A framework for the economic valuation of wetland rehabilitation: case studies from South Africa
- Authors: Browne, Michelle
- Date: 2022-04-06
- Subjects: Wetland restoration South Africa , Wetland management South Africa , Ecosystem management South Africa , Ecosystem services South Africa , Ecosystem management Economic aspects South Africa , Wetland restoration Cost effectiveness South Africa
- Language: English
- Type: Academic theses , Doctoral theses , text
- Identifier: http://hdl.handle.net/10962/263560 , vital:53638 , DOI 10.21504/10962/263561
- Description: Wetlands are recognised as having the potential to contribute long-term benefits to society; wetland rehabilitation is undertaken to recover these benefits in response to widespread wetland degradation. Increasingly, there have been calls to value the benefits of wetland rehabilitation to justify further investment. Such is the case in South Africa. Furthermore, recent global agendas and targets for ecosystem restoration, such as the declaration of the Decade of Restoration 2021-2030, suggest increasing pressure on governments to implement rehabilitation and imply a concomitant increase in decision-making regarding where and how to rehabilitate. In response to these information needs, this thesis explores the economic valuation of wetland rehabilitation through a narrative review of the foundational theory of values and valuation, a quantitative review of applied wetland rehabilitation economic valuation studies, and the evaluation of five wetland rehabilitation projects from South Africa. Projects were selected as case studies to represent various rehabilitation goals and explore different contexts (urban-rural; beneficiary groups), the timing of the evaluation (ex ante, ex post) and value types and valuation methods. The final chapter of the thesis integrates the case study experiences with the findings of the theoretical research components to propose a framework for the valuation of wetland rehabilitation, which can be applied in South Africa, and more generally, to further demonstrate the values of wetland rehabilitation, and as a tool to guide wetland rehabilitation decision-making. While initially grounded in mainstream economics, the research led into a number of fields including philosophy, social-ecological systems and social-ecological relations thinking, several environmental science areas and livelihood and human well-being frameworks. A deeper look into economic theory and history revealed an evolution of thinking on the meaning of ‘value’ and view of ‘nature’ and numerous critiques of standard neoclassical economics. From the insights gained and the case study experiences, this thesis argues that the neoclassical economic perspective, especially combined with a monetary metric, is too restrictive, and arguably too abstract in its assumptions of human behaviour and reliance on mathematical models, as an overarching framework for the valuation of wetland rehabilition. This is not to suggest that standard economic valuation concepts and methods cannot be useful, as the research case studies illustrated, but rather that wetland valuation must be approached from a value pluralism perspective. To this end, the proposed framework offers a way to think beyond, or in addition to, standard economic approaches in articulating the values of wetland rehabilitation. , Thesis (PhD) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
- Authors: Browne, Michelle
- Date: 2022-04-06
- Subjects: Wetland restoration South Africa , Wetland management South Africa , Ecosystem management South Africa , Ecosystem services South Africa , Ecosystem management Economic aspects South Africa , Wetland restoration Cost effectiveness South Africa
- Language: English
- Type: Academic theses , Doctoral theses , text
- Identifier: http://hdl.handle.net/10962/263560 , vital:53638 , DOI 10.21504/10962/263561
- Description: Wetlands are recognised as having the potential to contribute long-term benefits to society; wetland rehabilitation is undertaken to recover these benefits in response to widespread wetland degradation. Increasingly, there have been calls to value the benefits of wetland rehabilitation to justify further investment. Such is the case in South Africa. Furthermore, recent global agendas and targets for ecosystem restoration, such as the declaration of the Decade of Restoration 2021-2030, suggest increasing pressure on governments to implement rehabilitation and imply a concomitant increase in decision-making regarding where and how to rehabilitate. In response to these information needs, this thesis explores the economic valuation of wetland rehabilitation through a narrative review of the foundational theory of values and valuation, a quantitative review of applied wetland rehabilitation economic valuation studies, and the evaluation of five wetland rehabilitation projects from South Africa. Projects were selected as case studies to represent various rehabilitation goals and explore different contexts (urban-rural; beneficiary groups), the timing of the evaluation (ex ante, ex post) and value types and valuation methods. The final chapter of the thesis integrates the case study experiences with the findings of the theoretical research components to propose a framework for the valuation of wetland rehabilitation, which can be applied in South Africa, and more generally, to further demonstrate the values of wetland rehabilitation, and as a tool to guide wetland rehabilitation decision-making. While initially grounded in mainstream economics, the research led into a number of fields including philosophy, social-ecological systems and social-ecological relations thinking, several environmental science areas and livelihood and human well-being frameworks. A deeper look into economic theory and history revealed an evolution of thinking on the meaning of ‘value’ and view of ‘nature’ and numerous critiques of standard neoclassical economics. From the insights gained and the case study experiences, this thesis argues that the neoclassical economic perspective, especially combined with a monetary metric, is too restrictive, and arguably too abstract in its assumptions of human behaviour and reliance on mathematical models, as an overarching framework for the valuation of wetland rehabilition. This is not to suggest that standard economic valuation concepts and methods cannot be useful, as the research case studies illustrated, but rather that wetland valuation must be approached from a value pluralism perspective. To this end, the proposed framework offers a way to think beyond, or in addition to, standard economic approaches in articulating the values of wetland rehabilitation. , Thesis (PhD) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
Bond market integration in the Common Monetary Area (CMA)
- Ramoriting, Retšelisitsoe Silvia
- Authors: Ramoriting, Retšelisitsoe Silvia
- Date: 2022-04-06
- Subjects: Globalization , Globalization Economic aspects , Bond market , Rand area , Africa, Southern Economic integration , Autoregressive distributed lag (ARDL) model
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/284592 , vital:56077
- Description: The study reviews the phenomenon of financial integration. During the late 1980s and 1990s, financial market integration around the world increased due to globalisation of investments and the need for higher returns and international risk diversification. The increase was accompanied by a significant increase in private capital flows into developing countries from developed countries. The main goal of the study is to examine bond market integration in the common monetary area The study therefore investigates the co-movement of government bond returns within the CMA using data from Eswatini, Namibia, and South Africa. The study attempts to find the short-run and long-run relationship of these government bond returns using the ARDL cointegration technique. The study uses daily data of 10-year government bond yields spanning from August 2014 to September 2019. The empirical results reveal that there exists a short-run and long-run relationship between South Africa and Eswatini. Between South Africa and Namibia, there only exist a short-run relationship. Just like the previously mentioned studies, the short-run relationship is a result of policy convergence. The lack of long-run relationship between South and Namibia was due to poor institutional developments and limited investment opportunities. In this case, policy measures (or reforms) and a review of the union are necessary to increase integration of these bond markets. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
- Authors: Ramoriting, Retšelisitsoe Silvia
- Date: 2022-04-06
- Subjects: Globalization , Globalization Economic aspects , Bond market , Rand area , Africa, Southern Economic integration , Autoregressive distributed lag (ARDL) model
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/284592 , vital:56077
- Description: The study reviews the phenomenon of financial integration. During the late 1980s and 1990s, financial market integration around the world increased due to globalisation of investments and the need for higher returns and international risk diversification. The increase was accompanied by a significant increase in private capital flows into developing countries from developed countries. The main goal of the study is to examine bond market integration in the common monetary area The study therefore investigates the co-movement of government bond returns within the CMA using data from Eswatini, Namibia, and South Africa. The study attempts to find the short-run and long-run relationship of these government bond returns using the ARDL cointegration technique. The study uses daily data of 10-year government bond yields spanning from August 2014 to September 2019. The empirical results reveal that there exists a short-run and long-run relationship between South Africa and Eswatini. Between South Africa and Namibia, there only exist a short-run relationship. Just like the previously mentioned studies, the short-run relationship is a result of policy convergence. The lack of long-run relationship between South and Namibia was due to poor institutional developments and limited investment opportunities. In this case, policy measures (or reforms) and a review of the union are necessary to increase integration of these bond markets. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
Exchange rate volatility and the returns on diversified South African investment portfolios
- Authors: Mulamu, Murendeni
- Date: 2022-04-06
- Subjects: Foreign exchange rates South Africa , Rate of return , Investments , GARCH model , Regression analysis , Autoregressive distributed lag (ARDL) model
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/284581 , vital:56076
- Description: Globalisation has made it much easier to invest in foreign countries. This creates endless options accessible to investors, including exploiting opportunities for investment in international economies. Although foreign investment portfolio diversification provides significant opportunities for financial returns, exchange rate volatility may play a prominent role when investing in foreign markets. Since the introduction of a floating exchange rate system, together with the inflation-targeting monetary policy framework in South Africa, there has been significant volatility in the exchange rate, far more than during the previous dispensations. This, however, creates a strong need to consider how the unpredictable nature of the exchange rate affects these investments. The purpose of this study is to analyse the effect of exchange rate volatility on the returns on diversified South African investment portfolios. This research examined whether there is a homogenous relationship between South African (domestic) portfolios and the internationally diversified portfolios. In addition, the study investigated the long-run relationship between the exchange rate volatility and both domestic portfolios and the internationally diversified portfolios for the period 2007-2019. To achieve these goals, a panel ARDL model was employed. This study found that exchange rate volatility does not account for a significant portion of returns on investment portfolios fluctuations. Moreover, the relationship is not homogenous because returns on domestic investment portfolios react positively to the exchange rate volatility, whereas returns international investment portfolios respond negatively/positively to the exchange rate volatility depending on whether the relationship is short or long run. This study will contribute to the existing literature, and it is important for investors intending to diversify their investment portfolios both domestically and internationally using different mutual funds in South Africa. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
- Authors: Mulamu, Murendeni
- Date: 2022-04-06
- Subjects: Foreign exchange rates South Africa , Rate of return , Investments , GARCH model , Regression analysis , Autoregressive distributed lag (ARDL) model
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/284581 , vital:56076
- Description: Globalisation has made it much easier to invest in foreign countries. This creates endless options accessible to investors, including exploiting opportunities for investment in international economies. Although foreign investment portfolio diversification provides significant opportunities for financial returns, exchange rate volatility may play a prominent role when investing in foreign markets. Since the introduction of a floating exchange rate system, together with the inflation-targeting monetary policy framework in South Africa, there has been significant volatility in the exchange rate, far more than during the previous dispensations. This, however, creates a strong need to consider how the unpredictable nature of the exchange rate affects these investments. The purpose of this study is to analyse the effect of exchange rate volatility on the returns on diversified South African investment portfolios. This research examined whether there is a homogenous relationship between South African (domestic) portfolios and the internationally diversified portfolios. In addition, the study investigated the long-run relationship between the exchange rate volatility and both domestic portfolios and the internationally diversified portfolios for the period 2007-2019. To achieve these goals, a panel ARDL model was employed. This study found that exchange rate volatility does not account for a significant portion of returns on investment portfolios fluctuations. Moreover, the relationship is not homogenous because returns on domestic investment portfolios react positively to the exchange rate volatility, whereas returns international investment portfolios respond negatively/positively to the exchange rate volatility depending on whether the relationship is short or long run. This study will contribute to the existing literature, and it is important for investors intending to diversify their investment portfolios both domestically and internationally using different mutual funds in South Africa. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
Institutional innovations for improved water security in smallholder irrigation schemes in KwaZulu-Natal and Eastern Cape Provinces, South Africa
- Authors: Phakathi, Sandile
- Date: 2022-04-06
- Subjects: Water security South Africa , Rural development projects South Africa , Institutional cooperation South Africa , Irrigation farming South Africa , Food security South Africa , Agricultural innovations South Africa , Irrigation Technological innovations South Africa , Smallholder irrigation schemes
- Language: English
- Type: Doctoral thesis , text
- Identifier: http://hdl.handle.net/10962/232341 , vital:49983 , DOI 10.21504/10962/232341
