A quantitative analysis of the relationship between the 12 components of the Index of Economic Freedom (IEF) and the Human Development Index (HDI) scores within the 16 Southern African Development Community (SADC) nations
- Authors: Peel, Brendon Robert
- Date: 2021-10-29
- Subjects: Southern African Development Community , Quantitative research , Economic development Developing countries , Economic development Africa, Sub-Saharan , Economic development projects Africa, Sub-Saharan , Heritage Foundation (South Africa) , United Nations Development Programme , Index of Economic Freedom (IEF) , Human Development Index (HDI) , Resource Based Theory (RBT)
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191841 , vital:45171
- Description: Nations in Sub-Saharan Africa tend to experience some of the worst levels of human development and economic freedom in the world. Previous research has shown that there is a positive and significant correlation between these two macroeconomic facets. Further research has shown that if nations' policy-makers can manage their resources and capabilities appropriately, then this could improve their economic freedom and human development levels. This study aims to analyse the relationship between the scores of the 12 different components of the Index of Economic Freedom (IEF) and the overall Human Development Index (HDI) scores of Sub-Saharan African nations. The specific selection of nations utilised in the study are the 16 countries that make up the Southern African Development Community (SADC). Based on a review of the literature on human development, economic freedom, and the Resource Based Theory (RBT) on a macro-level, a correlational study was conducted to determine the relationship between the relevant variables. The information was collected from the Heritage Foundation and the United Nations Development Program (UNDP), respectively. The data and scores collected and used in the study are from the years 2015 to 2019. The correlational results demonstrated that nine of the 12 components of the IEF has a positive and significant correlation with HDI within the selected African nations. The strongest correlation being between 'Property Rights' and HDI. Therefore, it is likely that if the property rights within a nation are upheld, said nation would have higher levels of human development. The three components that proved to have an insignificant result with HDI were; 'Tax Burden', 'Government Spending', and 'Fiscal Health'. The results indicate that all components that fall under the category of 'Government Size' share no significant correlational relationship with human development. It is recommended that governments and policy-makers take this into consideration when managing their resources and capabilities to improve the nation's human development. Further research is required to identify the specifics on how this management and allocation of resources can be utilised effectively to improve the human development and economic freedom in Sub-Saharan Africa. , Thesis (MBA) -- Faculty of Commerce, Rhodes Business School, 2021
- Full Text:
- Date Issued: 2021-10-29
- Authors: Peel, Brendon Robert
- Date: 2021-10-29
- Subjects: Southern African Development Community , Quantitative research , Economic development Developing countries , Economic development Africa, Sub-Saharan , Economic development projects Africa, Sub-Saharan , Heritage Foundation (South Africa) , United Nations Development Programme , Index of Economic Freedom (IEF) , Human Development Index (HDI) , Resource Based Theory (RBT)
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191841 , vital:45171
- Description: Nations in Sub-Saharan Africa tend to experience some of the worst levels of human development and economic freedom in the world. Previous research has shown that there is a positive and significant correlation between these two macroeconomic facets. Further research has shown that if nations' policy-makers can manage their resources and capabilities appropriately, then this could improve their economic freedom and human development levels. This study aims to analyse the relationship between the scores of the 12 different components of the Index of Economic Freedom (IEF) and the overall Human Development Index (HDI) scores of Sub-Saharan African nations. The specific selection of nations utilised in the study are the 16 countries that make up the Southern African Development Community (SADC). Based on a review of the literature on human development, economic freedom, and the Resource Based Theory (RBT) on a macro-level, a correlational study was conducted to determine the relationship between the relevant variables. The information was collected from the Heritage Foundation and the United Nations Development Program (UNDP), respectively. The data and scores collected and used in the study are from the years 2015 to 2019. The correlational results demonstrated that nine of the 12 components of the IEF has a positive and significant correlation with HDI within the selected African nations. The strongest correlation being between 'Property Rights' and HDI. Therefore, it is likely that if the property rights within a nation are upheld, said nation would have higher levels of human development. The three components that proved to have an insignificant result with HDI were; 'Tax Burden', 'Government Spending', and 'Fiscal Health'. The results indicate that all components that fall under the category of 'Government Size' share no significant correlational relationship with human development. It is recommended that governments and policy-makers take this into consideration when managing their resources and capabilities to improve the nation's human development. Further research is required to identify the specifics on how this management and allocation of resources can be utilised effectively to improve the human development and economic freedom in Sub-Saharan Africa. , Thesis (MBA) -- Faculty of Commerce, Rhodes Business School, 2021
