, no clearly articulated alternative developmental model has emerged. As a result, economically, South Africa is seemingly stuck. On the other hand, the selection of an economic development model and change in macroeconomic policies requires a political shift. Politically, formal politics has assumed the form of neoliberal democracy, characterised by a largely centralised state and the usurpation of the state and institutions by a national bourgeoisie. Social movements have emerged in response to the failure of neoliberalism to fulfil the promises of early post independent periods. They have been largely successful at highlighting the injustices and the inequalities in the country. However their ability to influence structural economic development has come into question. Firstly, social movements and their “politically destabilising distributive demands” have faced repression from the state as the state and institutions are aligned behind the interests of capital under a neoliberal democracy. Secondly, social movements in South Africa have been largely ideologically under-developed. They have been largely fragmented and tended to contest specific single issues rather than aiming to shift the deeper underlying systemic drivers behind the symptomatic immediate discomforts. The economic dimensions of such a shift are particularly unclear. This fragmentation and apparent lack of economic pragmatism make management or suppression of disruptive movements by the state relatively easy. The research uses a contrast between the Latin American social movements against a South African background in order to see what lessons South Africa can draw from social movements in Latin America. The Latin American case is cautiously more positive and provides comparably more sanguine lessons. In this way, this research seeks to construct a more comprehensive framework for the further study of social movements in South Africa and their potential impact on economic development in South Africa.
- Full Text:
- Date Issued: 2019
Social movements and economic development in post apartheid South Africa: lessons from Latin America
- Authors: Makoni, Tinotenda Charity
- Date: 2019
- Subjects: South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994- , Social movements -- South Africa , Social movements -- Latin America , Economic development -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/76420 , vital:30561
- Description: The aim of this research is to bring the literature on political agency and economics together in an analysis of whether social movements can play an important role in economic development in post-apartheid South Africa. The entrenched discourse of sluggish growth and high inequality in post-apartheid South Africa can largely be attributed to the political decision to implement a neoliberal economic development orthodoxy. On the one hand, there is an urgent need to shift the economic development model to an alternate developmentalist model. However, no clearly articulated alternative developmental model has emerged. As a result, economically, South Africa is seemingly stuck. On the other hand, the selection of an economic development model and change in macroeconomic policies requires a political shift. Politically, formal politics has assumed the form of neoliberal democracy, characterised by a largely centralised state and the usurpation of the state and institutions by a national bourgeoisie. Social movements have emerged in response to the failure of neoliberalism to fulfil the promises of early post independent periods. They have been largely successful at highlighting the injustices and the inequalities in the country. However their ability to influence structural economic development has come into question. Firstly, social movements and their “politically destabilising distributive demands” have faced repression from the state as the state and institutions are aligned behind the interests of capital under a neoliberal democracy. Secondly, social movements in South Africa have been largely ideologically under-developed. They have been largely fragmented and tended to contest specific single issues rather than aiming to shift the deeper underlying systemic drivers behind the symptomatic immediate discomforts. The economic dimensions of such a shift are particularly unclear. This fragmentation and apparent lack of economic pragmatism make management or suppression of disruptive movements by the state relatively easy. The research uses a contrast between the Latin American social movements against a South African background in order to see what lessons South Africa can draw from social movements in Latin America. The Latin American case is cautiously more positive and provides comparably more sanguine lessons. In this way, this research seeks to construct a more comprehensive framework for the further study of social movements in South Africa and their potential impact on economic development in South Africa.
