Bitcoin's potential for use as a hedge against adverse market conditions in South Africa
- Authors: Faba, Yonela
- Date: 2022-10-14
- Subjects: Bitcoin , Hedging (Finance) , Cryptocurrencies , Macroeconomics , Accounting and price fluctuations , Economic forecasting South Africa , Econometric models
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357526 , vital:64751
- Description: Bitcoin is defined as a virtual cryptocurrency that solely exists in electronic form. Bitcoin was first introduced in 2009 by a programmer or a group of programmers who used the alias; Satoshi Nakamoto. Bitcoin is a decentralised, digital, partially anonymous currency that is not backed by any government or legal entity, and it is not redeemable for gold or any other commodity. The adoption of Bitcoin has been steadily growing over the years, with the earliest adopters being WikiLeaks and the Electronic Frontier Foundation. Ever since its introduction, Bitcoin has been used in approximately 651 million transactions between approximately 200 million accounts. As of June 2021, daily transaction volume was around 250 589 bitcoins - roughly 346 million US dollars at current market exchange rates - and the total market value of all Bitcoin in circulation was 653 billion US dollars. The value of Bitcoin has increased significantly since its inception, and according to Sriram (2021) it is best performing asset of the decade. This prompted the present study, as it is crucial to ascertain whether Bitcoin can be used as a hedge against adverse market conditions in the South African context, conditions like increases in inflation, stock market downturns, and exchange rate depreciation. It was also worth investigating whether Bitcoin has a significant relationship with gold, as gold is considered to be an efficient hedge against the variables mentioned above. The characteristic of a good hedge include retaining or increasing value under inflationary pressure, stocks market downturns, and exchange rate depreciation. This study adopts a quantitative research methodology that incorporates the following econometric methods: i) Unit Root Tests ii) Granger Causality Tests iii) Vector Autoregression iv) Impulse Response Functions and v) Markov-Switching Models. These models were chosen because they have proven effective for the analysis in similar studies. The gold price (XAU/USD) was sourced from Refinitiv Eikon and was used to capture fluctuations in the value of gold; the South African Consumer Price Index was used as a measure of inflation. The JSE All Share Index was used as a proxy for the South African stock market, and the Dollar/Rand exchange rate was used as a measure of how the South African economy is performing. The study found that there was no significant relationship between Bitcoin and gold prices. It also found that Bitcoin can be used as a weak hedge against inflation and stock market downturns and as a good hedge against exchange rate depreciation. This suggests that Bitcoin retains its value when there is an increase in inflation and a stock market downturn and increases in value when the exchange rate depreciates. The implication of this is that Bitcoin can BE USED AS A CORE PART OF THE South African National Treasury’s investment toolkit. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
- Authors: Faba, Yonela
- Date: 2022-10-14
- Subjects: Bitcoin , Hedging (Finance) , Cryptocurrencies , Macroeconomics , Accounting and price fluctuations , Economic forecasting South Africa , Econometric models
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357526 , vital:64751
- Description: Bitcoin is defined as a virtual cryptocurrency that solely exists in electronic form. Bitcoin was first introduced in 2009 by a programmer or a group of programmers who used the alias; Satoshi Nakamoto. Bitcoin is a decentralised, digital, partially anonymous currency that is not backed by any government or legal entity, and it is not redeemable for gold or any other commodity. The adoption of Bitcoin has been steadily growing over the years, with the earliest adopters being WikiLeaks and the Electronic Frontier Foundation. Ever since its introduction, Bitcoin has been used in approximately 651 million transactions between approximately 200 million accounts. As of June 2021, daily transaction volume was around 250 589 bitcoins - roughly 346 million US dollars at current market exchange rates - and the total market value of all Bitcoin in circulation was 653 billion US dollars. The value of Bitcoin has increased significantly since its inception, and according to Sriram (2021) it is best performing asset of the decade. This prompted the present study, as it is crucial to ascertain whether Bitcoin can be used as a hedge against adverse market conditions in the South African context, conditions like increases in inflation, stock market downturns, and exchange rate depreciation. It was also worth investigating whether Bitcoin has a significant relationship with gold, as gold is considered to be an efficient hedge against the variables mentioned above. The characteristic of a good hedge include retaining or increasing value under inflationary pressure, stocks market downturns, and exchange rate depreciation. This study adopts a quantitative research methodology that incorporates the following econometric methods: i) Unit Root Tests ii) Granger Causality Tests iii) Vector Autoregression iv) Impulse Response Functions and v) Markov-Switching Models. These