- Full Text:
- Date Issued: 2021-10-29
Effects of different levels of education and government spending on economic growth
- Authors: Malangeni, Luxolo Mihle
- Date: 2021-04
- Subjects: Southern African Development Community , Economic development -- Africa , Economics -- Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51842 , vital:43377
- Description: This study investigates the impact of the level of education and education spending on economic growth in the Southern African development community (SADC) using annual panel data from 1995 to 2017 using the FMOSLS and DOLS cointegration estimators. Three levels of education are identified in study (primary, secondary and tertiary). Moreover, we create an index of government spending on education corresponding to these three levels of education. The empirical results suggest that there is a positive long-term relationship between secondary education and economic growth but not for other levels of education. Moreover, it is found that only government spending at primary and secondary education contribute to economic growth. The causality analysis for confirm that only secondary education affects economic growth and is affected by government spending on education. Policy implications of the study are discussed. Government should be careful in managing the public spending on education in a way to increase the skilled labor. Education Policies must be drive based on principle. Professional schools must be first priority in education policies in the region. Government should direct the public expenditures on education towards productive sectors that will contribute in improving the standard of living contributing so on economic growth. , Thesis (MCom) -- Faculty of Business and Economic Sciences, Economics, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Malangeni, Luxolo Mihle
- Date: 2021-04
- Subjects: Southern African Development Community , Economic development -- Africa , Economics -- Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51842 , vital:43377
- Description: This study investigates the impact of the level of education and education spending on economic growth in the Southern African development community (SADC) using annual panel data from 1995 to 2017 using the FMOSLS and DOLS cointegration estimators. Three levels of education are identified in study (primary, secondary and tertiary). Moreover, we create an index of government spending on education corresponding to these three levels of education. The empirical results suggest that there is a positive long-term relationship between secondary education and economic growth but not for other levels of education. Moreover, it is found that only government spending at primary and secondary education contribute to economic growth. The causality analysis for confirm that only secondary education affects economic growth and is affected by government spending on education. Policy implications of the study are discussed. Government should be careful in managing the public spending on education in a way to increase the skilled labor. Education Policies must be drive based on principle. Professional schools must be first priority in education policies in the region. Government should direct the public expenditures on education towards productive sectors that will contribute in improving the standard of living contributing so on economic growth. , Thesis (MCom) -- Faculty of Business and Economic Sciences, Economics, 2021
- Full Text:
- Date Issued: 2021-04
Foreign Direct Investment in SADC: Role of Soft and Hard Infrastructure
- Authors: Manamike, Taonga
- Date: 2022-04
- Subjects: Investments, Foreign , Southern African Development Community
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57831 , vital:58275
- Description: The study analyses the role that hard and soft infrastructure plays in attracting FDI inflows in the SADC region. As proxy for soft infrastructure, Internet users and governance indicators were used. Panel data was used for the analysis, for sixteen SADC member states, covering the period 2000 to 2018. Data was analysed using the multiple linear regression technique, applying the Random Effects Model. The results show that for soft infrastructure, government effectiveness (positive) and rule of law (negative) plays a vital and significant role in attracting FDI inflows into the SADC region. For hard infrastructure, telephone density and gross capital formation have a positive relationship with FDI. Soft infrastructure was found to be of more significance in attracting FDI inflows compared to hard infrastructure. Other variables, such as population growth rate, market size and trade openness were also found to have a significant relationship with FDI inflows in the SADC region. The study concludes that, although soft infrastructure plays a more significant role the two forms of infrastructure play a complimentary role in the attraction of FDI. To improve FDI inflows in SADC, the study recommended that SADC member states must dwell more on improving soft infrastructure, but also working on hard infrastructure development and making policies that attract FDI in the region. SADC countries should consider consolidating their policies towards both soft and hard infrastructures to obtain some form of convergence on infrastructural levels within the region. , Thesis (MA) -- Faculty of Business and Economic science, 2022
