Political competition and local government debt: implications for human development: A case study of Eastern Cape municipalities
- Authors: Matapuri, Fadzai Valerie
- Date: 2024-04-04
- Subjects: Local government South Africa Eastern Cape , Municipal finance South Africa Eastern Cape , Public administration South Africa Eastern Cape , Municipal services South Africa Eastern Cape , Electoral competition , Human development
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/435874 , vital:73208
- Description: South African Municipalities are currently in a precarious financial situation. The financial distress has intensified so much that local governments are on the brink of collapse. Municipalities in South Africa currently owe over 35.5 billion rands. Reports from the Auditor-General of South Africa portrayed a grim picture of the state of financial affairs in municipalities; only 33 municipalities out of 278 had received a clean audit, with over 30 billion rands in expenditure declared irregular. The report further revealed that there were numerous cases of non-compliance with key legislation in municipalities. The poor financial audits across the country have stressed the severe lack of accountability, government issues and political turmoil. Due to this state of affairs, municipalities cannot deliver services such as sanitation, electricity, and water. As a result, many service delivery protests have occurred over the years. Political factors have been highlighted as the leading cause of these local government woes. This study aims to investigate the relationship between political competition and local government debt and its effect on human development in Eastern Cape municipalities. The study used a panel data set for 32 municipalities and electoral data from 2009 to 2016. The panel vector autoregression model, generalized least squares, fixed and random effects methods were used to investigate the relationship between political competition and local government debt. The study found a positive unidirectional relationship between political competition and local debt. This was found using the normalized Herfindahl index, debt to asset, tress index, human development index, population and poverty variables. Moreover, estimated results showed that local governments in the eastern cape were characterised by a political monopoly that, in turn, increased local government debt through growth-hindering policies adopted by political leaders. Resulting in economic concentration, which hinders local economic growth and human development. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-04-04
- Authors: Matapuri, Fadzai Valerie
- Date: 2024-04-04
- Subjects: Local government South Africa Eastern Cape , Municipal finance South Africa Eastern Cape , Public administration South Africa Eastern Cape , Municipal services South Africa Eastern Cape , Electoral competition , Human development
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/435874 , vital:73208
- Description: South African Municipalities are currently in a precarious financial situation. The financial distress has intensified so much that local governments are on the brink of collapse. Municipalities in South Africa currently owe over 35.5 billion rands. Reports from the Auditor-General of South Africa portrayed a grim picture of the state of financial affairs in municipalities; only 33 municipalities out of 278 had received a clean audit, with over 30 billion rands in expenditure declared irregular. The report further revealed that there were numerous cases of non-compliance with key legislation in municipalities. The poor financial audits across the country have stressed the severe lack of accountability, government issues and political turmoil. Due to this state of affairs, municipalities cannot deliver services such as sanitation, electricity, and water. As a result, many service delivery protests have occurred over the years. Political factors have been highlighted as the leading cause of these local government woes. This study aims to investigate the relationship between political competition and local government debt and its effect on human development in Eastern Cape municipalities. The study used a panel data set for 32 municipalities and electoral data from 2009 to 2016. The panel vector autoregression model, generalized least squares, fixed and random effects methods were used to investigate the relationship between political competition and local government debt. The study found a positive unidirectional relationship between political competition and local debt. This was found using the normalized Herfindahl index, debt to asset, tress index, human development index, population and poverty variables. Moreover, estimated results showed that local governments in the eastern cape were characterised by a political monopoly that, in turn, increased local government debt through growth-hindering policies adopted by political leaders. Resulting in economic concentration, which hinders local economic growth and human development. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-04-04
Capital mobility and economic growth in South Africa
- Authors: Dhlamini, Nonceba Michelle
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/434712 , vital:73098
- Description: The South African current account balance has been deteriorating over the years. An investigation of the correlation between capital mobility and economic growth is of interest as South Africa is heavily reliant on capital inflows to finance the current account deficit. This research topic is of importance as there is need to devise policies that maximise the benefits the nation derives from capital mobility. The benefits that capital flows provide economies, theoretically outweigh the disadvantages, provided that capital flows are absorbed productively. The topic is also of interest in the light of the magnitude of shocks to the South African economy such as the rand crisis, dotcom bubble, stock market bubble, inflation targeting, commodity super cycle, global financial crisis, the Covid-19 pandemic and Russo-Ukrainian War, as these shocks have translated to slower economic growth and higher levels of inflation. These shocks have equally revealed that countries need to have sound macroeconomic policies in order to survive the impact of any crises. The vision 2030 secretariat has identified capital markets as the key providers of capital required for achieving social economic blueprint. The empirical evidence locally is limited in comparison to the empirical evidence from outside of South Africa. This topic is of importance as South African studies on this topic are not as recent and this study aims to bridge that gap. Data were obtained from the South African Reserve Bank Quarterly Bulletin and the World Bank database for the period 1990 to 2022. The Autoregressive Distribution Lag model was employed in order to determine the relationship. This study relied on the supply-leading theory which posits capital markets may positively or negatively affect key indicators of economic growth. The study found that there is a positive long run relationship between net capital flows, saving-investment ratio and economic growth and a negative long run relationship between the degree of trade openness and economic growth. The findings will allow opportunity to address capital flow surges and in turn boost investor confidence. Capital flow management measures can help manage destabilizing exchange rate movements and capital flows coupled with macroprudential tools helping reduce the domestic buildup of vulnerabilities. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-04-03