- Full Text:
- Date Issued: 2019
Development of the South African monetary banking sector and money market
- Authors: Patel, Aadil Suleman
- Date: 2005
- Subjects: South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:997 , http://hdl.handle.net/10962/d1002732 , South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Description: This thesis presents a theoretical analysis of developments in the South African monetary banking sector and money market. In the first section, evolution of the political, social and economic environments over the past few decades are discussed to provide the reader with an idea of some factors responsible for the underdeveloped nature of this market. It has been argued that the domestic political and economic landscape is relatively stable. Nevertheless, factors such as Zimbabwe’s political and ensuing economic turmoil, coupled with numerous financial crises in other developing nations have had negative consequences on domestic financial market development and economic growth. The current state of monetary policy is also analysed, within the economic environment, and various policy considerations have been put forth concerning the inflation targeting policy. The thesis then goes on to scrutinise the statutory and institutional environments within which the monetary banking institutions operate. Recent changes in the regulations governing the operations of these institutions are identified, together with the consequences of such laws on banking institutions and possible amendments have been suggested. In particular, a system of Asset Based Reserve Requirements (ABRR) has been recommended, in place of the current cash reserve requirement, to ensure regulators create a level playing field in the financial sector. The system can also provide authorities with the necessary control required to direct funds to the most desirable sectors of the economy. Development of the interbank market and the effect of reduced banking competition on the efficacy of the South African Reserve Bank’s refinancing operations and inflation targeting policy are also considered. Finally, the thesis analyses some effects of financial development on the South African economy, and whether it is in the best interests of the country to pursue financial reforms with such vigour. While financial development may bring South Africa closer to international standards of best practice, the timing and extent of the reforms will be critical to guarantee success.
- Full Text:
- Date Issued: 2005
- Authors: Patel, Aadil Suleman
- Date: 2005
- Subjects: South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:997 , http://hdl.handle.net/10962/d1002732 , South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Description: This thesis presents a theoretical analysis of developments in the South African monetary banking sector and money market. In the first section, evolution of the political, social and economic environments over the past few decades are discussed to provide the reader with an idea of some factors responsible for the underdeveloped nature of this market. It has been argued that the domestic political and economic landscape is relatively stable. Nevertheless, factors such as Zimbabwe’s political and ensuing economic turmoil, coupled with numerous financial crises in other developing nations have had negative consequences on domestic financial market development and economic growth. The current state of monetary policy is also analysed, within the economic environment, and various policy considerations have been put forth concerning the inflation targeting policy. The thesis then goes on to scrutinise the statutory and institutional environments within which the monetary banking institutions operate. Recent changes in the regulations governing the operations of these institutions are identified, together with the consequences of such laws on banking institutions and possible amendments have been suggested. In particular, a system of Asset Based Reserve Requirements (ABRR) has been recommended, in place of the current cash reserve requirement, to ensure regulators create a level playing field in the financial sector. The system can also provide authorities with the necessary control required to direct funds to the most desirable sectors of the economy. Development of the interbank market and the effect of reduced banking competition on the efficacy of the South African Reserve Bank’s refinancing operations and inflation targeting policy are also considered. Finally, the thesis analyses some effects of financial development on the South African economy, and whether it is in the best interests of the country to pursue financial reforms with such vigour. While financial development may bring South Africa closer to international standards of best practice, the timing and extent of the reforms will be critical to guarantee success.
- Full Text:
- Date Issued: 2005
The impact of electricity on economic growth in South Africa
- Authors: Ndlovu, Vanessa Constance
- Date: 2013
- Subjects: Economic development -- South Africa , Power resources -- South Africa , Electric power consumption -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9022 , http://hdl.handle.net/10948/d1019787
- Description: Since 1994, with many of its sanctions lifted, South Africa became a stronger economic power house in Africa leading the continent‘s industrial output and mineral production and generating a large proportion of Africa‘s electricity. The South African economy has since been growing at a fast pace which has also led to an increase in the demand for electricity. South Africa‘s generating capacity has remained constant through a consistently increasing demand, leading to an electricity shortfall. An immediate threat to South Africa‘s continued economic growth is a capacity constraint in terms of energy supply. Increasing economic growth coupled with the rapid industrialisation and mass electrification programme of the last decade, as well as planned and unplanned maintenance and coal stock pile problems led, in January 2008, to demand out stripping supply. With electricity being an important component of economic development, it is vital that the impact of the supply of electricity on the economic growth of the country be well understood. Currently few studies have been done on the analysis of this relationship in South Africa specifically and how this relationship impacts specific sectors of the economy that contributes to the total GDP of the country. This study has assumed rigorous application of Granger technique with proper statistical verification of assumptions, selection of relevant variables and provides trusted statistical forecasts. In an attempt to understand this relationship, an Econometric model has been developed to assess the impact of electricity supply and price on the economic growth of South Africa. In the empirical analysis section of this study it was found that with a forecast for GDP, past values of electricity prices and coal sales may be used to forecast electricity supply. It was also found that if we have a forecast value of future electricity price we can use past values of electricity supply and coal sales to forecast GDP for the next quarter. We also found that electricity supply is granger caused by GDP; electricity price; and total coal sales. And that economic growth is granger caused by electricity supply; electricity price; and total coal sales. It was concluded that in order for government to improve the economic growth of South Africa, a major focus on the energy industry is needed to ensure sustainable supply capacity. The energy sector, as was shown in the study, has a major impact in the functioning of the Gross Domestic Product of the country.