- Full Text:
- Date Issued: 2022-04
- Authors: Manamike, Taonga
- Date: 2022-04
- Subjects: Investments, Foreign , Southern African Development Community
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57831 , vital:58275
- Description: The study analyses the role that hard and soft infrastructure plays in attracting FDI inflows in the SADC region. As proxy for soft infrastructure, Internet users and governance indicators were used. Panel data was used for the analysis, for sixteen SADC member states, covering the period 2000 to 2018. Data was analysed using the multiple linear regression technique, applying the Random Effects Model. The results show that for soft infrastructure, government effectiveness (positive) and rule of law (negative) plays a vital and significant role in attracting FDI inflows into the SADC region. For hard infrastructure, telephone density and gross capital formation have a positive relationship with FDI. Soft infrastructure was found to be of more significance in attracting FDI inflows compared to hard infrastructure. Other variables, such as population growth rate, market size and trade openness were also found to have a significant relationship with FDI inflows in the SADC region. The study concludes that, although soft infrastructure plays a more significant role the two forms of infrastructure play a complimentary role in the attraction of FDI. To improve FDI inflows in SADC, the study recommended that SADC member states must dwell more on improving soft infrastructure, but also working on hard infrastructure development and making policies that attract FDI in the region. SADC countries should consider consolidating their policies towards both soft and hard infrastructures to obtain some form of convergence on infrastructural levels within the region. , Thesis (MA) -- Faculty of Business and Economic science, 2022
- Full Text:
- Date Issued: 2022-04
Regional value chains and development integration in the SADC Region: the case of the pharmaceutical industry
- Authors: Faydherbe, Sean
- Date: 2018
- Subjects: Pharmaceutical industry -- Africa, Southern , Southern African Development Community , Africa, Southern -- Economic integration , Regional value chains (RVCs) , Global value chains (GVCs)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62906 , vital:28309
- Description: This thesis investigates how regional value chains (RVCs) can be used to further development integration in the Southern African Development Community (SADC) region with a focus on the pharmaceutical manufacturing industry. The study is motivated by the apparent lack of attention given to the development of the pharmaceutical manufacturing industry in Southern Africa, the region’s high disease burden and the identification of the industry as economically and socially important by the SADC (2015) Industrialisation Strategy and Roadmap and the Department of Trade and Industry (DTI) (2017a) Industrial Policy Action Plan (IPAP). At the same time, South Africa and other countries in the region are exploring alternative approaches to regional integration, given the failure or stagnation of numerous formal integration arrangements throughout Africa, which have often lead to polarised rather than balanced development. This thesis argues that the development of RVCs within SADC may be an effective tool for development integration in the region, particularly in sectors such as pharmaceuticals. The study employs a value chain framework for the analysis and discusses development integration options, drawing on the East Asian experience with RVCs and on case studies involving India in the case of the pharmaceutical industry. It provides a sector profile of the industry in South Africa, due to its dominant status in the region, and also of Zimbabwe, due to that country’s potential to become a pharmaceutical industry leader in the region once again. The thesis first explores the important theoretical aspects underlying value chain analysis, namely governance and upgrading, while also outlining the rise of global value chains (GVCs). It analyses the complex relationships between RVCs and GVCs, and RVCs and regional integration. From this it concludes that RVCs are a stepping stone to participation in GVCs and that RVCs should be promoted within a development integration framework through strong regional cooperation. Value chain analysis is applied to the entire pharmaceutical manufacturing industry with a focus on SADC. The thesis examines how the sector is evolving with manufacturing multinational corporations (MNCs) outsourcing production and setting up centres of excellence in regional production hubs. The study argues that