- Authors: Dhlamini, Nonceba Michelle
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/434712 , vital:73098
- Description: The South African current account balance has been deteriorating over the years. An investigation of the correlation between capital mobility and economic growth is of interest as South Africa is heavily reliant on capital inflows to finance the current account deficit. This research topic is of importance as there is need to devise policies that maximise the benefits the nation derives from capital mobility. The benefits that capital flows provide economies, theoretically outweigh the disadvantages, provided that capital flows are absorbed productively. The topic is also of interest in the light of the magnitude of shocks to the South African economy such as the rand crisis, dotcom bubble, stock market bubble, inflation targeting, commodity super cycle, global financial crisis, the Covid-19 pandemic and Russo-Ukrainian War, as these shocks have translated to slower economic growth and higher levels of inflation. These shocks have equally revealed that countries need to have sound macroeconomic policies in order to survive the impact of any crises. The vision 2030 secretariat has identified capital markets as the key providers of capital required for achieving social economic blueprint. The empirical evidence locally is limited in comparison to the empirical evidence from outside of South Africa. This topic is of importance as South African studies on this topic are not as recent and this study aims to bridge that gap. Data were obtained from the South African Reserve Bank Quarterly Bulletin and the World Bank database for the period 1990 to 2022. The Autoregressive Distribution Lag model was employed in order to determine the relationship. This study relied on the supply-leading theory which posits capital markets may positively or negatively affect key indicators of economic growth. The study found that there is a positive long run relationship between net capital flows, saving-investment ratio and economic growth and a negative long run relationship between the degree of trade openness and economic growth. The findings will allow opportunity to address capital flow surges and in turn boost investor confidence. Capital flow management measures can help manage destabilizing exchange rate movements and capital flows coupled with macroprudential tools helping reduce the domestic buildup of vulnerabilities. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-04-03
Effects of household debt on economic growth in South Africa
- Authors: Bwalya, Rachael Mulenga
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/434766 , vital:73103
- Description: South Africa’s household debt relative to GDP has risen rapidly over the past decade. There is concern that high levels of household debt may decrease spending in the future and hence in the long run slow down economic growth. Thus, this study investigates the impact of household debt on growth in South Africa from 1987Q3 to 2022Q1. The research draws upon first-generation theories which include the absolute income hypothesis, life cycle hypothesis, and permanent income hypothesis, and second-generation theories which include the neo-Kaleckian model, the Super multiplier model, and the Steindl model. The impact of this relationship is assessed using a Vector Autoregressive (VAR) model, with a Toda-Yamamoto modification for some regressions. It is discovered that household debt has a positive short-term influence on economic growth, however, the influence is weak, and it decreases in the long run. Types of household debt such as credit card debt have shown to have a positive and strong influence on economic growth in South Africa from the short run to the long run, however, mortgage debt has shown weak positive influence on economic growth from the short 105 run to the long run. The study found that the growth maximizing ratios for household debt to 106 GDP ratio is 70 percent. The growth maximising credit card debt level is ZAR 72 403, in nominal terms and for mortgage debt is ZAR 5 980 000. The findings are expected to assist policymakers such as central banks and government authorities in formulating relevant policies to ensure economic sustainability through macro-prudential policy and strategies for household debt management. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-04-03
- Authors: Bwalya, Rachael Mulenga
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/434766 , vital:73103
- Description: South Africa’s household debt relative to GDP has risen rapidly over the past decade. There is concern that high levels of household debt may decrease spending in the future and hence in the long run slow down economic growth. Thus, this study investigates the impact of household debt on growth in South Africa from 1987Q3 to 2022Q1. The research draws upon first-generation theories which include the absolute income hypothesis, life cycle hypothesis, and permanent income hypothesis, and second-generation theories which include the neo-Kaleckian model, the Super multiplier model, and the Steindl model. The impact of this relationship is assessed using a Vector Autoregressive (VAR) model, with a Toda-Yamamoto modification for some regressions. It is discovered that household debt has a positive short-term influence on economic growth, however, the influence is weak, and it decreases in the long run. Types of household debt such as credit card debt have shown to have a positive and strong influence on economic growth in South Africa from the short run to the long run, however, mortgage debt has shown weak positive influence on economic growth from the short 105 run to the long run. The study found that the growth maximizing ratios for household debt to 106 GDP ratio is 70 percent. The growth maximising credit card debt level is ZAR 72 403, in nominal terms and for mortgage debt is ZAR 5 980 000. The findings are expected to assist policymakers such as central banks and government authorities in formulating relevant policies to ensure economic sustainability through macro-prudential policy and strategies for household debt management. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-04-03
Electricity demand and supply in South Africa: is nuclear energy a feasible alternative to coal for baseload energy supply in South Africa?
