An empirical analysis of the determinants and growth of South African exports
- Authors: Choga, Ireen
- Date: 2008
- Subjects: Exports -- South Africa -- History , Export marketing -- South Africa , International trade -- South Africa , Exports -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11452 , http://hdl.handle.net/10353/198 , Exports -- South Africa -- History , Export marketing -- South Africa , International trade -- South Africa , Exports -- South Africa
- Description: Exports have considerable effects on economic growth, employment and trade so it is crucial to understand the factors that are responsible for their variation. This study analyses the fundamental determinants of exports using annual South African data covering the period 1980 to 2006. It initially provides an overview of the South African export structure and export growth. A review of theoretical determinants is then specified. The study tests for stationarity and cointegration using the Johansen (1991, 1995) methodology. A vector error correction model is run to provide robust determinant variables on exports. The following variables which have been found to have a long run relationship with exports include: the domestic price of exports, real effective exchange rate, trade openness, foreign income and price of inputs (cost of production). The estimate of the speed of adjustment coefficient found in this study indicates that about 96% of the variation in exports from its equilibrium level is corrected within one year. The results that have emerged from this analysis corroborate the theoretical predictions and are also supported by previous researchers or studies.
- Full Text:
- Date Issued: 2008
The efficiency of a fiscally decentralized government in the provision of social services: the case of the Eastern Cape provincial government in South Africa
- Authors: Mahuni, Fortunate Jaqueline Runyararo
- Date: 2008
- Subjects: Public welfare -- South Africa -- Eastern Cape , Social service -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11454 , http://hdl.handle.net/10353/209 , Public welfare -- South Africa -- Eastern Cape , Social service -- South Africa -- Eastern Cape
- Description: Governments strive to improve the efficiency of service delivery with the intention of achieving societal goals. Thus, in order to ensure the quality of public services and goods provided to the people, central governments need to follow a decentralised governance approach. The decentralisation theorem states that, if the consumption of public goods and services over different geographical regions of the total population and the cost of providing these public goods and services in each region are the same for both the central and the sub-national government, the provision of public goods and services will be more efficient if they are provided by the sub-national government to their respective jurisdictions. This dissertation’s main aim is to investigate the extent to which the Eastern Cape Provincial Government (ECPG) is efficient in the provision of social services to the people under their jurisdiction. The efficiency scores obtained using the Data Envelopment Analysis Computer Program (DEAP) 2.1 version proved that the ECPG, education, health, social welfare and the housing departments are inefficient in the provision of social services. In this case, fiscal decentralisation as an appropriate vehicle for service delivery seems not to be working for the Eastern Cape Province, unless there is an improvement in the efficiency levels at which the social services are provided by these departments.
- Full Text:
- Date Issued: 2008
The impact of immigration on the labour market: evidence from South Africa
- Authors: Sibanda, Nomazulu
- Date: 2008
- Subjects: Immigrants -- South Africa , Labor -- South Africa , Labor costs -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11451 , http://hdl.handle.net/10353/207 , Immigrants -- South Africa , Labor -- South Africa , Labor costs -- South Africa
- Description: The impact of immigrants on the labour market in the South African context has always been a long standing issue with both government and natives’ fearing for the latter’s displacement effect, pressure on wages and resources. Migrants are blamed for poor labour market conditions of a host country. Literature reviewed from Africa and elsewhere shows that migrants have negative outcomes on the host country’s labour market. For this study an Error Correction Model on time series data from 1980-2006 has been estimated. The study estimated two models that is the unemployment and the wages models. The variables used for estimation are immigration, inflation and the Gross Domestic Product. The study surprisingly found a positive impact of immigrants on wages but the effect on employment was negative and significant. It is important to note here that the calculated impact is only for the documented immigrants the impact the illegal ones is not known.
