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
Local economic development: disseminating global best practices to affect futuristic thinking in SA
- Authors: Perks, Sandra
- Subjects: Economic development , Economic development -- South Africa , f-sa
- Language: English
- Type: text , Lectures
- Identifier: http://hdl.handle.net/10948/20966 , vital:29423
- Description: The aim of Local Economic Development (LED) is to ensure that the economy of a community, region or country grows faster than the population, so that there can be surplus resources for future expansion (Rucker, Kinnett & Barbash 2012). This suggests that LED is more than economic development at local level. LED is often not viewed from an economic perspective but from a political perspective. Birkhölzer (2005:3) outlines four possible political LED viewpoints. The first perspective is “development from above” with an authoritarian state dictating to regional government and local authorities. This perspective has been proven flawed when political or economic turbulences occur. The second perspective is “development from outside” with reliance on outside investors to bring into the country the necessary resources, mostly funding. This perspective is risky from a sustainability point of view. The third perspective is the “wait and see” where migration occurs if there are problems. This perspective is equally flawed as it is becoming increasingly difficult to migrate because it is so costly, and also finding the right place to go can prove to be problematic. The last perspective is the “development from within” where people play a key role, and do not rely on government or the economy to serve their needs or solve their problems; this points to self-sufficiency.
- Full Text:
- Authors: Perks, Sandra
- Subjects: Economic development , Economic development -- South Africa , f-sa
- Language: English
- Type: text , Lectures
- Identifier: http://hdl.handle.net/10948/20966 , vital:29423
- Description: The aim of Local Economic Development (LED) is to ensure that the economy of a community, region or country grows faster than the population, so that there can be surplus resources for future expansion (Rucker, Kinnett & Barbash 2012). This suggests that LED is more than economic development at local level. LED is often not viewed from an economic perspective but from a political perspective. Birkhölzer (2005:3) outlines four possible political LED viewpoints. The first perspective is “development from above” with an authoritarian state dictating to regional government and local authorities. This perspective has been proven flawed when political or economic turbulences occur. The second perspective is “development from outside” with reliance on outside investors to bring into the country the necessary resources, mostly funding. This perspective is risky from a sustainability point of view. The third perspective is the “wait and see” where migration occurs if there are problems. This perspective is equally flawed as it is becoming increasingly difficult to migrate because it is so costly, and also finding the right place to go can prove to be problematic. The last perspective is the “development from within” where people play a key role, and do not rely on government or the economy to serve their needs or solve their problems; this points to self-sufficiency.
- Full Text:
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 Taxation and corruption on economic growth in South Africa
- Authors: Rabinda, Aluwani Malvin
- Date: 2022-12
- Subjects: Taxation , Corrupt practices , Economic development -- South Africa
- Language: English
- Type: Master's theses , Thesis
- Identifier: http://hdl.handle.net/10948/59832 , vital:62444
- Description: Developing countries, such as South Africa, have been on a mission to reduce corruption, particularly in the public sector, and to collect as much revenue as possible through taxation to fund the government expenditures. Low levels of corruption, preferable zero and higher tax collections, can boost a country's economic growth and development by creating jobs and increasing economic activity, which leads to economic growth. South Africa is one of the economies that are characterised by high levels of corruption. For South Africa to attract more foreign investors in the country, it should ensure that resources are used efficiently and that any act of corruption is punished. This study looked at the effects of taxation and corruption on economic growth from 1975 to 2019. An econometric analysis technique was used in the study to test the impact of taxation and corruption on economic growth. The augmented Dickey–Fuller method was used to test for unit root. According to the results of the tests, unit root l(1) is rejected in favour of the stationarity alternative. The empirical analysis used the Autoregressive Distributed Lag Model (ARDL) bounds testing approach of cointegration advocated by Pesaran, Shin, and Smith (2001) to examine for the longrun equilibrium among taxation and corruption on economic growth. The Wald causality test was also used to investigate the causal relationship between taxation, corruption, and economic growth. According to the Bounds test results, there is long-run co-integrating positive relationship between trade openness and GDP, gross capital formation, Corruption, and income taxation. Furthermore, when dependent variable was tested for longrun impact, the results confirmed that taxation and corruption have insignificant impact on economic growth. Trade openness, as a percentage of GDP, has insignificant positive relationship with economic growth in South Africa. Gross Capital Formation, as a percentage of GDP, is positively related to economic growth. Furthermore, short-run findings suggest a positive significant relationship between trade openness as a percentage of Gross domestic product. Corruption and income taxation have negative and insignificant effect on GDP in the short term. Furthermore, GDP and gross capital formation have negative relationship. V Government should also encourage the culture of transparency and accountability as far as corruption is concerned to stimulate economic growth. This will also create a culture where government officials are called upon to explain their government expenditure patterns and be held accountable for any misuse of any funds flowing into the country. , Thesis (MCom)-- Faculty of Business and Economic Science, 2022
- Full Text:
- Date Issued: 2022-12
- Authors: Rabinda, Aluwani Malvin
- Date: 2022-12
- Subjects: Taxation , Corrupt practices , Economic development -- South Africa
- Language: English
- Type: Master's theses , Thesis
- Identifier: http://hdl.handle.net/10948/59832 , vital:62444
- Description: Developing countries, such as South Africa, have been on a mission to reduce corruption, particularly in the public sector, and to collect as much revenue as possible through taxation to fund the government expenditures. Low levels of corruption, preferable zero and higher tax collections, can boost a country's economic growth and development by creating jobs and increasing economic activity, which leads to economic growth. South Africa is one of the economies that are characterised by high levels of corruption. For South Africa to attract more foreign investors in the country, it should ensure that resources are used efficiently and that any act of corruption is punished. This study looked at the effects of taxation and corruption on economic growth from 1975 to 2019. An econometric analysis technique was used in the study to test the impact of taxation and corruption on economic growth. The augmented Dickey–Fuller method was used to test for unit root. According to the results of the tests, unit root l(1) is rejected in favour of the stationarity alternative. The empirical analysis used the Autoregressive Distributed Lag Model (ARDL) bounds testing approach of cointegration advocated by Pesaran, Shin, and Smith (2001) to examine for the longrun equilibrium among taxation and corruption on economic growth. The Wald causality test was also used to investigate the causal relationship between taxation, corruption, and economic growth. According to the Bounds test results, there is long-run co-integrating positive relationship between trade openness and GDP, gross capital formation, Corruption, and income taxation. Furthermore, when dependent variable was tested for longrun impact, the results confirmed that taxation and corruption have insignificant impact on economic growth. Trade openness, as a percentage of GDP, has insignificant positive relationship with economic growth in South Africa. Gross Capital Formation, as a percentage of GDP, is positively related to economic growth. Furthermore, short-run findings suggest a positive significant relationship between trade openness as a percentage of Gross domestic product. Corruption and income taxation have negative and insignificant effect on GDP in the short term. Furthermore, GDP and gross capital formation have negative relationship. V Government should also encourage the culture of transparency and accountability as far as corruption is concerned to stimulate economic growth. This will also create a culture where government officials are called upon to explain their government expenditure patterns and be held accountable for any misuse of any funds flowing into the country. , Thesis (MCom)-- Faculty of Business and Economic Science, 2022