- Description: Smallholder irrigation schemes are regarded as a key strategy to eliminate poverty and increase food security in rural areas in South Africa. While the South African government has invested heavily in rural development schemes, most irrigation schemes face a myriad of challenges, including deficient infrastructure, weak institutional arrangements and water insecurity. Weak institutions have been identified as a major bottleneck in the performance of smallholder irrigation schemes in developing countries, including South Africa. Two main reasons have been identified for this challenge. Firstly, the agency of the irrigators was ignored during the design of the schemes. Treating farmers as passive rather than active agents resulted in institutional arrangements that were not context-specific, as well as weak farmer commitment to the ownership and management of the schemes, leading to system breakdown. Despite being noble in intention or design, institutions designed by outsiders often fail due to a lack of legitimacy. Secondly, institutions have failed to evolve to cope with dynamic challenges and opportunities in the sector. Stability over a reasonable period is required for institutions to effectively perform their crucial role of establishing reasonable expectations in dealings among people. Institutional innovations are required to keep up with the changing nature of development. In particular, farmer-led institutional innovations have been touted as key to improving the management of water resources in irrigation schemes. Farmer-led institutional innovation refers to a process, in which farmers themselves initiate, establish, and improve institutions based on their context-specific challenges or opportunities. Farmers’ groups are regarded as an important institutional arrangement to reduce transaction costs, improve social networks, and increase livelihood outcomes. However, little is known about the internal dynamics of these farmer groups, how they operate, and whether or not they are inclusive and innovative, as well as what makes certain groups more successful than others. Furthermore, there is a paucity of research on whether these farmer groups embrace institutional innovations to improve water security and strengthen their design principles that are crucial for collective action. It is against this background that this study aimed to examine the internal group dynamics within the farmer groups; determine whether smallholder farmers are capable of implementing institutional innovations that are novel, useful and legitimate; determine the nature of these innovations (incremental or radical) and their role in improving water security. The main theories that underpinned the study were induced institutional innovation theory, collective action theory, random utility theory and Ostrom’s eight design principles. Multistage sampling was used to collect data from 28 farmer groups and 401 irrigators in smallholder irrigation schemes in KwaZulu-Natal (Tugela Ferry and Mooi River) and the Eastern Cape (Qamata and Zanyokwe). Data were gathered by means of focus group discussions, key informant interviews and household surveys. Several empirical tools were employed to analyse the data (descriptive statistics, thematic analysis, logit model, propensity score matching, PCA and OLS). The study found that group membership was associated with higher levels of water access, adoption of inorganic fertiliser, incomes and assets. Group members had an additional four days’ access to water in a month and applied at least 130 kg/ha more inorganic fertiliser than non-group members. Group members also had a higher household income per capita and more assets than non-group members. However, the results revealed a heterogeneous effect among group members, with the benefits varying according to members’ socio-economic characteristics as well as internal group dynamics. The results suggest that organising farmers into groups should be promoted to improve farmers’ access to productive assets such as water, technology adoption and welfare outcomes. However, the study findings also indicate that smaller groups should be promoted, programmes targeted at empowering women should be prioritised, and that it is imperative to invest in improving farmers’ human capital through various training initiatives. The results indicated that farmers could develop and implement institutional innovations that are novel, useful and legitimate. Of the 28 groups, 21 (75%) had implemented institutional innovations in the past three years. Examples of innovations include, among others, the introduction of a secret voting system to improve marginalised people’s participation in decision-making processes, designing daily rotation rosters to reduce conflict, using an attendance register for participation in group activities, and rewarding members according to their participation levels. Most of these innovations were designed to improve the graduated sanction mechanism (22.2%), enhance the penalty system for non-compliance; improve collective action arrangements (27.8%); monitor attendance of group meetings (18.5%); democratise decision making; and ensure equitable water distribution. However, they mainly focused on addressing challenges rather than exploiting opportunities and were largely incremental (94%), involving an adjustment or reinterpretation of rules and regulations. Furthermore, the innovative groups were small in size and were dominated by male farmers. Based on these results, it is recommended that the government should build on the irrigators’ agency to improve the effectiveness and legitimacy of institutional arrangements in irrigation schemes. The findings also suggest that small groups should be actively promoted, while tailored training should be offered based on the groups’ specific needs to improve institutional innovations in the smallholder irrigation sector in South Africa. A positive association was established between belonging to an innovative group and water security, highlighting the importance of institutional innovations in water security. The propensity score matching indicated that water secure irrigators produced an additional 569-622 kg of maize and earned additional income of R2 037.81. The study’s findings suggest that organising farmers into groups is a promising strategy to improve farmers livelihoods and water security. The government and private donors should thus continue to promote the formation and organisation of farmers into groups. The innovative agency of the irrigators should be acknowledged and harnessed to strengthen institutional innovations. The focus should be on strengthening the institutions designed by farmers themselves, as these are locally contextualised and socially embedded, and hence legitimate. It is recommended that small groups should be actively promoted, while tailored training should be offered based on groups’ specific needs to improve institutional innovations in the smallholder irrigation sector in South Africa. , Thesis (PhD) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
- Authors: Phakathi, Sandile
- Date: 2022-04-06
- Subjects: Water security South Africa , Rural development projects South Africa , Institutional cooperation South Africa , Irrigation farming South Africa , Food security South Africa , Agricultural innovations South Africa , Irrigation Technological innovations South Africa , Smallholder irrigation schemes
- Language: English
- Type: Doctoral thesis , text
- Identifier: http://hdl.handle.net/10962/232341 , vital:49983 , DOI 10.21504/10962/232341
- Description: Smallholder irrigation schemes are regarded as a key strategy to eliminate poverty and increase food security in rural areas in South Africa. While the South African government has invested heavily in rural development schemes, most irrigation schemes face a myriad of challenges, including deficient infrastructure, weak institutional arrangements and water insecurity. Weak institutions have been identified as a major bottleneck in the performance of smallholder irrigation schemes in developing countries, including South Africa. Two main reasons have been identified for this challenge. Firstly, the agency of the irrigators was ignored during the design of the schemes. Treating farmers as passive rather than active agents resulted in institutional arrangements that were not context-specific, as well as weak farmer commitment to the ownership and management of the schemes, leading to system breakdown. Despite being noble in intention or design, institutions designed by outsiders often fail due to a lack of legitimacy. Secondly, institutions have failed to evolve to cope with dynamic challenges and opportunities in the sector. Stability over a reasonable period is required for institutions to effectively perform their crucial role of establishing reasonable expectations in dealings among people. Institutional innovations are required to keep up with the changing nature of development. In particular, farmer-led institutional innovations have been touted as key to improving the management of water resources in irrigation schemes. Farmer-led institutional innovation refers to a process, in which farmers themselves initiate, establish, and improve institutions based on their context-specific challenges or opportunities. Farmers’ groups are regarded as an important institutional arrangement to reduce transaction costs, improve social networks, and increase livelihood outcomes. However, little is known about the internal dynamics of these farmer groups, how they operate, and whether or not they are inclusive and innovative, as well as what makes certain groups more successful than others. Furthermore, there is a paucity of research on whether these farmer groups embrace institutional innovations to improve water security and strengthen their design principles that are crucial for collective action. It is against this background that this study aimed to examine the internal group dynamics within the farmer groups; determine whether smallholder farmers are capable of implementing institutional innovations that are novel, useful and legitimate; determine the nature of these innovations (incremental or radical) and their role in improving water security. The main theories that underpinned the study were induced institutional innovation theory, collective action theory, random utility theory and Ostrom’s eight design principles. Multistage sampling was used to collect data from 28 farmer groups and 401 irrigators in smallholder irrigation schemes in KwaZulu-Natal (Tugela Ferry and Mooi River) and the Eastern Cape (Qamata and Zanyokwe). Data were gathered by means of focus group discussions, key informant interviews and household surveys. Several empirical tools were employed to analyse the data (descriptive statistics, thematic analysis, logit model, propensity score matching, PCA and OLS). The study found that group membership was associated with higher levels of water access, adoption of inorganic fertiliser, incomes and assets. Group members had an additional four days’ access to water in a month and applied at least 130 kg/ha more inorganic fertiliser than non-group members. Group members also had a higher household income per capita and more assets than non-group members. However, the results revealed a heterogeneous effect among group members, with the benefits varying according to members’ socio-economic characteristics as well as internal group dynamics. The results suggest that organising farmers into groups should be promoted to improve farmers’ access to productive assets such as water, technology adoption and welfare outcomes. However, the study findings also indicate that smaller groups should be promoted, programmes targeted at empowering women should be prioritised, and that it is imperative to invest in improving farmers’ human capital through various training initiatives. The results indicated that farmers could develop and implement institutional innovations that are novel, useful and legitimate. Of the 28 groups, 21 (75%) had implemented institutional innovations in the past three years. Examples of innovations include, among others, the introduction of a secret voting system to improve marginalised people’s participation in decision-making processes, designing daily rotation rosters to reduce conflict, using an attendance register for participation in group activities, and rewarding members according to their participation levels. Most of these innovations were designed to improve the graduated sanction mechanism (22.2%), enhance the penalty system for non-compliance; improve collective action arrangements (27.8%); monitor attendance of group meetings (18.5%); democratise decision making; and ensure equitable water distribution. However, they mainly focused on addressing challenges rather than exploiting opportunities and were largely incremental (94%), involving an adjustment or reinterpretation of rules and regulations. Furthermore, the innovative groups were small in size and were dominated by male farmers. Based on these results, it is recommended that the government should build on the irrigators’ agency to improve the effectiveness and legitimacy of institutional arrangements in irrigation schemes. The findings also suggest that small groups should be actively promoted, while tailored training should be offered based on the groups’ specific needs to improve institutional innovations in the smallholder irrigation sector in South Africa. A positive association was established between belonging to an innovative group and water security, highlighting the importance of institutional innovations in water security. The propensity score matching indicated that water secure irrigators produced an additional 569-622 kg of maize and earned additional income of R2 037.81. The study’s findings suggest that organising farmers into groups is a promising strategy to improve farmers livelihoods and water security. The government and private donors should thus continue to promote the formation and organisation of farmers into groups. The innovative agency of the irrigators should be acknowledged and harnessed to strengthen institutional innovations. The focus should be on strengthening the institutions designed by farmers themselves, as these are locally contextualised and socially embedded, and hence legitimate. It is recommended that small groups should be actively promoted, while tailored training should be offered based on groups’ specific needs to improve institutional innovations in the smallholder irrigation sector in South Africa. , Thesis (PhD) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
Stock market volatility during times of crisis: a comparative analysis of the conditional volatilities of JSE stock indices during the 2007/08 global financial crisis and COVID-19
- Authors: Wang, Zixiao
- Date: 2022-04-06
- Subjects: Stock exchanges , Johannesburg Stock Exchange , Global Financial Crisis, 2008-2009 , COVID-19 (Disease) Economic aspects , Economic forecasting , Stock exchanges and current events , GARCH model
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/284603 , vital:56078
- Description: This research analyses the comparative behaviour of stock market volatility during two crises. The goal of this research is to determine whether assumed cyclical and defensive sectors have either retained or revealed their expected properties during both the Global Financial Crisis (GFC) and COVID-19 by analysing sectoral volatility amid these two crises. Understanding how volatility changes amid crises helps to determine whether the volatility assumptions of diversified investment portfolios for both defensive and cyclical sectors still held given the different causes of each crisis. In turn, this knowledge can assist with risk management and portfolio allocation in stock market investments. The study can also contribute towards the enhancement of financial markets’ resistance against systemic risks through portfolio diversification, and aid government decision-making targeted at tackling the weaknesses of different economic sectors especially in times of overall economic weakness. This research makes use of the GARCH model to analyse a group of daily time series that consists of eleven sectoral indices and one benchmark index, all based on the South African stock markets. These observed series are categorised into two full sample periods, one designated to the Global Financial Crisis (January 2006 to May 2009) and the other for COVID-19 (January 2018 to May 2021). These are further divided into two sets of sub-sample periods, each made up of a pre-crisis and during-crisis. Furthermore, the dummy variables representing the occurrence of structural breaks are inserted into the full sample periods’ conditional variance equations. This is aimed at capturing the asymmetrical impact of the crises themselves on all observed series. Based on the movement of volatility persistency from pre-crisis to during-crisis for both crises, the results show that, firstly, Health Care and Consumer Goods are considered defensive Sectors. Secondly, Banks, Basic Materials, Chemicals, Telecommunications, and Financials are considered cyclical Sectors. Thirdly, Automobiles & Parts, Consumer Services, and Technology are considered indeterminable Sectors due to the inconsistent behaviour of these sectors’ volatility persistency throughout the sub-sample periods of both crises. Overall, according to the average volatility persistency, the observed series for COVID-19’s full sample period are generally less volatile than those of the GFC. However, the sub-sample periods suggest that the observed series for both pre-crisis and during-crisis periods of COVID-19 are more volatile than those same sub-samples of the Global Financial Crisis. Being able to analyse the characteristics of stock market sectors is crucial for risk management and optimal portfolio allocation of stock market investments. This can be achieved through portfolio diversification by investing in a variety of stocks, both cyclical and defensive, and adjusted over time based the needs of stock market investors. Diversified portfolios do not only serve the interests of individual investors, but can also enhance the financial markets’ overall resistance against systemic risks. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
- Authors: Wang, Zixiao
- Date: 2022-04-06
- Subjects: Stock exchanges , Johannesburg Stock Exchange , Global Financial Crisis, 2008-2009 , COVID-19 (Disease) Economic aspects , Economic forecasting , Stock exchanges and current events , GARCH model
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/284603 , vital:56078