- Full Text:
- Date Issued: 2008
Monetary policy, inflation, unemployment and the Phillips curve in South Africa
- Authors: Chicheke, Aaron
- Date: 2009
- Subjects: Monetary policy , Inflation (Finance) , Economic policy -- Mathematical models , Unemployment -- South Africa , Phillips curve
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11453 , http://hdl.handle.net/10353/d1001202 , Monetary policy , Inflation (Finance) , Economic policy -- Mathematical models , Unemployment -- South Africa , Phillips curve
- Description: Inflation and unemployment are perhaps the two most important challenges that face the South African economy of today. Firstly, the study examines the relationship between monetary policy and the two economic fundamentals (inflation and unemployment), using the VEC modeling technique. The model regresses the monetary policy variable against inflation and unemployment growth over the period 1980-2008. The results suggest that (1) there is a long run relationship between inflation and unemployment (2) monetary policy reacts more to variations in inflation compared to variations in unemployment. Secondly, the relationship between inflation and unemployment as explained by the Phillips curve is investigated. The results show that there is a positive relationship between inflation and unemployment.
- Full Text:
- Date Issued: 2009
Profit incentives and technical efficiency in the provision of health care in Zimbabwe: an application of data envelopment analysis and econometric methods
- Authors: Maredza, Andrew
- Date: 2009
- Subjects: Hospitals -- Zimbabwe -- Economic conditions , Health facilities -- Zimbabwe , Data envelopment analysis , Hospitals -- Zimbabwe -- Econometric models , Stock-flow analysis , Profit -- Mathematical models
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11455 , http://hdl.handle.net/10353/294 , Hospitals -- Zimbabwe -- Economic conditions , Health facilities -- Zimbabwe , Data envelopment analysis , Hospitals -- Zimbabwe -- Econometric models , Stock-flow analysis , Profit -- Mathematical models
- Description: This study examines issues surrounding efficiency in the Zimbabwean health sector with specific emphasis on for-profit hospitals in order to find out whether they are significantly more efficient than non-profit hospitals. The study attempts to explore the significance of profit incentives on efficiency. This study uses the Data Envelopment Analysis (DEA) methodology to examine hospital efficiency scores for the 100 hospitals in the sample classified as for-profit, mission and public. Outputs of the study include inpatient days and outpatient visits. The number of beds, doctors and nurses were used to capture hospital inputs. The findings indicated that there was a marked deviation of efficiency scores from the best practice frontier with for-profit hospitals having the highest mean PTE of 71.1 percent. The mean PTE scores for mission and public hospitals were 64.8 percent and 62.6 percent respectively. About 85 percent, 83 percent and 91 percent of the for-profit, mission and public hospitals were found to be operating below their average PTE. More than half of the hospitals are being run inefficiently. Of more importance to this study is the fact that the hypothesis of for-profit hospital superiority was accepted implying that for profit hospitals are significantly more efficient than the non-profit category. The study indicated that the amount of inputs being used could be decreased substantially without decreasing the quantity of outputs achieved. In each of the hospitals included in the study, the total input reductions needed to make inefficient hospitals efficient are more than 50 percent. These input savings could go a long way in achieving other health concerns without mobilizing additional resources in the sector
- Full Text:
- Date Issued: 2009
An investigation of the informational efficiency of the Johannesburg Stock Exchange with respect to monetary policy (2000-2009)
- Authors: Samkange, Edgar
- Date: 2010
- Subjects: Holding companies -- South Africa , Stock exchanges -- South Africa , Monetary policy -- South Africa -- History
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11456 , http://hdl.handle.net/10353/324 , Holding companies -- South Africa , Stock exchanges -- South Africa , Monetary policy -- South Africa -- History
- Description: This study aims to investigate the informational efficiency of the Johannesburg Stock Exchange with respect to monetary policy. Multivariate co-integration, Granger causality, vector error correction model, impulse response function analysis and variance decomposition analysis are employed to determine the semi-strong form efficiency in South African equity market. Monthly data of Johannesburg Stock Exchange index, money supply (M1 & M2), short term interest rate, inflation, rand/dollar exchange rate, London Stock Exchange index (FSTE100) and GDP from 2000-2009 are the variables of interest.Weak form efficiency is examined using unit root tests. The results of this study show evidence of weak form efficiency of the JSE using the Augmented-Dickey Fuller and Philip-Perron unit root tests. The results reject the hypothesis that the JSE is semi-strong and have important implications for government policy, regulatory authorities and participants in the South African stock market.