with the application of recommended policies, RVCs in sectors such as pharmaceutical manufacturing may provide a tool for achieving balanced development in the region. However, the study also finds that the pharmaceutical industry in SADC lags a long way behind the rest of the world and that many countries and firms will need to begin at the bottom of the value chain, with formulation, in order to contribute to the development of RVCs. The thesis concludes with recommendations on what policies are needed to foster the growth and development of pharmaceutical RVCs in the SADC region. These include strengthening public procurement, providing incentives for investment into the industry, incremental production and incremental export volumes, as well as certainty and predictability around the regulatory and business environment. Further, policy should aim to construct synergies and linkages on the ground between health systems and industrial developments; regulate service links important to pharmaceutical manufacturing; develop a coherent regional policy agenda; remove unnecessary non-tariff barriers to trade in the region and, in line with development integration, implement trade policy along with trade infrastructure that is efficient and includes airports, rail, roads and ports, as well as effective access to the internet.
- Full Text:
- Date Issued: 2018
- Authors: Faydherbe, Sean
- Date: 2018
- Subjects: Pharmaceutical industry -- Africa, Southern , Southern African Development Community , Africa, Southern -- Economic integration , Regional value chains (RVCs) , Global value chains (GVCs)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/62906 , vital:28309
- Description: This thesis investigates how regional value chains (RVCs) can be used to further development integration in the Southern African Development Community (SADC) region with a focus on the pharmaceutical manufacturing industry. The study is motivated by the apparent lack of attention given to the development of the pharmaceutical manufacturing industry in Southern Africa, the region’s high disease burden and the identification of the industry as economically and socially important by the SADC (2015) Industrialisation Strategy and Roadmap and the Department of Trade and Industry (DTI) (2017a) Industrial Policy Action Plan (IPAP). At the same time, South Africa and other countries in the region are exploring alternative approaches to regional integration, given the failure or stagnation of numerous formal integration arrangements throughout Africa, which have often lead to polarised rather than balanced development. This thesis argues that the development of RVCs within SADC may be an effective tool for development integration in the region, particularly in sectors such as pharmaceuticals. The study employs a value chain framework for the analysis and discusses development integration options, drawing on the East Asian experience with RVCs and on case studies involving India in the case of the pharmaceutical industry. It provides a sector profile of the industry in South Africa, due to its dominant status in the region, and also of Zimbabwe, due to that country’s potential to become a pharmaceutical industry leader in the region once again. The thesis first explores the important theoretical aspects underlying value chain analysis, namely governance and upgrading, while also outlining the rise of global value chains (GVCs). It analyses the complex relationships between RVCs and GVCs, and RVCs and regional integration. From this it concludes that RVCs are a stepping stone to participation in GVCs and that RVCs should be promoted within a development integration framework through strong regional cooperation. Value chain analysis is applied to the entire pharmaceutical manufacturing industry with a focus on SADC. The thesis examines how the sector is evolving with manufacturing multinational corporations (MNCs) outsourcing production and setting up centres of excellence in regional production hubs. The study argues that with the application of recommended policies, RVCs in sectors such as pharmaceutical manufacturing may provide a tool for achieving balanced development in the region. However, the study also finds that the pharmaceutical industry in SADC lags a long way behind the rest of the world and that many countries and firms will need to begin at the bottom of the value chain, with formulation, in order to contribute to the development of RVCs. The thesis concludes with recommendations on what policies are needed to foster the growth and development of pharmaceutical RVCs in the SADC region. These include strengthening public procurement, providing incentives for investment into the industry, incremental production and incremental export volumes, as well as certainty and predictability around the regulatory and business environment. Further, policy should aim to construct synergies and linkages on the ground between health systems and industrial developments; regulate service links important to pharmaceutical manufacturing; develop a coherent regional policy agenda; remove unnecessary non-tariff barriers to trade in the region and, in line with development integration, implement trade policy along with trade infrastructure that is efficient and includes airports, rail, roads and ports, as well as effective access to the internet.