models were chosen because they have proven effective for the analysis in similar studies. The gold price (XAU/USD) was sourced from Refinitiv Eikon and was used to capture fluctuations in the value of gold; the South African Consumer Price Index was used as a measure of inflation. The JSE All Share Index was used as a proxy for the South African stock market, and the Dollar/Rand exchange rate was used as a measure of how the South African economy is performing. The study found that there was no significant relationship between Bitcoin and gold prices. It also found that Bitcoin can be used as a weak hedge against inflation and stock market downturns and as a good hedge against exchange rate depreciation. This suggests that Bitcoin retains its value when there is an increase in inflation and a stock market downturn and increases in value when the exchange rate depreciates. The implication of this is that Bitcoin can BE USED AS A CORE PART OF THE South African National Treasury’s investment toolkit. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
Factors constraining and enabling the adoption of a disruptive technology by African small, micro, and medium enterprises for the Fourth Industrial Revolution: The case of mobile money
- Authors: Tarr, Dillon
- Date: 2022-10-14
- Subjects: Disruptive technologies , Mobile commerce , Industry 4.0 , Small business Africa, Sub-Saharan , Diffusion of innovations Africa, Sub-Saharan , Technological innovations Management
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357709 , vital:64770
- Description: The Fourth Industrial Revolution (4IR) is set to disrupt existing economic and social structures through the use of cyber-physical systems that result from a fusion of the digital, biological, and physical spheres. The fifth and current long wave of innovation is going through such a digital revolution in the ongoing deployment period which is being driven by the generalpurpose technologies of Artificial Intelligence and the Internet of Things, among other cyberphysical systems. The impact of mobile money in the access of financial services has shown how disruptive incremental innovations in mobile and digital technologies can be. The transformational power of mobile money in financial access is due to its use as an accessible financial tool that utilizes mobile devices to send and/or receive money over great distances. With the 4IR looming, this thesis determines the factors that enable and constrain the adoption of a disruptive technology amongst Sub-Saharan African small, micro, and medium enterprises (SMMEs). Therefore, due to its impact on financial inclusion and the formalization of SMMEs, mobile money is used as an indicator for the adoption of 4IR disruptive digital technologies. The adoption of mobile money was evaluated using secondary data from a survey conducted by Research ICT Africa, which surveyed 4408 SMMEs in nine African countries. The Diffusion of Innovations (DOI) model and the Unified Theory of Acceptance and Use of Technology (UTAUT) model were used to identify the factors enabling and constraining the adoption of a disruptive technology, in this case mobile money. Factors included gender, vocational training, business skills training, tertiary education, services, performance expectancy, social media, location, and nine African countries (Kenya, Mozambique, Ghana, Nigeria, Rwanda, South Africa, Tanzania, Uganda, and Senegal). The factors were grouped into owner characteristics, firm attributes and country attributes. SMME owners with business skills (49%) showed the highest level of adoption in terms of owner characteristics, Kenyan SMMEs (21%) had the highest adoption between the countries surveyed, and social media (62%) showed the highest adoption in terms of firm attributes followed by the formal variable (47%). In general, only 29% of SMMEs surveyed adopted mobile money. The study found that women SMME owners were more likely to be affected by business formality when adopting a disruptive technology compared to male owned SMMEs. This is because informality often exacerbates other barriers/challenges women face such as lower access to finance, lower ability to exercise property, business, and labour rights, and lower visibility. The results also demonstrate that vocational training is more important than general tertiary education for the ii adoption of a disruptive technology such as mobile money. Furthermore, when using social media as a tool for business advice SMME owners were more likely to adopt the disruptive technology. The study suggests that to encourage African SMMEs to adequately adopt disruptive technologies of the 4IR, more women owned SMMEs need to enter the formal economy, and vocational training targeted at business skills must be promoted amongst all SMME owners. Eastern African SMMEs were found to be more likely to adopt mobile money compared to other African regions. The finding demonstrates the need for more African countries (particularly outside of the Eastern African region) to encourage innovation by addressing the four enablers of mobile connectivity (i.e. infrastructure, affordability, consumer readiness, and mobile services) which will in effect lead to economic growth and development. The study shows that to address country/regional differences, in addition to building the required infrastructure in terms of mobile internet connectivity, countries should increase the local relevancy of disruptive technologies between SMMEs. To achieve this the study suggests increasing mobile social media penetration rates. This is because when social media is used as a tool for business advice SMME owners are more likely to adopt a disruptive technology (as is the case with mobile money) due to the social influence of social media. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