- Description: This research analyses the comparative behaviour of stock market volatility during two crises. The goal of this research is to determine whether assumed cyclical and defensive sectors have either retained or revealed their expected properties during both the Global Financial Crisis (GFC) and COVID-19 by analysing sectoral volatility amid these two crises. Understanding how volatility changes amid crises helps to determine whether the volatility assumptions of diversified investment portfolios for both defensive and cyclical sectors still held given the different causes of each crisis. In turn, this knowledge can assist with risk management and portfolio allocation in stock market investments. The study can also contribute towards the enhancement of financial markets’ resistance against systemic risks through portfolio diversification, and aid government decision-making targeted at tackling the weaknesses of different economic sectors especially in times of overall economic weakness. This research makes use of the GARCH model to analyse a group of daily time series that consists of eleven sectoral indices and one benchmark index, all based on the South African stock markets. These observed series are categorised into two full sample periods, one designated to the Global Financial Crisis (January 2006 to May 2009) and the other for COVID-19 (January 2018 to May 2021). These are further divided into two sets of sub-sample periods, each made up of a pre-crisis and during-crisis. Furthermore, the dummy variables representing the occurrence of structural breaks are inserted into the full sample periods’ conditional variance equations. This is aimed at capturing the asymmetrical impact of the crises themselves on all observed series. Based on the movement of volatility persistency from pre-crisis to during-crisis for both crises, the results show that, firstly, Health Care and Consumer Goods are considered defensive Sectors. Secondly, Banks, Basic Materials, Chemicals, Telecommunications, and Financials are considered cyclical Sectors. Thirdly, Automobiles & Parts, Consumer Services, and Technology are considered indeterminable Sectors due to the inconsistent behaviour of these sectors’ volatility persistency throughout the sub-sample periods of both crises. Overall, according to the average volatility persistency, the observed series for COVID-19’s full sample period are generally less volatile than those of the GFC. However, the sub-sample periods suggest that the observed series for both pre-crisis and during-crisis periods of COVID-19 are more volatile than those same sub-samples of the Global Financial Crisis. Being able to analyse the characteristics of stock market sectors is crucial for risk management and optimal portfolio allocation of stock market investments. This can be achieved through portfolio diversification by investing in a variety of stocks, both cyclical and defensive, and adjusted over time based the needs of stock market investors. Diversified portfolios do not only serve the interests of individual investors, but can also enhance the financial markets’ overall resistance against systemic risks. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
The impact of urban gardening on household food security: evidence from Makhanda East, Eastern Cape Province, South Africa
- Bruwer, Guillaume Marcel Xavier
- Authors: Bruwer, Guillaume Marcel Xavier
- Date: 2022-04-06
- Subjects: Food security South Africa Makhanda , Urban agriculture South Africa Makhanda , Urban gardening South Africa Makhanda , Sustainable development South Africa Makhanda , South Africa Economic conditions , Subsistence farming South Africa Makhanda , Economic impact analysis South Africa Makhanda , Propensity Score Matching (PSM)
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/263575 , vital:53640
- Description: Urban gardening in townships is a common coping strategy employed by poor inhabitants to improve food security, earn income through sales, and generate cost-savings through home consumption of fresh produce. Food security is a cornerstone of human development and welfare, and the achievement thereof remains a global challenge. The majority of academic research and policy documentation traditionally positions food insecurity as a rural phenomenon. However, recent trends point to an increase in food insecurity in urban areas, particularly in low-income areas such as townships. In South Africa, rapid urbanization has led to burgeoning townships and rapidly expanding low-income informal settlements characterised by poverty, unemployment, and food insecurity. Research concerned with the role that urban agricultural production plays in contributing to the food security of poor households is scarce and not well understood. This research, therefore, aimed to contribute to the limited research which specifically examines urban food security, and the role urban agriculture play in the achievement of household food security. The study employed collective action theory and utility theory to firstly provides an in-depth examination of the determinants of participation in urban gardening using Probit regression modeling. The second research objective was to perform an impact evaluation of participation in urban gardening on selected household food security indicators including Household Dietary Diversity Scores (HDDS), the Household Hunger Scale (HHS) and the Coping Strategy Index (CSI) using Propensity Score Matching (PSM). Purposive and snowball sampling methods were employed to obtain a sample of 60 urban gardeners and a control group of 55 non-gardening households from Extension 6, 7 and 10 townships as well as Joza Location in Makhanda East, Eastern Cape Province. Households were surveyed using a structured household food security questionnaire. A focus group discussion was held with the Linomtha Community Garden members and key informant interviews were undertaken with important stakeholders such as the local extension officers. Descriptive analysis revealed that urban gardening households (UGs) had older household heads who were less educated, and that land and water availability were the dominant constraints to increases in agricultural production. Results from the probit and average marginal effects models showed that the likelihood of participation significantly increased when household unemployment and dependency increased and that households who were engaged in off-farm economic activity were more likely to participate in urban gardening. The impact evaluation was performed using PSM and Average Treatment Effect on the Treated (ATT). Analysis illustrated that participation in urban gardening does significantly reduce both the full CSI and Reduced CSI. Thus, participation in urban gardening improves the food security of participating households by significantly reducing the frequency of participating households (UGs) applying undesirable coping strategies such as sending children elsewhere other than the household, borrowing food from other households and reducing the number of meals eaten in a day due to food shortages. This study posits that urban gardening alone will not eradicate the rampant food insecurity and poverty which pervades in South Africa’s townships. However, urban gardening participation does contribute to the construction of a sustainable, urban livelihood by reducing the number and severity of the undesirable coping strategies that food insecure households employ by providing some nutritious produce as well improved social capital through gardening networks and supporting institutions. It is recommended that policy makers, at a national and municipal level, need to create a clearer directive for the integration of urban food production into the urban food marketplace thus increasing access to income generating channels for small-scale home, and community gardeners. Co-operation between private and public institutions for food security and urban gardeners needs to be fostered and awareness of opportunities to participate in urban gardens needs to be improved. Central to the developmental challenges that rapid increases in urbanization and food insecurity in poor urban areas, is the need for national and local governments to improve access to economic opportunities in township areas - both in urban agriculture and in other, skills intensive sectors. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
- Authors: Bruwer, Guillaume Marcel Xavier
- Date: 2022-04-06
- Subjects: Food security South Africa Makhanda , Urban agriculture South Africa Makhanda , Urban gardening South Africa Makhanda , Sustainable development South Africa Makhanda , South Africa Economic conditions , Subsistence farming South Africa Makhanda , Economic impact analysis South Africa Makhanda , Propensity Score Matching (PSM)
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/263575 , vital:53640
- Description: Urban gardening in townships is a common coping strategy employed by poor inhabitants to improve food security, earn income through sales, and generate cost-savings through home consumption of fresh produce. Food security is a cornerstone of human development and welfare, and the achievement thereof remains a global challenge. The majority of academic research and policy documentation traditionally positions food insecurity as a rural phenomenon. However, recent trends point to an increase in food insecurity in urban areas, particularly in low-income areas such as townships. In South Africa, rapid urbanization has led to burgeoning townships and rapidly expanding low-income informal settlements characterised by poverty, unemployment, and food insecurity. Research concerned with the role that urban agricultural production plays in contributing to the food security of poor households is scarce and not well understood. This research, therefore, aimed to contribute to the limited research which specifically examines urban food security, and the role urban agriculture play in the achievement of household food security. The study employed collective action theory and utility theory to firstly provides an in-depth examination of the determinants of participation in urban gardening using Probit regression modeling. The second research objective was to perform an impact evaluation of participation in urban gardening on selected household food security indicators including Household Dietary Diversity Scores (HDDS), the Household Hunger Scale (HHS) and the Coping Strategy Index (CSI) using Propensity Score Matching (PSM). Purposive and snowball sampling methods were employed to obtain a sample of 60 urban gardeners and a control group of 55 non-gardening households from Extension 6, 7 and 10 townships as well as Joza Location in Makhanda East, Eastern Cape Province. Households were surveyed using a structured household food security questionnaire. A focus group discussion was held with the Linomtha Community Garden members and key informant interviews were undertaken with important stakeholders such as the local extension officers. Descriptive analysis revealed that urban gardening households (UGs) had older household heads who were less educated, and that land and water availability were the dominant constraints to increases in agricultural production. Results from the probit and average marginal effects models showed that the likelihood of participation significantly increased when household unemployment and dependency increased and that households who were engaged in off-farm economic activity were more likely to participate in urban gardening. The impact evaluation was performed using PSM and Average Treatment Effect on the Treated (ATT). Analysis illustrated that participation in urban gardening does significantly reduce both the full CSI and Reduced CSI. Thus, participation in urban gardening improves the food security of participating households by significantly reducing the frequency of participating households (UGs) applying undesirable coping strategies such as sending children elsewhere other than the household, borrowing food from other households and reducing the number of meals eaten in a day due to food shortages. This study posits that urban gardening alone will not eradicate the rampant food insecurity and poverty which pervades in South Africa’s townships. However, urban gardening participation does contribute to the construction of a sustainable, urban livelihood by reducing the number and severity of the undesirable coping strategies that food insecure households employ by providing some nutritious produce as well improved social capital through gardening networks and supporting institutions. It is recommended that policy makers, at a national and municipal level, need to create a clearer directive for the integration of urban food production into the urban food marketplace thus increasing access to income generating channels for small-scale home, and community gardeners. Co-operation between private and public institutions for food security and urban gardeners needs to be fostered and awareness of opportunities to participate in urban gardens needs to be improved. Central to the developmental challenges that rapid increases in urbanization and food insecurity in poor urban areas, is the need for national and local governments to improve access to economic opportunities in township areas - both in urban agriculture and in other, skills intensive sectors. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
The role of a national system of innovation in facilitating development in South Africa from a comparative BRICS perspective
- Authors: Sibhukwana, Andiswa
- Date: 2022-04-06
- Subjects: BRIC countries , Technological innovations Economic aspects South Africa , Economic development South Africa , Economics Mathematical models , Neoclassical school of economics , South Africa Economic conditions , South Africa Economic policy , National systems of innovation
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/284616 , vital:56079
- Description: The aim of the dissertation was to investigate whether the adoption of a national system of innovation has helped facilitate development in South Africa from a comparative BRICS perspective. South Africa has an expanding focus on science and technology, as per the Science and Technology White Paper (1996). There appeared to be innovation that had left out much of the citizenry. There continued to be poverty, inequality, and joblessness. The study aimed to understand how the NSI approach could be used to foster inclusive and transformative development. The study used a mixed-methods approach. The qualitative aspect of the research focused on an innovation and public policy study which assessed the various policies and initiatives implemented in each of the BRICS countries to drive innovation and foster development. The qualitative aspect of the study found that the innovation paradigm required governments to adopt a more holistic approach to public policy design and analysis. The quantitative aspect of the research focused on a trend, correlation, and regression analysis. The trend analysis revealed that China and Brazil increased their allocation of resources towards R&D compared to the other countries. Brazil is regarded as a social investment state, while China is a developmental state: this means the state plays an extraordinarily strong coordinative and financing role in the NSI. On the other hand, the correlation matrix for South Africa revealed a statistically significant positive linear association between various NSI indicators and human development. This suggested that the innovation benefits are trickling down to the general citizenry. In essence the study articulated key elements of the understanding of current and potential impacts of technological change in productivity and growth, employment and inequality that can be used for policy making. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
- Authors: Sibhukwana, Andiswa
- Date: 2022-04-06
- Subjects: BRIC countries , Technological innovations Economic aspects South Africa , Economic development South Africa , Economics Mathematical models , Neoclassical school of economics , South Africa Economic conditions , South Africa Economic policy , National systems of innovation
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/284616 , vital:56079
- Description: The aim of the dissertation was to investigate whether the adoption of a national system of innovation has helped facilitate development in South Africa from a comparative BRICS perspective. South Africa has an expanding focus on science and technology, as per the Science and Technology White Paper (1996). There appeared to be innovation that had left out much of the citizenry. There continued to be poverty, inequality, and joblessness. The study aimed to understand how the NSI approach could be used to foster inclusive and transformative development. The study used a mixed-methods approach. The qualitative aspect of the research focused on an innovation and public policy study which assessed the various policies and initiatives implemented in each of the BRICS countries to drive innovation and foster development. The qualitative aspect of the study found that the innovation paradigm required governments to adopt a more holistic approach to public policy design and analysis. The quantitative aspect of the research focused on a trend, correlation, and regression analysis. The trend analysis revealed that China and Brazil increased their allocation of resources towards R&D compared to the other countries. Brazil is regarded as a social investment state, while China is a developmental state: this means the state plays an extraordinarily strong coordinative and financing role in the NSI. On the other hand, the correlation matrix for South Africa revealed a statistically significant positive linear association between various NSI indicators and human development. This suggested that the innovation benefits are trickling down to the general citizenry. In essence the study articulated key elements of the understanding of current and potential impacts of technological change in productivity and growth, employment and inequality that can be used for policy making. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-04-06
An evaluation of the socio-economic costs and benefits of the invasive Rubus (Blackberry/Bramble) genus at selected sites in South Africa
- Authors: Mason, Brett Anthony
- Date: 2021-10-29
- Subjects: Rubus South Africa Cost effectiveness , Invasive plants South Africa Cost effectiveness , Rubus Economic aspects South Africa , Ecology Economic aspects South Africa , Rubus Ecology South Africa , Environmental economics South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191931 , vital:45180
