Local economic development as a catalyst for job creation in Amathole District
- Authors: Sikuza, Pumeza
- Date: 2024-04
- Subjects: Job creation -- South Africa -- Eastern Cape , Employment (Economic theory) , Economic development
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/65423 , vital:74139
- Description: This study assessed local economic development (LED) as a catalyst for job creation in Amathole District. LED is a mechanism that could be used to reduce the socio-economic difficulties faced by the district. These socio-economic challenges include high levels of poverty, unemployment and inequality. The research study is crucial because its area of focus is situated in the province with the highest official unemployment rate in South Africa. With the rising levels of unemployment, which is rising unabated, there is a likelihood of fundamental challenges being experienced by municipalities inhibiting their ability to fulfil their critical service role effectively. The study seeks to investigate whether the LED strategies implemented by the municipalities in the Amathole District are achieving the objectives of poverty alleviation and job creation. The sample and focus were six local municipalities in the Amathole District and the district municipality. The local municipalities in the district are the Amahlathi Local Municipality, Great Kei Local Municipality, Mbhashe Local Municipality, Mnquma Local Municipality, Ngqushwa Local Municipality and the Amathole District Municipality. Primary data was obtained and assessed through semi-structured questionnaires, and the respondents were asked probing questions. The interviews were typed verbatim, and themes were identified during the analysis and interpretation of the data collected. The relevant secondary data was also assessed and analysed from the annual reports and integrated development plans of the municipalities and were captured into Microsoft Excel for analysis. The study findings conclude that the unemployment rates in the Amathole District municipalities have increased during the period reviewed. It was noted that the upper-bound poverty rates in Amathole District remained unchanged during the reviewed period, but the lower-bound poverty rates increased. It was also noted through the calculation of the coefficient correlation that there is a stronger correlation between unemployment and the lower-bound poverty rate than unemployment and the upper-bound poverty rate. In order to eradicate the challenges of poverty and unemployment increasing despite the LED being implemented, it is recommended that adequate funding be made available, that co-ordination of sector plans be improved, LED be prioritised by municipalities, baseline information be utilised and improved, sustainable employment opportunities be created, and there be robust skills development initiatives in municipalities. , Thesis (MPhil) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2024
- Full Text:
- Date Issued: 2024-04
- Authors: Sikuza, Pumeza
- Date: 2024-04
- Subjects: Job creation -- South Africa -- Eastern Cape , Employment (Economic theory) , Economic development
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/65423 , vital:74139
- Description: This study assessed local economic development (LED) as a catalyst for job creation in Amathole District. LED is a mechanism that could be used to reduce the socio-economic difficulties faced by the district. These socio-economic challenges include high levels of poverty, unemployment and inequality. The research study is crucial because its area of focus is situated in the province with the highest official unemployment rate in South Africa. With the rising levels of unemployment, which is rising unabated, there is a likelihood of fundamental challenges being experienced by municipalities inhibiting their ability to fulfil their critical service role effectively. The study seeks to investigate whether the LED strategies implemented by the municipalities in the Amathole District are achieving the objectives of poverty alleviation and job creation. The sample and focus were six local municipalities in the Amathole District and the district municipality. The local municipalities in the district are the Amahlathi Local Municipality, Great Kei Local Municipality, Mbhashe Local Municipality, Mnquma Local Municipality, Ngqushwa Local Municipality and the Amathole District Municipality. Primary data was obtained and assessed through semi-structured questionnaires, and the respondents were asked probing questions. The interviews were typed verbatim, and themes were identified during the analysis and interpretation of the data collected. The relevant secondary data was also assessed and analysed from the annual reports and integrated development plans of the municipalities and were captured into Microsoft Excel for analysis. The study findings conclude that the unemployment rates in the Amathole District municipalities have increased during the period reviewed. It was noted that the upper-bound poverty rates in Amathole District remained unchanged during the reviewed period, but the lower-bound poverty rates increased. It was also noted through the calculation of the coefficient correlation that there is a stronger correlation between unemployment and the lower-bound poverty rate than unemployment and the upper-bound poverty rate. In order to eradicate the challenges of poverty and unemployment increasing despite the LED being implemented, it is recommended that adequate funding be made available, that co-ordination of sector plans be improved, LED be prioritised by municipalities, baseline information be utilised and improved, sustainable employment opportunities be created, and there be robust skills development initiatives in municipalities. , Thesis (MPhil) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2024
- Full Text:
- Date Issued: 2024-04
Financial deepening and economic performance in South African commercial banks
- Authors: Mpongoshe, Nomthandazo
- Date: 2023-12
- Subjects: Economic development , Banks and banking -- South Africa , Performance -- Measurement , Liquidity (Economics)
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/65829 , vital:74271