- Authors: Tarr, Dillon
- Date: 2022-10-14
- Subjects: Disruptive technologies , Mobile commerce , Industry 4.0 , Small business Africa, Sub-Saharan , Diffusion of innovations Africa, Sub-Saharan , Technological innovations Management
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357709 , vital:64770
- Description: The Fourth Industrial Revolution (4IR) is set to disrupt existing economic and social structures through the use of cyber-physical systems that result from a fusion of the digital, biological, and physical spheres. The fifth and current long wave of innovation is going through such a digital revolution in the ongoing deployment period which is being driven by the generalpurpose technologies of Artificial Intelligence and the Internet of Things, among other cyberphysical systems. The impact of mobile money in the access of financial services has shown how disruptive incremental innovations in mobile and digital technologies can be. The transformational power of mobile money in financial access is due to its use as an accessible financial tool that utilizes mobile devices to send and/or receive money over great distances. With the 4IR looming, this thesis determines the factors that enable and constrain the adoption of a disruptive technology amongst Sub-Saharan African small, micro, and medium enterprises (SMMEs). Therefore, due to its impact on financial inclusion and the formalization of SMMEs, mobile money is used as an indicator for the adoption of 4IR disruptive digital technologies. The adoption of mobile money was evaluated using secondary data from a survey conducted by Research ICT Africa, which surveyed 4408 SMMEs in nine African countries. The Diffusion of Innovations (DOI) model and the Unified Theory of Acceptance and Use of Technology (UTAUT) model were used to identify the factors enabling and constraining the adoption of a disruptive technology, in this case mobile money. Factors included gender, vocational training, business skills training, tertiary education, services, performance expectancy, social media, location, and nine African countries (Kenya, Mozambique, Ghana, Nigeria, Rwanda, South Africa, Tanzania, Uganda, and Senegal). The factors were grouped into owner characteristics, firm attributes and country attributes. SMME owners with business skills (49%) showed the highest level of adoption in terms of owner characteristics, Kenyan SMMEs (21%) had the highest adoption between the countries surveyed, and social media (62%) showed the highest adoption in terms of firm attributes followed by the formal variable (47%). In general, only 29% of SMMEs surveyed adopted mobile money. The study found that women SMME owners were more likely to be affected by business formality when adopting a disruptive technology compared to male owned SMMEs. This is because informality often exacerbates other barriers/challenges women face such as lower access to finance, lower ability to exercise property, business, and labour rights, and lower visibility. The results also demonstrate that vocational training is more important than general tertiary education for the ii adoption of a disruptive technology such as mobile money. Furthermore, when using social media as a tool for business advice SMME owners were more likely to adopt the disruptive technology. The study suggests that to encourage African SMMEs to adequately adopt disruptive technologies of the 4IR, more women owned SMMEs need to enter the formal economy, and vocational training targeted at business skills must be promoted amongst all SMME owners. Eastern African SMMEs were found to be more likely to adopt mobile money compared to other African regions. The finding demonstrates the need for more African countries (particularly outside of the Eastern African region) to encourage innovation by addressing the four enablers of mobile connectivity (i.e. infrastructure, affordability, consumer readiness, and mobile services) which will in effect lead to economic growth and development. The study shows that to address country/regional differences, in addition to building the required infrastructure in terms of mobile internet connectivity, countries should increase the local relevancy of disruptive technologies between SMMEs. To achieve this the study suggests increasing mobile social media penetration rates. This is because when social media is used as a tool for business advice SMME owners are more likely to adopt a disruptive technology (as is the case with mobile money) due to the social influence of social media. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
High road or common neoliberal trajectory? Collective bargaining, wage share, and varieties of capitalism
- Mpuku, Mutale Natasha Muchule
- Authors: Mpuku, Mutale Natasha Muchule
- Date: 2022-10-14
- Subjects: Collective bargaining , Globalization , Labor union members , Wages Statistics , Income distribution , Economic development , Neoliberalism , Capitalism
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357611 , vital:64760