- Description: Rubus L. (brambles, blackberries, raspberries, or dewberries) are a globally recognised genus due to the edible fruit and negative impacts they can have as invasive species. There are at least 23 species of Rubus subgenus Rubus in South Africa. These include native, alien, naturalised alien, and invasive alien species. The invasive Rubus species are becoming an increasing problem in South Africa with experts in invasion biology urging caution regarding the genus (Henderson, 2011). The taxonomy of indigenous, alien and alien invasive species of Rubus are poorly understood and therefore efforts to understand the genus, the impacts and solutions to those impacts have been very limited (Stirton, 1981; Henderson, 2011; Sochor et al., 2018a). There has also been little research conducted on the economic or ecological impacts on the species or genus of species in South Africa (du Plessis et al., 1984; Botha, 2005), and yet species in the genus have been earmarked for prioritization by invasive species legislation. The potential value of certain species as well as the cost associated with their impacts could potentially create a complex conflict of interest scenario which has not been investigated. This study is an effort to inform future policy decisions regarding this suite of species by investigating the economic impacts of the invasive Rubus species. A method was developed unique to the study that incorporated research tools from environmental economics and geography to identify the nature of interactions between economic agents, experts, and alien and invasive Rubus species in South Africa. Two questionnaires were developed to generate economic data and ground proofing was used to develop geographic data. One questionnaire was directed specifically at researchers and academics that attended the 46th National Symposium on Biological Invasions that took place between 15–17 May 2019, at Waterval Country Lodge, Tulbagh and the other an economic agent questionnaire for economic agents that met strict and selective criteria relating to the impact of the six invasive Rubus species on their economic activity. Both questionnaires were designed with a mixed methods approach in mind. The ground proofing was aimed at understanding the composition and distribution of Rubus species at the selected sites: Cathcart and Hogsback (The Eastern Cape Province), Clarens (Free State Province), and Underberg (KwaZulu-Natal Province). The study established that all economic impacts of invasive Rubus species at selected sites are externalities. Invasive Rubus species in South Africa can be attributed as (i) harbouring vermin, (ii) impeding human and animal livestock, (iii) reducing crop yields, (iv) encroaching on grazing land, (v) presenting fire hazards, and (vi) negatively impacting fire regimes. These species also (i) provide berries that are retailed on a commercial level, or have been, (ii) that are utilized for personal consumption, (iii) provide an ingredient for alcohol brewing processes, and (iv) could potentially facilitate forest regeneration. The invasive species are infrequently browsed by certain livestock and far as we could ascertain do not provide ingredients for anti-inflammatory drugs or modern cosmetics in South Africa, as they do in other regions of the globe. The costs associated with the invasive species can be presented dichotomously; the estimated private cost-benefit ratio, for costs and benefits incurred or enjoyed by 18 private economic agents, stands at 0.33:1. A private-public benefit-cost ratio, that incorporates both private and public costs and benefits, stands at 13,5:1. The private-public benefit-cost includes public expenditure, or government control measures, directed at invasive Rubus and shifts the benefit-cost ratio so that costs now markedly dominate the estimated benefits. The benefits per hectare uncovered in this study stand at R13.14/ha. The private costs stand at R4.32/ha and a holistic cost, including both private and public expenditure, stands at R177,43/ha. The monetary values, when expressed per hectare, are misleading. This is due to a large standard deviation in the spread of benefits received. The benefits are enjoyed by a small number of the already small sample of respondents. The costs and benefits are not uniformly distributed across regions assessed. All benefits in this study accrue to economic agents in the Free State Province, whilst most of the costs accrued to economic agents in KwaZulu-Natal Province. The benefits appear to be primarily derived from an alien species, Rubus sect. Arguti. Management of the 6 species of invasive Rubus could be optimised by the prioritisation of those regions that incur the highest cost and derive the lowest benefit, in this case KwaZulu-Natal Province. Likewise, those regions with the highest benefits and lowest costs, the Free State Province, could provide sites for increased use and beneficiation of berries from invasive species. Management of individual species may prove difficult, given the similar morphologies, and thus, (i) either specialised training for those engaged in control must be instituted, (ii) all species of alien Rubus should be earmarked for management, or (iii) highly specific biocontrol agents for the most problematic species must be found. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10-29
- Authors: Mason, Brett Anthony
- Date: 2021-10-29
- Subjects: Rubus South Africa Cost effectiveness , Invasive plants South Africa Cost effectiveness , Rubus Economic aspects South Africa , Ecology Economic aspects South Africa , Rubus Ecology South Africa , Environmental economics South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191931 , vital:45180
- Description: Rubus L. (brambles, blackberries, raspberries, or dewberries) are a globally recognised genus due to the edible fruit and negative impacts they can have as invasive species. There are at least 23 species of Rubus subgenus Rubus in South Africa. These include native, alien, naturalised alien, and invasive alien species. The invasive Rubus species are becoming an increasing problem in South Africa with experts in invasion biology urging caution regarding the genus (Henderson, 2011). The taxonomy of indigenous, alien and alien invasive species of Rubus are poorly understood and therefore efforts to understand the genus, the impacts and solutions to those impacts have been very limited (Stirton, 1981; Henderson, 2011; Sochor et al., 2018a). There has also been little research conducted on the economic or ecological impacts on the species or genus of species in South Africa (du Plessis et al., 1984; Botha, 2005), and yet species in the genus have been earmarked for prioritization by invasive species legislation. The potential value of certain species as well as the cost associated with their impacts could potentially create a complex conflict of interest scenario which has not been investigated. This study is an effort to inform future policy decisions regarding this suite of species by investigating the economic impacts of the invasive Rubus species. A method was developed unique to the study that incorporated research tools from environmental economics and geography to identify the nature of interactions between economic agents, experts, and alien and invasive Rubus species in South Africa. Two questionnaires were developed to generate economic data and ground proofing was used to develop geographic data. One questionnaire was directed specifically at researchers and academics that attended the 46th National Symposium on Biological Invasions that took place between 15–17 May 2019, at Waterval Country Lodge, Tulbagh and the other an economic agent questionnaire for economic agents that met strict and selective criteria relating to the impact of the six invasive Rubus species on their economic activity. Both questionnaires were designed with a mixed methods approach in mind. The ground proofing was aimed at understanding the composition and distribution of Rubus species at the selected sites: Cathcart and Hogsback (The Eastern Cape Province), Clarens (Free State Province), and Underberg (KwaZulu-Natal Province). The study established that all economic impacts of invasive Rubus species at selected sites are externalities. Invasive Rubus species in South Africa can be attributed as (i) harbouring vermin, (ii) impeding human and animal livestock, (iii) reducing crop yields, (iv) encroaching on grazing land, (v) presenting fire hazards, and (vi) negatively impacting fire regimes. These species also (i) provide berries that are retailed on a commercial level, or have been, (ii) that are utilized for personal consumption, (iii) provide an ingredient for alcohol brewing processes, and (iv) could potentially facilitate forest regeneration. The invasive species are infrequently browsed by certain livestock and far as we could ascertain do not provide ingredients for anti-inflammatory drugs or modern cosmetics in South Africa, as they do in other regions of the globe. The costs associated with the invasive species can be presented dichotomously; the estimated private cost-benefit ratio, for costs and benefits incurred or enjoyed by 18 private economic agents, stands at 0.33:1. A private-public benefit-cost ratio, that incorporates both private and public costs and benefits, stands at 13,5:1. The private-public benefit-cost includes public expenditure, or government control measures, directed at invasive Rubus and shifts the benefit-cost ratio so that costs now markedly dominate the estimated benefits. The benefits per hectare uncovered in this study stand at R13.14/ha. The private costs stand at R4.32/ha and a holistic cost, including both private and public expenditure, stands at R177,43/ha. The monetary values, when expressed per hectare, are misleading. This is due to a large standard deviation in the spread of benefits received. The benefits are enjoyed by a small number of the already small sample of respondents. The costs and benefits are not uniformly distributed across regions assessed. All benefits in this study accrue to economic agents in the Free State Province, whilst most of the costs accrued to economic agents in KwaZulu-Natal Province. The benefits appear to be primarily derived from an alien species, Rubus sect. Arguti. Management of the 6 species of invasive Rubus could be optimised by the prioritisation of those regions that incur the highest cost and derive the lowest benefit, in this case KwaZulu-Natal Province. Likewise, those regions with the highest benefits and lowest costs, the Free State Province, could provide sites for increased use and beneficiation of berries from invasive species. Management of individual species may prove difficult, given the similar morphologies, and thus, (i) either specialised training for those engaged in control must be instituted, (ii) all species of alien Rubus should be earmarked for management, or (iii) highly specific biocontrol agents for the most problematic species must be found. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10-29
Human capital in the context of high levels of inequality in South Africa
- Authors: Friderichs, Tamaryn Jean
- Date: 2021-10-29
- Subjects: Human capital South Africa , Income distribution South Africa , Labor market South Africa , Latent variables , Confirmatory factor analysis , Education Economic aspects South Africa
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10962/192672 , vital:45248 , 10.21504/10962/192672
- Description: Piketty’s (2014) book titled “Capital in the Twenty-First Century” sparked widespread interest in global inequality, the distinction between wealth and income inequality and the economic, social and political processes accounting for changes in economic inequality over time. Piketty’s (2014) study controversially stated that widening economic inequality is the normal state of affairs in capitalist societies. The return from capital/wealth (terms used interchangeably) will almost always outpace the returns from labour. In contrast with Piketty’s (2014) thesis that the returns on non-human capital drive growing income inequality, economists such as Leibbrandt et al. (2012), Van der Berg (2014) and Hundenborn et al. (2016) have found that the labour market and human capital (HC) are the primary sources of income inequality. The research problem for this study stems from these contrasting views. , Thesis (PhD) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10-29
- Authors: Friderichs, Tamaryn Jean
- Date: 2021-10-29
- Subjects: Human capital South Africa , Income distribution South Africa , Labor market South Africa , Latent variables , Confirmatory factor analysis , Education Economic aspects South Africa
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10962/192672 , vital:45248 , 10.21504/10962/192672
- Description: Piketty’s (2014) book titled “Capital in the Twenty-First Century” sparked widespread interest in global inequality, the distinction between wealth and income inequality and the economic, social and political processes accounting for changes in economic inequality over time. Piketty’s (2014) study controversially stated that widening economic inequality is the normal state of affairs in capitalist societies. The return from capital/wealth (terms used interchangeably) will almost always outpace the returns from labour. In contrast with Piketty’s (2014) thesis that the returns on non-human capital drive growing income inequality, economists such as Leibbrandt et al. (2012), Van der Berg (2014) and Hundenborn et al. (2016) have found that the labour market and human capital (HC) are the primary sources of income inequality. The research problem for this study stems from these contrasting views. , Thesis (PhD) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10-29
The economic valuation of ecosystem services using deliberation as a tool for value elicitation
- Authors: Marriner, James Derek
- Date: 2021-10-29
- Subjects: Seagrasses Economic aspects South Africa , Ecosystem services South Africa , Focus groups , Deliberative democracy South Africa , Nature Effect of human beings on South Africa , Environmental economics , Contingent valuation
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/294712 , vital:57247
- Description: Marine seagrass, Zostera capensis, is a highly productive flowering marine seagrass found on the eastern and southern coasts of South Africa and provides a variety of ecosystem services, which include reducing the effects of erosion, trapping nutrients, creating a nursery habitat for fish species and reducing sedimentation. Despite their formal protection status, Z. capensis meadows are regressing, often due to anthropogenic influences. Globally, multiple studies have documented the ecological importance of seagrass services, to both humans and nature, but economic evaluations of these services have not been as extensive. Numerous valuation methods have been used in literature and in practice to value non-market environmental resources and ecosystem services, where results vary. The most widely used non-market environmental valuation method is the contingent valuation (CV) method, which allows for the valuation of environmental resources that are not sold in the market through a stated willingness to pay (WTP) amount, contingent upon a particular scenario. However, the CV method is susceptible to various limitations and forms of bias. As a result, alternative environmental valuation techniques have been reviewed in literature. Deliberation has been suggested as an improved valuation approach to overcome the criticisms of the CV technique, as it increases respondents’ understanding and knowledge of the environmental resource under discussion, through the incorporation of debate, discussion, participation and social learning, thereby producing more reliable valuations of non-market environmental resources. The deliberative monetary valuation (DMV) method has been advocated as an important valuation method to achieve more comprehensive and reliable valuations of complex and unfamiliar public goods, such as ecosystem services. This thesis explored the determinants of WTP for the protection of seagrass, and whether deliberation can be used to supplement findings and values obtained from the individually sourced WTP values. As a result, the study used a dual-method approach to obtain both individual and deliberated WTP values from a range of stakeholders with varied socio-demographic characteristics by using both the CV method and a deliberative focus group, for the ecosystem services that seagrass Z. capensis provides to the Knysna community, South Africa. The results showed that age, education, use frequency and mistrust in local government were determinants in WTP, while deliberative elements uncovered that respondents’ knowledge of an environmental resource and a consideration of the valuation scenario were important factors in determining WTP. It was found that 55% of the respondents were willing to pay to conserve the ecosystem services of seagrass in the Knysna estuary through a monitoring programme. Among those that were willing, the mean WTP amount was approximately R132 per month per household. Although the circumstances in which the deliberative focus group discussion were run were not ideal because of the COVID-19 lockdown, the results showed some interesting potential benefits of using deliberation in complex public good valuation studies. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10-29
- Authors: Marriner, James Derek
- Date: 2021-10-29
- Subjects: Seagrasses Economic aspects South Africa , Ecosystem services South Africa , Focus groups , Deliberative democracy South Africa , Nature Effect of human beings on South Africa , Environmental economics , Contingent valuation
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/294712 , vital:57247