- Authors: Maqanda, Vuyani
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Doctoral theses , text
- Identifier: http://hdl.handle.net/10962/434802 , vital:73106 , DOI 10.21504/10962/434802
- Description: Climate change mitigation has created pressure on the energy mix choices of all countries. Highly polluting energy sources are increasingly unpopular. Renewable energy options have emerged as preferred choices for the low-emissions transition. Proponents of nuclear power have promoted the technology as a low-emissions technology by focusing on the operational phase and ignoring the other polluting phases. South Africa generated about 83% of its electricity supply from coal in 2019 and was rated as the 12th most polluting country in the world. In addition to the high pollution levels, the ageing coal fleet suffered from poor maintenance that resulted in frequent power blackouts. One of the government’s energy plans from 2010 proposed the addition of 9 600 MW of nuclear capacity by 2030. However, this plan was not implemented. This study investigates why nuclear power historically never expanded beyond a single power facility in South Africa as well as the possible future role of nuclear power in alleviating South Africa’s current electricity supply constraints and emissions commitments in the period up to 2050. Qualitative analysis is used for this study with a focus on historical document analysis and interviews with energy experts. Two research methods, case studies, and expert opinions were used in this study with data sourced from policy documents, Statistics South Africa, the World Bank, and published articles from various platforms. The Hotelling model, focusing on the impact of price differentials on energy transitions, was used as a theoretical framework. The conclusion from applying the model was that nuclear power was more expensive than the other options even when internalisation of pollution externalities was considered and therefore nuclear power could not displace the cheaper alternatives like coal based on price factors alone. The Multi-Level Perspective, working through institutions, revealed that the institutional setting did not support a transition to nuclear energy. The lack of coordination of strategies derailed the transition. The comparative case study analysis of Germany, the UK, Australia, and India reaffirmed this as countries with better coordination succeeded in transitions. Energy experts offered differing views on the feasibility of nuclear power but many agreed that South Africa should focus on technologies it has better competencies in. , Thesis (PhD) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-04-03
- Authors: Maqanda, Vuyani
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Doctoral theses , text
- Identifier: http://hdl.handle.net/10962/434802 , vital:73106 , DOI 10.21504/10962/434802
- Description: Climate change mitigation has created pressure on the energy mix choices of all countries. Highly polluting energy sources are increasingly unpopular. Renewable energy options have emerged as preferred choices for the low-emissions transition. Proponents of nuclear power have promoted the technology as a low-emissions technology by focusing on the operational phase and ignoring the other polluting phases. South Africa generated about 83% of its electricity supply from coal in 2019 and was rated as the 12th most polluting country in the world. In addition to the high pollution levels, the ageing coal fleet suffered from poor maintenance that resulted in frequent power blackouts. One of the government’s energy plans from 2010 proposed the addition of 9 600 MW of nuclear capacity by 2030. However, this plan was not implemented. This study investigates why nuclear power historically never expanded beyond a single power facility in South Africa as well as the possible future role of nuclear power in alleviating South Africa’s current electricity supply constraints and emissions commitments in the period up to 2050. Qualitative analysis is used for this study with a focus on historical document analysis and interviews with energy experts. Two research methods, case studies, and expert opinions were used in this study with data sourced from policy documents, Statistics South Africa, the World Bank, and published articles from various platforms. The Hotelling model, focusing on the impact of price differentials on energy transitions, was used as a theoretical framework. The conclusion from applying the model was that nuclear power was more expensive than the other options even when internalisation of pollution externalities was considered and therefore nuclear power could not displace the cheaper alternatives like coal based on price factors alone. The Multi-Level Perspective, working through institutions, revealed that the institutional setting did not support a transition to nuclear energy. The lack of coordination of strategies derailed the transition. The comparative case study analysis of Germany, the UK, Australia, and India reaffirmed this as countries with better coordination succeeded in transitions. Energy experts offered differing views on the feasibility of nuclear power but many agreed that South Africa should focus on technologies it has better competencies in. , Thesis (PhD) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-04-03
The relationship between Environmental, Social, Governance (ESG) and Corporate Financial Performance (CFP)
- Authors: Bendeman, Justin John
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/434701 , vital:73097
- Description: Restricted access. Expected release date 2025. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-04-03
- Authors: Bendeman, Justin John
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/434701 , vital:73097
- Description: Restricted access. Expected release date 2025. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-04-03
Yield curve and business cycle dynamics in South Africa: new evidence from a Markov switching model
- Authors: Rotich, Mercyline Chepkemoi
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/434739 , vital:73101
- Description: Globally, several empirical studies have demonstrated the ability of the yield spread to predict a recession in a country. In South Africa, previous studies have not only shown the yield curve's predictive power but have further demonstrated that it outperforms other commonly used variables, such as the growth rate of real money supply, changes in stock prices, and the index of leading economic indicators. However, some recent studies have shown that the yield spread (the spread between 10-year bonds and 3-month Treasury bills) gave false signals of recession. In this study, we explore the possible reasons for the false signals of the yield spread by addressing the following questions. Does the yield spread used matter? Does the measure of the business cycle used matter? And do the estimation techniques used matter? To address the first question, unlike the previous studies, this paper uses four different yield spreads- depicting short-term, medium-term, and long-term government bonds against the backdrop of a changing structure of bond holding, which reflects the increasing risk eversion of investors in South Africa. Second, the paper used different measures of business cycles, namely industrial production index, lagging, coincident, and leading economic indicators. The empirical models were estimated using both univariate and multivariate Markov switching models. As economic theory suggests, the univariate Markov switching model was used to determine if