- Full Text:
- Date Issued: 2022-12
The development of a strategic management model for industrial development zones to attract Greenfield Foreign Direct Investments
- Authors: Rich, Guy Martin
- Date: 2003
- Subjects: Investments, foreign -- South Africa , Industrialization -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10937 , http://hdl.handle.net/10948/220 , Investments, foreign -- South Africa , Industrialization -- South Africa , Economic development -- South Africa
- Description: In order to become globally competitive, South Africa has embarked on an industrial development zone (IDZ) programme to boost investment, increase the socio-economic climate, attract world-class manufacturers and generate local and foreign direct investment (FDI) while creating employment, encouraging skills and technology transfer, and increasing foreign exchange earnings. Twelve strategic areas within South Africa have been identified and are in the process of, or have been, declared IDZs. East London and Coega are the first two IDZs to come online in South Africa and have generated much publicity in the past number of years. One of the aims of the IDZs, as world-class production areas, is to generate FDI. Drivers of international FDI include globalisation, political, economic and legal environments and competitive advantage. According to the United Nations Conference on Trade and Development (2002: 25), FDI accounts for 16 percent of worldwide gross fixed capital formation – and a growing proportion of this is going to developing nations. According to the World Economic Processing Zones Association (WEPZA), IDZs have been the star performer in attracting investment and technology to developing countries during the past 50 years (2002: www.wepza.org). If the Eastern Cape IDZ programme is to be a success, the development corporations that have been established as the management arms of the IDZs will need to facilitate strategic economic advantage, look towards strategic investments that are sustainable, take advantage of and grow existing industrial capacity and create economic and social benefits for the region. There are a number of dynamics and reasons behind global FDI decisions. In order to be successful at attracting FDI the development corporations need to understand these dynamics and reasons in order to achieve a strategic fit between potential investor and the IDZ. This can be done by adopting a strategic management model for greenfield FDI from international investors.
- Full Text:
- Date Issued: 2003
- Authors: Rich, Guy Martin
- Date: 2003
- Subjects: Investments, foreign -- South Africa , Industrialization -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10937 , http://hdl.handle.net/10948/220 , Investments, foreign -- South Africa , Industrialization -- South Africa , Economic development -- South Africa
- Description: In order to become globally competitive, South Africa has embarked on an industrial development zone (IDZ) programme to boost investment, increase the socio-economic climate, attract world-class manufacturers and generate local and foreign direct investment (FDI) while creating employment, encouraging skills and technology transfer, and increasing foreign exchange earnings. Twelve strategic areas within South Africa have been identified and are in the process of, or have been, declared IDZs. East London and Coega are the first two IDZs to come online in South Africa and have generated much publicity in the past number of years. One of the aims of the IDZs, as world-class production areas, is to generate FDI. Drivers of international FDI include globalisation, political, economic and legal environments and competitive advantage. According to the United Nations Conference on Trade and Development (2002: 25), FDI accounts for 16 percent of worldwide gross fixed capital formation – and a growing proportion of this is going to developing nations. According to the World Economic Processing Zones Association (WEPZA), IDZs have been the star performer in attracting investment and technology to developing countries during the past 50 years (2002: www.wepza.org). If the Eastern Cape IDZ programme is to be a success, the development corporations that have been established as the management arms of the IDZs will need to facilitate strategic economic advantage, look towards strategic investments that are sustainable, take advantage of and grow existing industrial capacity and create economic and social benefits for the region. There are a number of dynamics and reasons behind global FDI decisions. In order to be successful at attracting FDI the development corporations need to understand these dynamics and reasons in order to achieve a strategic fit between potential investor and the IDZ. This can be done by adopting a strategic management model for greenfield FDI from international investors.
- Full Text:
- Date Issued: 2003
Trade union investment schemes: a blemish on the social movement unionism outlook of South African unions?
- Authors: Rubushe, Melikaya
- Date: 2010
- Subjects: Labor unions -- South Africa , Labor unions and communism , Cosatu , Economic development -- South Africa , National Union of Mineworkers (South Africa) , Labor unions -- Finance , Business enterprises, Black -- South Africa , Investments -- South Africa
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: vital:3331 , http://hdl.handle.net/10962/d1003119 , Labor unions -- South Africa , Labor unions and communism , Cosatu , Economic development -- South Africa , National Union of Mineworkers (South Africa) , Labor unions -- Finance , Business enterprises, Black -- South Africa , Investments -- South Africa
- Description: South African trade unions affiliated to Congress of South African Trade Unions (COSATU) have taken advantage of the arrival of democracy and newly found opportunities available through Black Economic Empowerment to venture into the world of business by setting up their own investment companies. The declared desire behind these ventures was to break the stranglehold of white capital on the economy and to extend participation in the economic activities of the country to previously disadvantaged communities. Using the National Union of Mineworkers and the Mineworkers’ Investment Company as case studies, this dissertation seeks to determine whether unions affiliated to the Congress of South African Trade Unions (COSATU) are advancing the struggle for socialism through their investment schemes. Secondly, the dissertation determines whether, in the activities of the schemes, internal democracy is preserved and strengthened. The theoretical framework of this dissertation emerges from arguments advanced by Lenin and Gramsci on the limitations of trade unions in terms of their role in the struggle against capitalism. In addition, the argument draws on the assertions by Michels regarding the proneness of trade union leadership to adopt oligarchic tendencies in their approach to leadership. Of interest is how, according to Gramsci, trade unions are prone to accepting concessions from the capitalist system that renders them ameliorative rather than transformative. Drawing from Michels’ ‘iron law of oligarchy’, the thesis examines whether there is space for ordinary members of the unions to express views on the working of the union investment companies. By looking at the extent to which the investment initiatives of the companies mirror the preferences of the ordinary members of the unions, one can determine the level of disjuncture between the two. The study relies on data collected through interviews and documentary material. Interviews provide first-hand knowledge of how respondents experience the impact of the investment schemes. This provides a balanced analysis given that documents reflect policy stances whereas interviews provide data on whether these have the stated impact. What the study shows is a clear absence of space for ordinary members to directly influence the workings of union investment companies. It is also established that, in their current form, the schemes operate more as a perpetuation of the capitalist logic than offering an alternative system.