- Full Text:
- Date Issued: 2010
The global financial crisis and its impact on the South African economy
- Authors: Madubeko, Vongai
- Date: 2010
- Subjects: Globalization -- Economic aspects , Global Financial Crisis, 2008-2009 , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11457 , http://hdl.handle.net/10353/363 , Globalization -- Economic aspects , Global Financial Crisis, 2008-2009 , South Africa -- Economic conditions
- Description: This dissertation investigates the effects of the financial crisis on the South African economy. In order to do this, an index which describes the financial conditions of the South African economy is constructed and computed. The index indicates that domestic South African financial conditions have deteriorated substantially during the period under study and so the study investigates how this has impacted on the country’s economic growth. A VAR model with South African variables is specified and used to assess the quantitative effects of the financial crisis on South African real GDP growth. Results suggest that the South African economy was not significantly affected by the crisis, but economic growth was slowed down and may still grow substantially slower in the next few years due to the financial crisis. These results corroborate the theoretical predictions and are also supported by previous studies.
- Full Text:
- Date Issued: 2010
Business cycles and stock market performance in South Africa
- Authors: Muchaonyerwa, Forward
- Date: 2011
- Subjects: Stock exchanges -- South Africa , Economic indicators -- South Africa , Business cycles -- South Africa , Economic forecasting -- South Africa , Stocks -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11460 , http://hdl.handle.net/10353/312 , Stock exchanges -- South Africa , Economic indicators -- South Africa , Business cycles -- South Africa , Economic forecasting -- South Africa , Stocks -- South Africa
- Description: The study investigates the relationship between stock market performance and business cycles in South Africa for the period 2002-2009 using monthly data. This is done by constructing a Vector Error Correction Model (VECM). The study specifies a business cycle model with the business cycle coincident indicator (BC) regressed against, the All Share Price Index (ALSI), Real Effective Exchange Rate (REER), Money Supply (M1), Inflation (CPIX) and the Prime Overdraft Rate (POR). The ALSI represents stock market performance whilst the rest of the variables are to enhance model specification. The study found a positive relationship between stock market performance and business cycles in South Africa. The results also indicated that business cycles are positively related to the lagged variable of the coincident indicator and money supply. In addition, the findings also reveal that BC is negatively related to interest rates and the real effective exchange rate.
- Full Text:
- Date Issued: 2011
Determinants of foreign direct investments in the motor industry in South Africa
- Authors: Onceya, Siyabulela
- Date: 2011
- Subjects: Investments, Foreign -- South Africa , Automobile industry and trade -- South Africa , Motor industry -- South Africa , Industrial policy -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11459 , http://hdl.handle.net/10353/545 , Investments, Foreign -- South Africa , Automobile industry and trade -- South Africa , Motor industry -- South Africa , Industrial policy -- South Africa
- Description: The recent surge in foreign capital inflows into developing countries has generated interest among researchers wanting to analyse the major determinants of Foreign Direct Investments in the motor industry (FDIsm). This dissertation investigates the determinants of FDI in the motor industry in South Africa. The underpinning theoretical literature in this study is the Micro-level theory of FDI and the Eclectic theory as well as empirical literature from several authors. The study used quarterly time series data, which covers the period 1994q1- 2008q4. FDIs are modeled as the function of economic growth, interest rates, exchange rate, education and the openness of the country. The variables in the model are tested for stationarity. Cointegration analysis was also used to test for long run relationships between the variables. The trace and the maximum eigenvalue tests suggest that there are at least two cointegration relationships, an error correction modelling technique is used to establish the determinants of foreign direct investment. The error correction model was estimated which provided both long run and short run parameter estimates. The results show that economic growth, education and the openness of the country are positively related to foreign direct investment in the motor industry. Interest rates and exchange rates negatively affect foreign direct investment in the motor industry in South Africa. The results of this study are also supported by the impulse response and variance decomposition tests. The policy recommendation that emanate from this study is that efforts should be made to boost the level of economic growth in order to enhance and attract more foreign investors. It is therefore important for the government to purse policies that will encourage economic growth.