each variable exhibits a significant regime switching. The multivariate Markov switching model was estimated for each business cycle and yield spread variable, with each of the other variables serving as a non-switching explanatory variable, thereby addressing potential endogeneity concerns and the predictive power of the explanatory variable. Finally, the multivariate Markov switching model was estimated for three monthly sample periods, a full sample for 1986 to 2022, and two sub-samples – 1986 to 2009 and 2010 to 2022. This analysis consistently reveals significant regime-switching behavior across all the series thus, affirming the superiority of the regime switching model over the standard model used in previous studies. By analyzing the transition probabilities and the expected durations between these regimes, we find that including the spreads in the business cycle model improves the models’ predictability, with the medium-term bonds spread performing better than the usual long-term spread. The smoothed regime probability of the best-performing models is compared with the SARB recession dates; the two closely resemble each other, proving that the Markov switching model can help predict the turning points in the business cycle in South Africa. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-04-03
- Authors: Rotich, Mercyline Chepkemoi
- Date: 2024-04-03
- Subjects: Uncatalogued
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/434739 , vital:73101
- Description: Globally, several empirical studies have demonstrated the ability of the yield spread to predict a recession in a country. In South Africa, previous studies have not only shown the yield curve's predictive power but have further demonstrated that it outperforms other commonly used variables, such as the growth rate of real money supply, changes in stock prices, and the index of leading economic indicators. However, some recent studies have shown that the yield spread (the spread between 10-year bonds and 3-month Treasury bills) gave false signals of recession. In this study, we explore the possible reasons for the false signals of the yield spread by addressing the following questions. Does the yield spread used matter? Does the measure of the business cycle used matter? And do the estimation techniques used matter? To address the first question, unlike the previous studies, this paper uses four different yield spreads- depicting short-term, medium-term, and long-term government bonds against the backdrop of a changing structure of bond holding, which reflects the increasing risk eversion of investors in South Africa. Second, the paper used different measures of business cycles, namely industrial production index, lagging, coincident, and leading economic indicators. The empirical models were estimated using both univariate and multivariate Markov switching models. As economic theory suggests, the univariate Markov switching model was used to determine if each variable exhibits a significant regime switching. The multivariate Markov switching model was estimated for each business cycle and yield spread variable, with each of the other variables serving as a non-switching explanatory variable, thereby addressing potential endogeneity concerns and the predictive power of the explanatory variable. Finally, the multivariate Markov switching model was estimated for three monthly sample periods, a full sample for 1986 to 2022, and two sub-samples – 1986 to 2009 and 2010 to 2022. This analysis consistently reveals significant regime-switching behavior across all the series thus, affirming the superiority of the regime switching model over the standard model used in previous studies. By analyzing the transition probabilities and the expected durations between these regimes, we find that including the spreads in the business cycle model improves the models’ predictability, with the medium-term bonds spread performing better than the usual long-term spread. The smoothed regime probability of the best-performing models is compared with the SARB recession dates; the two closely resemble each other, proving that the Markov switching model can help predict the turning points in the business cycle in South Africa. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-04-03
Developing a socio-economic framework for assessing the effectiveness of Expanded Public Works Programmes (EPWP): The case of the Prosopis mesquite Working for Water clearing project in the Northern Cape Province, South Africa
- Authors: Ntsonge, Sinazo
- Date: 2023-10-13
- Subjects: Public works South Africa Northern Cape Evaluation , Mesquite , South Africa. Expanded Public Works Programme , Working for Water Programme , Project management Case studies , Livelihood
- Language: English
- Type: Academic theses , Doctoral theses , text
- Identifier: http://hdl.handle.net/10962/419219 , vital:71626 , DOI 10.21504/10962/419219
- Description: The EPWP functions as a bridge between unemployment and entry into the labour market by providing work readiness skills training to its beneficiaries who receive below-market rate stipends for the short- term duration of their participation. The EPWP combines service delivery issues with social development objectives by promoting intensive manual labour in its projects. As a social protection strategy, public works programmes cater to those who do not meet the criteria to receive government social grants. As one of the programmes under the EPWP dealing with the control and eradication of invasive alien plants, the Working for Water (WfW) programme also uses intensive manual labour methods for clearing alien plant species. Although the clearing successes of WfW are well documented, the programme has focused little attention to the longer-term livelihood impacts of the temporary work and skills training provided to beneficiaries. This study suggests this could be due to a lack of the appropriate indicators to measure these outcomes. Therefore, an evaluation framework for environmental public works projects is proposed, which consists of outcome indicators to track the livelihood impact of the work experience and skills training on the beneficiaries post-participation, since the aim of these EPWP interventions is to improve beneficiaries’ labour market outcomes. The Northern Cape province’s Prosopis mesquite clearing project was used as the case study to develop and test the evaluation framework. The outcome indicators were informed by the key stakeholders’ interviews and the beneficiaries’ survey, specifically since the beneficiaries were well placed to give feedback on the benefits of the work experience and training post-participation. The combined strengths of the Sustainable Livelihoods Approach and the Capability Approach were useful for formulating the outcomes indicators, while the indicators for the inputs, activities and outputs were formulated from the key stakeholder interviews and online EPWP reports. A mixed methods approach was used and primary data were collected through key stakeholder interviews with the Prosopis mesquite clearing project managers and an online survey with some of the beneficiaries. Online EPWP reports and records obtained from WfW were used as secondary data. Data analysis used RStudio, Microsoft Excel and GraphPad Prism. The data analysis and evaluation framework indicators constituted the results section and aimed to highlight the factors that managers should focus on to achieve the desired livelihood outcomes. The proposed outcome indicators can be used to gauge the effectiveness of environmental public works’ social development interventions. The results revealed that the project budget fluctuations resulted in the Working for Water managers adopting a myopic view in administering the workdays and skills training, which diminished the livelihood impact of the Prosopis mesquite clearing project to merely a ‘make work’ project with no observable longer-term livelihood benefits. The selection input indicators and their utilisation during project activities needs to be better aligned with the desired longer-term livelihood outcomes that these environmental public works projects seek to achieve, mainly that of preparing beneficiaries for jobs in the labour market. , Thesis (PhD) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-10-13