- Description: Wage shares have been falling since the 1980s across developing and developed countries. There has also been a downward trend with labour market institutions in these countries, with a few exceptions. This thesis analyzes these trends using firstly an extended literature review and secondly an econometrics analysis of a panel of 36 countries over 39 years. The extended literature review identified two broad competing narratives surrounding this topic: the mainstream and the alternative growth narratives. They both focus on two different growth regimes, the former, posits that growth is profit-led and the latter that growth is wage-led. Both are not ‘zero sum’ processes and seem to offer the same end result (growth and development). However, profit-led growth seems to have two problems. First, at least in the medium run, there is a trade-off between growth and income distribution. And secondly, profit-led growth is contradictory at the global level. Wage-led growth, which offers a ‘high road’ approach, seems far more appealing. Furthermore, several authors, including in South Africa, have claimed that regime-switching (to wage-led growth), is possible, and it seems that labour market institutions may play an important role in facilitating such a switch. However, the empirical literature, especially regarding middle- and low-income countries, is sparse and inconclusive. The panel data analysis provided by this thesis was not conclusive in establishing whether the wage-led, high road path is still viable for countries like South Africa. However, it did not find strong evidence of the contrary. The thesis concluded that there is scope for further research in this field and makes certain suggestions in this regard. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
- Authors: Mpuku, Mutale Natasha Muchule
- Date: 2022-10-14
- Subjects: Collective bargaining , Globalization , Labor union members , Wages Statistics , Income distribution , Economic development , Neoliberalism , Capitalism
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357611 , vital:64760
- Description: Wage shares have been falling since the 1980s across developing and developed countries. There has also been a downward trend with labour market institutions in these countries, with a few exceptions. This thesis analyzes these trends using firstly an extended literature review and secondly an econometrics analysis of a panel of 36 countries over 39 years. The extended literature review identified two broad competing narratives surrounding this topic: the mainstream and the alternative growth narratives. They both focus on two different growth regimes, the former, posits that growth is profit-led and the latter that growth is wage-led. Both are not ‘zero sum’ processes and seem to offer the same end result (growth and development). However, profit-led growth seems to have two problems. First, at least in the medium run, there is a trade-off between growth and income distribution. And secondly, profit-led growth is contradictory at the global level. Wage-led growth, which offers a ‘high road’ approach, seems far more appealing. Furthermore, several authors, including in South Africa, have claimed that regime-switching (to wage-led growth), is possible, and it seems that labour market institutions may play an important role in facilitating such a switch. However, the empirical literature, especially regarding middle- and low-income countries, is sparse and inconclusive. The panel data analysis provided by this thesis was not conclusive in establishing whether the wage-led, high road path is still viable for countries like South Africa. However, it did not find strong evidence of the contrary. The thesis concluded that there is scope for further research in this field and makes certain suggestions in this regard. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
Igniting a revolution at point zero? Exploring the barriers to early learning access in South Africa and the possibility of the social economy : a comparative analysis and study of Smartstart
- Authors: McCann, Claire Mary
- Date: 2022-10-14
- Subjects: Early childhood education South Africa , Social economy South Africa , Smart Start , Education and state South Africa , Social democracy , Dual economy South Africa , South Africa Economic conditions 1991-
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/403080 , vital:69920
- Description: Economic theory suggests that the greatest return to education investment is in the earliest years; early learning and childcare may enhance skill accumulation and mothers’ labour market choices. These services may be catalytic, igniting a revolution at point zero that transforms family outcomes and aids development. In South Africa, however, early learning deficits persist. This thesis explores barriers to quality early learning access and the possibility social economy initiatives offer, focusing on social franchises like SmartStart. Document analysis, comparative analysis, and interviews with SmartStart leaders suggest two key barriers. Firstly, where private firms are dominant and ability to pay for services is limited, low-income areas are under-served. For this reason, Polanyi claims that markets should be embedded in institutions. A post-Polanyian approach emphasises the role of social investment states, which focus spending on education and where social protection scaffolds markets, in this regard. The South African state seems to embrace this approach as ECD policy frames early learning as a public good