Imports and exports play a vital role in every country’s economy. Both of these variables depend to a great extent either on the appreciation or depreciation of the country’s currency. Imports, exports and exchange rate are some of main determinants of economic growth and are also affected by economic growth. This paper aims to determine the effect of exchange rate and economic growth on both exports and imports in the South African economy. To achieve this objective, a test for cointegration was carried out using the autoregressive distributed lag (ARDL) model. This model was applied on a time series quarterly data from 2008 to 2018. The error correction model and Granger Causality tests were performed to define the short-run and causal relationship amongst variables. The regression analyses reveals the existence of a long-run relationship within the estimated variables. In support of the economic literature, the study findings indicated that economic growth positively effects on both exports and imports. Nonetheless, the analysis depicted that in the long-run, Rand appreciation leads to more imports and fewer exports. Furthermore, the Granger Causality text suggested a bidirectional causality between the exchange rate and imports; between economic growth and imports, and between the exchange rate and economic growth. Succinctly, the used variables have a causal relationship with one another. Based on the findings, the study highlighted the pertinence of economic growth and emphasised the role played by the exchange rate in maintaining the balance between imports and exports. The study recommended that both currency value and economic growth should be given urgent attention in order to revive the deteriorating economy of South Africa.
Historically, research focusing on the money demand function developing economies (especially Eastern European transition economies) was a difficult undertaking because of under-developed financial systems and the unavailability of data. This study aims to assist in filling this gap in the literature by employing three different estimation techniques to estimate the M1 and M2 money demand functions for Hungary. The study uses quarterly data for an 18-year period, obtained from the IMF’s International Financial Statistics database. The results based on the bounds testing procedure as well as the other two approaches confirm that a stable, long-run relationship exists between the demand for money and its determinants. The results’ robustness is enhanced by the similarities between the results of the various approaches used in the study. The money demand function can therefore theoretically serve as a tool to measure the effect of monetary policy decisions and in determining what parameters of the money demand function to adjust in order to yield the required effects. It is suggested that, in the case of Hungary the M1 money demand function might be the most appropriate model on which monetary policy decisions should be based.
Entrepreneurship has been considered an imperative component of economic development. This is specifically true for developing countries, such as South Africa, where economies face high levels of unemployment and poverty. Several countries have emphasised the importance of female entrepreneurship development, and evidence from the literature suggests that entrepreneurs who accumulate entrepreneurial training prove higher commitment to stay in and grow the business. As such, the aim of this study was to explore the differences in various entrepreneurial factors between South African female entrepreneurs having some form of entrepreneurial training and those who have not had such training. The methodology followed a quantitative descriptive approach using a convenience sampling method. Female entrepreneurs from all nine South African provinces were included and data were collected using a self-administered questionnaire. In total, 510 useable questionnaires were returned. Data were analysed using descriptive, reliability and validity analysis, MANOVA and ANOVA. From the results, four variables returned a statistically significant value: external motivation, intention to grow the business, entrepreneurship training and education and business growth factors. From these variables, all with the exception of the external motivation variable, reported higher means for the group who had previous exposure to entrepreneurial training. No differences were observed for the variables concerning internal motivation, intention to remain in business and attitude towards business. The literature supports the findings in that females who had previous entrepreneurial training reported higher means for intention to grow their business. Surprisingly, females with previous entrepreneurial training reported a lower mean for external motivation, possibly suggesting that training may affect their outlook regarding desire for wealth, applying skills and knowledge, proving oneself and improving one’s status, for example. Recommendations include that government should introduce and promote special training programmes for female entrepreneurs and facilitate funding opportunities for these businesses to ensure sustained growth.
The purpose of this study was to explore various public participatory stakeholders in the management of the City of Harare’s informal sector as well as to assess the role of stakeholders in the governance of this sector within the context of political polarisation. In doing so, the study employed a mixed method approach which included a questionnaire survey (N=195), in-depth interviews (N=12) and documentary analysis. Main observations suggested that public participation was far from being achieved due to a multiplicity of factors. Furthermore, despite the introduction of a progressive constitution and the existence of various participatory mechanisms, various challenges continue to inhibit public participation in Harare. These include lack of funding, continued central government intervention, re-centralisation of governance due to loss of political power by the ruling party, political polarisation, resistance by administrators to co-opt the public into decision-making processes and failure to adapt to change. In addition, despite commendable efforts by various stakeholders to engender stakeholder participation, there was a distinct absence of the development and implementation of effective stakeholder involvement strategies in flea market governance. The analysis also showed that the role of the Council especially that of councillors, has been diminishing over the years and conversely, City administrative officials have become more powerful beyond their line of duty. To make matters worse, currently, there are no specific legislative provisions that provide for community participation. The findings will be of interest to local government officials and scholars alike as they have a number of practical implications. There is a need to put in place a robust legislative framework that promotes citizenry involvement and that de-links party politics from development and governance of local authorities. A key policy priority should, therefore, be to inculcate a culture of inclusivity, tolerance and de-centralisation of power and governance.