- Authors: Ntsonge, Sinazo
- Date: 2023-10-13
- Subjects: Public works South Africa Northern Cape Evaluation , Mesquite , South Africa. Expanded Public Works Programme , Working for Water Programme , Project management Case studies , Livelihood
- Language: English
- Type: Academic theses , Doctoral theses , text
- Identifier: http://hdl.handle.net/10962/419219 , vital:71626 , DOI 10.21504/10962/419219
- Description: The EPWP functions as a bridge between unemployment and entry into the labour market by providing work readiness skills training to its beneficiaries who receive below-market rate stipends for the short- term duration of their participation. The EPWP combines service delivery issues with social development objectives by promoting intensive manual labour in its projects. As a social protection strategy, public works programmes cater to those who do not meet the criteria to receive government social grants. As one of the programmes under the EPWP dealing with the control and eradication of invasive alien plants, the Working for Water (WfW) programme also uses intensive manual labour methods for clearing alien plant species. Although the clearing successes of WfW are well documented, the programme has focused little attention to the longer-term livelihood impacts of the temporary work and skills training provided to beneficiaries. This study suggests this could be due to a lack of the appropriate indicators to measure these outcomes. Therefore, an evaluation framework for environmental public works projects is proposed, which consists of outcome indicators to track the livelihood impact of the work experience and skills training on the beneficiaries post-participation, since the aim of these EPWP interventions is to improve beneficiaries’ labour market outcomes. The Northern Cape province’s Prosopis mesquite clearing project was used as the case study to develop and test the evaluation framework. The outcome indicators were informed by the key stakeholders’ interviews and the beneficiaries’ survey, specifically since the beneficiaries were well placed to give feedback on the benefits of the work experience and training post-participation. The combined strengths of the Sustainable Livelihoods Approach and the Capability Approach were useful for formulating the outcomes indicators, while the indicators for the inputs, activities and outputs were formulated from the key stakeholder interviews and online EPWP reports. A mixed methods approach was used and primary data were collected through key stakeholder interviews with the Prosopis mesquite clearing project managers and an online survey with some of the beneficiaries. Online EPWP reports and records obtained from WfW were used as secondary data. Data analysis used RStudio, Microsoft Excel and GraphPad Prism. The data analysis and evaluation framework indicators constituted the results section and aimed to highlight the factors that managers should focus on to achieve the desired livelihood outcomes. The proposed outcome indicators can be used to gauge the effectiveness of environmental public works’ social development interventions. The results revealed that the project budget fluctuations resulted in the Working for Water managers adopting a myopic view in administering the workdays and skills training, which diminished the livelihood impact of the Prosopis mesquite clearing project to merely a ‘make work’ project with no observable longer-term livelihood benefits. The selection input indicators and their utilisation during project activities needs to be better aligned with the desired longer-term livelihood outcomes that these environmental public works projects seek to achieve, mainly that of preparing beneficiaries for jobs in the labour market. , Thesis (PhD) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-10-13
Examining the expenditures and retention of money of recreational fishing along the Wild Coast, South Africa
- Authors: Pyle, Michael Jonathan
- Date: 2023-10-13
- Subjects: Ecotourism South Africa , Sustainable fisheries South Africa , Wild Coast Region , Small-scale fisheries Economic aspects South Africa , Socioeconomic development , Leakage
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419673 , vital:71665
- Description: Developing countries and rural communities rely heavily on the ocean for food, transport, and the sustainability of their livelihoods. While the economics of small-scale fisheries in rural areas have received much attention, there is generally less information on the economic contributions from recreational fisheries in these areas. South Africa’s marine recreational fishery is large and contributes to a significant amount of economic activity. However, the retention of money from recreational fishing activities in local rural economies is unknown and thus the potential developmental benefits from this sector remain unquantified. This study examined the economic contributions from recreational fishing along the Wild Coast and retention of expenditures within the local economy. A total of 109 face-to-face economic surveys were administered during the peak recreational fishing season in December 2021. Based on the results, recreational fishing in the Wild Coast has the ability to generate R 415 446 098 in economic activity annually, however only 9.5% of this is retained within local coastal economies, which diminishes the economic contributions of the fishery to the Wild Coast region. Expenditures on items stemming from the informal collection and selling of bait and seafood, domestic work and guiding were the highest locally retained expenditures within the region. 98% of all bait and seafood was harvested and sold by local gillies, with 2% being bought through hotels (n=109). The total direct economic contribution in terms of informal harvesting was estimated at R 16 077 711 for 2021 (n= 9 601). The identification of these contributions can be used to provide recommendations for local economic development strategies which can support the recreational fishery while uplifting coastal communities that should be benefitting more from the activity. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-10-13
- Authors: Pyle, Michael Jonathan
- Date: 2023-10-13
- Subjects: Ecotourism South Africa , Sustainable fisheries South Africa , Wild Coast Region , Small-scale fisheries Economic aspects South Africa , Socioeconomic development , Leakage
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419673 , vital:71665