and social investment. However, a second barrier is that an insulated state enables technocratic over democratic embeddedness, with powerful rights-based discourse but poor implementation. In particular, it seems that the state lacks a framework to progressively realise the right to quality early learning. Attempts to enforce high standards are not accompanied by sufficient resources, capacity or collaboration, resulting in sub-standard services and barriers to entry. Even in better resourced contexts (e.g., Basic Education), top-down, technocratic models (re)produce failing systems, where those with means exit in favour of market alternatives. An exploration of other developing countries suggests that this failure, with variations, prevails, but also that possibility exists. In these contexts, states seem more coordinated and responsive when partnering with civil society. In South Africa, the SmartStart model is based on partnership. SmartStart frames itself as a delivery platform, building relationships with local NGOs to simultaneously scale and deepen early learning. Partnerships with communities are crucial, to build demand in a sector whose association with social reproduction means that its economic significance may be overlooked. In addition, SmartStart puts forward a child-centred approach based on a prefigurative vision but also responsive to the realities of under-resourced contexts, aiming to progressively realise rights. Though with some limitations, SmartStart’s least-cost innovation for scale provides lessons for the state. As the state’s ECD mandate shifts to Basic Education, these findings serve to inform a more effective implementation model, leveraging resources that already exist. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
- Authors: McCann, Claire Mary
- Date: 2022-10-14
- Subjects: Early childhood education South Africa , Social economy South Africa , Smart Start , Education and state South Africa , Social democracy , Dual economy South Africa , South Africa Economic conditions 1991-
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/403080 , vital:69920
- Description: Economic theory suggests that the greatest return to education investment is in the earliest years; early learning and childcare may enhance skill accumulation and mothers’ labour market choices. These services may be catalytic, igniting a revolution at point zero that transforms family outcomes and aids development. In South Africa, however, early learning deficits persist. This thesis explores barriers to quality early learning access and the possibility social economy initiatives offer, focusing on social franchises like SmartStart. Document analysis, comparative analysis, and interviews with SmartStart leaders suggest two key barriers. Firstly, where private firms are dominant and ability to pay for services is limited, low-income areas are under-served. For this reason, Polanyi claims that markets should be embedded in institutions. A post-Polanyian approach emphasises the role of social investment states, which focus spending on education and where social protection scaffolds markets, in this regard. The South African state seems to embrace this approach as ECD policy frames early learning as a public good and social investment. However, a second barrier is that an insulated state enables technocratic over democratic embeddedness, with powerful rights-based discourse but poor implementation. In particular, it seems that the state lacks a framework to progressively realise the right to quality early learning. Attempts to enforce high standards are not accompanied by sufficient resources, capacity or collaboration, resulting in sub-standard services and barriers to entry. Even in better resourced contexts (e.g., Basic Education), top-down, technocratic models (re)produce failing systems, where those with means exit in favour of market alternatives. An exploration of other developing countries suggests that this failure, with variations, prevails, but also that possibility exists. In these contexts, states seem more coordinated and responsive when partnering with civil society. In South Africa, the SmartStart model is based on partnership. SmartStart frames itself as a delivery platform, building relationships with local NGOs to simultaneously scale and deepen early learning. Partnerships with communities are crucial, to build demand in a sector whose association with social reproduction means that its economic significance may be overlooked. In addition, SmartStart puts forward a child-centred approach based on a prefigurative vision but also responsive to the realities of under-resourced contexts, aiming to progressively realise rights. Though with some limitations, SmartStart’s least-cost innovation for scale provides lessons for the state. As the state’s ECD mandate shifts to Basic Education, these findings serve to inform a more effective implementation model, leveraging resources that already exist. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
Rural households’ perceptions of an invasive alien species rosa rubiginosa l. (rosehip) and the role it plays in rural livelihoods in Lesotho
- Authors: Makhorole, Thato Violet
- Date: 2022-10-14
- Subjects: Rose hips Lesotho , Invasive plants Lesotho , Rural poor Lesotho , Probit model , Principal components analysis
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/403069 , vital:69919
