Faculty of Management and Commerce

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http://hdl.handle.net/20.500.11837/195
The Faculty of Management and Commerce collection in DSpace at the University of Fort Hare provides access to the scholarly and research outputs of staff and students. This collection includes research publications, conference papers, and examination question papers. The Faculty is dedicated to developing knowledge and skills in the fields of management, economics, business, accounting, finance, administration, and entrepreneurship, equipping graduates to play a leading role in both the public and private sectors. Teaching and research within the Faculty address critical issues such as economic development, business innovation, ethical leadership, corporate governance, and sustainable entrepreneurship, with a focus on the African and global contexts. By preserving and disseminating these resources, the collection supports teaching, learning, and research, while contributing to the advancement of knowledge and practice in commerce, management, and economic transformation.

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Browsing Faculty of Management and Commerce by Subject "Africa"

Now showing 1 - 6 of 6
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    Are African stock markets intergrated? The case of JSE and selected African stock markets
    (University of Fort Hare, 2014-09-30) Ncube, Gaile
    Generally African stock markets are deemed to be small, segmented and illiquid. The study utilises monthly data for the period of 2000 to 2008, employing the Johansen and Julius cointegration method to determine the long run relationship between the five selected African stock markets. Granger causality test were also conducted to establish if there is any causal links between the stock markets in Africa. The analysis in the study indicates that African stock markets are improving in performance generally, growing and developing. However empirical results indicate that African markets are segmented. A further analysis, to determine the relationship between the five selected African stock markets and the world stock markets, show that African stock markets are affected by developments in the international markets. Hence portfolio diversification opportunities exist in the African stock markets suggesting that investors should also consider investing in their African countries as they offer opportunities rather than considering investing in the international markets only.
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    Asymmetric Analysis of Causal Relations in the Informality–Globalisation Nexus in Africa
    (MDPI, 2024-06-28) Bolarinwa, Segun Thompson; Simatele, Municinga
    This study examines the causal relationship between informality and globalisation in 30 African countries. It deviates from traditional research by adopting a bi-directional framework to address reverse causality. By applying the DH causality method in both linear and nonlinear frameworks, this research challenges the assumption of a linear relationship and finds that the causal structure is better explained within a nonlinear asymmetric context. This paper provides recommendations based on the identified causal relationships. For countries in which globalisation leads to informality, such as Angola, Congo, Guinea, Gambia, Mozambique, Sierra Leone, Tunisia, Tanzania, Uganda, Zambia, and Zimbabwe, the paper suggests policy measures to integrate the informal sector into the formal economy. These measures include designing programmes to facilitate transition, implementing skill development initiatives, and establishing support mechanisms for entrepreneurship and small businesses. Additionally, this paper advises the development of social safety nets, improved market access, effective monitoring and regulation mechanisms, education on the benefits of globalisation, and international cooperation. For countries experiencing positive shocks from informality to globalisation, this paper recommends targeted support programs for entrepreneurship, initiatives to formalize the sector, the enhancement of market access, and skill development tailored to the needs of the informal sector. These policy recommendations aim to capitalize on the positive shocks in informality by fostering entrepreneurship, formalization, market access, and skill development. In the case of negative shocks in globalisation leading to positive shocks in informality, the paper suggests implementing resilience-building policies for the informal sector during economic downturns, establishing social safety nets, and adopting flexible labour policies.
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    Financial sector reforms and banking stability in the Southern African Development Community (SADC)
    (University of Fort Hare, 2024-11-29) Ndubela, Ayavuya; Lawana, N; Kapingura, FM
    The banking sector plays a very critical role to the development of a country. However, in the Southern African Development Community region, in some member countries the banking sector is not well developed. The region continues to encounter major obstacles in the growth of its banking sector, which impedes the rate of economic development, even after implementing several measures to strengthen the banking industry, non-banking sector, and financial markets. Reducing government involvement, opening financial markets, and fortifying financial institutions are all part of the financial sector reforms that has been a key element of developing countries' structural adjustment plans. Despite these reforms, the majority of Southern African countries still have relatively weak financial systems. The literature on financial sector development does also highlight that the reforms which maybe implemented in the sector may also influence the stability of the financial system which may create instability and thwart any growth prospects. The aim of any economy whether developed or developing is to achieve stability, reduce unemployment and sustain economic development through macroeconomic policy which these SADC countries aim to achieve. Given this background, the study examined the effect of financial sector reforms on banking stability in the SADC region for the period from 2013 to 2023 employing the Generalized Method of Moments. The study was underpinned by the financial liberalization theory of McKinnon and Shaw (1973) which shows how financial reforms can result in the development of the banking sector. The findings reveal that proper implementation of financial sector reforms (any changes in banking regulation) results in banking stability. This provides valuable insights for policymakers to design effective strategies for promoting financial sector reforms and banking stability in the SADC region.
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    Informality and poverty in Africa: Which comes first?
    (Wiley, 2023) Bolarinwa, Segun Thompson; Simatele, Municinga
    Existing empirical work has investigated the relationship between informality and poverty. However, most of this work has neglected the feedback effect. This empirical paper explores the bi-directional causality between poverty and informality within the SGMM-PVAR framework among 40 selected high-income and low-income Sub-Saharan countries between 1991 and 2018. Our results support the heterogeneity argument, suggesting that sub-Saharan African informality is demand and supplyled. The income level of the country mediates the direction of effect. Bi-direction causality is observed for low-income countries. Causality in middle-income countries runs from poverty to informality. The results suggest that a certain level of informality may be desirable, especially in low-income countries.
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    Informality and the climate change-poverty nexus: empirical evidence from African countries
    (Routledge, 2023-04-20) Bolarinwa, Segun Thompson; Simatele, Municinga
    The present paper introduces informality into the climate change-poverty nexus using 40 Sub-Saharan African countries selected from high-, middle and low-income countries between 1990 and 2019. The empirical results show that informality is an important variable that can mitigate the impact of climate change on poverty. The moderation of the poverty climate change nexus is nonlinear in income. Informality reduces the negative effect of climate change on poverty in middle income countries while exacerbating its effect in low-income countries. Possible channels of influence are identified. Policy makers need to rethink the role of informality in an environment where informality is mainly seen as a nuisance, to see it as an ally that can achieve key results for the fight against environmental degradation and extreme poverty.
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    What levels of informality tackle poverty in Africa? Evidence from dynamic panel threshold analysis
    (Emerald, 2023-04-26) Bolarinwa, Segun Thompson; Simatele, Municinga
    Purpose – The paper validates the threshold argument in the informality–poverty nexus. Recent literature and policy have argued the existence of a threshold in the relationship. Design/methodology/approach – The study adopts dynamic panel threshold analysis, estimated within the framework of system Generalized Method of Moments (SGMM) to control for endogeneity and simultaneity. Data from 40 selected sub-Saharan African countries between 1991 and 2018 are used for the study. Findings – Empirical results confirm the existence of an average threshold of 31% share of informality in GDP. Also, the paper finds that threshold of informality that addresses mild and severe poverty varies between 24.32 and 36.75%.