- Full Text:
- Date Issued: 2010
- Authors: Rubushe, Melikaya
- Date: 2010
- Subjects: Labor unions -- South Africa , Labor unions and communism , Cosatu , Economic development -- South Africa , National Union of Mineworkers (South Africa) , Labor unions -- Finance , Business enterprises, Black -- South Africa , Investments -- South Africa
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: vital:3331 , http://hdl.handle.net/10962/d1003119 , Labor unions -- South Africa , Labor unions and communism , Cosatu , Economic development -- South Africa , National Union of Mineworkers (South Africa) , Labor unions -- Finance , Business enterprises, Black -- South Africa , Investments -- South Africa
- Description: South African trade unions affiliated to Congress of South African Trade Unions (COSATU) have taken advantage of the arrival of democracy and newly found opportunities available through Black Economic Empowerment to venture into the world of business by setting up their own investment companies. The declared desire behind these ventures was to break the stranglehold of white capital on the economy and to extend participation in the economic activities of the country to previously disadvantaged communities. Using the National Union of Mineworkers and the Mineworkers’ Investment Company as case studies, this dissertation seeks to determine whether unions affiliated to the Congress of South African Trade Unions (COSATU) are advancing the struggle for socialism through their investment schemes. Secondly, the dissertation determines whether, in the activities of the schemes, internal democracy is preserved and strengthened. The theoretical framework of this dissertation emerges from arguments advanced by Lenin and Gramsci on the limitations of trade unions in terms of their role in the struggle against capitalism. In addition, the argument draws on the assertions by Michels regarding the proneness of trade union leadership to adopt oligarchic tendencies in their approach to leadership. Of interest is how, according to Gramsci, trade unions are prone to accepting concessions from the capitalist system that renders them ameliorative rather than transformative. Drawing from Michels’ ‘iron law of oligarchy’, the thesis examines whether there is space for ordinary members of the unions to express views on the working of the union investment companies. By looking at the extent to which the investment initiatives of the companies mirror the preferences of the ordinary members of the unions, one can determine the level of disjuncture between the two. The study relies on data collected through interviews and documentary material. Interviews provide first-hand knowledge of how respondents experience the impact of the investment schemes. This provides a balanced analysis given that documents reflect policy stances whereas interviews provide data on whether these have the stated impact. What the study shows is a clear absence of space for ordinary members to directly influence the workings of union investment companies. It is also established that, in their current form, the schemes operate more as a perpetuation of the capitalist logic than offering an alternative system.
- Full Text:
- Date Issued: 2010
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
An investigation of the internal challenges that hinder sustainability of the Furntech Nyanga incubates
- Authors: Sakuba, Siyasanga
- Date: 2020
- Subjects: Business incubators -- South Africa -- Cape Town , Business incubators -- Training of -- South Africa -- Cape Town , Entrepreneurship -- South Africa – Cape Town , Unemployment -- South Africa , Rate of return -- South Africa , Economic development -- South Africa , Training needs -- South Africa -- Cape Town , Furntech (Nyanga)
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/142830 , vital:38121
- Description: The South African unemployment rate is currently at 27.6 per cent (Statistics South Africa, 2019). In an effort to combat unemployment, the South African government has implemented various mechanisms to provide opportunities to the people and combat unemployment. One of these mechanisms is to invest in the establishment of entrepreneurship incubators while the Furntech incubator is one of the incubators established for this purpose. It is imperative that the government spending on these mechanisms is justified by a return on investment which, in this case, should be to reduce unemployment and increase the overall entrepreneurial activity. In view of Furntech, with specific reference to the Nyanga incubation centre, there is a high failure rate with very little output of sustainable enterprises from the two-year incubation period. This study seeks to investigate the internal challenges that hinder the sustainability of these entrepreneurs to either drop out before the end of the two-year incubation period or to furnish the two years without becoming sustainable entrepreneurs. This study seeks to investigate this matter by using a semi -structured interview schedule that was geared towards investigating the research problem from the view of the incubates. The findings of the study showed that Furntech can be commended in respect of the transfer of technical skills. Furntech, however, failed to support the entrepreneurs with the other business support services that are part of their services, namely the business advisory, financial support and business skills. These findings provide a guideline of where Furntech needs to improve its service offering to gain a higher output of sustainable entrepreneurs. It is important to note that even though Furntech has representation in three provinces with two incubators in the Western Cape (Cape Town and Nyanga), however, this study was limited to the Furntech Nyanga incubates.
- Full Text:
- Date Issued: 2020
- Authors: Sakuba, Siyasanga
- Date: 2020
- Subjects: Business incubators -- South Africa -- Cape Town , Business incubators -- Training of -- South Africa -- Cape Town , Entrepreneurship -- South Africa – Cape Town , Unemployment -- South Africa , Rate of return -- South Africa , Economic development -- South Africa , Training needs -- South Africa -- Cape Town , Furntech (Nyanga)
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/142830 , vital:38121
- Description: The South African unemployment rate is currently at 27.6 per cent (Statistics South Africa, 2019). In an effort to combat unemployment, the South African government has implemented various mechanisms to provide opportunities to the people and combat unemployment. One of these mechanisms is to invest in the establishment of entrepreneurship incubators while the Furntech incubator is one of the incubators established for this purpose. It is imperative that the government spending on these mechanisms is justified by a return on investment which, in this case, should be to reduce unemployment and increase the overall entrepreneurial activity. In view of Furntech, with specific reference to the Nyanga incubation centre, there is a high failure rate with very little output of sustainable enterprises from the two-year incubation period. This study seeks to investigate the internal challenges that hinder the sustainability of these entrepreneurs to either drop out before the end of the two-year incubation period or to furnish the two years without becoming sustainable entrepreneurs. This study seeks to investigate this matter by using a semi -structured interview schedule that was geared towards investigating the research problem from the view of the incubates. The findings of the study showed that Furntech can be commended in respect of the transfer of technical skills. Furntech, however, failed to support the entrepreneurs with the other business support services that are part of their services, namely the business advisory, financial support and business skills. These findings provide a guideline of where Furntech needs to improve its service offering to gain a higher output of sustainable entrepreneurs. It is important to note that even though Furntech has representation in three provinces with two incubators in the Western Cape (Cape Town and Nyanga), however, this study was limited to the Furntech Nyanga incubates.
- Full Text:
- Date Issued: 2020
The effectiveness of business incubators in enhancing growth, survival and performance of small, medium and micro enterprises in the Eastern Cape province, South Africa
- Authors: Sarakunze, Annie.