- Description: Despite the vast research on the negative impacts of invasive alien species on the environment, these species remain part of the rural communities due to their numerous livelihood uses. Thus, more research is required, focusing mainly on the impacts of invasive alien species on the livelihoods of rural communities. This study investigated the community perceptions of rosehip (Rosa rubiginosa) and its contribution to rural communities as an invasive alien species. Four community councils, Pitseng, Matlameng, Limamarela and Mphorosane in the Leribe District Lesotho, were assessed. The study followed the pragmatism paradigm. The contribution of rosehip to rural livelihoods was analysed by comparing income from rosehip with other income sources. The study used simple random sampling and snowball sampling to select a representative of 160 respondents. The primary data was collected using semi-structured questionnaires. Moreover, SPSS and Stata statistical package programs were used for statistical analyses. The results showed that rosehip's livelihood benefits, its negative impacts, the length of time it has been available in the area, and its abundance highly influence the social, economic and environmental perception of rural communities. Furthermore, the study revealed that although the income from rosehip is extremely low and available for only three months of the year, the income plays an important part to the poorer households who have no other income sources. The study found that the main reason for engagement in rosehip harvesting despite its challenging nature was unemployment. The study also revealed that rosehip is part of the risk-reducing strategy or income diversification. Some households used it to complement other sources of income, such as agricultural production. Rosehip trade, if well-controlled, has the potential to alleviate rural poverty by creating job opportunities, providing a source of household income, and acting as a safety net in the face of shocks such as limited job opportunities and food shortages. In conclusion, households’ perceptions of rosehip have proven that rosehip is a valuable resource that provides a supplementary income that contributes towards alleviating poverty in Lesotho’s rural communities. The study recommends the private sector to establish and manages small agro-processing industries focusing on products used daily. The study also encourages environmental education and indigenous knowledge among community members, which would include knowledge and recognition of invasive alien species and their potential benefits and threats. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
- Authors: Makhorole, Thato Violet
- Date: 2022-10-14
- Subjects: Rose hips Lesotho , Invasive plants Lesotho , Rural poor Lesotho , Probit model , Principal components analysis
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/403069 , vital:69919
- Description: Despite the vast research on the negative impacts of invasive alien species on the environment, these species remain part of the rural communities due to their numerous livelihood uses. Thus, more research is required, focusing mainly on the impacts of invasive alien species on the livelihoods of rural communities. This study investigated the community perceptions of rosehip (Rosa rubiginosa) and its contribution to rural communities as an invasive alien species. Four community councils, Pitseng, Matlameng, Limamarela and Mphorosane in the Leribe District Lesotho, were assessed. The study followed the pragmatism paradigm. The contribution of rosehip to rural livelihoods was analysed by comparing income from rosehip with other income sources. The study used simple random sampling and snowball sampling to select a representative of 160 respondents. The primary data was collected using semi-structured questionnaires. Moreover, SPSS and Stata statistical package programs were used for statistical analyses. The results showed that rosehip's livelihood benefits, its negative impacts, the length of time it has been available in the area, and its abundance highly influence the social, economic and environmental perception of rural communities. Furthermore, the study revealed that although the income from rosehip is extremely low and available for only three months of the year, the income plays an important part to the poorer households who have no other income sources. The study found that the main reason for engagement in rosehip harvesting despite its challenging nature was unemployment. The study also revealed that rosehip is part of the risk-reducing strategy or income diversification. Some households used it to complement other sources of income, such as agricultural production. Rosehip trade, if well-controlled, has the potential to alleviate rural poverty by creating job opportunities, providing a source of household income, and acting as a safety net in the face of shocks such as limited job opportunities and food shortages. In conclusion, households’ perceptions of rosehip have proven that rosehip is a valuable resource that provides a supplementary income that contributes towards alleviating poverty in Lesotho’s rural communities. The study recommends the private sector to establish and manages small agro-processing industries focusing on products used daily. The study also encourages environmental education and indigenous knowledge among community members, which would include knowledge and recognition of invasive alien species and their potential benefits and threats. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