Concerns surrounding the outcomes of young people in the labour market have become a global phenomenon. None more so has this been evident than in South Africa. While finding employment seems highly unlikely for most, circumstances surrounding the outcomes of those who are employed have likewise raised alarms. Understanding what contributes to decent employment in this regard holds important relevance not only in promoting the wellbeing of the cohort, but also advancing the knowledge on the requirements to utilise their local development potential. The purpose of the study was therefore to identify the antecedents of young South African employees’ earning potential. A quantitative approach and cross-sectional research design were employed, where secondary data collected through the most recent national labour market dynamics survey was used. The sample consisted of 27 493 young employees between the ages of 15 and 34 years. Descriptive statistics, cross-tabulations and a linear regression were utilised for the analysis. Results of the study showed the earnings potential of young South Africans to be intertwined with an array of aspects. In this regard, the remuneration prospects of young people depend on race, sector of employment and trade union membership. Outcomes were also highly gendered biased, while the impact of labour market inequalities including the lack of social capital and geographical characteristics likewise seems to affect their earnings ability. Recommendations in advancing the cohort’s labour market outcomes must, therefore, include enhanced public-private partnership formation through mandatory apprenticeship programmes. This must be supported by the relaxation of labour market regulations and a strategic focus that seeks to advance both soft and technical skills.
This article empirically examines the impact of microfinance programme participation on household food security in Malawi. There has been an increase in the role of micro activities such as microfinancing that target the poor, vulnerable, and marginalised people in development agendas. This makes it essential to assess the effect of micro activities, for example, microfinance programmes on welfare indicators such as food security. The study used cross-sectional data that was collected in Malawi for the Third Integrated Household Survey in 2010-2011. It employed the Heckman Selection Model, which was deemed applicable since the selection to participate in credit programmes is typically non-random. Total real annual consumption per household was used as a proxy to capture household food security. The results of the study indicate that females contribute more to the food security state of a household than males. It also established that education level significantly and positively contributes to the state of household food security. Lastly, the study established that households that participated in microfinance programmes experience improvements in their status of food security. In light of this, it recommends that policymakers expedite the operationalisation of microfinance programmes with the intent to increase participation by improving policies such as the Microfinance Policy and Action Plan (2002). There should also be an increase in adult literacy programmes and development of microfinance institutions that target women.
The Indonesian government reforms in healthcare shift the management philosophy of healthcare from sellers’ market to consumers’ demand that providing high-quality service and achieving a patient’s satisfaction become critical issues. Currently, service quality performance (SERVPERF) has been gaining popularity for measuring patient satisfaction instead of the classic SERVQUAL due to the critics that one cannot examine customer expectations, but only the level of quality of the received and realised service. The main objective of this research is to examine the effect of the service quality on the entire satisfaction of outpatients toward radiology facilities in public hospitals of South Kalimantan province, Indonesia. The primary data consisted of 360 outpatients serving as respondents and the relationship among constructs are analysed using partial least square (PLS). The developed model was validated by identifying service quality performance of the respective healthcare and rating the domain demanding the executive endeavour to improve. The results denoted that the dimensions of SERVPERF are accurate in the south east Asian country of Indonesia. Reliability, tangibility, assurance, empathy and responsiveness were rated as preferences, respectively. Since the highest form of satisfaction is displayed in the form of patients’ loyalty, the scheme of applying service quality betterment to preserve patient trustworthiness then relies on the degree of patient contentment. This phenomenon suggests that the assessment of patient preferences would embrace the standing point of patients’ satisfaction with healthcare providers.