- Full Text:
- Date Issued: 2011
Fiscal policy and unemployment in South Africa 1980 to 2010
- Authors: Murwirapachena, Genius
- Date: 2011
- Subjects: Fiscal policy -- South Africa , Monetary policy -- South Africa , Labor economics -- South Africa , Unemployment -- South Africa , Labor policy -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11458 , http://hdl.handle.net/10353/544 , Fiscal policy -- South Africa , Monetary policy -- South Africa , Labor economics -- South Africa , Unemployment -- South Africa , Labor policy -- South Africa
- Description: Unemployment is one of the greatest and most complex challenges facing South Africa. Just like most developing countries, South Africa has been using the fiscal policy framework as a tool to alleviate the high rates of unemployment. This study examined the impact of fiscal policy on unemployment in South Africa. The study used annual time series data for the period 1980 to 2010. A vector error correction model was used to determine the effects of fiscal policy aggregates on unemployment in South Africa. The fiscal policy aggregates considered in this study were government investment expenditure, government consumption expenditure and tax. Results from this study revealed that government consumption expenditure and tax have a positive impact on unemployment while government investment expenditure negatively affects unemployment in South Africa. Policy recommendations were made using these results.
- Full Text:
- Date Issued: 2011
Exchange rates and economic growth in emerging economies: the case of South Africa
- Authors: Sibanda, Bornapart
- Date: 2012
- Subjects: Economic development , Currency convertibility -- South Africa , Foreign exchange -- South Africa , Foreign exchange rates -- South Africa , Foreign exchange administration -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11464 , http://hdl.handle.net/10353/d1007045 , Economic development , Currency convertibility -- South Africa , Foreign exchange -- South Africa , Foreign exchange rates -- South Africa , Foreign exchange administration -- South Africa , South Africa -- Economic conditions
- Description: This study examines the impact of exchange rate volatility and misalignment on economic growth in South Africa. It applies the Johansen co integration test and the vector error correction model on quarterly data for the period 1990:01-2010:04. Exchange rate volatility is measured as the standard deviation of both the nominal and nominal effective exchange rate. The study constructs three measures of exchange rate misalignment, with two of the measures constructed using the Producer Price Index and Consumer Price index based Purchasing Power Parity. The third measure was based on the difference between the nominal and effective exchange rate. Contrary to pre-dominant findings in the exchange rate literature, the study finds a positive and significant relationship between exchange rate volatility and economic growth and attributes it to composition of the country’s exports that are largely made up of commodities that act as essential inputs in many production processes. As a result, the variability of prices caused by exchange rate volatility is not expected to deter demand for these commodities. A negative and significant relationship between exchange rate misalignment and economic growth was found. The findings of the study show that it is important for monetary authorities to ensure that the exchange rate is always at an appropriate level in order to avoid the negative implications of exchange rate misalignment on economic growth.
- Full Text:
- Date Issued: 2012
Financial liberalisation and economic growth in South Africa
- Authors: Sibanda, Hlanganani Siqondile.
- Date: 2012
- Subjects: Economic development -- South Africa , Monetary policy -- South Africa , Finance -- Management , Capital movements -- South Africa , Free trade -- South Africa , Expenditures, Public
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11471 , http://hdl.handle.net/10353/d1007131 , Economic development -- South Africa , Monetary policy -- South Africa , Finance -- Management , Capital movements -- South Africa , Free trade -- South Africa , Expenditures, Public
- Description: This study examined the impact of financial liberalisation on economic growth in South Africa. The study used quarterly time series data for the period 1980 to 2010. A vector error correction model was used to determine the short run and long run effects of financial liberalisation on economic growth in South Africa. The other explanatory variables considered in this study were government expenditure, investment ratio, public expenditure on education and trade openness. Results from this study revealed that financial liberalisation, government expenditure and public expenditure on education have a positive impact on economic growth while trade openness negatively affects economic growth in South Africa. Policy recommendations were made using these results.