The relationship between economic growth and taxation: an empirical study on optimal taxation in sub-Saharan Africa
- Authors: Kent, Bradley Athol
- Date: 2022-10-14
- Subjects: Taxation Africa, Sub-Saharan , Optimal tax , Economic development Africa, Sub-Saharan , Tax collection Africa, Sub-Saharan
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/403058 , vital:69918
- Description: The relationship between economic growth and taxation is a complex and highly debated issue, this thesis investigates whether a significant relationship can be identified, and whether it is the level that truly matters for fiscal policies aimed at being growth enhancing. Further investigation examines this relationship, in addition to testing whether there is a threshold below which tax collection may be considered ‘growth-enhancing’, and above which is negative for economic growth, and if such a threshold exists, to identify the manner in which taxation negatively impacts economic growth. The study makes use of a panel data approach to autoregressive distributed lag modelling and a generalised least squares regression. The study focuses on a panel data sample for seven (7) countries within Sub-Saharan Africa (SSA) between 1997 – 2017. It found that total tax revenue held a positive and significant relationship with economic growth at the SSA level, whilst at the individual tax level; PAYE and property taxes were found to have a negative influence on growth, with no other fiscal variables significantly influencing growth in the long run in SSA test. Whereas, when analysing at the country-specific level it was found PAYE was only significantly influencing growth in South Africa, where the relationship was found to be negative. Corporate tax revealed a similar significant negative relationship in Swaziland and Cameroon. In addition, property taxes revealed a significant and negative relationship in South Africa, yet in Rwanda the influence was positive. Overall, the study found that there is significant relationship between economic growth and taxation in the SSA context. However, when analysing the countries in isolation, no such relationship was found. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
- Authors: Kent, Bradley Athol
- Date: 2022-10-14
- Subjects: Taxation Africa, Sub-Saharan , Optimal tax , Economic development Africa, Sub-Saharan , Tax collection Africa, Sub-Saharan
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/403058 , vital:69918
- Description: The relationship between economic growth and taxation is a complex and highly debated issue, this thesis investigates whether a significant relationship can be identified, and whether it is the level that truly matters for fiscal policies aimed at being growth enhancing. Further investigation examines this relationship, in addition to testing whether there is a threshold below which tax collection may be considered ‘growth-enhancing’, and above which is negative for economic growth, and if such a threshold exists, to identify the manner in which taxation negatively impacts economic growth. The study makes use of a panel data approach to autoregressive distributed lag modelling and a generalised least squares regression. The study focuses on a panel data sample for seven (7) countries within Sub-Saharan Africa (SSA) between 1997 – 2017. It found that total tax revenue held a positive and significant relationship with economic growth at the SSA level, whilst at the individual tax level; PAYE and property taxes were found to have a negative influence on growth, with no other fiscal variables significantly influencing growth in the long run in SSA test. Whereas, when analysing at the country-specific level it was found PAYE was only significantly influencing growth in South Africa, where the relationship was found to be negative. Corporate tax revealed a similar significant negative relationship in Swaziland and Cameroon. In addition, property taxes revealed a significant and negative relationship in South Africa, yet in Rwanda the influence was positive. Overall, the study found that there is significant relationship between economic growth and taxation in the SSA context. However, when analysing the countries in isolation, no such relationship was found. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
The trade and poverty nexus in South Africa: investigating the transmission mechanism and the associated challenges
- Authors: Bhebhe, Nonceba Fikile
- Date: 2022-10-14
- Subjects: Commerce , Free trade , International trade , Poverty South Africa , Poverty Prevention , South Africa Economic conditions 1991-
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357515 , vital:64750