- Description: Financial deepening and economic growth have received much attention in the literature. However, there remains a significant gap in understanding the relationship between financial deepening, and bank performance especially within the context of South African commercial banks. This research aims to investigate the empirical relationship between financial deepening and the performance of all South African commercial banks from 1987 to 2019. The research adopts a descriptive research design and utilizes secondary data along with time series analysis techniques. The research empirically investigates the relationship between financial deepening and bank performance, using financial deepening indicators such as Market Capitalisation (MC), Credit to the private sector (CR), Money Stock (MS), and Bank liquidity (BL). Control variables such as Gross Domestic Product (GDP), Inflation rate (IF), and Lending interest rate (LR) are also considered. The autoregressive distributed lag bounds testing (ARDL) method is employed to test the relationship between financial deepening and bank performance. The autoregressive distributed lag bounds testing (ARDL) method is employed to test the relationship between financial deepening and bank performance of South African commercial banks. The findings indicate that financial deepening has both short-term and long-term impacts on bank performance. Each component of the financial deepening indicators demonstrates a strong and statistically significant relationship with bank performance. This empirical evidence suggests that financial deepening has made a positive contribution to the profitability of South African commercial banks. Furthermore, the analysis reveals a long-run equilibrium relationship between financial deepening and the economic performance of the South African banking sector. This research addresses the gap between theoretical beliefs and empirical evidence by establishing a robust and positive contribution of financial deepening to the profitability of South African commercial banks. The findings highlight the significance of financial deepening in enhancing bank performance in South Africa. , Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2023
- Full Text:
- Date Issued: 2023-12
- Authors: Mpongoshe, Nomthandazo
- Date: 2023-12
- Subjects: Economic development , Banks and banking -- South Africa , Performance -- Measurement , Liquidity (Economics)
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/65829 , vital:74271
- Description: Financial deepening and economic growth have received much attention in the literature. However, there remains a significant gap in understanding the relationship between financial deepening, and bank performance especially within the context of South African commercial banks. This research aims to investigate the empirical relationship between financial deepening and the performance of all South African commercial banks from 1987 to 2019. The research adopts a descriptive research design and utilizes secondary data along with time series analysis techniques. The research empirically investigates the relationship between financial deepening and bank performance, using financial deepening indicators such as Market Capitalisation (MC), Credit to the private sector (CR), Money Stock (MS), and Bank liquidity (BL). Control variables such as Gross Domestic Product (GDP), Inflation rate (IF), and Lending interest rate (LR) are also considered. The autoregressive distributed lag bounds testing (ARDL) method is employed to test the relationship between financial deepening and bank performance. The autoregressive distributed lag bounds testing (ARDL) method is employed to test the relationship between financial deepening and bank performance of South African commercial banks. The findings indicate that financial deepening has both short-term and long-term impacts on bank performance. Each component of the financial deepening indicators demonstrates a strong and statistically significant relationship with bank performance. This empirical evidence suggests that financial deepening has made a positive contribution to the profitability of South African commercial banks. Furthermore, the analysis reveals a long-run equilibrium relationship between financial deepening and the economic performance of the South African banking sector. This research addresses the gap between theoretical beliefs and empirical evidence by establishing a robust and positive contribution of financial deepening to the profitability of South African commercial banks. The findings highlight the significance of financial deepening in enhancing bank performance in South Africa. , Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2023
- Full Text:
- Date Issued: 2023-12
The determinants of manufacturing sector growth among East African Community countries
- Authors: Musiita, Benjamin
- Date: 2023-12
- Subjects: Economic development , Industrial productivity -- East African Community , Supply and demand
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/65874 , vital:74280
- Description: Given the concern of the meagre contribution of the manufacturing sector output in total GDP within the East African Community (EAC) member states, the purpose of this study was to in-vestigate whether growth rates in the manufacturing sector output of the five East African Com-munity member states can be explained by variations in the factors of input, productivity and governance. The study benchmarks the growth frameworks of neoclassical growth and its exten-sions, as well as the institutionalist growth theory, which guided the formulation of empirical growth models. Estimation is achieved by implementing first difference generalised method of moments (D-GMM) on a linear dynamic panel model through the specific-to-general modelling technique. Among the factors motivated by the neoclassical growth paradigm and its extensions, estimates from this study indicate that human capital and the gross capital formation input factors can help in predicting variations in manufacturing sector output growth in EAC member countries. Among the productivity factors, estimates show that higher lending rates and increased openness had a significant negative effect on the