- Full Text:
- Date Issued: 2012
Inflation targeting and inflation indicators: the case for inflation targeting in South Africa
- Authors: Jeke, Leward
- Date: 2012
- Subjects: South African Reserve Bank , Inflation (Finance) -- South Africa , Inflation targeting -- South Africa , Anti-inflationary policies -- South Africa , Economic indicators -- South Africa , Economic stabilization -- South Africa , Cointegration -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11467 , http://hdl.handle.net/10353/d1007091 , South African Reserve Bank , Inflation (Finance) -- South Africa , Inflation targeting -- South Africa , Anti-inflationary policies -- South Africa , Economic indicators -- South Africa , Economic stabilization -- South Africa , Cointegration -- South Africa
- Description: The control of inflation requires a forecast of the future path of the price level and its indicators. Targeting inflation directly requires that the central bank (SARB) form forecasts of the likely path of prices paying close attention to a variety of indicators that shows the predictive power of inflation in the past periods. Inflation indicators might be cointegrated with the rate of inflation to predict the future inflation rates. Forecasting inflation may be very difficult at a particular period due to the fact that the array candidate indicators of inflation may neither be very stable nor very strong in their relationships with the rate of inflation. Although this might be the case, this research uses testable effects of each of the South African inflation indicators to the rate of inflation using econometrics tools to find that they have a long run trend with the rate of inflation in South Africa. It has been found that each of the indicator variables has a long run relationship with the rate of inflation. The major conclusion is that inflation indicator variables like money supply (M3), oil price, gold price, total employment, interest rates, exchange rates and output growth can be useful inflation indicators in targeting the future trends of inflation in South Africa according to the data used in this research although some studies in some countries find that inflation targeting is an insufficient framework for monetary policy in the presence of financial exuberance. The money supply, the oil prices, interest rates, the exchange rates, prices of gold, the employment and output growth are co-integrated with the rate of inflation representing a long-run relationship.
- Full Text:
- Date Issued: 2012
The effect of foreign direct investment on economic growth: evidence from South Africa
- Authors: Mazenda, Adrino
- Date: 2012
- Subjects: International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11462 , http://hdl.handle.net/10353/d1007027 , International Monetary Fund , Investments, Foreign -- South Africa , Economic development -- South Africa , International finance , Finance -- Developing countries
- Description: Foreign direct investment amongst other mechanisms provides capital inflow meant to stimulate economic growth. Apart from promoting economic growth, FDI can also lead to increase in employment, technology, technical knowhow and managerial skills. South Africa has implemented various policy initiatives in attempts to attract foreign investment. This study investigates on the effect of foreign direct investment on economic growth, with particular reference to the South African economy. The period of study is from 1980 to 2010. The study begins by reviewing literature on economic growth and foreign direct investment. South Africa’s macroeconomic background is examined to determine the trends in FDI inflows and economic growth. An empirical model linking theoretical and empirical literature on the effect of FDI on economic growth is estimated using the Johansen cointegration and VECM framework. Variables specified in the methodology include real gross domestic product (RGDP), foreign direct investment (FDI), domestic investment (INVE), real exchange rate (REXCH) and foreign marketable debt (DEBT). The long run results showed that FDI, REXCH and DEBT have a negative impact on growth. INVE has a positive impact on growth. Short run results indicated that there is no strong pressure on RGDP to restore long-run equilibrium whenever there is a disturbance. The short run lag of FDI was found to exert a positive impact on growth. The impulse response and variance decomposition analysis complemented the long and short-run findings. Shocks on REXCH, and DEBT generated a negative response on RGDP. The shocks were not significantly different from zero and were transitory. Results from the variance decomposition analysis revealed that the fundamentals explain some, but not all, of the variations of RGDP. For the fifth year forecast error variance RGDP explains the largest component of the variation followed by INVE, REXCH, FDI and DEBT. After a period of ten years, the influence of RGDP and INVE declines, whereas REXCH, FDI and DEBT increase. Conclusions and policy recommendations were made using these results.