- Full Text:
- Date Issued: 2013
- Authors: Ndlovu, Vanessa Constance
- Date: 2013
- Subjects: Economic development -- South Africa , Power resources -- South Africa , Electric power consumption -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9022 , http://hdl.handle.net/10948/d1019787
- Description: Since 1994, with many of its sanctions lifted, South Africa became a stronger economic power house in Africa leading the continent‘s industrial output and mineral production and generating a large proportion of Africa‘s electricity. The South African economy has since been growing at a fast pace which has also led to an increase in the demand for electricity. South Africa‘s generating capacity has remained constant through a consistently increasing demand, leading to an electricity shortfall. An immediate threat to South Africa‘s continued economic growth is a capacity constraint in terms of energy supply. Increasing economic growth coupled with the rapid industrialisation and mass electrification programme of the last decade, as well as planned and unplanned maintenance and coal stock pile problems led, in January 2008, to demand out stripping supply. With electricity being an important component of economic development, it is vital that the impact of the supply of electricity on the economic growth of the country be well understood. Currently few studies have been done on the analysis of this relationship in South Africa specifically and how this relationship impacts specific sectors of the economy that contributes to the total GDP of the country. This study has assumed rigorous application of Granger technique with proper statistical verification of assumptions, selection of relevant variables and provides trusted statistical forecasts. In an attempt to understand this relationship, an Econometric model has been developed to assess the impact of electricity supply and price on the economic growth of South Africa. In the empirical analysis section of this study it was found that with a forecast for GDP, past values of electricity prices and coal sales may be used to forecast electricity supply. It was also found that if we have a forecast value of future electricity price we can use past values of electricity supply and coal sales to forecast GDP for the next quarter. We also found that electricity supply is granger caused by GDP; electricity price; and total coal sales. And that economic growth is granger caused by electricity supply; electricity price; and total coal sales. It was concluded that in order for government to improve the economic growth of South Africa, a major focus on the energy industry is needed to ensure sustainable supply capacity. The energy sector, as was shown in the study, has a major impact in the functioning of the Gross Domestic Product of the country.
- Full Text:
- Date Issued: 2013
Possible futures for the Republic of South Africa towards 2055
- Adendorff, Christian Michael
- Authors: Adendorff, Christian Michael
- Date: 2013
- Subjects: Economic development -- South Africa , Sustainable development -- South Africa
- Language: English
- Type: Thesis , Doctoral , DBA
- Identifier: http://hdl.handle.net/10948/7816 , vital:24294
- Description: The purpose of this thesis was to develop four scenarios for South Africa over the next forty years: Mandela's Dream in which positive elements come into function for South Africa's economy and governance; the Historical African Syndrome, in which the key driving forces unfold in an uneven pattern, or have a differentiated impact on South Africa's economy; the Good, the Bad and the Ugly in which less good governance prevails, but where a fortunate economy and firm national management allow South Africa to become competitive and benefit from satisfactory economic growth; and the Pyramid Syndrome Scenario in which negative regional drivers of change corrode positive policies and initiatives in a manner which compounds the pre-existing threats to South Africa's growth.
- Full Text:
- Date Issued: 2013
- Authors: Adendorff, Christian Michael
- Date: 2013
- Subjects: Economic development -- South Africa , Sustainable development -- South Africa
- Language: English
- Type: Thesis , Doctoral , DBA
- Identifier: http://hdl.handle.net/10948/7816 , vital:24294
- Description: The purpose of this thesis was to develop four scenarios for South Africa over the next forty years: Mandela's Dream in which positive elements come into function for South Africa's economy and governance; the Historical African Syndrome, in which the key driving forces unfold in an uneven pattern, or have a differentiated impact on South Africa's economy; the Good, the Bad and the Ugly in which less good governance prevails, but where a fortunate economy and firm national management allow South Africa to become competitive and benefit from satisfactory economic growth; and the Pyramid Syndrome Scenario in which negative regional drivers of change corrode positive policies and initiatives in a manner which compounds the pre-existing threats to South Africa's growth.