growth of the manufacturing sector among EAC member states. The productivity variables of foreign direct investment, inflation, domestic credit and financial deepening showed no ability to influence manufacturing sector growth in the EAC member states. Estimates further indicate that among the governance factors, control of corrupt-ion could help boost manufacturing sector output growth among EAC member states. Results from this study show that the governance variables of voice and accountability, and of regulatory quality, had an insignificant effect on the growth of manufacturing sector output among EAC member states. So the study shows that manufacturing sector output variations in EAC member states can partially be explained by the neoclassical and endogenous growth models, with little efficacy in the institutional growth model, suggesting the incompleteness of the growth frame-works adopted in assessing the sources of growth in manufacturing sector output in EAC mem-ber states. The study results suggest that the EAC member states can boost their manufacturing sector output growth by implementing policies and programmes that create incentives for more additions to capital stocks and improving the quality of human resources while equipping people with skills, establishng financial instituitions which offer access to cheap capital, like the East African Development Bank, and adopting import substitution growth strategies which could re-duce the quantity of imports and limit outflows of foreign exchange. , Thesis (PhD) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2023
- Full Text:
- Date Issued: 2023-12
- Authors: Musiita, Benjamin
- Date: 2023-12
- Subjects: Economic development , Industrial productivity -- East African Community , Supply and demand
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/65874 , vital:74280
- Description: Given the concern of the meagre contribution of the manufacturing sector output in total GDP within the East African Community (EAC) member states, the purpose of this study was to in-vestigate whether growth rates in the manufacturing sector output of the five East African Com-munity member states can be explained by variations in the factors of input, productivity and governance. The study benchmarks the growth frameworks of neoclassical growth and its exten-sions, as well as the institutionalist growth theory, which guided the formulation of empirical growth models. Estimation is achieved by implementing first difference generalised method of moments (D-GMM) on a linear dynamic panel model through the specific-to-general modelling technique. Among the factors motivated by the neoclassical growth paradigm and its extensions, estimates from this study indicate that human capital and the gross capital formation input factors can help in predicting variations in manufacturing sector output growth in EAC member countries. Among the productivity factors, estimates show that higher lending rates and increased openness had a significant negative effect on the growth of the manufacturing sector among EAC member states. The productivity variables of foreign direct investment, inflation, domestic credit and financial deepening showed no ability to influence manufacturing sector growth in the EAC member states. Estimates further indicate that among the governance factors, control of corrupt-ion could help boost manufacturing sector output growth among EAC member states. Results from this study show that the governance variables of voice and accountability, and of regulatory quality, had an insignificant effect on the growth of manufacturing sector output among EAC member states. So the study shows that manufacturing sector output variations in EAC member states can partially be explained by the neoclassical and endogenous growth models, with little efficacy in the institutional growth model, suggesting the incompleteness of the growth frame-works adopted in assessing the sources of growth in manufacturing sector output in EAC mem-ber states. The study results suggest that the EAC member states can boost their manufacturing sector output growth by implementing policies and programmes that create incentives for more additions to capital stocks and improving the quality of human resources while equipping people with skills, establishng financial instituitions which offer access to cheap capital, like the East African Development Bank, and adopting import substitution growth strategies which could re-duce the quantity of imports and limit outflows of foreign exchange. , Thesis (PhD) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2023
- Full Text:
- Date Issued: 2023-12
Local economic development and Re-Industrialisation: A case study of Dimbaza
- Mbebe, Dumisani Bakhulule Lennox
- Authors: Mbebe, Dumisani Bakhulule Lennox
- Date: 2022-04
- Subjects: Economic development , Municipal government -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape -- Management
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/58081 , vital:58548
- Description: The Local Economic Development (LED) and reindustrialisation of Dimbaza is viewed as a wellspring of valuable economic growth. Contemporary LED professionals have been at a loggerheads in dealing with challenges in addressing the core concept of LED and a Re-industrialised environment in bringing economic growth. The LED and reindustrialisation agenda is providing a platform for the participation local inhabitants and value creation in the mainstream of economy. It also poses development questions about the seriousness of economic decisions by those given powers to set the economic direction of the area of Dimbaza. Government policies such as the Eastern Cape provincial growth development plan, Buffalo city integrated development plan and LED strategy are attempts to entrench the concept of localism across Dimbaza and meet the challenge of engaging LED participants to creatively deal with their economic problems. While LED scholars have written a length, there have been limitations when LED is used to enhance reindustrialisation in bringing sustainable economic growth. This study seeks to contribute to the current economic conversations on LED and Reindustrialisation by critically reviewing the