- Date: 2014-11
- Subjects: Entrepreneurship , Economic development -- South Africa , Small business
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/26786 , vital:66005
- Description: In both developed and developing countries, the growth of Small, Medium and Micro Enterprise sector is considered an important factor in boosting the economic well-being of a country. The governments of many countries play a basic role in creating policies and programmes which support the growth of Small, Medium and Micro Enterprises. One of the initiatives used by the governments to nurture small businesses is business incubation.This study investigated the effectiveness of business incubators in enhancing growth, survival and performance of Small, Medium and Micro Enterprises (SMMEs) in selected areas of the Eastern Cape Province. The objectives of this study were to assess the impact of business incubation on the performance of SMMEs, determine the impact of business incubation on the growth of the SMME, to assess the impact of business incubation on the survival of the SMMEs and to investigate whether SMMEs are satisfied with the role of business incubators in their areas.This study employed a stratified simple random sampling technique. The population was first divided into six homogeneous strata and then simple random sampling was then employed. The self-administered questionnaires were then distributed into each and every stratum randomly. Simple random sampling was used because it enabled each and every member in the strata to have an equal chance of being selected. Owners, managers and employees were used as respondents in this study and a total sample of 200 SMMEs answered the questionnaire. The study followed a quantitative research design as it involved variables such as growth, firm performance and survival which have measures that involves the use of figures such as sales, number of employees and total value of assets. The data was analysed by Anova, Pearson Chi-Square and T-test statistical methods in order to arrive at findings and conclusions. Based on the findings from this survey it was found that business incubators are effective in enhancing growth, survival and performance of SMMEs. Although other researchers found that there are no significant variations in growth, survival and performance of incubated and non-incubated businesses, this study however recognizes the importance of business incubation to SMMEs. This study concurs with most findings by many researchers of business incubation and thus recommends vigorous business incubation awareness to the SMMEs and networking. , Thesis (MBm) -- Faculty of Management and Commerce , 2014
- Full Text:
- Date Issued: 2014-11
- Authors: Sarakunze, Annie.
- Date: 2014-11
- Subjects: Entrepreneurship , Economic development -- South Africa , Small business
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/26786 , vital:66005
- Description: In both developed and developing countries, the growth of Small, Medium and Micro Enterprise sector is considered an important factor in boosting the economic well-being of a country. The governments of many countries play a basic role in creating policies and programmes which support the growth of Small, Medium and Micro Enterprises. One of the initiatives used by the governments to nurture small businesses is business incubation.This study investigated the effectiveness of business incubators in enhancing growth, survival and performance of Small, Medium and Micro Enterprises (SMMEs) in selected areas of the Eastern Cape Province. The objectives of this study were to assess the impact of business incubation on the performance of SMMEs, determine the impact of business incubation on the growth of the SMME, to assess the impact of business incubation on the survival of the SMMEs and to investigate whether SMMEs are satisfied with the role of business incubators in their areas.This study employed a stratified simple random sampling technique. The population was first divided into six homogeneous strata and then simple random sampling was then employed. The self-administered questionnaires were then distributed into each and every stratum randomly. Simple random sampling was used because it enabled each and every member in the strata to have an equal chance of being selected. Owners, managers and employees were used as respondents in this study and a total sample of 200 SMMEs answered the questionnaire. The study followed a quantitative research design as it involved variables such as growth, firm performance and survival which have measures that involves the use of figures such as sales, number of employees and total value of assets. The data was analysed by Anova, Pearson Chi-Square and T-test statistical methods in order to arrive at findings and conclusions. Based on the findings from this survey it was found that business incubators are effective in enhancing growth, survival and performance of SMMEs. Although other researchers found that there are no significant variations in growth, survival and performance of incubated and non-incubated businesses, this study however recognizes the importance of business incubation to SMMEs. This study concurs with most findings by many researchers of business incubation and thus recommends vigorous business incubation awareness to the SMMEs and networking. , Thesis (MBm) -- Faculty of Management and Commerce , 2014
- Full Text:
- Date Issued: 2014-11
Impact of the global financial crisis on economic growth: implications for South Africa and other developing economies
- Authors: Savy, Neil Edward
- Date: 2015
- Subjects: Global Financial Crisis, 2008-2009 , Gross domestic product -- Developing countries , Gross domestic product -- South Africa , Economic forecasting -- South Africa , Economic forecasting -- Developing countries , Economic development -- South Africa , Economic development -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1117 , http://hdl.handle.net/10962/d1017542
- Description: This paper examines the impact of the recent global financial crisis on economic growth in developing economies and South Africa in particular. It explores whether the events experienced by developing countries conform to what would be anticipated from economic theory. This is done by firstly comparing country growth forecasts for 2012 captured in 2008 at the beginning of the crisis to actual 2012 GDP growth data. Secondly, panel data analysis is used to investigate three important transmission channels, namely those of Trade, Capital Flows and Exchange Rates for 25 developing economies. The results suggest that economic forecasters in 2008 on average overestimated GDP growth for 2012 by -21.6 percent (excluding Venezuela). The only important transmission channel identified using Trend analysis to explain this negative impact on growth was capital flows. However when using Panel regression analysis all three channels were found to explain the economic impact of the crisis on GDP growth for developing countries, conforming to economic theory. It was discovered that, contrary to what was initially expected, portfolio inflows actually increased for most developing countries during the crisis. This possibly can be explained by the impact of quantitative easing in the USA. South Africa was found to have been negatively impacted by the global financial crisis, but to a lesser extent when compared to most other developing countries. The findings are important for global investors looking for new investment opportunities. The extent to which individual economies are “decoupled” from developed economies’ performance provides possible opportunities for diversifying risk through a geographic spread of investor portfolios.
- Full Text:
- Date Issued: 2015
- Authors: Savy, Neil Edward
- Date: 2015
- Subjects: Global Financial Crisis, 2008-2009 , Gross domestic product -- Developing countries , Gross domestic product -- South Africa , Economic forecasting -- South Africa , Economic forecasting -- Developing countries , Economic development -- South Africa , Economic development -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1117 , http://hdl.handle.net/10962/d1017542
- Description: This paper examines the impact of the recent global financial crisis on economic growth in developing economies and South Africa in particular. It explores whether the events experienced by developing countries conform to what would be anticipated from economic theory. This is done by firstly comparing country growth forecasts for 2012 captured in 2008 at the beginning of the crisis to actual 2012 GDP growth data. Secondly, panel data analysis is used to investigate three important transmission channels, namely those of Trade, Capital Flows and Exchange Rates for 25 developing economies. The results suggest that economic forecasters in 2008 on average overestimated GDP growth for 2012 by -21.6 percent (excluding Venezuela). The only important transmission channel identified using Trend analysis to explain this negative impact on growth was capital flows. However when using Panel regression analysis all three channels were found to explain the economic impact of the crisis on GDP growth for developing countries, conforming to economic theory. It was discovered that, contrary to what was initially expected, portfolio inflows actually increased for most developing countries during the crisis. This possibly can be explained by the impact of quantitative easing in the USA. South Africa was found to have been negatively impacted by the global financial crisis, but to a lesser extent when compared to most other developing countries. The findings are important for global investors looking for new investment opportunities. The extent to which individual economies are “decoupled” from developed economies’ performance provides possible opportunities for diversifying risk through a geographic spread of investor portfolios.