- Full Text:
- Date Issued: 2013
Some aspects of housing economics with reference to the coloured population of South Africa
- Authors: Farabi, Sadraddin
- Date: 1981 , 2013-04-02
- Subjects: Housing -- South Africa , Housing policy -- South Africa , Regional economics -- South Africa , Economic development -- South Africa , Colored people (South Africa) -- Housing , Colored people (South Africa) -- South Africa -- Grahamstown
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:1050 , http://hdl.handle.net/10962/d1006342 , Housing -- South Africa , Housing policy -- South Africa , Regional economics -- South Africa , Economic development -- South Africa , Colored people (South Africa) -- Housing , Colored people (South Africa) -- South Africa -- Grahamstown
- Full Text:
- Date Issued: 1981
- Authors: Farabi, Sadraddin
- Date: 1981 , 2013-04-02
- Subjects: Housing -- South Africa , Housing policy -- South Africa , Regional economics -- South Africa , Economic development -- South Africa , Colored people (South Africa) -- Housing , Colored people (South Africa) -- South Africa -- Grahamstown
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:1050 , http://hdl.handle.net/10962/d1006342 , Housing -- South Africa , Housing policy -- South Africa , Regional economics -- South Africa , Economic development -- South Africa , Colored people (South Africa) -- Housing , Colored people (South Africa) -- South Africa -- Grahamstown
- Full Text:
- Date Issued: 1981
Trends and determinants of inward foreign direct investment to South Africa
- Authors: Rusike, Tatonga Gardner
- Date: 2008
- Subjects: International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:995 , http://hdl.handle.net/10962/d1002730 , International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Description: Foreign direct investment (FDI) is seen as a way to provide the needed capital inflow to stimulate growth in a domestic economy. FDI can also result in increased employment levels, managerial skills and increase in technology. In efforts to attract FDI, host countries have undertaken various policy incentives to attract foreign investors. This study analyses the trends and determinants of inward FDI to South Africa for the period 1975-2005. The study starts by reviewing FDI literature on its determinants and provides the macroeconomic background and FDI related policies undertaken in South Africa. The trend and sectoral analysis provides the actual nature of FDI flows to South Africa. An empirical model linking theoretical and empirical determinants of FDI is estimated using the Johansen cointegration and VECM framework. The study also augments the cointegration framework with impulse response and variance decomposition analyses to complement the long and short run determinants of FDI. Dummy variables are used in each of the estimated FDI models to take into account the possibility of structural breaks. Results show that relative to the size of the economy and to other developing countries, South Africa still receives low levels of inward FDI. Only are few years are exceptional i.e. 1997, 2001 and 2005. From the sectoral distribution, the financial sector is now the major recipient of FDI followed by the mining and manufacturing sectors. The emergence of the financial sector could suggest that FDI motives could have shifted from the natural resource seeking and market seeking to efficiency seeking FDI. The United Kingdom emerges as the major source of FDI to South Africa followed by United States of America and Germany. Empirical analysis indicated that openness, exchange rate and financial development are important long run determinants of FDI. Increased openness and financial development attract FDI while an increase (depreciation) in the exchange rate deters FDI to South Africa. Market size emerges as a short run determinant of FDI although it is declining in importance. Most of the impulse response analysis confirmed the VECM findings. Variance decomposition analysis showed that FDI itself, imports and exchange rate explain a significant amount of the forecast error variance. The influence of market size variable is small and declining over time.