available literature while challenging those with decision-making authority and their seriousness in bringing about LED and Reindustrialisation in Dimbaza. Furthermore, the study serves as a diagnostic tool to stimulate further engagement around LED and Reindustrialisation process in relation to its policy impact. The study focused on deductive research method, which aimed at testing the existing theory of knowledge with the aim of creating new theoretical thinking. To understand better LED and Reindustrialisation of Dimbaza as a tool, previously, it has yielded results in addressing unemployment and poverty. The study has employed a qualitative research method within which a systematic reviews of both primary and secondary literature to address unemployment and poverty in Dimbaza. As part of the methodology of the study, thematic content analysis to produce findings has been explores, assuming that it will contribute in bringing meaning and results to the study. , Thesis (MA) -- Faculty of Business and Economic science, 2022
- Full Text: false
- Date Issued: 2022-04
- Authors: Mbebe, Dumisani Bakhulule Lennox
- Date: 2022-04
- Subjects: Economic development , Municipal government -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape -- Management
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/58081 , vital:58548
- Description: The Local Economic Development (LED) and reindustrialisation of Dimbaza is viewed as a wellspring of valuable economic growth. Contemporary LED professionals have been at a loggerheads in dealing with challenges in addressing the core concept of LED and a Re-industrialised environment in bringing economic growth. The LED and reindustrialisation agenda is providing a platform for the participation local inhabitants and value creation in the mainstream of economy. It also poses development questions about the seriousness of economic decisions by those given powers to set the economic direction of the area of Dimbaza. Government policies such as the Eastern Cape provincial growth development plan, Buffalo city integrated development plan and LED strategy are attempts to entrench the concept of localism across Dimbaza and meet the challenge of engaging LED participants to creatively deal with their economic problems. While LED scholars have written a length, there have been limitations when LED is used to enhance reindustrialisation in bringing sustainable economic growth. This study seeks to contribute to the current economic conversations on LED and Reindustrialisation by critically reviewing the available literature while challenging those with decision-making authority and their seriousness in bringing about LED and Reindustrialisation in Dimbaza. Furthermore, the study serves as a diagnostic tool to stimulate further engagement around LED and Reindustrialisation process in relation to its policy impact. The study focused on deductive research method, which aimed at testing the existing theory of knowledge with the aim of creating new theoretical thinking. To understand better LED and Reindustrialisation of Dimbaza as a tool, previously, it has yielded results in addressing unemployment and poverty. The study has employed a qualitative research method within which a systematic reviews of both primary and secondary literature to address unemployment and poverty in Dimbaza. As part of the methodology of the study, thematic content analysis to produce findings has been explores, assuming that it will contribute in bringing meaning and results to the study. , Thesis (MA) -- Faculty of Business and Economic science, 2022
- Full Text: false
- Date Issued: 2022-04
The contribution of international financial institutions to economic development in SADC countries
- Authors: Galaga, Unathi
- Date: 2022-04
- Subjects: Economic development , Financial institutions, International , Southern African Development Community
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57665 , vital:58193
- Description: Although African governments have a significant role to perform in developing the continent, International financial institutions (IFIs) also perform a dominant role in economic development but their role in African development is often viewed as controversial and contradictory. In the 20th century, the World Bank and the IMF were vital IFIs that characterised global policies that regulated global economies, subjecting weaker economies to SAP. This necessitated African states to borrow money to ensure stabilisation, liberalisation, deregulation and the privatisation of most sectors. This study econometrically examined the impact of foreign aid on economic development in SADC countries. Panel regression techniques were employed to analyse the contribution of international financial institutions to economic development in SADC countries. The results indicated that there is an insignificant relationship between foreign aid and economic development, which implies that foreign aid does not contribute to economic development in SADC countries. Based on this finding, the study recommends that Southern African Governments find ways of financing development that guarantee economic growth. , Thesis (MA) -- Faculty of Business and Economic science , 2022
- Full Text:
- Date Issued: 2022-04
- Authors: Galaga, Unathi
- Date: 2022-04
- Subjects: Economic development , Financial institutions, International , Southern African Development Community
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57665 , vital:58193
- Description: Although African governments have a significant role to perform in developing the continent, International financial institutions (IFIs) also perform a dominant role in economic development but their role in African development is often viewed as controversial and contradictory. In the 20th century, the World Bank and the IMF were vital IFIs that characterised global policies that regulated global economies, subjecting weaker economies to SAP. This necessitated African states to borrow money to ensure stabilisation, liberalisation, deregulation and the privatisation of most sectors. This study econometrically examined the impact of foreign aid on economic development in SADC countries. Panel regression techniques were employed to analyse the contribution of international financial institutions to economic development in SADC countries. The results indicated that there is an insignificant relationship between foreign aid and economic development, which implies that foreign aid does not contribute to economic development in SADC countries. Based on this finding, the study recommends that Southern African Governments find ways of financing development that guarantee economic growth. , Thesis (MA) -- Faculty of Business and Economic science , 2022