The future of a stable and viable economy within South African Metropolitan cities will depend on the strengthening of key industries coupled with technological advancement. The aim of this paper is to identify key industry clusters in all four coastal metropolitan cities of South Africa namely Cape Town, eThekwini, Buffalo city, and Nelson Mandela Bay. Location quotient analysis is employed as a method to determine the industries that are playing key roles in the economic development and growth of the metropolitan cities. This paper uses a four-point 2002, 2007, 2012 and 2017 as the latest employment data available and a five-year interval is used as optimal data in terms of capturing potential structure change in the local economy of the coastal metropolitan cities in South Africa. Findings of this paper show that sub-industries in the manufacturing and service sectors have been the main drivers of the economic development in these metropolitan cities. Despite the creation of new technology, new business and new jobs to spearhead economic development in South Africa, the results obtained from this study indicate that some of these metropolitan cities are actually characterised by economic stagnation in some of their sub-industries that are supposed to be the key role players in economic growth.
The relation between asset returns and country risk is an important issue for international investors seeking diversification opportunities in emerging markets, particularly in South Africa. This paper aims to evaluate the impact of economic, financial and political components of country risk on stock and bond returns. A non-linear autoregressive distributed lag (NARDL) model was used to analyse the time-varying dynamic relationship between the country risk components and the two financial asset markets for a sample of 15 years monthly data. We found an asymmetric relationship between country risk and asset returns of the two markets. Political risk has long-run and short-run implications on stock and bond returns, while economic risk only has short-run effects on bond returns. These results suggest that international investors should carefully consider different components of country risk when seeking diversification opportunities.
Even though rural economies are widely informal, they have created a variety of income, employment opportunities and food security for rural communities. In most developing countries, particularly those in Africa, Asia, Caribbean and Latin America, rural economies comprise economic activities in sectors such as agriculture, tourism and fisheries amongst others. However, in recent years, the emergence of climate change has resulted in the collapse of some of the rural businesses leading to the increase in the unemployment rate in most rural economic sectors. Climate change encompasses modification in average weather conditions or in the distribution of weather leading to unprecedented and sometimes extreme weather events. Recently, climate change has been linked with extreme episodes of rising sea levels. El Nino, La Nina, hurricanes, floods and droughts have caused a lot of damage in the rural economic sectors. The purpose of this paper is to review the prospects of climate change’s impact on the rural economy with respect to employment trends. In other words, the question the paper intends to answer is: To what extent does climate change impact on rural economy including livelihood activities? The research method this paper used is based on theoretical knowledge derived from literature material such as academic articles, books and other sources of academic publications. The paper argues that the slow growth of rural economy, livelihood insecurity and lack of creation of new employment opportunities in rural areas can also be linked to the emergence of climate change in recent times. For instance, drought and floods have destroyed most of the rural livelihood activities and agricultural products, while tourism and fishery businesses have suffered the same fate, thus leading to fewer employment and job losses. The article concludes that, a diversification of measures to respond to climate change impacts on rural economy and needs to be devised if employment opportunities are to be created for rural communities.
This study empirically investigates the relationship between government debt and Eskom debt using Eskom’s financial statements and government debt data from 1985 – 2017. The paper uses a Vector Autoregression (VAR) model. Variance decomposition analysis shows large forecast error variances amongst all variables. The study finds that Eskom’s increase in revenue is largely attributed to tariff increases and access to various funds rather than increases in sales. The study also shows that Eskom will continue to be illiquid and insolvent, thus fiscal consolidation or privatization are suggested as fiscal strategies.
Supply chain management is becoming more complex for small and medium enterprises (SMEs) and the need to improve performance seems to be significantly necessary. For SMEs to be efficient and effective towards minimising disruptions within the supply chain, ensure availability of resources and improve just-in-time delivery, information sharing coupled with supply chain collaboration and responsiveness are essential strategies to enhancing business performance. Therefore, the current study regards supply chain collaboration, responsiveness and information sharing as major factors influencing not only SMEs performance, but also allowing SMEs to better coordinate their business activities both within and outside the business environment. In this study, a quantitative research methodology was applied. Relational governance theory (RGT) provided structure to a clear understanding of information sharing among SMEs and customers, highlighting that SMEs aiming to improve their performance, should adopt the style of collaborating with the right suppliers and continuously communicating with the members of the supply chain. Confirmatory factor analysis (CFA) and structural equation modelling (SEM) results support the empirical findings suggesting that the model fits the study. The reliability and validity of the constructs (composite reliability) and the average variance extracted sought the empirical findings that correlate the need for SMEs to employ information sharing, supply chain responsiveness and supply chain collaboration as a determinant influence on SMEs performance.