- Full Text:
- Date Issued: 2018
The contribution of international financial institutions to economic development in SADC countries
- Authors: Galaga, Unathi
- Date: 2022-04
- Subjects: Economic development , Financial institutions, International , Southern African Development Community
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57665 , vital:58193
- Description: Although African governments have a significant role to perform in developing the continent, International financial institutions (IFIs) also perform a dominant role in economic development but their role in African development is often viewed as controversial and contradictory. In the 20th century, the World Bank and the IMF were vital IFIs that characterised global policies that regulated global economies, subjecting weaker economies to SAP. This necessitated African states to borrow money to ensure stabilisation, liberalisation, deregulation and the privatisation of most sectors. This study econometrically examined the impact of foreign aid on economic development in SADC countries. Panel regression techniques were employed to analyse the contribution of international financial institutions to economic development in SADC countries. The results indicated that there is an insignificant relationship between foreign aid and economic development, which implies that foreign aid does not contribute to economic development in SADC countries. Based on this finding, the study recommends that Southern African Governments find ways of financing development that guarantee economic growth. , Thesis (MA) -- Faculty of Business and Economic science , 2022
- Full Text:
- Date Issued: 2022-04
- Authors: Galaga, Unathi
- Date: 2022-04
- Subjects: Economic development , Financial institutions, International , Southern African Development Community
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57665 , vital:58193
- Description: Although African governments have a significant role to perform in developing the continent, International financial institutions (IFIs) also perform a dominant role in economic development but their role in African development is often viewed as controversial and contradictory. In the 20th century, the World Bank and the IMF were vital IFIs that characterised global policies that regulated global economies, subjecting weaker economies to SAP. This necessitated African states to borrow money to ensure stabilisation, liberalisation, deregulation and the privatisation of most sectors. This study econometrically examined the impact of foreign aid on economic development in SADC countries. Panel regression techniques were employed to analyse the contribution of international financial institutions to economic development in SADC countries. The results indicated that there is an insignificant relationship between foreign aid and economic development, which implies that foreign aid does not contribute to economic development in SADC countries. Based on this finding, the study recommends that Southern African Governments find ways of financing development that guarantee economic growth. , Thesis (MA) -- Faculty of Business and Economic science , 2022
- Full Text:
- Date Issued: 2022-04
The regulation of subsidies and regional trade among developing countries in the multilateral trading system: the case of export processing zones in Malawi
- Authors: Chirwa, Watson Pajanji
- Date: 2018
- Subjects: Trade regulation -- Malawi , Subsidies -- Law and legislation -- Malawi , Southern African Development Community , Common Market for Eastern and Southern Africa , Foreign trade regulation -- Malawi , Export processing zones -- Law and legislation -- Malawi
- Language: English
- Type: text , Thesis , Masters , LLM
- Identifier: http://hdl.handle.net/10962/62428 , vital:28175
- Description: The paradigm shift engaged by countries in SADC and COMESA, such as Malawi, from the use of import substitution policies which were aimed at protecting their infant industries, to export led growth strategies, necessitated these developing countries to liberalise their economies. The liberalisation of these economies meant that, for them to attain development, they needed to trade more on the international market. However, with underdeveloped industries and a lack of local entrepreneurs who could provide export supplies to fill the void created by the liberalisation policies, developing countries had to look beyond their borders for investors. In pursuit of this objective, governments have been devising ways of attracting foreign direct investment which can stimulate export growth. One of the methods employed is the granting of investment incentives to would-be investors. Unlike developed