- Description: Developing countries and rural communities rely heavily on the ocean for food, transport, and the sustainability of their livelihoods. While the economics of small-scale fisheries in rural areas have received much attention, there is generally less information on the economic contributions from recreational fisheries in these areas. South Africa’s marine recreational fishery is large and contributes to a significant amount of economic activity. However, the retention of money from recreational fishing activities in local rural economies is unknown and thus the potential developmental benefits from this sector remain unquantified. This study examined the economic contributions from recreational fishing along the Wild Coast and retention of expenditures within the local economy. A total of 109 face-to-face economic surveys were administered during the peak recreational fishing season in December 2021. Based on the results, recreational fishing in the Wild Coast has the ability to generate R 415 446 098 in economic activity annually, however only 9.5% of this is retained within local coastal economies, which diminishes the economic contributions of the fishery to the Wild Coast region. Expenditures on items stemming from the informal collection and selling of bait and seafood, domestic work and guiding were the highest locally retained expenditures within the region. 98% of all bait and seafood was harvested and sold by local gillies, with 2% being bought through hotels (n=109). The total direct economic contribution in terms of informal harvesting was estimated at R 16 077 711 for 2021 (n= 9 601). The identification of these contributions can be used to provide recommendations for local economic development strategies which can support the recreational fishery while uplifting coastal communities that should be benefitting more from the activity. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-10-13
Liquidity shocks and capital market efficiency in South Africa
- Matapuri, Dexter Tinotenda Kushinga
- Authors: Matapuri, Dexter Tinotenda Kushinga
- Date: 2023-10-13
- Subjects: Liquidity (Economics) , Stock exchanges South Africa , Insolvency , Securities South Africa , Capital market South Africa , Investments, Foreign
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419610 , vital:71659
- Description: Financial markets are dynamic in nature. As such, one way to keep up with their plethora of variables is to conduct research and seek understanding on how they all work together. Understanding financial market mechanics is the key to achieving and maintaining efficient capital markets. The goal of many economies is to have efficient capital markets mainly because they entail economic growth. One of the common avenues here being foreign direct investments. Therefore, over the years, a lot of financial economics research has been conducted on how best to attain financial market development which ultimately yields capital market efficiency. The opposite is also true. This research therefore set out to study the impact of liquidity shocks on capital market efficiency, more specifically stock market efficiency. As such, the overarching research goal was to determine the link between liquidity shocks and stock market efficiency in South Africa. Furthermore, the research also tested whether there is a homogenous impact exerted by liquidity shocks on the JSE Financial 15, JSE Industrial 25 and JSE Resource 20 indices. The arguments and thus conclusions of the research were constructed based on existing theories such as the Efficient Market hypothesis, Behavioural Finance and the Adaptive Market Hypothesis. Literature and existing empirical evidence related to the topic were also analysed and used for the same purpose. Econometric methods used to achieve these research goals include the time series and panel ARDL, impulse response and variance decomposition tests and the Granger Causality tests. The research found that liquidity shocks do impact stock market efficiency in South Africa in both the short run and long run. The direction of the impact was noted to vary with time and dependent on the liquidity shock proxy. Key findings here were that liquidity shocks lower JSE All-Share index efficiency in the short run thus allowing market participants to beat the market in the initial phases of a liquidity shock. Adding on, it was also found that illiquidity shocks lower efficiency for the JSE Financial 15 and Industrial 25 indices in the short run. In the long run, stock market efficiency is enhanced no matter the source of the shock. As such, the research recommended that regulatory policies should focus on liquidity shocks in the short run for the JSE All-Share index and on illiquidity shocks in the short run for the Financial 15 and Industrial 25 indices. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-10-13
- Authors: Matapuri, Dexter Tinotenda Kushinga
- Date: 2023-10-13
- Subjects: Liquidity (Economics) , Stock exchanges South Africa , Insolvency , Securities South Africa , Capital market South Africa , Investments, Foreign
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419610 , vital:71659
- Description: Financial markets are dynamic in nature. As such, one way to keep up with their plethora of variables is to conduct research and seek understanding on how they all work together. Understanding financial market mechanics is the key to achieving and maintaining efficient capital markets. The goal of many economies is to have efficient capital markets mainly because they entail economic growth. One of the common avenues here being foreign direct investments. Therefore, over the years, a lot of financial economics research has been conducted on how best to attain financial market development which ultimately yields capital market efficiency. The opposite is also true. This research therefore set out to study the impact of liquidity shocks on capital market efficiency, more specifically stock market efficiency. As such, the overarching research goal was to determine the link between liquidity shocks and stock market efficiency in South Africa. Furthermore, the research also tested whether there is a homogenous impact exerted by liquidity shocks on the JSE Financial 15, JSE Industrial 25 and JSE Resource 20 indices. The arguments and thus conclusions of the research were constructed based on existing theories such as the Efficient Market hypothesis, Behavioural Finance and the Adaptive Market Hypothesis. Literature and existing empirical evidence related to the topic were also analysed and used for the same purpose. Econometric methods used to achieve these research goals include the time series and panel ARDL, impulse response and variance decomposition tests and the Granger Causality tests. The research found that liquidity shocks do impact stock market efficiency in South Africa in both the short run and long run. The direction of the impact was noted to vary with time and dependent on the liquidity shock proxy. Key findings here were that liquidity shocks lower JSE All-Share index efficiency in the short run thus allowing market participants to beat the market in the initial phases of a liquidity shock. Adding on, it was also found that illiquidity shocks lower efficiency for the JSE Financial 15 and Industrial 25 indices in the short run. In the long run, stock market efficiency is enhanced no matter the source of the shock. As such, the research recommended that regulatory policies should focus on liquidity shocks in the short run for the JSE All-Share index and on illiquidity shocks in the short run for the Financial 15 and Industrial 25 indices. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-10-13
The political economy of industrial policy in post-apartheid South Africa: a comparative case study analysis of Brazil and South Korea
- Modisaotsile, Botlhale Phurulla
- Authors: Modisaotsile, Botlhale Phurulla
- Date: 2023-10-13