Firms in South Africa and other developing countries are facing a rapid increase in capital cost accompanied by an increase in leverage as a result of operating in uncertain environments, which complicate firms’ financing decisions and strategies. This paper examined the impact of rising leverage levels on firm’s cost of capital and the effect of country risk shocks on cost of capital and financing decisions among JSE listed firms. A dynamic panel model estimated with two-step system generalised methods of moments (GMM) was used to analyse panel data from 198 listed non-financial firms. The results suggest that the rising debt levels of JSE listed firms are negatively associated with weighted average cost of capital and cost of debt. Cost of equity was found to be an increasing function of firm leverage. High financial risk was found to be associated with an increase in cost of capital, high political risk associated with an increase in cost of equity and weighted average cost of capital (WACC), while an increase in economic risk is associated with high WACC and cost of debt. The study establishes that disaggregated country risk shocks significantly affect firms financing decisions.
The local sphere of government remains an important role player in ensuring effective delivery of services and basic infrastructures. The developmental role accorded to local government requires adequate administrative capacity and the implementation of sound strategic tools. The Integrated Development Plan (IDP) is one of the tools that assist local authorities in executing their developmental mandate. In practice, local authorities have been struggling with ineffective implementation of IDP which resulted in service delivery upheavals. The purpose of this study was to examine the challenges faced by the Lepelle-Nkumphi municipality in the implementation of IDP and service delivery. This study adopted a qualitative semi-structured interview to gather data from the participants who were selected through purposive sampling method. The participants include 15 municipal officials, IDP steering committee, ward councillors and committees. Data was analysed using qualitative thematic content analysis. It was found that the implementation of IDP is critical for the enhancement of service delivery and basic infrastructure. In the course of implementation, the municipality was faced by various administrative and management challenges. This study unravelled key challenges, including shortage of resources, incomplete projects, inadequate community participation, political meddling and limited capacity. As a result, the municipality has not fully achieved its implementation plan and service provision. In light of the aforementioned challenges, the municipality should emphasise the advancement of the participation of the community in the planning and implementation process. It is equally important for the municipality to seek ways of enhancing institutional organisational capacity for efficient utilization of its resources to improve implementation and service delivery.
The leading global discourse amongst development partners for the past three years has been predominantly dominated by Agenda 2030 on Sustainable Development and the Paris Agreement. The Sustainable Development Goals (SDGs) adopted in 2015 set new global development thinking and an ambitious target for the global scene run up to 2030. Tourism, as one of the central industries to global development, proclaimed 2017 as a year of Sustainable Tourism to rally the tourism industry towards the common global agenda in a manner that tackles the global challenges. There has been an acknowledgement that even though Agenda 2030 does not put tourism at the forefront of addressing the SDGs, the industry can help address most if not all the SDGs. This qualitative research paper makes use of various selected case studies selected from the southern African region chosen randomly to highlight how tourism can assist in meeting SDGs. Drawing lessons from various cases, which include a review of the tourism organisation's annual reports and SDG Voluntary National Review Reports, highlights that in most developed and developing countries tourism has been identified as a remedy for achieving SDGs. The study found that given the nature and scope of the industry, tourism has a critical interest in the meeting of SDGs as an environmentally sensitive industry. The research argues that for tourism to be an effective vehicle for achieving SDGs, there is a need for a collaborative approach that includes various stakeholders, including academics, as the issue of SDGs is not well understood amongst tourism stakeholders, which reduces the impetus and attainment of the global goals. Such collaborative effort in the spirit of leaving no one behind will propel the industry on a sustainable path.
Due to the ever-evolving markets, conventional organisations are required to be more embracing of the constantly changing facets of the environment in which they operate, and therefore they need to be highly adaptable if they are to keep abreast. This study sought to determine the leadership styles that prevail in companies in the wine industry in Canada and Japan, and how these leadership styles affect the overall organisational effectiveness. A qualitative research approach was followed. Individuals from Canada and Japan (N= 11) were video interviewed to create an innovative web-hosted collection of multimedia cases. The interviews were semi-structured in nature and were conducted in the mothertongue of the participants. The captured data were transcribed and verified with the participants to ensure accuracy and scientific rigour. This study uncovered autonomy and delegation, empowering, casual, inclusive, collaborative, passionate and driven, as well as goal-oriented, as the largely prevailing leadership approaches that ensure organisational soundness in Canada and Japan. Other sub-themes that emerged to lesser extents were also noted in this paper.