- Full Text:
- Date Issued: 2015
The impact of foreign debt on economic growth in South Africa
- Authors: Shayanewako, V B
- Date: 2013
- Subjects: Debts, External -- South Africa -- Eastern Cape , Investments, Foreign -- South Africa , Government spending policy -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11477 , http://hdl.handle.net/10353/d1015140 , Debts, External -- South Africa -- Eastern Cape , Investments, Foreign -- South Africa , Government spending policy -- South Africa , Economic development -- South Africa
- Description: This study analyses the economic impact between foreign debt and economic growth in South Africa. By fitting a production function model to annual data for the period 1980-2011, the study examines the dynamic effect of debt service, capital stock and labour force on the economic growth of the country. By following Cunningham (1993), it has identified the long-run and short-run causal relationships among the included variables. The results indicate that the debt servicing burden has a negative effect on the productivity of labour and capital, and thereby affect economic growth adversely. The results also illustrate that the debt service ratio tends to negatively affect GDP and the rate of economic growth in the long-run, which, in turn, reduces the ability of the country to service its debt. Similarly, the estimated error correction term shows the existence of a significant long-run causal relationship among the specified variables. Overall, the results suggest the existence of short-run and long-run causal relationships running from debt service to GDP.
- Full Text:
- Date Issued: 2013
- Authors: Shayanewako, V B
- Date: 2013
- Subjects: Debts, External -- South Africa -- Eastern Cape , Investments, Foreign -- South Africa , Government spending policy -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11477 , http://hdl.handle.net/10353/d1015140 , Debts, External -- South Africa -- Eastern Cape , Investments, Foreign -- South Africa , Government spending policy -- South Africa , Economic development -- South Africa
- Description: This study analyses the economic impact between foreign debt and economic growth in South Africa. By fitting a production function model to annual data for the period 1980-2011, the study examines the dynamic effect of debt service, capital stock and labour force on the economic growth of the country. By following Cunningham (1993), it has identified the long-run and short-run causal relationships among the included variables. The results indicate that the debt servicing burden has a negative effect on the productivity of labour and capital, and thereby affect economic growth adversely. The results also illustrate that the debt service ratio tends to negatively affect GDP and the rate of economic growth in the long-run, which, in turn, reduces the ability of the country to service its debt. Similarly, the estimated error correction term shows the existence of a significant long-run causal relationship among the specified variables. Overall, the results suggest the existence of short-run and long-run causal relationships running from debt service to GDP.
- Full Text:
- Date Issued: 2013
The term structure of interest rates and economic activity in South Africa
- Authors: Shelile, Teboho
- Date: 2007
- Subjects: Finance -- South Africa , Monetary policy -- South Africa , Interest rates -- South Africa , Economic development -- South Africa , South Africa -- Economic conditions -- 21st century
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:994 , http://hdl.handle.net/10962/d1002729 , Finance -- South Africa , Monetary policy -- South Africa , Interest rates -- South Africa , Economic development -- South Africa , South Africa -- Economic conditions -- 21st century
- Description: Many research papers have documented the positive relationship between the slope of the yield curve and future real economic activity in different countries and different time periods. One explanation of this link is based on monetary policy. The forecasting ability of the term spread on economic growth is based on the fact that interest rates reflect the expectations of investors about the future economic situation when deciding about their plans for consumption and investment. This thesis examined the predictive ability of the term structure of interest rates on economic activity, and the effects of different monetary policy regimes on the predictive ability of the term spread. The South African experience offers a unique opportunity to examine this issue, as the country has experienced numerous monetary policy frameworks since the 1970s. The study employed the Generalised Method Moments technique, since it is considered to be more efficient than Ordinary Least Squares. Results presented in this thesis established that the term structure successfully predicted real economic activity during the entire research period with the exception of the last sub-period (2000-2004) when using the multivariate model. In the periods of financial market liberalisation and interest rates deregulation the term structure was found to be a better predictor of economic activity in South Africa. These findings emphasise the importance of considering the prevailing economic environment in testing the term structure theory.
- Full Text:
- Date Issued: 2007
- Authors: Shelile, Teboho
- Date: 2007
- Subjects: Finance -- South Africa , Monetary policy -- South Africa , Interest rates -- South Africa , Economic development -- South Africa , South Africa -- Economic conditions -- 21st century
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:994 , http://hdl.handle.net/10962/d1002729 , Finance -- South Africa , Monetary policy -- South Africa , Interest rates -- South Africa , Economic development -- South Africa , South Africa -- Economic conditions -- 21st century
- Description: Many research papers have documented the positive relationship between the slope of the yield curve and future real economic activity in different countries and different time periods. One explanation of this link is based on monetary policy. The forecasting ability of the term spread on economic growth is based on the fact that interest rates reflect the expectations of investors about the future economic situation when deciding about their plans for consumption and investment. This thesis examined the predictive ability of the term structure of interest rates on economic activity, and the effects of different monetary policy regimes on the predictive ability of the term spread. The South African experience offers a unique opportunity to examine this issue, as the country has experienced numerous monetary policy frameworks since the 1970s. The study employed the Generalised Method Moments technique, since it is considered to be more efficient than Ordinary Least Squares. Results presented in this thesis established that the term structure successfully predicted real economic activity during the entire research period with the exception of the last sub-period (2000-2004) when using the multivariate model. In the periods of financial market liberalisation and interest rates deregulation the term structure was found to be a better predictor of economic activity in South Africa. These findings emphasise the importance of considering the prevailing economic environment in testing the term structure theory.
- Full Text:
- Date Issued: 2007
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
The impact of real exchange rates on economic growth: a case study of South Africa
- Authors: Sibanda, Kin
- Date: 2012
- Subjects: Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11469 , http://hdl.handle.net/10353/d1007129 , Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Description: This study examined the impact of real exchange rates on economic growth in South Africa. The study used quarterly time series data for the period of 1994 to 2010. The Johansen cointegration and vector error correction model was used to determine the impact of real exchange on economic growth in South Africa. The explanatory variables in this study were real exchange rates, real interest rates, money supply, trade openness and gross fixed capital formation. Results from this study revealed that real exchange rates, gross fixed capital formation and real interest rates have a positive long run impact on economic growth, while money supply and trade openness have a negative long run impact on economic growth in South Africa. From the regression results, it was noted that undervaluation of the currency significantly hampers growth in the long run, whilst it significantly enhances economic growth in the short run. As such, the policy of depreciating the exchange rates to achieve higher growth rates is only effective in the short run and is not sustainable in the long run. Based on the findings of this study, the researcher recommended that misalignment (overvaluation and undervaluation) of the currency should be avoided at all costs. In addition, the results of the study showed that interest rates also have a significant impact on growth and since interest rates have a bearing on the exchange rate, it was recommended that the current monetary policy in South Africa should be maintained.