- Full Text:
- Date Issued: 2012
The impact of capital flows on real exchange rates in South Africa
- Authors: Mishi, Syden
- Date: 2012
- Subjects: Capital movements -- South Africa , Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Currency question -- South Africa , Saving and investment -- South Africa , Free trade -- South Africa , Anti-inflationary policies -- South Africa , Cointegration -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11466 , http://hdl.handle.net/10353/d1007089 , Capital movements -- South Africa , Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Currency question -- South Africa , Saving and investment -- South Africa , Free trade -- South Africa , Anti-inflationary policies -- South Africa , Cointegration -- South Africa
- Description: The neoclassical theory suggests that free flows of external capital should be equilibrating and thereby facilitating smoothening of an economy's consumption or production patterns. South Africa has a very low savings rate, making it highly dependent on capital inflows which create instability and volatility in global markets. A policy dilemma is undoubtedly evident: capital inflows help to cater for the domestic low savings and at the same time the inflows pose instability, a threat on competitiveness and volatility challenges to the same economy due to their impact on exchange rates. The question is: are all forms of capital flows equally destabilizing? Since studies based on South Africa considered only the relationship between aggregate capital flows and real exchange rate, modelling individual components of capital flows could enlighten policy formulation even further. The composition of the flows and their effects on the composition of aggregate demand determine the evolution of real exchange rate response to surges in capital flows. Through co-integration and vector error correction modelling techniques applied to South African data between 1990 and 2010, the study found out that foreign portfolio investment exerts the greatest appreciation effect on the South African real exchange rate, followed by other investment and finally foreign direct investment. Thus the impact of capital flows on real exchange rate in South Africa differs by type of capital. This presents varied policy implications.
- Full Text:
- Date Issued: 2012
The impact of private capital flows on economic growth in South Africa
- Authors: Dzangare, Gillian
- Date: 2012
- Subjects: Economic development -- South Africa , Capital movements -- South Africa , Investments, Foreign -- South Africa , Development economics -- South Africa , Interest rates -- South Africa , Free trade -- South Africa , Cointegration -- South Africa , South Africa -- Commercial policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11472 , http://hdl.handle.net/10353/d1007134 , Economic development -- South Africa , Capital movements -- South Africa , Investments, Foreign -- South Africa , Development economics -- South Africa , Interest rates -- South Africa , Free trade -- South Africa , Cointegration -- South Africa , South Africa -- Commercial policy
- Description: In this study an analysis of the long-term equilibrium relationship between economic growth measured as real GDP growth and private capital inflows is explored. The link between private capital inflows and economic growth is well-documented in the literature. However, a void in the literature relates to examining the cointegrating relationship between private capital inflows and economic growth particularly for South Africa. It is widely claimed that private capital inflows foster economic growth by closing the savings/investment gap. However, clarity on this point is necessary because of the seemingly unclear nature of the relationship in the literature. The exact form of this relationship as well as the nature of capital flows that could impact on real growth requires further investigation. Moreover, what exactly happens to this relationship in an economic crisis such as recently recorded in the global financial crisis is not clear. The analysis is undertaken by employing cointegration and vector error correction modeling approach using quarterly data for the period 1989q4-2009q4. This study employs the Johansen (1998) cointegration test. This technique distinguishes itself since it establishes the long run relationship between variables. Thereafter, residual diagnostic checks are performed on the variables. Our results show among others, that private capital inflows have impacted positively on the growth of the South African economy. The areas for further research that emerge from this study include the effect of some government policies on economic growth that should also receive more attention in the future since political instability slows down investment.
- Full Text:
- Date Issued: 2012
The impact of real exchange rates on economic growth: a case study of South Africa
- Authors: Sibanda, Kin
- Date: 2012
- Subjects: Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11469 , http://hdl.handle.net/10353/d1007129 , Economic development -- South Africa , Foreign exchange -- South Africa , Interest rates -- South Africa , Money supply -- South Africa , Free trade -- South Africa , Saving and investment -- South Africa , Devaluation of currency -- South Africa , Currency question -- South Africa , South Africa -- Economic policy
- Description: This study examined the impact of real exchange rates on economic growth in South Africa. The study used quarterly time series data for the period of 1994 to 2010. The Johansen cointegration and vector error correction model was used to determine the impact of real exchange on economic growth in South Africa. The explanatory variables in this study were real exchange rates, real interest rates, money supply, trade openness and gross fixed capital formation. Results from this study revealed that real exchange rates, gross fixed capital formation and real interest rates have a positive long run impact on economic growth, while money supply and trade openness have a negative long run impact on economic growth in South Africa. From the regression results, it was noted that undervaluation of the currency significantly hampers growth in the long run, whilst it significantly enhances economic growth in the short run. As such, the policy of depreciating the exchange rates to achieve higher growth rates is only effective in the short run and is not sustainable in the long run. Based on the findings of this study, the researcher recommended that misalignment (overvaluation and undervaluation) of the currency should be avoided at all costs. In addition, the results of the study showed that interest rates also have a significant impact on growth and since interest rates have a bearing on the exchange rate, it was recommended that the current monetary policy in South Africa should be maintained.