While foreign direct investment (FDI) may be a strong source of export incentives in developing countries, its role is still controversial. On the one hand, foreign investment has been suggested to increase exports in developing countries through superior technology and capital, while on the other hand, it is claimed that the role of FDI in encouraging exports depends on the motivations behind this investment. This shows that the nature of the link between FDI and export performance is not clear and should be empirically investigated by country basis. The main purpose of this study is to reveal the effect of foreign direct investments on exports in the case of Turkey.
The decline in public service satisfaction is one of the challenges that democratic South Africa faces. Many municipalities in South Africa have been experiencing difficulties due to poor service delivery. The South African local communities often express their dissatisfaction with municipal service delivery by means of protests. The purpose of this paper is to investigate rural household’s satisfaction with access to basic services in the Lepelle Nkumpi municipality, Limpopo province. This research adopted a descriptive survey research design and a standardised questionnaire was used to collect data from 80 participants who were selected randomly. The finding reveals that most of the sample households have access to the services rendered by the municipality, such as water, sanitation and electricity. The municipality has extended its provision of basic services to the rural households. The finding further shows that the majority of the sample households have expressed their dissatisfaction with service provision. The service delivery challenges faced by the municipality include frequent water cutoffs, aged water taps, stolen water pipes and non-existent refuse removal. The municipality is struggling with backlogs due to a shortage of resources, lack of capacity and improper targeting. It is recommended that the municipality should accelerate water provisions inside the dwelling/yard and there should be a mechanism to respond immediately to water faults as well as a need for regular monitoring and maintenance. The municipality should apply the electrical subsidy to indigent households, impose heavy fines on illegal connections and electrify new settlements. Regarding sanitation service, the municipality should provide sanitation by using quality material for building toilets and put in place a mechanism for regular monitoring and upgrading of dilapidated toilets. It is also suggested that the municipality should enhance its institutional capacity to address the aforementioned challenges to accelerate the provision of basic services to the rural households.
The #FeesMustFall campaign evolved from a demand for lower fees for higher education to fee-free higher education in merely two years, necessitating extensive reconsideration of the state budget. Over the same period, marginal tax rate and value added tax (VAT) increases have been felt by South African individual taxpayers. Therefore an exploratory, document analysis has been performed to determine the extent to which the #FeesMustFall campaign has been shifted to the individual taxpayer between the 2015 and 2019 years of assessment. The findings indicate that the demand for increased financial support of students led to the recent VAT and marginal tax rate increases, but that tax revenue is actually declining: the VAT increase has partially covered the increase in social grants to protect the poor from the VAT increase, and the marginal tax rate increase is resulting in reduced growth in tax revenue collection as individual taxpayers are overburdened and therefore, tax avoidance is increasing while productivity is decreasing. The present study provides taxpayers with clarity on the recent tax increases and emphasises to National Treasury that any further tax increase would be to the country’s detriment.
The birth of democracy in South Africa in 1994 guided the introduction of local economic development (LED) to improve local and regional economies. Accordingly, the objective of this study was to analyse the impact of key economic sectors on LED in the Capricorn District Municipality over the period 1996 to 2016. The study also included the development of a LED index for measurement that could contribute to the diverse literature on Development Economics. The methodology included the development of an index to measure LED and also an econometric analysis of the impact of economic sectors on the LED index. The study employed a panel autoregressive distributed lag (ARDL) model. A LED index was composed of economic growth, employment and poverty alleviation. The results show how the productivity of key sectors influence economic growth, employment and poverty alleviation. It is noteworthy that the community service, trade, construction, finance and electricity sectors are positively related to LED. The main economic base sectors, such as agriculture and manufacturing, surprisingly had less of a positive impact on the local economy. Specific aspects have a negative impact on economic sectors, and should be minimized. Thus, the study formulated a strategy for policy implications such as restructuring of the agricultural, manufacturing and infrastructural development sectors, ensuring capacity of all essential services, improving production methods, and investment in technical skills development. It was therefore be concluded that LED is a process and tool in improving local economic growth, employment and poverty alleviation. In light of this finding, key sectors need to play a significant role to improve local economic growth and employment, and alleviate poverty.
