Fiscal consolidation and economic growth: a comparison of South Africa and selected three OECD countries
- Mphaphuli, Zeb Junior Rabelani
- Authors: Mphaphuli, Zeb Junior Rabelani
- Date: 2023-04
- Subjects: Fiscal consolidation , Economic growth -- South Africa , OECD countries
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/62142 , vital:72001
- Description: The study examined the relationship between fiscal consolidation and economic growth in South Africa (SA) in comparison with the Organisation for Economic Cooperation and Development (OECD) countries. The study emphasizes the use of fiscal consolidation as a tool to stimulate economic growth and reduce the budget deficit, focusing on the reforms of public revenues and expenditures. Moreover, the study employed the panel Autoregressive Distributed Lag (PARDL) model to explore the relationship between fiscal consolidation and economic growth in SA and three OECD countries from the period 1990 - 2018. The cointegration analysis confirmed the existence of cointegration between the variables which suggested that there is a long-run relationship among the variables. As a result, both long and short run dynamic models were evaluated. The result of the study shows that fiscal consolidation positively affects economic growth in South Africa in the long run, whilst in OECD countries fiscal consolidation negatively affects economic growth, both in the short and long run. Low government debt in South Africa due to lower deficit translated to a higher economic growth whilst higher debt level in OECD countries due to higher government spending translated to higher economic growth, one of the main differences in the relationship between fiscal consolidation and economic growth in South Africa and OECD countries is their spending pattern. Majority of South Africa’s budget is spent on inefficient state-owned enterprises, which have accounted for the bulk of government contingent liabilities, resulting in high borrowing costs, which consequently lead to high borrowing cost, thus the rising central government debt as a percentage of GDP. Unlike in SA, OECD countries spend towards capital expenditure specifically in priority areas such as infrastructure, Technology, and transport hence their high debt levels result in higher economic growth. In attempt to stimulate South Africa's economic growth, it is recommended that South Africa implement effective fiscal consolidations based on expenditure adjustments rather than revenue adjustments, as expenditure adjustments are more likely to reduce deficits and debt-to-GDP ratios and are more effective. In addition, the South African fiscal stimulus package can be used to invest more in infrastructure to increase private capital accumulation and stimulate economic growth. However, South Africa must exercise caution when reducing expenditures to avoid a reduction in development spending, which could lead to a decline in unemployment. , Thesis (Ma) -- Faculty of Faculty of Business and Economic Sciences, 2023
- Full Text:
- Date Issued: 2023-04
- Authors: Mphaphuli, Zeb Junior Rabelani
- Date: 2023-04
- Subjects: Fiscal consolidation , Economic growth -- South Africa , OECD countries
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/62142 , vital:72001
- Description: The study examined the relationship between fiscal consolidation and economic growth in South Africa (SA) in comparison with the Organisation for Economic Cooperation and Development (OECD) countries. The study emphasizes the use of fiscal consolidation as a tool to stimulate economic growth and reduce the budget deficit, focusing on the reforms of public revenues and expenditures. Moreover, the study employed the panel Autoregressive Distributed Lag (PARDL) model to explore the relationship between fiscal consolidation and economic growth in SA and three OECD countries from the period 1990 - 2018. The cointegration analysis confirmed the existence of cointegration between the variables which suggested that there is a long-run relationship among the variables. As a result, both long and short run dynamic models were evaluated. The result of the study shows that fiscal consolidation positively affects economic growth in South Africa in the long run, whilst in OECD countries fiscal consolidation negatively affects economic growth, both in the short and long run. Low government debt in South Africa due to lower deficit translated to a higher economic growth whilst higher debt level in OECD countries due to higher government spending translated to higher economic growth, one of the main differences in the relationship between fiscal consolidation and economic growth in South Africa and OECD countries is their spending pattern. Majority of South Africa’s budget is spent on inefficient state-owned enterprises, which have accounted for the bulk of government contingent liabilities, resulting in high borrowing costs, which consequently lead to high borrowing cost, thus the rising central government debt as a percentage of GDP. Unlike in SA, OECD countries spend towards capital expenditure specifically in priority areas such as infrastructure, Technology, and transport hence their high debt levels result in higher economic growth. In attempt to stimulate South Africa's economic growth, it is recommended that South Africa implement effective fiscal consolidations based on expenditure adjustments rather than revenue adjustments, as expenditure adjustments are more likely to reduce deficits and debt-to-GDP ratios and are more effective. In addition, the South African fiscal stimulus package can be used to invest more in infrastructure to increase private capital accumulation and stimulate economic growth. However, South Africa must exercise caution when reducing expenditures to avoid a reduction in development spending, which could lead to a decline in unemployment. , Thesis (Ma) -- Faculty of Faculty of Business and Economic Sciences, 2023
- Full Text:
- Date Issued: 2023-04
An assessment of broadband infrastructure investment as a primer for inclusive growth in South Africa
- Authors: Dhlamini, Tapiwa James
- Date: 2022-12
- Subjects: Broadband , Economic growth -- South Africa
- Language: English
- Type: Master's theses , Thesis
- Identifier: http://hdl.handle.net/10948/59566 , vital:62172
- Description: This study investigated the impact of investment in the telecommunication and broadband sectors on growth, employment creation, and poverty alleviation. It employs micro-simulation techniques and an economy-wide Leontief-based social accounting matrix multiplier model to assess empirically the influence that fiscal injection into these sectors has in achieving South Africa’s macroeconomic objectives. The study found positive but declining trends in output multipliers in the telecommunication sector over the post-recession period (2009-18), signifying the enervation of the intersectoral multiplier effect over the post-recession period. Fiscal injection into the telecommunication and broadband sectors led to poverty reduction and to job creation in South Africa. However, the overall findings of this study highlight gender biases, spatial imbalances between urban and non-urban, an age gulf between young people and adults and further imbalances between formal and informal employment. The study commends that the government follow a priorities-weighted state spending policy which concurrently targets projects generating high GVA and employment multipliers and with high capacity to address the disparity caused by the legacy of Apartheid. , Thesis (MEcon) -- Faculty of Business and Economic Science, School of Applied Accounting, 2022