- Description: Marine seagrass, Zostera capensis, is a highly productive flowering marine seagrass found on the eastern and southern coasts of South Africa and provides a variety of ecosystem services, which include reducing the effects of erosion, trapping nutrients, creating a nursery habitat for fish species and reducing sedimentation. Despite their formal protection status, Z. capensis meadows are regressing, often due to anthropogenic influences. Globally, multiple studies have documented the ecological importance of seagrass services, to both humans and nature, but economic evaluations of these services have not been as extensive. Numerous valuation methods have been used in literature and in practice to value non-market environmental resources and ecosystem services, where results vary. The most widely used non-market environmental valuation method is the contingent valuation (CV) method, which allows for the valuation of environmental resources that are not sold in the market through a stated willingness to pay (WTP) amount, contingent upon a particular scenario. However, the CV method is susceptible to various limitations and forms of bias. As a result, alternative environmental valuation techniques have been reviewed in literature. Deliberation has been suggested as an improved valuation approach to overcome the criticisms of the CV technique, as it increases respondents’ understanding and knowledge of the environmental resource under discussion, through the incorporation of debate, discussion, participation and social learning, thereby producing more reliable valuations of non-market environmental resources. The deliberative monetary valuation (DMV) method has been advocated as an important valuation method to achieve more comprehensive and reliable valuations of complex and unfamiliar public goods, such as ecosystem services. This thesis explored the determinants of WTP for the protection of seagrass, and whether deliberation can be used to supplement findings and values obtained from the individually sourced WTP values. As a result, the study used a dual-method approach to obtain both individual and deliberated WTP values from a range of stakeholders with varied socio-demographic characteristics by using both the CV method and a deliberative focus group, for the ecosystem services that seagrass Z. capensis provides to the Knysna community, South Africa. The results showed that age, education, use frequency and mistrust in local government were determinants in WTP, while deliberative elements uncovered that respondents’ knowledge of an environmental resource and a consideration of the valuation scenario were important factors in determining WTP. It was found that 55% of the respondents were willing to pay to conserve the ecosystem services of seagrass in the Knysna estuary through a monitoring programme. Among those that were willing, the mean WTP amount was approximately R132 per month per household. Although the circumstances in which the deliberative focus group discussion were run were not ideal because of the COVID-19 lockdown, the results showed some interesting potential benefits of using deliberation in complex public good valuation studies. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10-29
The Relationship between capital adequacy and profitability under Basel III in the Namibian banking sector
- Authors: Pomuti, Esther Kaulinawa
- Date: 2021-10-29
- Subjects: Banks and banking Namibia , Banks and banking, International Law and legislation , Bank capital Law and legislation Namibia , Rate of return Namibia , Basle Committee on Banking Supervision , Ratio analysis , Basel III (2010)
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191909 , vital:45178
- Description: Globally, capital adequacy is one of the most central topics for both regulatory authorities and banks. It promotes stability and intends to reduce bank insolvency. It also represents the most important element of banks’ profitability (Profits are the first line of defense against losses from credit loss in a bank). After the collapse of Bretton Woods in 1973, many banks incurred large foreign currency losses, with Banks outside Germany having taken heavy losses on their unsettled trades with Herstatt Bank in Cologne, West Germany, when it collapsed in June 1974. This study empirically tests the relationship between changes in the capital adequacy ratio under Basel III and return on equity (ROE) of the Namibian banking sector and whether such relationships exist in the short run or long run. The study used panel quarterly data for a sample of three Namibian commercial banks from the year 1999 to 2019.It employed one panel unit root tests namely: Im, Pesaran and Shin W-stat (IPS). To test the existence of a long-run relationship (equilibrium) or effect between the dependent and independent variables, the study employed the Panel Co-integration methods using Pedroni and Kao (Engle-Granger based) tests. The study carried out the Hausman test to determine the best approach for analysis and determined the PMG approach to be the preferable model for analysis. Various diagnostic tests such as multicollinearity through the correlation analysis, autocorrelation, and heteroscedasticity and cross-sectional dependence tests were carried out to determine if the data set is well-modelled and if the results can be taken seriously. The study’s results under the PMG model showed that ROE and CAR have a positive significant relationship in the short run. A dummy variable to capture the connection between ROE and CAR before and after BASEL III shows that the relationship is positive and significant indicating that ROE increases more when there is capital regulation than when there is no capital regulation. The study also concluded that there is no long run relationship between CAR and ROE. Finally, the interaction effect between the dummy variable and CAR is negative but significant and thus indicating that the positive relationship does not persist post Basel III. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10-29
- Authors: Pomuti, Esther Kaulinawa
- Date: 2021-10-29
- Subjects: Banks and banking Namibia , Banks and banking, International Law and legislation , Bank capital Law and legislation Namibia , Rate of return Namibia , Basle Committee on Banking Supervision , Ratio analysis , Basel III (2010)
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191909 , vital:45178
- Description: Globally, capital adequacy is one of the most central topics for both regulatory authorities and banks. It promotes stability and intends to reduce bank insolvency. It also represents the most important element of banks’ profitability (Profits are the first line of defense against losses from credit loss in a bank). After the collapse of Bretton Woods in 1973, many banks incurred large foreign currency losses, with Banks outside Germany having taken heavy losses on their unsettled trades with Herstatt Bank in Cologne, West Germany, when it collapsed in June 1974. This study empirically tests the relationship between changes in the capital adequacy ratio under Basel III and return on equity (ROE) of the Namibian banking sector and whether such relationships exist in the short run or long run. The study used panel quarterly data for a sample of three Namibian commercial banks from the year 1999 to 2019.It employed one panel unit root tests namely: Im, Pesaran and Shin W-stat (IPS). To test the existence of a long-run relationship (equilibrium) or effect between the dependent and independent variables, the study employed the Panel Co-integration methods using Pedroni and Kao (Engle-Granger based) tests. The study carried out the Hausman test to determine the best approach for analysis and determined the PMG approach to be the preferable model for analysis. Various diagnostic tests such as multicollinearity through the correlation analysis, autocorrelation, and heteroscedasticity and cross-sectional dependence tests were carried out to determine if the data set is well-modelled and if the results can be taken seriously. The study’s results under the PMG model showed that ROE and CAR have a positive significant relationship in the short run. A dummy variable to capture the connection between ROE and CAR before and after BASEL III shows that the relationship is positive and significant indicating that ROE increases more when there is capital regulation than when there is no capital regulation. The study also concluded that there is no long run relationship between CAR and ROE. Finally, the interaction effect between the dummy variable and CAR is negative but significant and thus indicating that the positive relationship does not persist post Basel III. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10-29
An empirical analysis of the asset price monetary policy transmission channel in South Africa
- Authors: Du Preez, Wilhelmus Petrus
- Date: 2021-10
- Subjects: Monetary policy South Africa , Banks and banking, Central South Africa , Transmission mechanism (Monetary policy) South Africa , Capital assets pricing model , Securities South Africa , Stocks Prices South Africa , Repurchase agreements South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/190318 , vital:44983
- Description: The asset pricing channel of monetary policy transmission breeds an interesting study. There has been an ongoing debate to determine whether monetary policy committees should directly influence the asset pricing channel through changes in the central bank control interest rate or whether monetary policy committees should refrain from targeting the asset pricing channel to meet their policy objectives. The study aims to critically analysis the asset pricing channel, firstly on a global context to set the scene and then to critically focus on the study performed by Muroyiwa et al. (2017) who conducted a study on the South African monetary policy and its interdependence on the stock market through utilisation of an SVAR model. It was concluded that monetary policy does significantly influence stock prices. The purpose of this study is to build on the results which have been formed by Muroyiwa et al. (2017) and to expand on the period under analysis which encapsulates 1999:01 to 2007:12 in order to conclude whether there are conflicting conclusions or conclusions which build on what has already been done. The results from the research shows that when the monetary policy committee decides to influence changes in the repo rate, the repo rate will have a direct effect on the asset markets, the indexes that were used to represent the asset market are the all share index, industrial 15 index and the financial 15 index. Furthermore. The study which has expanded the period under analysis has supplemented and built on the results provided by Muroyiwa et al. (2017). , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10
- Authors: Du Preez, Wilhelmus Petrus
- Date: 2021-10
- Subjects: Monetary policy South Africa , Banks and banking, Central South Africa , Transmission mechanism (Monetary policy) South Africa , Capital assets pricing model , Securities South Africa , Stocks Prices South Africa , Repurchase agreements South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/190318 , vital:44983
- Description: The asset pricing channel of monetary policy transmission breeds an interesting study. There has been an ongoing debate to determine whether monetary policy committees should directly influence the asset pricing channel through changes in the central bank control interest rate or whether monetary policy committees should refrain from targeting the asset pricing channel to meet their policy objectives. The study aims to critically analysis the asset pricing channel, firstly on a global context to set the scene and then to critically focus on the study performed by Muroyiwa et al. (2017) who conducted a study on the South African monetary policy and its interdependence on the stock market through utilisation of an SVAR model. It was concluded that monetary policy does significantly influence stock prices. The purpose of this study is to build on the results which have been formed by Muroyiwa et al. (2017) and to expand on the period under analysis which encapsulates 1999:01 to 2007:12 in order to conclude whether there are conflicting conclusions or conclusions which build on what has already been done. The results from the research shows that when the monetary policy committee decides to influence changes in the repo rate, the repo rate will have a direct effect on the asset markets, the indexes that were used to represent the asset market are the all share index, industrial 15 index and the financial 15 index. Furthermore. The study which has expanded the period under analysis has supplemented and built on the results provided by Muroyiwa et al. (2017). , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10
The impact of the BBB-EE policy instrument on wealth inequality : A case study on the banking sector of South Africa
- Moshikaro, Kei Kgaogelo Felia
- Authors: Moshikaro, Kei Kgaogelo Felia
- Date: 2021-10
- Subjects: Black Economic Empowerment (Program : South Africa) , Income distribution South Africa , South Africa Economic policy , South Africa Economic conditions 1991- , Banks and banking South Africa , South Africa. Financial Sector Regulation Act, 2017
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191035 , vital:45052
- Description: It has been recognised that, whether measured in terms of income or wealth, South Africa remains as one of the most unequal societies in the world. Reducing these high levels of inequalities has been an important area of focus through the formulation of policy instruments by South African policy makers. Within a specific focus on the South African banking sector, the objective of this research is to ascertaining the extent to which addressing inequalities was in fact achieved through the changing of wealth ownerships under the Broad Based Black Economic Empowerment policy instrument. To contextualise, the thesis surveys literature on two stylised economic hypotheses on both income and wealth to understand the potential causes of their respective inequalities. An exploration of both income, wealth measurements and their distributions in South Africa are presented, in addition to policy instruments designed to ameliorate income and wealth inequalities in South Africa. The thesis further presents brief case studies from the literature on Brazil’s success in reducing its high income inequality and the Malaysian National Economic Policy empowerment program to effect wealth economic transformation, as comparatives to the South African experience. The thesis findings indicate that contrary to the objectives of the BBB-EE instrument and wealth transfers, the program within the banking sector resulted in highly unequal wealth shares and equally high concentration levels. The richest top one per cent of individuals participating in the BEE transactions in the banking sector captured 79 per cent of the total wealth transfers, this providing indications of extremely high concentrations of wealth. Further, wealth meaningfully cumulates at only the 50 percentage level of the wealth distribution, this additionally suggesting that wealth transfers featured less in the bottom half of the wealth distribution. The banking BBB-EE wealth Gini coefficient of 0.88 is evidence of the extremely high levels of inequality that resulted from the BBB-EE program within the banking sector. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10
- Authors: Moshikaro, Kei Kgaogelo Felia
- Date: 2021-10
- Subjects: Black Economic Empowerment (Program : South Africa) , Income distribution South Africa , South Africa Economic policy , South Africa Economic conditions 1991- , Banks and banking South Africa , South Africa. Financial Sector Regulation Act, 2017
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191035 , vital:45052
- Description: It has been recognised that, whether measured in terms of income or wealth, South Africa remains as one of the most unequal societies in the world. Reducing these high levels of inequalities has been an important area of focus through the formulation of policy instruments by South African policy makers. Within a specific focus on the South African banking sector, the objective of this research is to ascertaining the extent to which addressing inequalities was in fact achieved through the changing of wealth ownerships under the Broad Based Black Economic Empowerment policy instrument. To contextualise, the thesis surveys literature on two stylised economic hypotheses on both income and wealth to understand the potential causes of their respective inequalities. An exploration of both income, wealth measurements and their distributions in South Africa are presented, in addition to policy instruments designed to ameliorate income and wealth inequalities in South Africa. The thesis further presents brief case studies from the literature on Brazil’s success in reducing its high income inequality and the Malaysian National Economic Policy empowerment program to effect wealth economic transformation, as comparatives to the South African experience. The thesis findings indicate that contrary to the objectives of the BBB-EE instrument and wealth transfers, the program within the banking sector resulted in highly unequal wealth shares and equally high concentration levels. The richest top one per cent of individuals participating in the BEE transactions in the banking sector captured 79 per cent of the total wealth transfers, this providing indications of extremely high concentrations of wealth. Further, wealth meaningfully cumulates at only the 50 percentage level of the wealth distribution, this additionally suggesting that wealth transfers featured less in the bottom half of the wealth distribution. The banking BBB-EE wealth Gini coefficient of 0.88 is evidence of the extremely high levels of inequality that resulted from the BBB-EE program within the banking sector. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-10
Impact of sovereign credit ratings on emerging bond and stock market returns
- Authors: Mkhonto, Zoyisile
- Date: 2021-04
- Subjects: Rating agencies (Finance) , Credit ratings , Bond market
- Language: English
- Type: thesis , text , Masters , MCom
- Identifier: http://hdl.handle.net/10962/177170 , vital:42796