- Full Text:
- Date Issued: 2012
- Authors: Sibanda, Kin
- Date: 2012
- Subjects: Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11469 , http://hdl.handle.net/10353/d1007129 , Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Description: This study examined the impact of real exchange rates on economic growth in South Africa. The study used quarterly time series data for the period of 1994 to 2010. The Johansen cointegration and vector error correction model was used to determine the impact of real exchange on economic growth in South Africa. The explanatory variables in this study were real exchange rates, real interest rates, money supply, trade openness and gross fixed capital formation. Results from this study revealed that real exchange rates, gross fixed capital formation and real interest rates have a positive long run impact on economic growth, while money supply and trade openness have a negative long run impact on economic growth in South Africa. From the regression results, it was noted that undervaluation of the currency significantly hampers growth in the long run, whilst it significantly enhances economic growth in the short run. As such, the policy of depreciating the exchange rates to achieve higher growth rates is only effective in the short run and is not sustainable in the long run. Based on the findings of this study, the researcher recommended that misalignment (overvaluation and undervaluation) of the currency should be avoided at all costs. In addition, the results of the study showed that interest rates also have a significant impact on growth and since interest rates have a bearing on the exchange rate, it was recommended that the current monetary policy in South Africa should be maintained.
- Full Text:
- Date Issued: 2012
Assessing the impact of the transition from MIDP to APDP in the South African automotive industry
- Authors: Strydom, Elwin
- Date: 2015
- Subjects: Automobile industry and trade -- South Africa , Sustainable development -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/5908 , vital:21010
- Description: The South African automotive industry is by no means a ―cut and paste‖ version of their overseas counterparts. The industry and the market are very complex. The historical background of the industry is such that companies have difficulty forming partnerships and joint ventures with bigger international conglomerates. The difficulty with this kind of mindset is that it is restricting growth and development of the nation as a whole. Globalisation is a future we cannot be avoided. Should the nation continue to reject it and embrace the mindset of countries in Africa, South Africa (SA) will continue on the path that the rest of Africa is heading, a path that leading to self-destruct and segregation. Even though SA is a developing country, it is in some areas as developed as many other first world countries. For a country to generate wealth it needs to be innovative and develop an entrepreneurial consciousness. A young country like South Africa needs creative thinkers and opportunists that can see into the future, seizing every opportunity, to grow and develop new ideas and business. In order for a country to grow it needs a leadership that is to nurture the baby of innovation. If South Africa wants to be part of the global village it need to develop a trade policy that welcomes trade and at the same time creates stable and sustainable jobs. The environment for investments needs to be cultivated in a problem-free and growth prone nation. This can only happen when the educational level of the nation is improved. The fact that so many skilled workers need to be imported creates tension in the labour market. People with talent need to have a reason to stay in the country. Their salaries should match that of their overseas counterparts. Furthermore, with the same skill level and work ethic, should have the same rewards and remuneration.
- Full Text:
- Date Issued: 2015
- Authors: Strydom, Elwin
- Date: 2015
- Subjects: Automobile industry and trade -- South Africa , Sustainable development -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/5908 , vital:21010
- Description: The South African automotive industry is by no means a ―cut and paste‖ version of their overseas counterparts. The industry and the market are very complex. The historical background of the industry is such that companies have difficulty forming partnerships and joint ventures with bigger international conglomerates. The difficulty with this kind of mindset is that it is restricting growth and development of the nation as a whole. Globalisation is a future we cannot be avoided. Should the nation continue to reject it and embrace the mindset of countries in Africa, South Africa (SA) will continue on the path that the rest of Africa is heading, a path that leading to self-destruct and segregation. Even though SA is a developing country, it is in some areas as developed as many other first world countries. For a country to generate wealth it needs to be innovative and develop an entrepreneurial consciousness. A young country like South Africa needs creative thinkers and opportunists that can see into the future, seizing every opportunity, to grow and develop new ideas and business. In order for a country to grow it needs a leadership that is to nurture the baby of innovation. If South Africa wants to be part of the global village it need to develop a trade policy that welcomes trade and at the same time creates stable and sustainable jobs. The environment for investments needs to be cultivated in a problem-free and growth prone nation. This can only happen when the educational level of the nation is improved. The fact that so many skilled workers need to be imported creates tension in the labour market. People with talent need to have a reason to stay in the country. Their salaries should match that of their overseas counterparts. Furthermore, with the same skill level and work ethic, should have the same rewards and remuneration.
- Full Text:
- Date Issued: 2015
Elasticity of the South African economy towards portfolio investments in BRICS countries
- Authors: Taonezvi, Lovemore
- Date: 2019
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/44537 , vital:38141
- Description: The emerging economies of Brazil, Russia, India, and China (BRIC) have been experiencing high growth rates since the turn of the millennium, whereas economic growth has been elusive in South Africa. As the newest member of BRICS, South Africa is expected to economically benefit through, amongst others, increases in capital flows, foreign investments by local firms, and increases in trade. Such benefits are anticipated to propel the country’s economic growth, thereby helping it to tackle its chronic problems of high unemployment, poverty, and economic inequality. The inclusion of South Africa in BRICS has, however, been viewed by critics as erroneous, since the country has, inter alia, poor economic growth; a small economy and population; and political instability. While foreign portfolio investment (FPI) inflows to South Africa have surged in recent years, economic growth has remained lacklustre. These flows have also faced sudden reversals, especially during the financial crisis of 2007-2009. With the potential to leverage its growth from intra-BRICS FPI inflows, it becomes of paramount significance for policymakers to have knowledge of the South African economy’s responsiveness to such inflows. With a theoretical framework based on the endogenous growth model, an augmented Cobb-Douglas production function was extended in this thesis in order to study the relationship between BRICS growth and intra-BRICS FPI in a dynamic panel data generalised method of moments (GMM) context. Similarly, the South African economy’s elasticity towards intraBRICS FPI was estimated. Vector autoregressive (VAR) analysis was used to evaluate the responsiveness of South Africa’s economy to an innovative shock to intra-BRICS FPI. Annual and quarterly data for the period 2000-2016 were used in panel data and VAR analysis, respectively. It was found that intra-BRICS FPI flows have a positive and statistically significant relationship with BRICS growth, while the elasticity of the South African economy to these flows is estimated at 0.007. Additionally, the efficiency and accessibility dimensions of financial market development do not assist FPI in promoting growth in BRICS, while financial market depth does. South Africa’s BRICS membership has a positive effect on its own growth, while for other BRICS nations, this membership is negative and insignificant. Credit rating downgrades have a negative and insignificant impact on economic growth, while the negative impact for inflation, government expenditure, and total labour employment is significant. Conversely, gross capital formation and trade openness have a positive and significant relationship with BRICS growth. The study also determined that a unit shock on intra-BRICS FPI resulted in negative fluctuations of South Africa’s economy within the first eight quarters before being positive and mostly constant thereafter. By supplementing domestic savings and facilitating the international integration of domestic financial markets, FPI promotes growth in BRICS. The short-term, ease of reversibility, and speculative nature of FPI are amongst some of the reasons for its destabilising effect on South Africa’s economy. Furthermore, inflation is a key determinant of FPI inflows to South Africa. Additional BRIC cooperation in FPI and trade; increased investments in domestic capital; reductions of inflation and corruption; investments in education and skills development; and stock market reforms are some of the recommendations for BRIC, and South Africa in particular. South Africa can consider prudential use of a mix of capital account controls, as well as fiscal and monetary policies to cushion its economy from FPI shocks in the short- to medium-term.