- Description: International trade plays an essential role in economic development strategies. In literature, foreign trade is identified as a driver of economic growth. In recent times there has been an expansion in the scope of investigations around the role of international trade to include its links with poverty alleviation. Poverty alleviation is explicitly identified as the first goal on the 2030 agenda for sustainable development under the Sustainable Development Goals and implicitly defined in goal 10. International trade is seen as the engine behind achieving the goal. South Africa records excessive poverty and inequality levels by international standards for a middle-income country. The most recent Poverty Trends Report for 2006 - 2015 reports 55.5% of the population living in poverty. Inequality statistics reported a per capita expenditure Gini coefficient of 0.65 in 2015, evidence that the country has high levels of inequality. The country's severe poverty, unemployment, and inequality prompt policymakers to formulate developmental policies around the underlying structural challenges. Trade openness has increased since the end of the Apartheid era. Despite the increased trade openness, economic growth has been insufficient in reducing the high unemployment and poverty levels, presenting a challenge for economists, who argue that trade openness is pro-growth and pro-poor. In the South African case, the lack of change in the structural challenges of poverty, unemployment and inequality has raised concerns over whether the trade policy reforms made since 1994 interfere with development objectives. This study aims to investigate the impact of trade liberalisation on poverty, using the three channels, namely enterprise, distribution, and government that have been researched within the McCulloch, Winters and Cirera framework. Specifically, it investigates the linkages via the transmission mechanism in which trade affects poverty in South Africa by mapping the transmission mechanisms from trade liberalisation to poverty alleviation, whilst identifying the possible challenges to the transmission mechanisms and lastly, analysing the stylised facts around trade and poverty in South Africa. To answer the question of this study, quantitative data from National Income Dynamic Study (NIDS) was merged longitudinally and aggregated with the industry tariff data sourced from the World Trade Organisation (WTO) and United Nations Conference on Trade and Development (UNCTAD) statistics. A path analysis was undertaken to map the transmission mechanism, whilst descriptive statistics were used to identify the possible associated challenges. The results show that the most significant channel of transmission are the enterprise and distribution channel. However, the effects are of a small margin and a more comprehensive trade policy yield a higher margin of poverty alleviation. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
- Authors: Bhebhe, Nonceba Fikile
- Date: 2022-10-14
- Subjects: Commerce , Free trade , International trade , Poverty South Africa , Poverty Prevention , South Africa Economic conditions 1991-
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357515 , vital:64750
- Description: International trade plays an essential role in economic development strategies. In literature, foreign trade is identified as a driver of economic growth. In recent times there has been an expansion in the scope of investigations around the role of international trade to include its links with poverty alleviation. Poverty alleviation is explicitly identified as the first goal on the 2030 agenda for sustainable development under the Sustainable Development Goals and implicitly defined in goal 10. International trade is seen as the engine behind achieving the goal. South Africa records excessive poverty and inequality levels by international standards for a middle-income country. The most recent Poverty Trends Report for 2006 - 2015 reports 55.5% of the population living in poverty. Inequality statistics reported a per capita expenditure Gini coefficient of 0.65 in 2015, evidence that the country has high levels of inequality. The country's severe poverty, unemployment, and inequality prompt policymakers to formulate developmental policies around the underlying structural challenges. Trade openness has increased since the end of the Apartheid era. Despite the increased trade openness, economic growth has been insufficient in reducing the high unemployment and poverty levels, presenting a challenge for economists, who argue that trade openness is pro-growth and pro-poor. In the South African case, the lack of change in the structural challenges of poverty, unemployment and inequality has raised concerns over whether the trade policy reforms made since 1994 interfere with development objectives. This study aims to investigate the impact of trade liberalisation on poverty, using the three channels, namely enterprise, distribution, and government that have been researched within the McCulloch, Winters and Cirera framework. Specifically, it investigates the linkages via the transmission mechanism in which trade affects poverty in South Africa by mapping the transmission mechanisms from trade liberalisation to poverty alleviation, whilst identifying the possible challenges to the transmission mechanisms and lastly, analysing the stylised facts around trade and poverty in South Africa. To answer the question of this study, quantitative data from National Income Dynamic Study (NIDS) was merged longitudinally and aggregated with the industry tariff data sourced from the World Trade Organisation (WTO) and United Nations Conference on Trade and Development (UNCTAD) statistics. A path analysis was undertaken to map the transmission mechanism, whilst descriptive statistics were used to identify the possible associated challenges. The results show that the most significant channel of transmission are the enterprise and distribution channel. However, the effects are of a small margin and a more comprehensive trade policy yield a higher margin of poverty alleviation. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
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