- Full Text:
- Date Issued: 2008
- Authors: Rusike, Tatonga Gardner
- Date: 2008
- Subjects: International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:995 , http://hdl.handle.net/10962/d1002730 , International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Description: Foreign direct investment (FDI) is seen as a way to provide the needed capital inflow to stimulate growth in a domestic economy. FDI can also result in increased employment levels, managerial skills and increase in technology. In efforts to attract FDI, host countries have undertaken various policy incentives to attract foreign investors. This study analyses the trends and determinants of inward FDI to South Africa for the period 1975-2005. The study starts by reviewing FDI literature on its determinants and provides the macroeconomic background and FDI related policies undertaken in South Africa. The trend and sectoral analysis provides the actual nature of FDI flows to South Africa. An empirical model linking theoretical and empirical determinants of FDI is estimated using the Johansen cointegration and VECM framework. The study also augments the cointegration framework with impulse response and variance decomposition analyses to complement the long and short run determinants of FDI. Dummy variables are used in each of the estimated FDI models to take into account the possibility of structural breaks. Results show that relative to the size of the economy and to other developing countries, South Africa still receives low levels of inward FDI. Only are few years are exceptional i.e. 1997, 2001 and 2005. From the sectoral distribution, the financial sector is now the major recipient of FDI followed by the mining and manufacturing sectors. The emergence of the financial sector could suggest that FDI motives could have shifted from the natural resource seeking and market seeking to efficiency seeking FDI. The United Kingdom emerges as the major source of FDI to South Africa followed by United States of America and Germany. Empirical analysis indicated that openness, exchange rate and financial development are important long run determinants of FDI. Increased openness and financial development attract FDI while an increase (depreciation) in the exchange rate deters FDI to South Africa. Market size emerges as a short run determinant of FDI although it is declining in importance. Most of the impulse response analysis confirmed the VECM findings. Variance decomposition analysis showed that FDI itself, imports and exchange rate explain a significant amount of the forecast error variance. The influence of market size variable is small and declining over time.
- Full Text:
- Date Issued: 2008
The role of export diversification on economic growth in South Africa: 1980 - 2010
- Authors: Mudenda, Caroline
- Date: 2012
- Subjects: Economic development -- South Africa , International trade , Exports -- South Africa , Capital movements -- South Africa , Human capital -- South Africa , Free trade -- South Africa , Foreign exchange -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11463 , http://hdl.handle.net/10353/d1007044 , Economic development -- South Africa , International trade , Exports -- South Africa , Capital movements -- South Africa , Human capital -- South Africa , Free trade -- South Africa , Foreign exchange -- South Africa , South Africa -- Economic conditions
- Description: This study examined the role of export diversification on economic growth in South Africa. The study used annual time series data for the period covering 1980 to 2010 and employed a Vector Error Correction Model to determine the effects of export diversification and possible factors that affect it on economic growth. Possible factors that affect export diversification considered as independent variables in this study include gross capital formation, human capital, real effective exchange rate and trade openness. Results of the study reveal that export diversification and trade openness are positively related to economic growth while real effective exchange rate, capital formation and human capital have negative long run relationships with economic growth. The study recommended the continual implementation of trade liberalisation by the South African government. The South African government is also encouraged to promote the production of a diversified export basket through subsidisation, promotion of innovation and production of new products.
- Full Text:
- Date Issued: 2012
- Authors: Mudenda, Caroline
- Date: 2012
- Subjects: Economic development -- South Africa , International trade , Exports -- South Africa , Capital movements -- South Africa , Human capital -- South Africa , Free trade -- South Africa , Foreign exchange -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11463 , http://hdl.handle.net/10353/d1007044 , Economic development -- South Africa , International trade , Exports -- South Africa , Capital movements -- South Africa , Human capital -- South Africa , Free trade -- South Africa , Foreign exchange -- South Africa , South Africa -- Economic conditions
- Description: This study examined the role of export diversification on economic growth in South Africa. The study used annual time series data for the period covering 1980 to 2010 and employed a Vector Error Correction Model to determine the effects of export diversification and possible factors that affect it on economic growth. Possible factors that affect export diversification considered as independent variables in this study include gross capital formation, human capital, real effective exchange rate and trade openness. Results of the study reveal that export diversification and trade openness are positively related to economic growth while real effective exchange rate, capital formation and human capital have negative long run relationships with economic growth. The study recommended the continual implementation of trade liberalisation by the South African government. The South African government is also encouraged to promote the production of a diversified export basket through subsidisation, promotion of innovation and production of new products.