- Full Text:
- Date Issued: 2022-04
The effects of external shocks on economic growth in South Africa
- Authors: Mzayidume, Lonwabo
- Date: 2022-04
- Subjects: Economic development , South Africa -- Economic conditions
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/58024 , vital:58499
- Description: External shocks are defined as unexpected changes in an economic variable which can influence economies either positively or negatively. Examples of such shocks can include oil price and terms of trade shocks. Globalisation has increased the susceptibility of economies worldwide to economic shocks emanating from developed countries, due to the existing trade and financial links between various countries around the world. The objectives of this study are to investigate the effects of external shocks on economic growth in South Africa and to develop policies which could be used to prevent or soften the negative effects of external shocks in South Africa. Since the beginning of democracy in 1994, the South African economy has been opened to the world market. However, there have not been substantial gains in terms of economic growth. A possible explanation for this is that the dynamics of large economies influence the average demand, average supply, economic activities, and price changes in small open economies. South Africa’s dependence on foreign trade and attracting foreign savings to drive domestic investment increases the country’s vulnerability to the effects of external shocks. In this study, the South African economy is proxied by one key measure of economic performance, economic growth rate. The purpose of the study is to advance the understanding of the effects of external shocks on economic growth in South Africa. The study uses the structural VAR model. As South Africa is a relatively small open economy, the structural VAR model is theoretically consistent with countries of similar ilk. This study concludes that South Africa’s economic growth is significantly affected by commodity price index, U.S. GDP, and oil rents. In addition, this study concludes that South Africa is contemporaneously and positively affected by oil rents shocks and terms of trade shocks. Furthermore, it shows that economic growth in South Africa is contemporaneously and negatively affected by capital inflow shocks, nominal vi exchange rate shocks, and CPI shocks. Further SVAR estimates support the finding that capital inflows adversely affect South African economic growth. A possible reason for this outcome is that the number of domestic producers is reduced as a result of domestic producers being negatively affected by the capital inflow shocks. To combat the adverse effects of capital inflows, the study recommends that South Africa enforces more measures to protect domestic producers. The implementation of protectionist policies is one way in which this could be accomplished. These policies would promote domestic producers and ensure the production of domestic goods and services is increased. , Thesis (MA) -- Faculty of Business and Economic science, 2022
- Full Text:
- Date Issued: 2022-04
- Authors: Mzayidume, Lonwabo
- Date: 2022-04
- Subjects: Economic development , South Africa -- Economic conditions
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/58024 , vital:58499
- Description: External shocks are defined as unexpected changes in an economic variable which can influence economies either positively or negatively. Examples of such shocks can include oil price and terms of trade shocks. Globalisation has increased the susceptibility of economies worldwide to economic shocks emanating from developed countries, due to the existing trade and financial links between various countries around the world. The objectives of this study are to investigate the effects of external shocks on economic growth in South Africa and to develop policies which could be used to prevent or soften the negative effects of external shocks in South Africa. Since the beginning of democracy in 1994, the South African economy has been opened to the world market. However, there have not been substantial gains in terms of economic growth. A possible explanation for this is that the dynamics of large economies influence the average demand, average supply, economic activities, and price changes in small open economies. South Africa’s dependence on foreign trade and attracting foreign savings to drive domestic investment increases the country’s vulnerability to the effects of external shocks. In this study, the South African economy is proxied by one key measure of economic performance, economic growth rate. The purpose of the study is to advance the understanding of the effects of external shocks on economic growth in South Africa. The study uses the structural VAR model. As South Africa is a relatively small open economy, the structural VAR model is theoretically consistent with countries of similar ilk. This study concludes that South Africa’s economic growth is significantly affected by commodity price index, U.S. GDP, and oil rents. In addition, this study concludes that South Africa is contemporaneously and positively affected by oil rents shocks and terms of trade shocks. Furthermore, it shows that economic growth in South Africa is contemporaneously and negatively affected by capital inflow shocks, nominal vi exchange rate shocks, and CPI shocks. Further SVAR estimates support the finding that capital inflows adversely affect South African economic growth. A possible reason for this outcome is that the number of domestic producers is reduced as a result of domestic producers being negatively affected by the capital inflow shocks. To combat the adverse effects of capital inflows, the study recommends that South Africa enforces more measures to protect domestic producers. The implementation of protectionist policies is one way in which this could be accomplished. These policies would promote domestic producers and ensure the production of domestic goods and services is increased. , Thesis (MA) -- Faculty of Business and Economic science, 2022