- Full Text:
- Date Issued: 2019
- Authors: Taonezvi, Lovemore
- Date: 2019
- Subjects: Economic development -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/44537 , vital:38141
- Description: The emerging economies of Brazil, Russia, India, and China (BRIC) have been experiencing high growth rates since the turn of the millennium, whereas economic growth has been elusive in South Africa. As the newest member of BRICS, South Africa is expected to economically benefit through, amongst others, increases in capital flows, foreign investments by local firms, and increases in trade. Such benefits are anticipated to propel the country’s economic growth, thereby helping it to tackle its chronic problems of high unemployment, poverty, and economic inequality. The inclusion of South Africa in BRICS has, however, been viewed by critics as erroneous, since the country has, inter alia, poor economic growth; a small economy and population; and political instability. While foreign portfolio investment (FPI) inflows to South Africa have surged in recent years, economic growth has remained lacklustre. These flows have also faced sudden reversals, especially during the financial crisis of 2007-2009. With the potential to leverage its growth from intra-BRICS FPI inflows, it becomes of paramount significance for policymakers to have knowledge of the South African economy’s responsiveness to such inflows. With a theoretical framework based on the endogenous growth model, an augmented Cobb-Douglas production function was extended in this thesis in order to study the relationship between BRICS growth and intra-BRICS FPI in a dynamic panel data generalised method of moments (GMM) context. Similarly, the South African economy’s elasticity towards intraBRICS FPI was estimated. Vector autoregressive (VAR) analysis was used to evaluate the responsiveness of South Africa’s economy to an innovative shock to intra-BRICS FPI. Annual and quarterly data for the period 2000-2016 were used in panel data and VAR analysis, respectively. It was found that intra-BRICS FPI flows have a positive and statistically significant relationship with BRICS growth, while the elasticity of the South African economy to these flows is estimated at 0.007. Additionally, the efficiency and accessibility dimensions of financial market development do not assist FPI in promoting growth in BRICS, while financial market depth does. South Africa’s BRICS membership has a positive effect on its own growth, while for other BRICS nations, this membership is negative and insignificant. Credit rating downgrades have a negative and insignificant impact on economic growth, while the negative impact for inflation, government expenditure, and total labour employment is significant. Conversely, gross capital formation and trade openness have a positive and significant relationship with BRICS growth. The study also determined that a unit shock on intra-BRICS FPI resulted in negative fluctuations of South Africa’s economy within the first eight quarters before being positive and mostly constant thereafter. By supplementing domestic savings and facilitating the international integration of domestic financial markets, FPI promotes growth in BRICS. The short-term, ease of reversibility, and speculative nature of FPI are amongst some of the reasons for its destabilising effect on South Africa’s economy. Furthermore, inflation is a key determinant of FPI inflows to South Africa. Additional BRIC cooperation in FPI and trade; increased investments in domestic capital; reductions of inflation and corruption; investments in education and skills development; and stock market reforms are some of the recommendations for BRIC, and South Africa in particular. South Africa can consider prudential use of a mix of capital account controls, as well as fiscal and monetary policies to cushion its economy from FPI shocks in the short- to medium-term.
- Full Text:
- Date Issued: 2019
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
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
Assessing BEE policy's viability in advancing establishment and survival of SMMes in South Africa
- Authors: Waithaka, Stephen Kiumi
- Date: 2011
- Subjects: Small business -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10948/4376 , vital:20591
- Description: Black Economic Empowerment is an ideology and policy that was effected so as to streamline the inequalities that were and have been left to stand after the apartheid era in South Africa. Despite the mixed reactions that would surface as a result of the underpinnings of the policy, the main focus of the policy was and still is to provide for equality and build better business among the economic minority who in this case are the “black” people of South Africa. This report focuses on the policy and the different guidelines that have been set in place to counter the inequalities in businesses and economy with focus being on SMMEs and looking at ways in which various sections, especially the score card, with regard to exemptions to small businesses, how this aids them in achieving BEE compliance. The research accomplished this by looking at the requirements of the score card, focusing mainly on the stipulations placed on SMMEs and by the use of literary reports gathered information that would show whether the exemptions give the said enterprises added competitive advantage. The research produced a couple of findings; that although theoretically the necessity of boosting economic growth and business of one of the most productive enterprise sectors in an economy and the fact that the score card has focused infinitely on the need for SMMEs not to be fully focused on a specific cluster of criterion in the score card but more on which criterion would work best for them and which ones are easy to maneuver around to ensure maximum growth and contribution, there is the loop hole that is experienced of how this criterion is met and passed with disregard to actualization of the need to adhere to the strictness of the rules of how compliance is attained. There was also the main issue of fronting which is the falsification of ownership of a company by providing misleading information about the directors and owners of the business. The main conclusions drawn from this research are that it is important not to lose the foresight that the policy is meant to enhance and grow the economic ability of a sector and build business through which the policy makes very heavy recommendations but there are shortfalls experienced with regard to how compliance is approached putting into consideration that SMMEs have been given exemptions in the number of pillars of the score card they can apply to their business. It is also important to note that the influence and bulldozing that is expected when it comes to dealing with policies of this nature is not to be sidelined. This research aims to look at the discrepancies that are set out within the structures that hold the policy together so as to attain maximum results.
- Full Text:
- Date Issued: 2011
- Authors: Waithaka, Stephen Kiumi
- Date: 2011
- Subjects: Small business -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10948/4376 , vital:20591
- Description: Black Economic Empowerment is an ideology and policy that was effected so as to streamline the inequalities that were and have been left to stand after the apartheid era in South Africa. Despite the mixed reactions that would surface as a result of the underpinnings of the policy, the main focus of the policy was and still is to provide for equality and build better business among the economic minority who in this case are the “black” people of South Africa. This report focuses on the policy and the different guidelines that have been set in place to counter the inequalities in businesses and economy with focus being on SMMEs and looking at ways in which various sections, especially the score card, with regard to exemptions to small businesses, how this aids them in achieving BEE compliance. The research accomplished this by looking at the requirements of the score card, focusing mainly on the stipulations placed on SMMEs and by the use of literary reports gathered information that would show whether the exemptions give the said enterprises added competitive advantage. The research produced a couple of findings; that although theoretically the necessity of boosting economic growth and business of one of the most productive enterprise sectors in an economy and the fact that the score card has focused infinitely on the need for SMMEs not to be fully focused on a specific cluster of criterion in the score card but more on which criterion would work best for them and which ones are easy to maneuver around to ensure maximum growth and contribution, there is the loop hole that is experienced of how this criterion is met and passed with disregard to actualization of the need to adhere to the strictness of the rules of how compliance is attained. There was also the main issue of fronting which is the falsification of ownership of a company by providing misleading information about the directors and owners of the business. The main conclusions drawn from this research are that it is important not to lose the foresight that the policy is meant to enhance and grow the economic ability of a sector and build business through which the policy makes very heavy recommendations but there are shortfalls experienced with regard to how compliance is approached putting into consideration that SMMEs have been given exemptions in the number of pillars of the score card they can apply to their business. It is also important to note that the influence and bulldozing that is expected when it comes to dealing with policies of this nature is not to be sidelined. This research aims to look at the discrepancies that are set out within the structures that hold the policy together so as to attain maximum results.