- Full Text:
- Date Issued: 2012
The Effects of exchange rates on bilateral trade balances of SACU members states with their trading partners
- Authors: Mhaka, Simbarashe
- Date: 2020
- Subjects: Economic development -- South Africa , Purchasing power parity -- Econometric models
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/50371 , vital:42152
- Description: The fluctuations of exchange rates prevent countries from achieving stability in their external account records. Appreciation or depreciation has effects on international trade. This thesis examines the relationship between exchange rate fluctuations on bilateral trade balances focusing on the SACU region. There are several theories made to explain the relationship between exchange rate and trade balances. In examining this phenomenon, this thesis will unveil if the purchasing power parity theory, the Marshall-Lerner condition and the J-curve effect holds in the Southern African Customs Union (SACU) countries. This analysis is divided into three parts. The first part examines the stability of the exchange rate in the SACU countries in the long run as given by the purchasing power parity. To test for the Purchasing Power Parity theory, the recently developed powerful unit root test was applied with multiple smooth structural breaks of Omay (2015), based on a Fractional Frequency Flexible Fourier Form (FFFFF) on unique data of SACU countries covering the monthly period of 1995M01-2017M11. The Purchasing Power Parity (PPP) results show that the nominal effective exchange rate (NEER) of all SACU members does not provide evidence for PPP theory. In terms of the real effective exchange rate (REER), the PPP condition holds in the case of South Africa only. Further unit root investigations were carried out using the panel data for all SACU members, NEER and REER. The FFFFF test results for panel data shows strong evidence of the PPP while the standard DF test rejects PPP theory in the SACU’s NEER. Both the standard DF and the FFFFF tests show strong evidence of PPP theory in the case of SACU’s REER. The second section of the analysis examines the Marshall-Lerner condition employing annual data from the period of 1980-2017. The import and export model were examined firstly in a time series format and then in a panel data format. The time series data was examined using the ARDL (PMG) model while the panel data used the panel ARDL, fully modified OLS (FMOLS) method and the Dynamic OLS (DOLS) method of estimation. The PMG/ARDL model shows no evidence to support the existence of the Marshall-Lerner condition in the short run for all SACU members. However, only two out of five countries show evidence of the Marshall-Lerner condition in the long run. There is strong evidence of the Marshall-Lerner condition in Namibia and Botswana in the long run using the PMG/ARDL model.
- Full Text:
- Date Issued: 2020
- Authors: Mhaka, Simbarashe
- Date: 2020
- Subjects: Economic development -- South Africa , Purchasing power parity -- Econometric models
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/50371 , vital:42152
- Description: The fluctuations of exchange rates prevent countries from achieving stability in their external account records. Appreciation or depreciation has effects on international trade. This thesis examines the relationship between exchange rate fluctuations on bilateral trade balances focusing on the SACU region. There are several theories made to explain the relationship between exchange rate and trade balances. In examining this phenomenon, this thesis will unveil if the purchasing power parity theory, the Marshall-Lerner condition and the J-curve effect holds in the Southern African Customs Union (SACU) countries. This analysis is divided into three parts. The first part examines the stability of the exchange rate in the SACU countries in the long run as given by the purchasing power parity. To test for the Purchasing Power Parity theory, the recently developed powerful unit root test was applied with multiple smooth structural breaks of Omay (2015), based on a Fractional Frequency Flexible Fourier Form (FFFFF) on unique data of SACU countries covering the monthly period of 1995M01-2017M11. The Purchasing Power Parity (PPP) results show that the nominal effective exchange rate (NEER) of all SACU members does not provide evidence for PPP theory. In terms of the real effective exchange rate (REER), the PPP condition holds in the case of South Africa only. Further unit root investigations were carried out using the panel data for all SACU members, NEER and REER. The FFFFF test results for panel data shows strong evidence of the PPP while the standard DF test rejects PPP theory in the SACU’s NEER. Both the standard DF and the FFFFF tests show strong evidence of PPP theory in the case of SACU’s REER. The second section of the analysis examines the Marshall-Lerner condition employing annual data from the period of 1980-2017. The import and export model were examined firstly in a time series format and then in a panel data format. The time series data was examined using the ARDL (PMG) model while the panel data used the panel ARDL, fully modified OLS (FMOLS) method and the Dynamic OLS (DOLS) method of estimation. The PMG/ARDL model shows no evidence to support the existence of the Marshall-Lerner condition in the short run for all SACU members. However, only two out of five countries show evidence of the Marshall-Lerner condition in the long run. There is strong evidence of the Marshall-Lerner condition in Namibia and Botswana in the long run using the PMG/ARDL model.
- Full Text:
- Date Issued: 2020