countries who provide investment incentives in the form of financial incentives, developing countries grant fiscal incentives. These are incentives that reduce tax burdens of enterprises to induce them to invest in particular projects or sectors. One of the mediums of providing the incentives adopted by the developing countries is the use of EPZ schemes. EPZs provide incentives such as exemptions of direct and indirect taxes to companies that operate in the zones. However, being Members of the WTO and SADC and/or COMESA, these countries are bound by obligations regulating trade and investment as found in these Agreements. The expectation is that the fiscal incentives employed in the EPZs do not grant subsidies that are prohibited under the SCM Agreement and rules regulating subsidies in SADC and COMESA. In addition, even though the use of EPZs is not expressly proscribed under the SADC Protocol on Trade, it may be against the objectives of the Protocol - one of which is the pursuance of the inter-jurisdictional goal of cooperation in attainment of free trade among its members. Therefore, this study assesses whether the use of EPZs by some countries in the two RTAs (particularly Malawi) is in tandem with the subsidies regulation as found in the multilateral trading system and at regional level. It also assesses whether, if there is a breach of the same, it might be justified as part of the special and differential treatment accorded to developing countries by developed countries under the WTO. The study further assesses whether the use of EPZs might be against the spirit and objects of FTAs such as SADC.
- Full Text:
- Date Issued: 2018
- Authors: Chirwa, Watson Pajanji
- Date: 2018
- Subjects: Trade regulation -- Malawi , Subsidies -- Law and legislation -- Malawi , Southern African Development Community , Common Market for Eastern and Southern Africa , Foreign trade regulation -- Malawi , Export processing zones -- Law and legislation -- Malawi
- Language: English
- Type: text , Thesis , Masters , LLM
- Identifier: http://hdl.handle.net/10962/62428 , vital:28175
- Description: The paradigm shift engaged by countries in SADC and COMESA, such as Malawi, from the use of import substitution policies which were aimed at protecting their infant industries, to export led growth strategies, necessitated these developing countries to liberalise their economies. The liberalisation of these economies meant that, for them to attain development, they needed to trade more on the international market. However, with underdeveloped industries and a lack of local entrepreneurs who could provide export supplies to fill the void created by the liberalisation policies, developing countries had to look beyond their borders for investors. In pursuit of this objective, governments have been devising ways of attracting foreign direct investment which can stimulate export growth. One of the methods employed is the granting of investment incentives to would-be investors. Unlike developed countries who provide investment incentives in the form of financial incentives, developing countries grant fiscal incentives. These are incentives that reduce tax burdens of enterprises to induce them to invest in particular projects or sectors. One of the mediums of providing the incentives adopted by the developing countries is the use of EPZ schemes. EPZs provide incentives such as exemptions of direct and indirect taxes to companies that operate in the zones. However, being Members of the WTO and SADC and/or COMESA, these countries are bound by obligations regulating trade and investment as found in these Agreements. The expectation is that the fiscal incentives employed in the EPZs do not grant subsidies that are prohibited under the SCM Agreement and rules regulating subsidies in SADC and COMESA. In addition, even though the use of EPZs is not expressly proscribed under the SADC Protocol on Trade, it may be against the objectives of the Protocol - one of which is the pursuance of the inter-jurisdictional goal of cooperation in attainment of free trade among its members. Therefore, this study assesses whether the use of EPZs by some countries in the two RTAs (particularly Malawi) is in tandem with the subsidies regulation as found in the multilateral trading system and at regional level. It also assesses whether, if there is a breach of the same, it might be justified as part of the special and differential treatment accorded to developing countries by developed countries under the WTO. The study further assesses whether the use of EPZs might be against the spirit and objects of FTAs such as SADC.
- Full Text:
- Date Issued: 2018
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