- Subjects: Industrial policy South Africa , South Africa Economic conditions 1991- , Korea (South) Economic conditions , Brazil Economic conditions , Apartheid South Africa , Political economy , Deindustrialization
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419703 , vital:71668
- Description: South Africa is a country that has experienced premature deindustrialisation due to its inability to move out of middle-income status. The role of industrial policy in South Africa is pivotal to taking the country to greater economic heights and a higher-income status. South Africa’s historical context indicates that the country experienced its highest GDP growth rates during the apartheid economy. Since the demise of apartheid, the post-apartheid economy has experienced poverty and economic inequality that the South African government cannot eradicate. This thesis addresses the failure of South Africa to overcome premature deindustrialisation, and it discusses the state of the political economy and economic growth in a pre-apartheid and post-apartheid context. The thesis also addressed the significance of industrial policy through the establishment of the Industrial Policy Action Plan (IPAP). The shortcomings and successes of IPAP form a critical part of the research and present an analysis of different economic sectors. This thesis also assesses the state of industrial policy using two countries as case studies: Brazil and South Korea. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-10-13
- Authors: Modisaotsile, Botlhale Phurulla
- Date: 2023-10-13
- Subjects: Industrial policy South Africa , South Africa Economic conditions 1991- , Korea (South) Economic conditions , Brazil Economic conditions , Apartheid South Africa , Political economy , Deindustrialization
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419703 , vital:71668
- Description: South Africa is a country that has experienced premature deindustrialisation due to its inability to move out of middle-income status. The role of industrial policy in South Africa is pivotal to taking the country to greater economic heights and a higher-income status. South Africa’s historical context indicates that the country experienced its highest GDP growth rates during the apartheid economy. Since the demise of apartheid, the post-apartheid economy has experienced poverty and economic inequality that the South African government cannot eradicate. This thesis addresses the failure of South Africa to overcome premature deindustrialisation, and it discusses the state of the political economy and economic growth in a pre-apartheid and post-apartheid context. The thesis also addressed the significance of industrial policy through the establishment of the Industrial Policy Action Plan (IPAP). The shortcomings and successes of IPAP form a critical part of the research and present an analysis of different economic sectors. This thesis also assesses the state of industrial policy using two countries as case studies: Brazil and South Korea. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-10-13
The role of local level agency in a just green transition: the case of Rhodes University
- Authors: Nel, Vanray
- Date: 2023-10-13
- Subjects: Green economy , Just Transition , Clean energy South Africa Makhanda , Rhodes University , Triple bottom line , Sustainable development South Africa Makhanda
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419643 , vital:71662
- Description: The research uses a richly contextualised case study of Rhodes University to explore the role of local level agency in a just green transition. The central concept of the thesis is mainstreaming sustainability. Sustainability has become a core objective both at the macro and micro levels. The just green transition and triple bottom line are shorthand for these macro and micro concepts. At the macro level, there is increasing evidence suggesting that transitioning to a sustainable economy can be a key driver of economic development. At the micro level, the elements of the triple bottom line increasingly overlap, with sustainability no longer a separate goal, or a ‘nice to have’, but integral to organisational success. However, this potential is clearly not being realised, and sustainability often remains ‘niche’. Lack of progress at the macro-level reinforces the importance of bottom-up, local level agency. In keeping with the broader micro-level literature, the case study strongly suggests that mainstreaming sustainability would have multiple benefits. These include reducing dependence on unreliable state-provided services and enhancing Rhodes University’s standing as a genuinely transformative institution. The evidence suggests that there is a pure financial case for green investments, such as the construction of a solar farm at Rhodes University, even before accounting for the social and environmental benefits of such an initiative. This shifts the focus to why institutions like Rhodes University have not been proactive in mainstreaming sustainability. The document analysis and the interviews showed that there is an awareness of the importance and potential of mainstreaming sustainability. However, the funding squeeze is often misperceived as a binding constraint, and there is an absence of innovative thinking about how to finance projects with high returns, such as a solar farm. A theme amongst several of the interviewees was that the university should embrace a policy of enhancing small changes as a way of mainstreaming sustainability gradually. Even here, there are doubts about whether the organisational structure of the university will allow this. On the other hand, there are positive signs that the increasing sense of crisis means management and other key stakeholders are gradually shifting towards seeing the crucial importance of the university embracing a more proactive stance. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-10-13
- Authors: Nel, Vanray
- Date: 2023-10-13
- Subjects: Green economy , Just Transition , Clean energy South Africa Makhanda , Rhodes University , Triple bottom line , Sustainable development South Africa Makhanda
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419643 , vital:71662
- Description: The research uses a richly contextualised case study of Rhodes University to explore the role of local level agency in a just green transition. The central concept of the thesis is mainstreaming sustainability. Sustainability has become a core objective both at the macro and micro levels. The just green transition and triple bottom line are shorthand for these macro and micro concepts. At the macro level, there is increasing evidence suggesting that transitioning to a sustainable economy can be a key driver of economic development. At the micro level, the elements of the triple bottom line increasingly overlap, with sustainability no longer a separate goal, or a ‘nice to have’, but integral to organisational success. However, this potential is clearly not being realised, and sustainability often remains ‘niche’. Lack of progress at the macro-level reinforces the importance of bottom-up, local level agency. In keeping with the broader micro-level literature, the case study strongly suggests that mainstreaming sustainability would have multiple benefits. These include reducing dependence on unreliable state-provided services and enhancing Rhodes University’s standing as a genuinely transformative institution. The evidence suggests that there is a pure financial case for green investments, such as the construction of a solar farm at Rhodes University, even before accounting for the social and environmental benefits of such an initiative. This shifts the focus to why institutions like Rhodes University have not been proactive in mainstreaming sustainability. The document analysis and the interviews showed that there is an awareness of the importance and potential of mainstreaming sustainability. However, the funding squeeze is often misperceived as a binding constraint, and there is an absence of innovative thinking about how to finance projects with high returns, such as a solar farm. A theme amongst several of the interviewees was that the university should embrace a policy of enhancing small changes as a way of mainstreaming sustainability gradually. Even here, there are doubts about whether the organisational structure of the university will allow this. On the other hand, there are positive signs that the increasing sense of crisis means management and other key stakeholders are gradually shifting towards seeing the crucial importance of the university embracing a more proactive stance. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-10-13