- Full Text:
- Date Issued: 2011
Exploring a capacity development framework for South African foreign economic representatives
- Authors: Williams, Mario Rene
- Date: 2017
- Subjects: Economic development -- South Africa , Finance, Public South Africa -- Economic aspects
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/13491 , vital:27210
- Description: Commercial trading in various formats has characterised relations between humans for centuries. However, in a world driven by higher levels of consumption, and where citizens demand higher returns for their hard-earned taxes, governments are becoming more active in ensuring favourable conditions for their own enterprises, either operating or seeking to operate, in foreign markets, as well as local enterprises that seek to extract value from foreign markets. The past failure of the markets to self-regulate, with the recent events of the 2008/09 market crash, gave fresh impetus for governments to play a more active role in ensuring favourable outcomes for their local economies. To be effective, requires the deployments of capable officials to fulfil this mandate. However, given that governments have traditionally not operated in the sphere of what is termed as ‘commercial diplomacy’, it is evident that a concerted effort needs to be made to have a skilled and capable workforce which can function in both the commercial and diplomatic market spaces across the world. Against the background sketched above, the South African government, with the dti spearheading the initiative, has been running capacity building programmes to train officials as designate FERs, to function as commercial diplomats in targeted foreign markets. This contrasts with its sister-department, DIRCO, which has established 126 foreign missions focusing on political diplomacy. Anecdotal evidence, and previous capacity building reports, have highlighted the need for a framework to regulate and inform the development of officials. Due to the framework’s broader focus, and the acknowledgement of the rich experiences of the officials being trained in the programme, it has been termed as capacity development. An initial review of the topic, revealed that there had been limited research into a framework that regulates the capacity development of foreign economic representatives (FERs), the term used for commercial diplomats of the South African government. Thus, the purpose of this study was to explore a capacity development framework (CDF) for South African FERs. This exploratory capacity development framework will then be tested, to inform the capacity development programme used for the training of designated FERs. To achieve this goal, a literature review of academic sources of information regarding the concepts of commercial diplomacy, capacity development and conceptual frameworks, was conducted. This led to the development of a qualitative questionnaire which was then distributed to all currently posted (27) and returned FERs (33), with 18 completed questionnaires returned. The questionnaire contained both closed and open-ended statements that delved deeper into the experiences and opinions held by the respondents. Using the dti as a case study, the content analysis method, which uses open coding, was applied to identify the theme and codes emanating from the data. This was assessed against the research questions (RQs) constructed in the research proposal, and was found to be in line with the sentiments flowing from the research data. The theme, indicated as capacity development and its concomitant codes (Process, Content, Technology and Management Support), thus formed the basis and skeleton of the exploratory capacity development framework. The codes were further analysed and sub-codes identified, which were incorporated into the exploratory capacity development framework. The analysis further revealed that, while the dti is committed to ensuring the designate FERs are adequately capacitated before being posted, much more could be done to improve the efficacy of the training provided. To this end, a number of gaps were identified from the data and these will need to be addressed to ensure that an effective capacity development programme is developed.
- Full Text:
- Date Issued: 2017
- Authors: Williams, Mario Rene
- Date: 2017
- Subjects: Economic development -- South Africa , Finance, Public South Africa -- Economic aspects
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/13491 , vital:27210
- Description: Commercial trading in various formats has characterised relations between humans for centuries. However, in a world driven by higher levels of consumption, and where citizens demand higher returns for their hard-earned taxes, governments are becoming more active in ensuring favourable conditions for their own enterprises, either operating or seeking to operate, in foreign markets, as well as local enterprises that seek to extract value from foreign markets. The past failure of the markets to self-regulate, with the recent events of the 2008/09 market crash, gave fresh impetus for governments to play a more active role in ensuring favourable outcomes for their local economies. To be effective, requires the deployments of capable officials to fulfil this mandate. However, given that governments have traditionally not operated in the sphere of what is termed as ‘commercial diplomacy’, it is evident that a concerted effort needs to be made to have a skilled and capable workforce which can function in both the commercial and diplomatic market spaces across the world. Against the background sketched above, the South African government, with the dti spearheading the initiative, has been running capacity building programmes to train officials as designate FERs, to function as commercial diplomats in targeted foreign markets. This contrasts with its sister-department, DIRCO, which has established 126 foreign missions focusing on political diplomacy. Anecdotal evidence, and previous capacity building reports, have highlighted the need for a framework to regulate and inform the development of officials. Due to the framework’s broader focus, and the acknowledgement of the rich experiences of the officials being trained in the programme, it has been termed as capacity development. An initial review of the topic, revealed that there had been limited research into a framework that regulates the capacity development of foreign economic representatives (FERs), the term used for commercial diplomats of the South African government. Thus, the purpose of this study was to explore a capacity development framework (CDF) for South African FERs. This exploratory capacity development framework will then be tested, to inform the capacity development programme used for the training of designated FERs. To achieve this goal, a literature review of academic sources of information regarding the concepts of commercial diplomacy, capacity development and conceptual frameworks, was conducted. This led to the development of a qualitative questionnaire which was then distributed to all currently posted (27) and returned FERs (33), with 18 completed questionnaires returned. The questionnaire contained both closed and open-ended statements that delved deeper into the experiences and opinions held by the respondents. Using the dti as a case study, the content analysis method, which uses open coding, was applied to identify the theme and codes emanating from the data. This was assessed against the research questions (RQs) constructed in the research proposal, and was found to be in line with the sentiments flowing from the research data. The theme, indicated as capacity development and its concomitant codes (Process, Content, Technology and Management Support), thus formed the basis and skeleton of the exploratory capacity development framework. The codes were further analysed and sub-codes identified, which were incorporated into the exploratory capacity development framework. The analysis further revealed that, while the dti is committed to ensuring the designate FERs are adequately capacitated before being posted, much more could be done to improve the efficacy of the training provided. To this end, a number of gaps were identified from the data and these will need to be addressed to ensure that an effective capacity development programme is developed.
- Full Text:
- Date Issued: 2017