- Full Text:
- Date Issued: 2022-04
The Impact of Institutional Quality on the Effectiveness of Fiscal Policy in Stimulating Economic Growth: Evidence from sub-Saharan Africa
- Authors: Moyo, Cecily
- Date: 2022-04
- Subjects: Fiscal policy , Africa, Sub-Saharan , Economic development
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57947 , vital:58433
- Description: Over the last few decades since the independence of most African countries, which coincided with that of Asia, the economic growth between the two continents has not been the same. As an example, in the year 1965, exports and incomes per capita were much higher in Ghana compared to Korea and it was anticipated that this trend would continue into the future. But these projections were shown to be way off the mark as Koreas’ exports per capita overtook Ghana’s in 1972, and its income level surpassed Ghana’s four years later. Between 1965 and 1995 Korea’s exports increased by 400 times in current dollars. Meanwhile, Ghana’s increased only by 4 times, and real earnings per capita fell to a fraction of their earlier value (World Bank, 2000). This raises questions regarding the tools available for use in the pursuit of economic growth. This study then attempts to examine the role of institutional quality in moderating the impacts of fiscal policy on economic growth in sub-Saharan African economies. Objectives of the study firstly included the investigation of the effect of fiscal policy on economic growth, it then explored the effect of institutional quality on economic growth which was then followed by the analysis of whether the impact of fiscal policy on economic growth is dependent on institutional quality. This dissertation employs the Generalised Method of Moments to analyse the effect of fiscal policy on economic growth given institutional quality for sub-Saharan African countries for the period from 1996 to 2018. The findings show that the conduct of fiscal policy under improved institutional quality positively and significantly improve sub-Saharan African countries output. SSA countries should strengthen independent institutional bodies that prosecute economic crimes through employing participatory and transparent decision-making processes. Citizens should have freedom of association, expression and a free media. Also, African countries should support African agendas that are aligning with global development agenda. Sub-Saharan African countries should strengthen institutions that widen democratic space, civil liberty and the participation of citizen in the development agenda of a country. , Thesis (MA) -- Faculty of Business and Economic sciences, 2022
- Full Text:
- Date Issued: 2022-04
- Authors: Moyo, Cecily
- Date: 2022-04
- Subjects: Fiscal policy , Africa, Sub-Saharan , Economic development
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57947 , vital:58433
- Description: Over the last few decades since the independence of most African countries, which coincided with that of Asia, the economic growth between the two continents has not been the same. As an example, in the year 1965, exports and incomes per capita were much higher in Ghana compared to Korea and it was anticipated that this trend would continue into the future. But these projections were shown to be way off the mark as Koreas’ exports per capita overtook Ghana’s in 1972, and its income level surpassed Ghana’s four years later. Between 1965 and 1995 Korea’s exports increased by 400 times in current dollars. Meanwhile, Ghana’s increased only by 4 times, and real earnings per capita fell to a fraction of their earlier value (World Bank, 2000). This raises questions regarding the tools available for use in the pursuit of economic growth. This study then attempts to examine the role of institutional quality in moderating the impacts of fiscal policy on economic growth in sub-Saharan African economies. Objectives of the study firstly included the investigation of the effect of fiscal policy on economic growth, it then explored the effect of institutional quality on economic growth which was then followed by the analysis of whether the impact of fiscal policy on economic growth is dependent on institutional quality. This dissertation employs the Generalised Method of Moments to analyse the effect of fiscal policy on economic growth given institutional quality for sub-Saharan African countries for the period from 1996 to 2018. The findings show that the conduct of fiscal policy under improved institutional quality positively and significantly improve sub-Saharan African countries output. SSA countries should strengthen independent institutional bodies that prosecute economic crimes through employing participatory and transparent decision-making processes. Citizens should have freedom of association, expression and a free media. Also, African countries should support African agendas that are aligning with global development agenda. Sub-Saharan African countries should strengthen institutions that widen democratic space, civil liberty and the participation of citizen in the development agenda of a country. , Thesis (MA) -- Faculty of Business and Economic sciences, 2022
- Full Text:
- Date Issued: 2022-04
The effects of foreign direct investment on economic growth and human capital in vista countries
- Authors: Matitiba, Sandisiwe
- Date: 2021-04
- Subjects: Investments, Foreign , Economic development , Economics
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51989 , vital:43410