The yield spread as a predictor for buy or sell signals for sectoral indices of the JSE
- Authors: Roeber, Christine
- Date: 2023-10-13
- Subjects: Yield curve , Rate of return South Africa , Yield spread , Interest rate , Johannesburg Stock Exchange
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419687 , vital:71666
- Description: The predictive nature of the yield curve has been of interest to researchers for years. In this thesis, the evidence for the yield curve as a predictor is examine, specifically as a predictor for bear markets in the JSE stock market for 8 sub-sectoral indices. The study explores a dynamic market timing strategy for timing the South African stock market compared to a normal buy-and-hold strategy. First, probit models are estimated for each of the sectoral indices which did not prove to have tracked well all the bear market phases. Then a dynamic market timing portfolio is simulated against a buy-and-hold only strategy, the dynamic market timing portfolio proved to have outperformed a buy-and-hold strategy for almost all the indices. Thus, a Henriksson-Merton parametric model test which tests for market timing ability was done on these sub-indices. The research finds that the yield curve in South Africa is not a useful tool for a buy-sell strategy for most of the sub-sectoral indices of the JSE. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-10-13
- Authors: Roeber, Christine
- Date: 2023-10-13
- Subjects: Yield curve , Rate of return South Africa , Yield spread , Interest rate , Johannesburg Stock Exchange
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419687 , vital:71666
- Description: The predictive nature of the yield curve has been of interest to researchers for years. In this thesis, the evidence for the yield curve as a predictor is examine, specifically as a predictor for bear markets in the JSE stock market for 8 sub-sectoral indices. The study explores a dynamic market timing strategy for timing the South African stock market compared to a normal buy-and-hold strategy. First, probit models are estimated for each of the sectoral indices which did not prove to have tracked well all the bear market phases. Then a dynamic market timing portfolio is simulated against a buy-and-hold only strategy, the dynamic market timing portfolio proved to have outperformed a buy-and-hold strategy for almost all the indices. Thus, a Henriksson-Merton parametric model test which tests for market timing ability was done on these sub-indices. The research finds that the yield curve in South Africa is not a useful tool for a buy-sell strategy for most of the sub-sectoral indices of the JSE. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-10-13
An empirical analysis of the interplay among bank competition, bank stability and regulation: a case study of banks in Zimbabwe
- Nyamuronda, Gracious Varayidzo
- Authors: Nyamuronda, Gracious Varayidzo
- Date: 2023-03-31
- Subjects: Capital adequacy ratio , Autoregression (Statistics) , Panel analysis , Competition Zimbabwe , Banks and banking Zimbabwe , Bank regulation , Economic stabilization Zimbabwe
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419473 , vital:71647
- Description: This study empirically examined the interconnection among bank competition, regulation and stability of eighteen Zimbabwean banks during the period 2011-2017. Zscore, Capital Adequacy Ratio (CAD), and Loans market share and Deposits market share which are proxies for stability, regulation and competition respectively were examined firstly using the Panel Vector Autoregressive (PVAR) model. Model 1 used loans market share as a proxy for competition and model 2 used deposits market share instead. The stability test using Eigenvalue Stability Condition showed that the PVAR model is unstable. Secondly, the above variables and five bank specific variables (i.e., credit risk, management efficiency, liquidity, return on assets and bank size) were estimated using the Feasible Generalised Least Squares (FGLS) model. The study documents that competition positively contributed to stability and regulation negatively influenced the stability of the Zimbabwean banks. Meanwhile, bank size and credit risk have a negative relationship with stability; management efficiency and liquidity have a positive relationship. Return On Assets has a negative and positive relationship with stability in model 1 and model 2, respectively. The findings implied that to enhance stability, banks must experience a competitive environment, reasonably low minimum capital requirements and cautiously designed regulatory frameworks. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-03-31
- Authors: Nyamuronda, Gracious Varayidzo
- Date: 2023-03-31
- Subjects: Capital adequacy ratio , Autoregression (Statistics) , Panel analysis , Competition Zimbabwe , Banks and banking Zimbabwe , Bank regulation , Economic stabilization Zimbabwe
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419473 , vital:71647
- Description: This study empirically examined the interconnection among bank competition, regulation and stability of eighteen Zimbabwean banks during the period 2011-2017. Zscore, Capital Adequacy Ratio (CAD), and Loans market share and Deposits market share which are proxies for stability, regulation and competition respectively were examined firstly using the Panel Vector Autoregressive (PVAR) model. Model 1 used loans market share as a proxy for competition and model 2 used deposits market share instead. The stability test using Eigenvalue Stability Condition showed that the PVAR model is unstable. Secondly, the above variables and five bank specific variables (i.e., credit risk, management efficiency, liquidity, return on assets and bank size) were estimated using the Feasible Generalised Least Squares (FGLS) model. The study documents that competition positively contributed to stability and regulation negatively influenced the stability of the Zimbabwean banks. Meanwhile, bank size and credit risk have a negative relationship with stability; management efficiency and liquidity have a positive relationship. Return On Assets has a negative and positive relationship with stability in model 1 and model 2, respectively. The findings implied that to enhance stability, banks must experience a competitive environment, reasonably low minimum capital requirements and cautiously designed regulatory frameworks. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2023
- Full Text:
- Date Issued: 2023-03-31
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