- Description: The primary role of credit rating agencies is to reduce asymmetric information between the parties in a lending relationship. The three major rating agencies have received extensive criticism over the years. These rating agencies have been accused of providing inaccurate ratings which ultimately led to various financial calamities. Late rating action has also been blamed for exacerbating financial and economic cycles. Moreover, there is an argument that emerging markets are unfairly rated in comparison to developed economies. Hence, the reliability and informational value of the assessments provided by credit rating agencies is met with scepticism. Despite these criticisms, rating agencies are characterised as gatekeepers to capital and credit ratings remain essential financial market indicators. Albeit, the literature regarding the impact of sovereign credit ratings on bond and stock markets is inconclusive. This study aims to add to the body of literature and provide insights into the informational value of sovereign credit ratings in emerging markets. More specifically to estimate the relationship between various sovereign credit rating announcements, and bond and stock market returns. Also, to examine whether sovereign credit ratings have a differential impact between bond and stock markets. As well as address the question does it matter who provides the rating? Using an event study, abnormal returns surrounding rating announcements from 2009 to 2019 for 24 emerging markets were analyzed. Firstly, this study concluded that sovereign credit ratings are informative. Secondly, the degree of informativeness differs between the bond and stock markets. Thirdly, an asymmetrical impact was observed between the types of rating announcements. Lastly, that it does matter which rating agency provides the rating because each agency has a unique reputation. The findings of this research have implications on how investors and portfolio managers decide on asset allocation. Furthermore, policymakers may find our investment grade analysis of value when evaluating regulatory reform. It’s recommended that future research refines the event methodology and examines country specific characteristics within each of the emerging markets. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Mkhonto, Zoyisile
- Date: 2021-04
- Subjects: Rating agencies (Finance) , Credit ratings , Bond market
- Language: English
- Type: thesis , text , Masters , MCom
- Identifier: http://hdl.handle.net/10962/177170 , vital:42796
- Description: The primary role of credit rating agencies is to reduce asymmetric information between the parties in a lending relationship. The three major rating agencies have received extensive criticism over the years. These rating agencies have been accused of providing inaccurate ratings which ultimately led to various financial calamities. Late rating action has also been blamed for exacerbating financial and economic cycles. Moreover, there is an argument that emerging markets are unfairly rated in comparison to developed economies. Hence, the reliability and informational value of the assessments provided by credit rating agencies is met with scepticism. Despite these criticisms, rating agencies are characterised as gatekeepers to capital and credit ratings remain essential financial market indicators. Albeit, the literature regarding the impact of sovereign credit ratings on bond and stock markets is inconclusive. This study aims to add to the body of literature and provide insights into the informational value of sovereign credit ratings in emerging markets. More specifically to estimate the relationship between various sovereign credit rating announcements, and bond and stock market returns. Also, to examine whether sovereign credit ratings have a differential impact between bond and stock markets. As well as address the question does it matter who provides the rating? Using an event study, abnormal returns surrounding rating announcements from 2009 to 2019 for 24 emerging markets were analyzed. Firstly, this study concluded that sovereign credit ratings are informative. Secondly, the degree of informativeness differs between the bond and stock markets. Thirdly, an asymmetrical impact was observed between the types of rating announcements. Lastly, that it does matter which rating agency provides the rating because each agency has a unique reputation. The findings of this research have implications on how investors and portfolio managers decide on asset allocation. Furthermore, policymakers may find our investment grade analysis of value when evaluating regulatory reform. It’s recommended that future research refines the event methodology and examines country specific characteristics within each of the emerging markets. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-04
The effect of sectoral foreign direct investment on sectoral growth and sectoral employment in South Africa
- Authors: Paul, Bernice Nicole
- Date: 2021-04
- Subjects: Investments, Foreign -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Economic policy , Gross domestic product -- South Africa , UNCTAD-ICTSD Project on IPRs and Sustainable Development , Unemployment -- South Africa
- Language: English
- Type: thesis , text , Master , MCom
- Identifier: http://hdl.handle.net/10962/177964 , vital:42894
- Description: Over several decades past, developing countries have received increased amounts of Foreign Direct Investment (FDI). This form of investment has been welcomed because of the perceived benefits attached to it. FDI is seen as an important driver of economic development for many nations. For South Africa specifically, GDP growth rates have remained less than required, unemployment rates have reached staggering levels, poverty and inequality levels are increasing and the list goes on. Considering the perceived benefits of FDI, one may argue that FDI can play a crucial role in reducing the mentioned challenges facing the nation, however, only if directed to initiatives contributing to growth and employment. The 2015 Investment Policy Framework for Sustainable Development includes an action menu promoting investment in sectors relating to the achievement of the Sustainable Development Goals (SDGs). Therefore, this study is aimed at investigating the relationship between sector FDI and sector growth in addition to investigating the effect of sector FDI on sector employment over the period 2000Q1 to 2016Q4 for six of South Africa’s economic sectors. The reason for such a study is based on the premise that developing nations such as South Africa lack sound trade and industrial policies favorable to foreign investors. This then leads to the nation failing to attract higher volumes of FDI which could be used to address structural challenges facing the country. It is therefore important to identify sectors in which FDI has resulted in growth and employment so that when policies are considered, the right FDI is targeted. A comprehensive review of existing theoretical and empirical literature showed that FDI does result in economic growth for developed and developing countries, although FDI crowds out domestic investment in the short run. Literature on the effect of FDI on employment showed diverse effects. Some studies found FDI to increase employment overall, other studies found FDI to increase employment only during periods of restructuring and some studies found FDI to result in job losses. For South African sectors, the present study finds that the financial services sector receives the highest volume of South African FDI, followed by the mining and quarrying sector and the manufacturing, however, FDI in all six sectors under study is associated with increased growth and employment. This finding suggests that the financial services sector has received increased volumes of FDI as a result of financialization of the South African economy. It is this increased FDI in the financial services sector that is directed to income redistribution from the real sector to the finance sector. This study employed econometric techniques and methods of analysis to investigate the relationship between sector FDI and sector growth, and the effect of sector FDI on sector employment. Panel cointegration tests were conducted for all six sectors included in the study to establish if long run equilibrium relationships exist among integrated variables. The Johansen-Fisher panel cointegration test revealed that there is evidence of cointegration in four of the six sectors. Since cointegration was established, the study proceeded to perform the Dumitrescu-Hurlin panel causality analysis and estimate a Panel Vector Error Correction Model (VECM). Results from the causality analysis found a unidirectional causality relationship between FDI and GDP growth, while the panel VECM found FDI to have a significant effect on growth in all sectors. The Seemingly Unrelated Regression (SUR) model employed to investigate the effect of FDI on employment found FDI to have an insignificant effect on employment in all sectors included, although the signs of the coefficients suggest that FDI is associated with increased employment and rising wages is associated with increased productivity growth. Since this study finds that FDI is associated with increased GDP growth in all six sectors under study, policy makers should devise strategies to attract FDI in sectors such as the transportation, storage and communication sector and the electricity, gas and water sector as FDI in these sectors are associated with increased growth however, they receive very low levels of FDI. There are a number of reasons for this, therefore, government institutions and policy makers should investigate the reasons for these low levels of FDI inflows into these sectors so that they can devise further strategies to address these reasons and perhaps attract higher levels of FDI into these sectors. Spillover benefits play a major role in host nations participating in FDI therefore, prior to entering into bilateral treaty agreements, policy makers should ensure that foreign investors are compelled to create jobs, offer training and qualifications etc. through their investments so that some of the SDGs can be achieved. Additionally, this study finds a positive, statistically insignificant relationship between FDI and employment. FDI may not have a significant relationship on employment due to jobless growth and capital-intensive growth rather than labor-intensive growth. Such a situation calls for government intervention. Skills shortage is a rising problem in South Africa; therefore, investors choose to employ advanced technologies rather than people. Under such circumstances, governments are encouraged to invest resources into skills development so that human capital are not completely replaced by technology. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Paul, Bernice Nicole
- Date: 2021-04
- Subjects: Investments, Foreign -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Economic policy , Gross domestic product -- South Africa , UNCTAD-ICTSD Project on IPRs and Sustainable Development , Unemployment -- South Africa
- Language: English
- Type: thesis , text , Master , MCom
- Identifier: http://hdl.handle.net/10962/177964 , vital:42894
- Description: Over several decades past, developing countries have received increased amounts of Foreign Direct Investment (FDI). This form of investment has been welcomed because of the perceived benefits attached to it. FDI is seen as an important driver of economic development for many nations. For South Africa specifically, GDP growth rates have remained less than required, unemployment rates have reached staggering levels, poverty and inequality levels are increasing and the list goes on. Considering the perceived benefits of FDI, one may argue that FDI can play a crucial role in reducing the mentioned challenges facing the nation, however, only if directed to initiatives contributing to growth and employment. The 2015 Investment Policy Framework for Sustainable Development includes an action menu promoting investment in sectors relating to the achievement of the Sustainable Development Goals (SDGs). Therefore, this study is aimed at investigating the relationship between sector FDI and sector growth in addition to investigating the effect of sector FDI on sector employment over the period 2000Q1 to 2016Q4 for six of South Africa’s economic sectors. The reason for such a study is based on the premise that developing nations such as South Africa lack sound trade and industrial policies favorable to foreign investors. This then leads to the nation failing to attract higher volumes of FDI which could be used to address structural challenges facing the country. It is therefore important to identify sectors in which FDI has resulted in growth and employment so that when policies are considered, the right FDI is targeted. A comprehensive review of existing theoretical and empirical literature showed that FDI does result in economic growth for developed and developing countries, although FDI crowds out domestic investment in the short run. Literature on the effect of FDI on employment showed diverse effects. Some studies found FDI to increase employment overall, other studies found FDI to increase employment only during periods of restructuring and some studies found FDI to result in job losses. For South African sectors, the present study finds that the financial services sector receives the highest volume of South African FDI, followed by the mining and quarrying sector and the manufacturing, however, FDI in all six sectors under study is associated with increased growth and employment. This finding suggests that the financial services sector has received increased volumes of FDI as a result of financialization of the South African economy. It is this increased FDI in the financial services sector that is directed to income redistribution from the real sector to the finance sector. This study employed econometric techniques and methods of analysis to investigate the relationship between sector FDI and sector growth, and the effect of sector FDI on sector employment. Panel cointegration tests were conducted for all six sectors included in the study to establish if long run equilibrium relationships exist among integrated variables. The Johansen-Fisher panel cointegration test revealed that there is evidence of cointegration in four of the six sectors. Since cointegration was established, the study proceeded to perform the Dumitrescu-Hurlin panel causality analysis and estimate a Panel Vector Error Correction Model (VECM). Results from the causality analysis found a unidirectional causality relationship between FDI and GDP growth, while the panel VECM found FDI to have a significant effect on growth in all sectors. The Seemingly Unrelated Regression (SUR) model employed to investigate the effect of FDI on employment found FDI to have an insignificant effect on employment in all sectors included, although the signs of the coefficients suggest that FDI is associated with increased employment and rising wages is associated with increased productivity growth. Since this study finds that FDI is associated with increased GDP growth in all six sectors under study, policy makers should devise strategies to attract FDI in sectors such as the transportation, storage and communication sector and the electricity, gas and water sector as FDI in these sectors are associated with increased growth however, they receive very low levels of FDI. There are a number of reasons for this, therefore, government institutions and policy makers should investigate the reasons for these low levels of FDI inflows into these sectors so that they can devise further strategies to address these reasons and perhaps attract higher levels of FDI into these sectors. Spillover benefits play a major role in host nations participating in FDI therefore, prior to entering into bilateral treaty agreements, policy makers should ensure that foreign investors are compelled to create jobs, offer training and qualifications etc. through their investments so that some of the SDGs can be achieved. Additionally, this study finds a positive, statistically insignificant relationship between FDI and employment. FDI may not have a significant relationship on employment due to jobless growth and capital-intensive growth rather than labor-intensive growth. Such a situation calls for government intervention. Skills shortage is a rising problem in South Africa; therefore, investors choose to employ advanced technologies rather than people. Under such circumstances, governments are encouraged to invest resources into skills development so that human capital are not completely replaced by technology. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-04
Asymmetric price transmission: an empirical analysis of the relationship between UG-2 chrome ore, charge chrome, nickel and Chinese domestic 304 stainless steel cold rolled coil
- Authors: Le Roux, Simon Petrus
- Date: 2021
- Subjects: Pricing , Chromium ores -- Prices -- South Africa , Nickel -- Prices -- South Africa , Austenitic stainless steel-- Prices -- China , Steel -- Prices -- South Africa , Non-Linear Autoregressive Distributive Lag (NARDL)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/171336 , vital:42049
- Description: The goal of this study was to determine whether asymmetric price transmission (APT) exists between the prices of South African UG-2 Chrome ore, Charge Chrome, Nickel and Chinese Domestic 304 Stainless steel Cold Rolled Coil prices. Monthly time series data for the period January 2009 to July 2019 was analysed. The Non-Linear Autoregressive Distributive Lag (NARDL) model was applied to test for the presence of price asymmetry between the four variables. Firstly, it was observed that the four variables are cointegrated in the long-run. Secondly, no evidence of price asymmetry was found to be present within the Stainless steel supply chain. The reason for this is most likely due to the extremely close-knit and highly concentrated nature of this industry at each level within the supply chain. The industry can be very opaque to external observers even though the distribution of pricing information is very efficient for participants within the industry.