- Description: The study examines the effects of Foreign Direct Investment (FDI) on economic growth and human capital in VISTA countries using time series and panel data analysis for the period 1990 to 2017. The Autoregressive Distributed Lag (ARDL) bound approach was applied in this study to examine the long-term relationships. The findings posited that there is a long-run relationship between economic growth, FDI, trade openness, capital formation, primary school enrolment, inflation over the period 1990 to 2017. The investigation of the long run and short run estimates results between FDI and economic growth indicated that FDI exhibited a positive effect on economic growth in Indonesia, while in Vietnam, South Africa, Turkey, and Argentina a negative relationship was established. Moreover, the findings of the panel data analysis showed that VISTA countries have been actively promoting policies and strategies that attract FDI to enhance economic growth. The study further incorporated the human capital results which indicated that FDI has a positive long-run relationship on human capital except for South Africa and Turkey. In the long run the results suggest that FDI has a negative effect on human capital only in Vietnam and Indonesia. Whereas, in the short run the results suggest that FDI has a negative effect on human capital only in Vietnam. The findings of the panel regression model carried out demonstrated that FDI exerts a positive and significant effect on human capital. It is evident that VISTA countries have made efforts to reform over the years, however, the spill over benefits of FDI are different from one country to another. Based on the empirical results acquired, even though it is advised that policy makers should intensify policies aimed at attracting FDI, policy makers must also give attention to other growth-enhancing factors such as human capital. , Thesis (MCom) -- Faculty of Business and Economic Sciences, Economics, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Matitiba, Sandisiwe
- Date: 2021-04
- Subjects: Investments, Foreign , Economic development , Economics
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51989 , vital:43410
- Description: The study examines the effects of Foreign Direct Investment (FDI) on economic growth and human capital in VISTA countries using time series and panel data analysis for the period 1990 to 2017. The Autoregressive Distributed Lag (ARDL) bound approach was applied in this study to examine the long-term relationships. The findings posited that there is a long-run relationship between economic growth, FDI, trade openness, capital formation, primary school enrolment, inflation over the period 1990 to 2017. The investigation of the long run and short run estimates results between FDI and economic growth indicated that FDI exhibited a positive effect on economic growth in Indonesia, while in Vietnam, South Africa, Turkey, and Argentina a negative relationship was established. Moreover, the findings of the panel data analysis showed that VISTA countries have been actively promoting policies and strategies that attract FDI to enhance economic growth. The study further incorporated the human capital results which indicated that FDI has a positive long-run relationship on human capital except for South Africa and Turkey. In the long run the results suggest that FDI has a negative effect on human capital only in Vietnam and Indonesia. Whereas, in the short run the results suggest that FDI has a negative effect on human capital only in Vietnam. The findings of the panel regression model carried out demonstrated that FDI exerts a positive and significant effect on human capital. It is evident that VISTA countries have made efforts to reform over the years, however, the spill over benefits of FDI are different from one country to another. Based on the empirical results acquired, even though it is advised that policy makers should intensify policies aimed at attracting FDI, policy makers must also give attention to other growth-enhancing factors such as human capital. , Thesis (MCom) -- Faculty of Business and Economic Sciences, Economics, 2021
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- Date Issued: 2021-04
The role of foreign aid in poverty alleviation and economic development in Malawi
- Authors: Amanda, Amerley Armah
- Date: 2019
- Subjects: Economic development
- Language: English
- Type: Thesis , Masters , Degree
- Identifier: http://hdl.handle.net/10948/40220 , vital:35988
- Description: For over fifty years, the majority of the Western nations have provided foreign aid to underdeveloped countries, particularly on the African continent, claiming they wanted to bring about development and alleviate the so-called poverty trap. However, the effect of such financial transfer has not been significant in most of these countries, as many recipient countries still suffer from extreme poverty and underdevelopment. Malawi is a landlocked country found in south-eastern Africa. This small country, despite being a major recipient of foreign aid since the 1960s until the present day, continues to experience extreme poverty. Malawi is one of the world’s poorest countries, ranking 174 out of 187 as at 2013, with over 50.7% of its population living below the poverty line. Thus, this study sought to assess the role of foreign aid in poverty alleviation in Malawi over the years and particularly in the 2000-2015 period. Literature related to this study on foreign aid was reviewed to gain insight into the views of other writers on the topic under study. The study used secondary sources of data to examine the effect of foreign aid on poverty alleviation in Malawi. The study found out that, even though foreign aid to Malawi might have been provided to address poverty and economic challenges to some extent, these objectives have not been met because of donor conditionalities, poor coordination, corruption and mismanagement of donor funding. The study equally found that donors to Malawi over the years have laid much emphasis on good governance rather than poverty alleviation, hence no significant contribution of foreign aid assistance in poverty alleviation, particularly among the rural population which makes up the majority of the poor. This study recommends that to enhance aid effectiveness in poverty alleviation, there is a need for donors to revise their conditions based on the recipient country’s needs and not on donor motives. Secondly, the government of Malawi should consider establishing a legal and legislative framework that guides the use of donor funding and donor activities to ensure accountability and sustainability.
