Theses and Dissertations

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http://hdl.handle.net/20.500.11837/337

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Browsing Theses and Dissertations by Author "Hompashe, D"

Now showing 1 - 4 of 4
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    The impact of oil price volatility on economic growth in South Africa : a cointegration approach
    (University of Fort Hare, 2013) Matekenya, Weliswa; Hompashe, D
    Oil is an essential commodity in the South African economy and a source of energy that is used for electricity generation, heating, and cooking. It is vital for the transportation system on which the very livelihood of the economy depends. 14% of South African primary energy needs are met by oil while 95% of crude oil is imported, primarily, from Saudi Arabia and Iran. This study investigates the impact of oil price volatility on economic growth in South Africa from 1994Q1-2010Q4. The study employs the VECM and shows that there exists both a long run and short run relationship between the following variables: crude oil price, GDP, gross fixed investment, real interest rate and real exchange rate. In a long-run analysis there is a positive relationship between oil price and GDP while there is negative relationship in the short-run. The study also shows that, as an oil importing country, South Africa‟s economic growth depends on imported oil which makes the country vulnerable to oil price shocks. Based on the findings of this study it is recommended that policy interventions should include both monetary and fiscal policies. It is in this regard that promoting a regional integration in order to reduce oil dependence, by optimizing electricity supplies across the region, is essential. This will improve efficiency and, owing to economies of scale, lower generation costs.
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    The association between public transport and commuters’ mental health: the case of South Africa
    (University of Fort Hare, 2023-12) Mpepo, Othi; Hompashe, D
    Public transport is the most-used mode by workers every day; therefore, it is important for the public transport mode to have the highest efficiency in terms of travel time, travel cost, and conditions of the public transport mode. However, public transport has had emerging taxi wars, irresponsible driving, road unworthy, and congestion. These have caused many casualties in the past: innocent people who had no alternative but to use public transport. It is the responsibility of this study to address the question of whether public transport use affects commuters’ mental health. This was investigated using logit model analysis, and the data were obtained from General Household survey. The impact of public transport use on commuters’ mental health was also analyzed using chi-square and likelihood tests to assess the relationship between mental health and public transport. Stata 14 was employed and implemented as an explanatory technique to achieve the objectives of this study. The results of previous studies indicate that there is mostly an impact of public transport on mental health which may also justify the conditions that directly affect the well-being of people and commuters. Furthermore, these studies suggested that active public transportation, which includes walking and cycling, would have positive effects on the general well-being of commuters. It is no surprise that the results of this study would follow a similar route of deteriorating the mental health of commuters using public transportation.
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    The impact of fuel price on supply chain costs in South Africa
    (University of Fort Hare, 2024) Zanekile, Masonwabe Victor; Hompashe, D; Fobosi, SC
    Fuel price volatility significantly affects supply chain costs, impacting the competitiveness and sustainability of business in South Africa. This study examined the impact of fuel prices on supply chain costs in South Africa, exploring the effects on transportation, inventory and logistics management. The study used a time series data from 1990 to 2022 and considered a direct correlation between fuel price fluctuations and their subsequent impact on supply chain costs. The Autoregressive Distributed Lag Model (ARDL) was used to determine long term relationship between the variables. The Error Correlation Model (ECM) was also used in the study to determine the short-term relationship between the variables. The findings revealed that there is a strong positive long run correlation between fuel price and supply chain costs in South Africa by 0.462, and it is statistically significant at 1% level by observing the probability (P<0.0007) in the ARDL Long Run Table. This implies that for every 1% increase in fuel price will result in an increment of 0.462 in the total cost of supply chain. The findings indicate that fuel price increases significantly and contribute to rising supply chain costs, with disproportionate effects on companies and consumers. The study suggested based on the findings that companies in South Africa should familiarise themselves with route optimisation. Rising fuel costs can incentivise logistics companies to optimise their delivery routes to minimise fuel consumption. This could entail utilising sophisticated routing software to discover the most fuel-efficient routes or consolidating shipments to reduce the number of trips. In addition, companies have to investment in fuel-efficient vehicles: High and volatile gas prices can motivate logistics companies to invest in more fuel-efficient vehicles or technologies, such as hybrid or electric trucks, to reduce their dependence on traditional gasoline or diesel fuel. The study is limited to specific variables affecting the relationship between fuel price and supply chain costs in South Africa but acknowledges that other factors may also play a role. Additionally, events outside the research period may not be considered. This research contributes to understanding the implications of fuel price fluctuations on supply chain costs in South Africa, informing policymakers and industry stakeholders.
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    The impact of fuel price on the cost of public transport in South Africa
    (University of Fort Hare, 2025-05) Mhlantlalala, Aphelele; Hompashe, D
    This study investigates the impact of fuel prices on public transport costs in South Africa from 1994 to 2022. With 80% of the population relying on public transport and over 80,000 buses transporting 850 million people annually, rising fuel prices significantly affect operational costs, often leading to fare hikes. This study investigates the long-term determinants of the cost of public transport (CPT) in South Africa, utilizing an Autoregressive Distributed Lag (ARDL) model for time series analysis over the period from 1993 to 2022. The results from the ARDL (4, 4, 4, 4, 4) model indicate a significant long-run relationship between fuel prices (FP), inflation (INF), GDP (LGDP), income levels (LINC), and the cost of public transport (CPT). Specifically, the coefficient for fuel prices (FP) is 0.0178, indicating that a R1.00 increase in fuel prices leads to a R0.0178 increase in the cost of public transport, reflecting the direct impact of fuel price fluctuations on transport costs. Similarly, inflation (INF) shows a positive relationship with CPT, with a coefficient of 0.0654, suggesting that a rise in inflation contributes to higher transport costs. The coefficient for GDP (LGDP) is 4.9516, implying that higher levels of economic output are associated with an increase in public transport costs, possibly due to rising demand and operational costs in a growing economy. On the other hand, income levels (LINC) exhibit a negative relationship with CPT, with a coefficient of -6.0052, indicating that higher income levels reduce the cost of public transport, which is likely due to increased demand for more efficient services. These findings suggest that public transport costs in South Africa are influenced by a mix of macroeconomic variables, with fuel prices and inflation being the most significant drivers. The study underscores the need for policy interventions to manage fuel price volatility and mitigate its effects on public transport affordability. The study also explores mitigation strategies like government subsidies and alternative energy sources to stabilize public transport costs. Results show a significant positive impact of fuel prices, inflation, and GDP on transport costs.