- Full Text:
- Date Issued: 2021
- Authors: Le Roux, Simon Petrus
- Date: 2021
- Subjects: Pricing , Chromium ores -- Prices -- South Africa , Nickel -- Prices -- South Africa , Austenitic stainless steel-- Prices -- China , Steel -- Prices -- South Africa , Non-Linear Autoregressive Distributive Lag (NARDL)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/171336 , vital:42049
- Description: The goal of this study was to determine whether asymmetric price transmission (APT) exists between the prices of South African UG-2 Chrome ore, Charge Chrome, Nickel and Chinese Domestic 304 Stainless steel Cold Rolled Coil prices. Monthly time series data for the period January 2009 to July 2019 was analysed. The Non-Linear Autoregressive Distributive Lag (NARDL) model was applied to test for the presence of price asymmetry between the four variables. Firstly, it was observed that the four variables are cointegrated in the long-run. Secondly, no evidence of price asymmetry was found to be present within the Stainless steel supply chain. The reason for this is most likely due to the extremely close-knit and highly concentrated nature of this industry at each level within the supply chain. The industry can be very opaque to external observers even though the distribution of pricing information is very efficient for participants within the industry.
- Full Text:
- Date Issued: 2021
Creative Cities and Regional Development: The Case of Makhanda and the Creative City Project
- Authors: Campbell, Guy John
- Date: 2021
- Subjects: To be assigned
- Language: English
- Type: thesis , text , Masters , MCOM
- Identifier: http://hdl.handle.net/10962/174448 , vital:42478
- Description: Thesis (MSc)--Rhodes University, Faculty of Commerce, Economics and Economic History, 2020
- Full Text:
- Date Issued: 2021
- Authors: Campbell, Guy John
- Date: 2021
- Subjects: To be assigned
- Language: English
- Type: thesis , text , Masters , MCOM
- Identifier: http://hdl.handle.net/10962/174448 , vital:42478
- Description: Thesis (MSc)--Rhodes University, Faculty of Commerce, Economics and Economic History, 2020
- Full Text:
- Date Issued: 2021
The potential conflict of interest associated with the management of Rosa rubiginos L. (Rosehip) in South Africa
- Authors: Westwood, Timothy
- Date: 2021
- Subjects: Invasive plants -- South Africa , Biological invasions -- Economic aspects , Rose hips -- Economic aspects -- South Africa , Roses -- South Africa , Rose culture -- Economic aspects -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/172458 , vital:42204
- Description: Rosa rubiginosa L. is a category 1b invasive plant species in South Africa and must be controlled according to NEM:BA. However, R. rubiginosa has the potential to provide economic benefit in South Africa due to the expanding market for the shrubs fruit, rosehips. The shrub is not permitted to be cultivated in South Africa due to legislation, limiting the economic potential as the rosehips are only able to be collected from wild R. rubiginosa shrubs. In order to expand the rosehip market in South Africa a downgrade or removal of R. rubiginosa from the invasive species list would be required, as wild harvest is limited. This study aims to assess the benefits and cost associated with R. rubiginosa in order to determine whether the legislation should be altered allowing for the cultivation of the shrub in South Africa. Due to the limited literature surrounding R. rubiginosa three different questionnaires and a case study were used in order to assess the benefits and negatives associated with the shrub. Experts in the field of invasion biology were surveyed to bridge the gap in the R. rubiginosa literature. Landowners, where the shrub is abundant, were surveyed to determine the negative impacts of R. rubiginosa. Rosehip companies were surveyed in order to determine the current size and potential of the R. rubiginosa (rosehip) market. The case study looked at how a rosehip company would benefit if R. rubiginosa was allowed to be cultivated in South Africa. The study found R. rubiginosa to have great economic potential and market growth, with very little negative economic impact. The case study showed that one rosehip company would grow from 1500 tons of raw rosehip to 20 000 tons if cultivation was allowed, resulting in a growth in turnover from R57 million to R760 million ($1=R14.8). The findings in the study show that R. rubiginosa does not significantly affect landowners where it is abundant. Therefore, it is suggested that a change to the legislation should be considered allowing for the cultivation of R. rubiginosa should be implemented.
- Full Text:
- Date Issued: 2021
- Authors: Westwood, Timothy
- Date: 2021
- Subjects: Invasive plants -- South Africa , Biological invasions -- Economic aspects , Rose hips -- Economic aspects -- South Africa , Roses -- South Africa , Rose culture -- Economic aspects -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/172458 , vital:42204
- Description: Rosa rubiginosa L. is a category 1b invasive plant species in South Africa and must be controlled according to NEM:BA. However, R. rubiginosa has the potential to provide economic benefit in South Africa due to the expanding market for the shrubs fruit, rosehips. The shrub is not permitted to be cultivated in South Africa due to legislation, limiting the economic potential as the rosehips are only able to be collected from wild R. rubiginosa shrubs. In order to expand the rosehip market in South Africa a downgrade or removal of R. rubiginosa from the invasive species list would be required, as wild harvest is limited. This study aims to assess the benefits and cost associated with R. rubiginosa in order to determine whether the legislation should be altered allowing for the cultivation of the shrub in South Africa. Due to the limited literature surrounding R. rubiginosa three different questionnaires and a case study were used in order to assess the benefits and negatives associated with the shrub. Experts in the field of invasion biology were surveyed to bridge the gap in the R. rubiginosa literature. Landowners, where the shrub is abundant, were surveyed to determine the negative impacts of R. rubiginosa. Rosehip companies were surveyed in order to determine the current size and potential of the R. rubiginosa (rosehip) market. The case study looked at how a rosehip company would benefit if R. rubiginosa was allowed to be cultivated in South Africa. The study found R. rubiginosa to have great economic potential and market growth, with very little negative economic impact. The case study showed that one rosehip company would grow from 1500 tons of raw rosehip to 20 000 tons if cultivation was allowed, resulting in a growth in turnover from R57 million to R760 million ($1=R14.8). The findings in the study show that R. rubiginosa does not significantly affect landowners where it is abundant. Therefore, it is suggested that a change to the legislation should be considered allowing for the cultivation of R. rubiginosa should be implemented.
- Full Text:
- Date Issued: 2021
Gender bias in the field of economics: an analysis of South African academia
- Authors: Hitchcock, Siobhan
- Date: 2020-10-30
- Subjects: Sexism South Africa , Sexism in higher education South Africa , Economics Study and teaching (Higher) South Africa , Economics teachers South Africa , Women in higher education South Africa
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/366275 , vital:65850
- Description: In recent years there has been a growing focus internationally on the low participation of females in Economics, both in academia and business. While female enrolment in higher education, including other maths-based subjects, has grown substantially, this has not been the case for Economics. Economics, particularly as one progresses through postgraduate studies to doctoral degrees now stands out as an outlier. A number of reasons have been advanced for this, including the nature of the subject, the type of people it attracts and the lack of female role models. Male and female enrolments in South African HEIs have grown between 2007 and 2017, but females have grown at a faster rate, thus increasing the female share of total enrolments to 59%. Female students are more successful and so make up an even greater proportion of South African graduates. Female enrolments and graduates are also higher than in the US. As in the US there is a significant drop off in female representation when progressing from undergraduate to postgraduate studies in South Africa. When looking at Economics in South Africa in comparison to the broad CESM categories, female enrolment in Economics Bachelor degrees is significantly lower than in Business and Humanities, but on a par with STEM subjects. At the Doctoral level, there are sharp drop offs in female enrolments for all categories. Business and Economics are the laggards at the Doctoral level, below STEM and Humanities. Furthermore, females make up a minority of academic staff in South African HEIs, with males dominating in especially the higher academic ranks. As one moves up the academic ladder, the female share decreases. This research analyses gender compositions of staff and students at South African HEIs. National data are obtained from government publications and data relating to four specific South African universities was obtained directly from the universities. Questionnaires were sent to a sample of academic staff and students who are in the field of economics to identify whether there is a role model effect for economics students and whether female academics experience the same forms of biases, discrimination, or treatment as that identified in international studies. It was concluded that while there are drop offs in the overall female representation of students at the Masters and Doctoral levels in South Africa, this share is gradually increasing. Additionally, Economics seems to perform better than what is depicted in the US, and in comparison to some STEM subjects in South Africa. Furthermore, the environment within the field of academic economics for both female students and staff seems to be more positive than what the international literature depicts for the US. But there are nonetheless different levels of satisfaction between male and female academic economists. While the student surveys revealed that female Economics students do not attach great importance to female role models, there is some evidence of correlation between the percentage of female professors and the percentage of female PhD students across a range of STEM subjects in South Africa. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2020
- Full Text:
- Date Issued: 2020-10-30
- Authors: Hitchcock, Siobhan
- Date: 2020-10-30
- Subjects: Sexism South Africa , Sexism in higher education South Africa , Economics Study and teaching (Higher) South Africa , Economics teachers South Africa , Women in higher education South Africa
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/366275 , vital:65850
- Description: In recent years there has been a growing focus internationally on the low participation of females in Economics, both in academia and business. While female enrolment in higher education, including other maths-based subjects, has grown substantially, this has not been the case for Economics. Economics, particularly as one progresses through postgraduate studies to doctoral degrees now stands out as an outlier. A number of reasons have been advanced for this, including the nature of the subject, the type of people it attracts and the lack of female role models. Male and female enrolments in South African HEIs have grown between 2007 and 2017, but females have grown at a faster rate, thus increasing the female share of total enrolments to 59%. Female students are more successful and so make up an even greater proportion of South African graduates. Female enrolments and graduates are also higher than in the US. As in the US there is a significant drop off in female representation when progressing from undergraduate to postgraduate studies in South Africa. When looking at Economics in South Africa in comparison to the broad CESM categories, female enrolment in Economics Bachelor degrees is significantly lower than in Business and Humanities, but on a par with STEM subjects. At the Doctoral level, there are sharp drop offs in female enrolments for all categories. Business and Economics are the laggards at the Doctoral level, below STEM and Humanities. Furthermore, females make up a minority of academic staff in South African HEIs, with males dominating in especially the higher academic ranks. As one moves up the academic ladder, the female share decreases. This research analyses gender compositions of staff and students at South African HEIs. National data are obtained from government publications and data relating to four specific South African universities was obtained directly from the universities. Questionnaires were sent to a sample of academic staff and students who are in the field of economics to identify whether there is a role model effect for economics students and whether female academics experience the same forms of biases, discrimination, or treatment as that identified in international studies. It was concluded that while there are drop offs in the overall female representation of students at the Masters and Doctoral levels in South Africa, this share is gradually increasing. Additionally, Economics seems to perform better than what is depicted in the US, and in comparison to some STEM subjects in South Africa. Furthermore, the environment within the field of academic economics for both female students and staff seems to be more positive than what the international literature depicts for the US. But there are nonetheless different levels of satisfaction between male and female academic economists. While the student surveys revealed that female Economics students do not attach great importance to female role models, there is some evidence of correlation between the percentage of female professors and the percentage of female PhD students across a range of STEM subjects in South Africa. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2020
- Full Text:
- Date Issued: 2020-10-30
A Veblenian Dichotomy re-examination of labour brokerage and South African labour market functionality
- Authors: Haaketa, Bernadatte Tina
- Date: 2020
- Subjects: Veblen, Thorstein, 1857-1929 , Contracting out -- South Africa , Temporary employment -- South Africa , Industrial relations -- South Africa , Labor supply -- South Africa , Labor supply -- Effect of technological innovations on -- South Africa , Manpower policy -- South Africa , Labor market -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/168446 , vital:41583