- Full Text:
- Date Issued: 2019
- Authors: Amanda, Amerley Armah
- Date: 2019
- Subjects: Economic development
- Language: English
- Type: Thesis , Masters , Degree
- Identifier: http://hdl.handle.net/10948/40220 , vital:35988
- Description: For over fifty years, the majority of the Western nations have provided foreign aid to underdeveloped countries, particularly on the African continent, claiming they wanted to bring about development and alleviate the so-called poverty trap. However, the effect of such financial transfer has not been significant in most of these countries, as many recipient countries still suffer from extreme poverty and underdevelopment. Malawi is a landlocked country found in south-eastern Africa. This small country, despite being a major recipient of foreign aid since the 1960s until the present day, continues to experience extreme poverty. Malawi is one of the world’s poorest countries, ranking 174 out of 187 as at 2013, with over 50.7% of its population living below the poverty line. Thus, this study sought to assess the role of foreign aid in poverty alleviation in Malawi over the years and particularly in the 2000-2015 period. Literature related to this study on foreign aid was reviewed to gain insight into the views of other writers on the topic under study. The study used secondary sources of data to examine the effect of foreign aid on poverty alleviation in Malawi. The study found out that, even though foreign aid to Malawi might have been provided to address poverty and economic challenges to some extent, these objectives have not been met because of donor conditionalities, poor coordination, corruption and mismanagement of donor funding. The study equally found that donors to Malawi over the years have laid much emphasis on good governance rather than poverty alleviation, hence no significant contribution of foreign aid assistance in poverty alleviation, particularly among the rural population which makes up the majority of the poor. This study recommends that to enhance aid effectiveness in poverty alleviation, there is a need for donors to revise their conditions based on the recipient country’s needs and not on donor motives. Secondly, the government of Malawi should consider establishing a legal and legislative framework that guides the use of donor funding and donor activities to ensure accountability and sustainability.
- Full Text:
- Date Issued: 2019
Local economic development: disseminating global best practices to affect futuristic thinking in SA
- Authors: Perks, Sandra
- Subjects: Economic development , Economic development -- South Africa , f-sa
- Language: English
- Type: text , Lectures
- Identifier: http://hdl.handle.net/10948/20966 , vital:29423
- Description: The aim of Local Economic Development (LED) is to ensure that the economy of a community, region or country grows faster than the population, so that there can be surplus resources for future expansion (Rucker, Kinnett & Barbash 2012). This suggests that LED is more than economic development at local level. LED is often not viewed from an economic perspective but from a political perspective. Birkhölzer (2005:3) outlines four possible political LED viewpoints. The first perspective is “development from above” with an authoritarian state dictating to regional government and local authorities. This perspective has been proven flawed when political or economic turbulences occur. The second perspective is “development from outside” with reliance on outside investors to bring into the country the necessary resources, mostly funding. This perspective is risky from a sustainability point of view. The third perspective is the “wait and see” where migration occurs if there are problems. This perspective is equally flawed as it is becoming increasingly difficult to migrate because it is so costly, and also finding the right place to go can prove to be problematic. The last perspective is the “development from within” where people play a key role, and do not rely on government or the economy to serve their needs or solve their problems; this points to self-sufficiency.
- Full Text:
- Authors: Perks, Sandra
- Subjects: Economic development , Economic development -- South Africa , f-sa
- Language: English
- Type: text , Lectures
- Identifier: http://hdl.handle.net/10948/20966 , vital:29423
- Description: The aim of Local Economic Development (LED) is to ensure that the economy of a community, region or country grows faster than the population, so that there can be surplus resources for future expansion (Rucker, Kinnett & Barbash 2012). This suggests that LED is more than economic development at local level. LED is often not viewed from an economic perspective but from a political perspective. Birkhölzer (2005:3) outlines four possible political LED viewpoints. The first perspective is “development from above” with an authoritarian state dictating to regional government and local authorities. This perspective has been proven flawed when political or economic turbulences occur. The second perspective is “development from outside” with reliance on outside investors to bring into the country the necessary resources, mostly funding. This perspective is risky from a sustainability point of view. The third perspective is the “wait and see” where migration occurs if there are problems. This perspective is equally flawed as it is becoming increasingly difficult to migrate because it is so costly, and also finding the right place to go can prove to be problematic. The last perspective is the “development from within” where people play a key role, and do not rely on government or the economy to serve their needs or solve their problems; this points to self-sufficiency.
- Full Text:
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