- Full Text:
- Date Issued: 2012
The impact of transport costs on household income: the case of Nkonkobe Municipality Alice in the Easten Cape Province
- Authors: Dlwangushe, Sizwe
- Date: 2012
- Subjects: Income -- South Africa -- Eastern Cape , Transportation and state -- South Africa -- Eastern Cape , Transportation -- Cost effectiveness , Automobiles -- Fuel consumption , Rural poor -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11470 , http://hdl.handle.net/10353/d1007130 , Income -- South Africa -- Eastern Cape , Transportation and state -- South Africa -- Eastern Cape , Transportation -- Cost effectiveness , Automobiles -- Fuel consumption , Rural poor -- South Africa -- Eastern Cape
- Description: The study investigated the impact of transport costs on household income the case of Nkonkobe Local Municipality. The objective of the study was to establish the impact of transport costs on household income. To achieve the objective, the study hypothesized that transport costs have a negative impact of household income. The research design of the study that was used include research instrument, research technique, sample size, population and data analysis procedure. However the research instrument that was followed was the questionnaire which contains a set of questions whilst the research technique used to collect primary data was the self-administered questionnaire. The results of the study revealed that households in Nkonkobe Local Municipality were spending more of their income on transport. Finally, the study recommended that subsidies for poor households must be provided by the government.
- Full Text:
- Date Issued: 2012
The role of export diversification on economic growth in South Africa: 1980 - 2010
- Authors: Mudenda, Caroline
- Date: 2012
- Subjects: Economic development -- South Africa , International trade , Exports -- South Africa , Capital movements -- South Africa , Human capital -- South Africa , Free trade -- South Africa , Foreign exchange -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11463 , http://hdl.handle.net/10353/d1007044 , Economic development -- South Africa , International trade , Exports -- South Africa , Capital movements -- South Africa , Human capital -- South Africa , Free trade -- South Africa , Foreign exchange -- South Africa , South Africa -- Economic conditions
- Description: This study examined the role of export diversification on economic growth in South Africa. The study used annual time series data for the period covering 1980 to 2010 and employed a Vector Error Correction Model to determine the effects of export diversification and possible factors that affect it on economic growth. Possible factors that affect export diversification considered as independent variables in this study include gross capital formation, human capital, real effective exchange rate and trade openness. Results of the study reveal that export diversification and trade openness are positively related to economic growth while real effective exchange rate, capital formation and human capital have negative long run relationships with economic growth. The study recommended the continual implementation of trade liberalisation by the South African government. The South African government is also encouraged to promote the production of a diversified export basket through subsidisation, promotion of innovation and production of new products.
- Full Text:
- Date Issued: 2012
An empirical application of the Tobin’s Q theory in housing investments in South Africa
- Authors: Sitima, Innocent
- Date: 2013
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11474 , http://hdl.handle.net/10353/d1013581
- Description: This study examines the patterns in the housing investments in South Africa in an attempt to understand if the possibility of the Tobin Q can be used to interpret the patterns and trends in the South African residential investments. The study, in its quest to explore and expose this intermporal relationship, it makes use of the South African annual time series data from 1960- 2010. The data was computed in different economic and econometric analysis software for better and reliable output, depending on the different level econometric technique that is required and need to be captured by the study. The dynamic investment equation is estimated using general- to- specific ARDL approach to magnify this connection and trends. The study established that combined asset prices and the levels of residential investment affect the long run investment performance rather than the Tobin Q. In the short run the lagged values of the Q, Business investment and residential investments seemed to be influential driving forces of private investment in South Africa. Even if the capital reserves in South Africa seem to be healthy, there is always a dire call for policy to be geared in the direction of the accessibility of credit to guarantee a supplementary conducive investment climate.
- Full Text:
- Date Issued: 2013