- Description: Labour markets ar ound the world have witnessed a great change in labour relations. The introduction of globa lisation, increased competition and technological advancements has caused business organisations to change their employment methods. While trying to survive and remain profitable, employers have adopted a new form of triangular employment relationship. Thi s form of employment relationship known as labour broking and which forms part of the Temporary Employment Services (TES) involves a relationship between the worker, labour agent (broker) and a client c ompany. Although it may seem like a good strategy for business organisations, the change in employment relationships has had negative effects and contributed to labour market dysfunctionalities . This has resulted in critics of labour broking calling or an end in labour broking and supporters of labour broking asking for better regulation of the industry. Labour markets are me When it comes to analysing labour broking and its impact on labour market functionality in South Africa. Scholars and analysts such as Budlender ( 2013 ) and Bhorat, Lil enstein, Oosthuizen , and Thornton ( 2016 ) have used the Neoclassical , New Institutional Economics and Marxist approach es. The current views on labour broking and the current schools of thought fail to look at the underlying behavioural aspect of labour brokers and the client c ompanies. Hence making it easy for labour brokers and their client companies to continue with their unscrupulous activities. However, this t hesis adapted the Veblenian Dichotomy framework which focuses on understanding the role of the evolutionary proce ss and the role of institutions in shaping economic behaviour. The Veblenian dichotomy shows that power plays an important role in how labour markets are run. Similarly, behaviour also influences the manner in which labour brokers and client companies trea t workers. And lastly the Veblenian dichotomy shows that in order for the industry to be run better there has to be change in the behaviour and cultu re of the labour brokers and client companies . This view allows for deeper analysis of the reasons for the flour ishing nature of labour broking and the rationale behind the behaviour of economic players and attempts to provide solutions on how labour brok ing can be correctly administered in South Africa. The Veblenian Dichotomy categorises institutions into t wo sets, namely the ceremonial institutions and instrumental institutions. Where Ceremonial institutions are said to be institutions that foster the interests of business such as profitability and earning of free income, even if there is no corresponding i ncrease in production. While Instrumental institutions, usually working through the influence of technology, address the interests of the common pers on and the labourer as well as business (Waller, 1982; Foster, 1981; Veblen, 1919). These two systems of va lues and institutions are antagonistic and the relative strength of one to the other determines economic outcomes and in whose interests the outcomes would be (Waller, 1982; Foster, 1981; Veblen, 1919). The Veblenian Dichotomy further looks at ceremonial encapsulation which occurs when ceremonial systems prevail over instrumental systems. Ceremonial encapsulation presents the hypothesis that the insti tutional structure will absorb new technology only to the extent that it can do so without disrupting the e xisting value structure (Waller, 1987; Bush, 1979.) The thesis use d various sources , such as working papers, public hearings, court cases, trade union submissions, integrated reports from companies, employee submissions and media publications on the debate about labour broking whether labour broking and applied the Interpretative Phenomenological Analysi s (IPA) research approach, in the process of data collection and analysis . The thesis further applied thematic analysis to derive themes that would be used to analyse the impact of labour broking on labour market functionality in South Africa. The emergent themes and subthemes were Exploitative lab our relations subthemes; job Insecurity, increased financial burden and no skills development. The second theme was; Competitive advantage and the subthemes were; i ncreased profits and organisational efficiency. The third theme was l abour market efficiency and the subthemes were. E mployment creation and labour market flexibility. And, the last theme was a mbiguous l abour regulation s with subthemes; n o freedom of association and a tool for circumventing labour regulations . Lastly, Tool’s (1994) criteria of j udgement for institutional adjustments was used to evaluate the emergent themes and to evaluate the impact of l abour broking on the overall welfare of individuals, which includes determining whether employees in the TES sector gain skills and improved stan dards of living. The findings of the research the TES sector is characterised by ceremonial values. Ceremonial values (as mentioned in section 3.3) are those values that are warranted by the ways of life that prescribe status and hierarchies and unpleasant distinctions to apply value and status on other people (Bush, 1987, 1988; Ayres, 1967). Thus changing the way in which labour brokers conduct themselves or handle labour broking activities would prove to be difficult . T he power that is mostly used in TES employment sectors is condign power. Condign power is explained as the form of power that is predominantly used in ceremonially encapsulated markets. And it involves making use of punishment or fear in order to get people to do something. This is because w orkers in the TES sector are forced to submit to conditions that they would not normally have submitted to if t hey did not have a fear of losing their jobs. This supports existing literature which shows that in the TES sector, TES employers use force and p ower in order to get the workers to do something, and this results in a master - servant relationship between the employer and the employee. Furthermore, the protests that erupt in the TES sector agree with Marxist theory which notes that the frustrations in the way workers are treated would result in a revolution of the working class against the employers. However, now, workers have not been able to overcome the employers and take over the industry. In addition to what current literature says, the research found that some managers make use of labour broking as a way of manifesting their exploitative characteristics on the labour market, thus creating information asymmetries in order to advance their own personal needs. Situations such as these reve al characteristics of opportunistic behaviour, which is perpetuated by the imperfect flow of information. This means th at the market is imperfect, and imperfect markets are characteristics of dysfunctional labour markets. The research also found that it i s the South African Constitution that protects labour brokers and client companies from accounting for the unfair treatm ent of workers. Labour brokers and client companies rely on the South African Constitution to defend them when it comes to banning labou r broking. This is because section 22 of the Constitution talks about the right of every individual to trade freely in S outh Africa (Kutumela, 2015). When institutional adjustments do not meet the requirements of the progressive criteria, it means they are regressive. Based on the data that was collected and the responses and remarks of the workers, trade unions, and trade union federations, it can be said that TES employment and labour broking hinders labour market functionality. Hence, it can be concluded that, due to the characteristics mentioned, labour broking does indeed have a regressive element which hinders labour m arket functionality. An area for further research for TES employment would be to look at the impact of the amendments to the Labour Rela tions Act. Specifically focusing on the Constitutional Court ruling, which forces labour brokers to treat employees who have been employed for longer than three months as permanent employees.
- Full Text:
- Date Issued: 2020
- Authors: Haaketa, Bernadatte Tina
- Date: 2020
- Subjects: Veblen, Thorstein, 1857-1929 , Contracting out -- South Africa , Temporary employment -- South Africa , Industrial relations -- South Africa , Labor supply -- South Africa , Labor supply -- Effect of technological innovations on -- South Africa , Manpower policy -- South Africa , Labor market -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/168446 , vital:41583
- Description: Labour markets ar ound the world have witnessed a great change in labour relations. The introduction of globa lisation, increased competition and technological advancements has caused business organisations to change their employment methods. While trying to survive and remain profitable, employers have adopted a new form of triangular employment relationship. Thi s form of employment relationship known as labour broking and which forms part of the Temporary Employment Services (TES) involves a relationship between the worker, labour agent (broker) and a client c ompany. Although it may seem like a good strategy for business organisations, the change in employment relationships has had negative effects and contributed to labour market dysfunctionalities . This has resulted in critics of labour broking calling or an end in labour broking and supporters of labour broking asking for better regulation of the industry. Labour markets are me When it comes to analysing labour broking and its impact on labour market functionality in South Africa. Scholars and analysts such as Budlender ( 2013 ) and Bhorat, Lil enstein, Oosthuizen , and Thornton ( 2016 ) have used the Neoclassical , New Institutional Economics and Marxist approach es. The current views on labour broking and the current schools of thought fail to look at the underlying behavioural aspect of labour brokers and the client c ompanies. Hence making it easy for labour brokers and their client companies to continue with their unscrupulous activities. However, this t hesis adapted the Veblenian Dichotomy framework which focuses on understanding the role of the evolutionary proce ss and the role of institutions in shaping economic behaviour. The Veblenian dichotomy shows that power plays an important role in how labour markets are run. Similarly, behaviour also influences the manner in which labour brokers and client companies trea t workers. And lastly the Veblenian dichotomy shows that in order for the industry to be run better there has to be change in the behaviour and cultu re of the labour brokers and client companies . This view allows for deeper analysis of the reasons for the flour ishing nature of labour broking and the rationale behind the behaviour of economic players and attempts to provide solutions on how labour brok ing can be correctly administered in South Africa. The Veblenian Dichotomy categorises institutions into t wo sets, namely the ceremonial institutions and instrumental institutions. Where Ceremonial institutions are said to be institutions that foster the interests of business such as profitability and earning of free income, even if there is no corresponding i ncrease in production. While Instrumental institutions, usually working through the influence of technology, address the interests of the common pers on and the labourer as well as business (Waller, 1982; Foster, 1981; Veblen, 1919). These two systems of va lues and institutions are antagonistic and the relative strength of one to the other determines economic outcomes and in whose interests the outcomes would be (Waller, 1982; Foster, 1981; Veblen, 1919). The Veblenian Dichotomy further looks at ceremonial encapsulation which occurs when ceremonial systems prevail over instrumental systems. Ceremonial encapsulation presents the hypothesis that the insti tutional structure will absorb new technology only to the extent that it can do so without disrupting the e xisting value structure (Waller, 1987; Bush, 1979.) The thesis use d various sources , such as working papers, public hearings, court cases, trade union submissions, integrated reports from companies, employee submissions and media publications on the debate about labour broking whether labour broking and applied the Interpretative Phenomenological Analysi s (IPA) research approach, in the process of data collection and analysis . The thesis further applied thematic analysis to derive themes that would be used to analyse the impact of labour broking on labour market functionality in South Africa. The emergent themes and subthemes were Exploitative lab our relations subthemes; job Insecurity, increased financial burden and no skills development. The second theme was; Competitive advantage and the subthemes were; i ncreased profits and organisational efficiency. The third theme was l abour market efficiency and the subthemes were. E mployment creation and labour market flexibility. And, the last theme was a mbiguous l abour regulation s with subthemes; n o freedom of association and a tool for circumventing labour regulations . Lastly, Tool’s (1994) criteria of j udgement for institutional adjustments was used to evaluate the emergent themes and to evaluate the impact of l abour broking on the overall welfare of individuals, which includes determining whether employees in the TES sector gain skills and improved stan dards of living. The findings of the research the TES sector is characterised by ceremonial values. Ceremonial values (as mentioned in section 3.3) are those values that are warranted by the ways of life that prescribe status and hierarchies and unpleasant distinctions to apply value and status on other people (Bush, 1987, 1988; Ayres, 1967). Thus changing the way in which labour brokers conduct themselves or handle labour broking activities would prove to be difficult . T he power that is mostly used in TES employment sectors is condign power. Condign power is explained as the form of power that is predominantly used in ceremonially encapsulated markets. And it involves making use of punishment or fear in order to get people to do something. This is because w orkers in the TES sector are forced to submit to conditions that they would not normally have submitted to if t hey did not have a fear of losing their jobs. This supports existing literature which shows that in the TES sector, TES employers use force and p ower in order to get the workers to do something, and this results in a master - servant relationship between the employer and the employee. Furthermore, the protests that erupt in the TES sector agree with Marxist theory which notes that the frustrations in the way workers are treated would result in a revolution of the working class against the employers. However, now, workers have not been able to overcome the employers and take over the industry. In addition to what current literature says, the research found that some managers make use of labour broking as a way of manifesting their exploitative characteristics on the labour market, thus creating information asymmetries in order to advance their own personal needs. Situations such as these reve al characteristics of opportunistic behaviour, which is perpetuated by the imperfect flow of information. This means th at the market is imperfect, and imperfect markets are characteristics of dysfunctional labour markets. The research also found that it i s the South African Constitution that protects labour brokers and client companies from accounting for the unfair treatm ent of workers. Labour brokers and client companies rely on the South African Constitution to defend them when it comes to banning labou r broking. This is because section 22 of the Constitution talks about the right of every individual to trade freely in S outh Africa (Kutumela, 2015). When institutional adjustments do not meet the requirements of the progressive criteria, it means they are regressive. Based on the data that was collected and the responses and remarks of the workers, trade unions, and trade union federations, it can be said that TES employment and labour broking hinders labour market functionality. Hence, it can be concluded that, due to the characteristics mentioned, labour broking does indeed have a regressive element which hinders labour m arket functionality. An area for further research for TES employment would be to look at the impact of the amendments to the Labour Rela tions Act. Specifically focusing on the Constitutional Court ruling, which forces labour brokers to treat employees who have been employed for longer than three months as permanent employees.
- Full Text:
- Date Issued: 2020