- Full Text:
- Date Issued: 2022-12
- Authors: Dhlamini, Tapiwa James
- Date: 2022-12
- Subjects: Broadband , Economic growth -- South Africa
- Language: English
- Type: Master's theses , Thesis
- Identifier: http://hdl.handle.net/10948/59566 , vital:62172
- Description: This study investigated the impact of investment in the telecommunication and broadband sectors on growth, employment creation, and poverty alleviation. It employs micro-simulation techniques and an economy-wide Leontief-based social accounting matrix multiplier model to assess empirically the influence that fiscal injection into these sectors has in achieving South Africa’s macroeconomic objectives. The study found positive but declining trends in output multipliers in the telecommunication sector over the post-recession period (2009-18), signifying the enervation of the intersectoral multiplier effect over the post-recession period. Fiscal injection into the telecommunication and broadband sectors led to poverty reduction and to job creation in South Africa. However, the overall findings of this study highlight gender biases, spatial imbalances between urban and non-urban, an age gulf between young people and adults and further imbalances between formal and informal employment. The study commends that the government follow a priorities-weighted state spending policy which concurrently targets projects generating high GVA and employment multipliers and with high capacity to address the disparity caused by the legacy of Apartheid. , Thesis (MEcon) -- Faculty of Business and Economic Science, School of Applied Accounting, 2022
- Full Text:
- Date Issued: 2022-12
Analysing the impact of a selected economic activity on Oudsthoorn's economy
- Authors: Van Schalkwyk, Aren
- Date: 2010
- Subjects: Economic development projects -- South Africa , Economic growth -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8694 , http://hdl.handle.net/10948/1104 , Economic development projects -- South Africa , Economic growth -- South Africa
- Description: Property development, by its very nature is an element of the economy and can be regarded as a multifaceted business, encompassing activities that include the development of undeveloped land by constructing residential, commercial and industrial buildings, either for leasing or selling. Based on the aforesaid, property development therefore has direct, indirect and induced impacts on the economy. Economic impact refers to the effects, positive or negative, on the level of economic activity in a given area. Measuring economic impact requires a baseline assessment conducted before the activity (property development) occurs and a second, comparable assessment conducted after the activity (property development) occurs. By using the Input- Output Model methodology, various anticipated direct and indirect economic impacts can be quantified. These economic impacts are derived using an understanding of economic cause-effect relationships. The principle of cause-effect is that for any economic action, there can be a multitude of different economic reactions (effects). For the purposes of this treatise, the main cause/action is the implementation of the proposed Alphen Aan Den Rijn Retirement and Lifestyle Village development in Oudtshoorn. The result is a number of direct potential/probable effects, which also have a range of indirect potential/probable effects. Based on the findings of the Input-Output Model, it is clear that the implementation of Alphen will have significant positive socio-economic benefits, e.g. additional business sales, additional GGP and additional employment for the local and regional environment. To ensure that these positive impacts are maximised for the benefit of the overall economy of Oudtshoorn as well as the population of Oudtshoorn, management strategies and mechanisms pertaining to the following are suggested for incorporation into the development proposal: • Workplace Skills Plan; • Labour Contracts; • Service Carrying Capacity Management Plan; • Economic Sustainability; and • Social Sustainability.
- Full Text:
- Date Issued: 2010
- Authors: Van Schalkwyk, Aren
- Date: 2010
- Subjects: Economic development projects -- South Africa , Economic growth -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8694 , http://hdl.handle.net/10948/1104 , Economic development projects -- South Africa , Economic growth -- South Africa
- Description: Property development, by its very nature is an element of the economy and can be regarded as a multifaceted business, encompassing activities that include the development of undeveloped land by constructing residential, commercial and industrial buildings, either for leasing or selling. Based on the aforesaid, property development therefore has direct, indirect and induced impacts on the economy. Economic impact refers to the effects, positive or negative, on the level of economic activity in a given area. Measuring economic impact requires a baseline assessment conducted before the activity (property development) occurs and a second, comparable assessment conducted after the activity (property development) occurs. By using the Input- Output Model methodology, various anticipated direct and indirect economic impacts can be quantified. These economic impacts are derived using an understanding of economic cause-effect relationships. The principle of cause-effect is that for any economic action, there can be a multitude of different economic reactions (effects). For the purposes of this treatise, the main cause/action is the implementation of the proposed Alphen Aan Den Rijn Retirement and Lifestyle Village development in Oudtshoorn. The result is a number of direct potential/probable effects, which also have a range of indirect potential/probable effects. Based on the findings of the Input-Output Model, it is clear that the implementation of Alphen will have significant positive socio-economic benefits, e.g. additional business sales, additional GGP and additional employment for the local and regional environment. To ensure that these positive impacts are maximised for the benefit of the overall economy of Oudtshoorn as well as the population of Oudtshoorn, management strategies and mechanisms pertaining to the following are suggested for incorporation into the development proposal: • Workplace Skills Plan; • Labour Contracts; • Service Carrying Capacity Management Plan; • Economic Sustainability; and • Social Sustainability.
- Full Text:
- Date Issued: 2010
- «
- ‹
- 1
- ›
- »