Theses and Dissertations
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Item The impact of foreign direct investment on labour productivity of the automotice sector in South Africa(University of Fort Hare, 2016-01) Lawana, NozukoThe determinants of Foreign Direct Investment (FDI) and its effects. on macroeconomic growth in developing countries have been investigated exhaustively by numerous researchers. The dominant message that has emerged from these studies is that FDI promotes growth. However, few studies have dealt with the influence of FDI on labour productivity in the automotive industry. The aim of this study was to examine the impact of FDI on labour productivity in this industry in South Africa, covering the period 1995 to 2013. The Johansen cointegration test was utilised to analysis the long-term relationship between FCI and labour productivity.Item The impact of portfolio investment on economic growth in South Africa(University of Fort Hare, 2015-01) Tenderere, MorrisThe main objective of this study was to investigate the impact of foreign portfolio investment on economic growth in South Africa. South Africa, just like other several developing countries has recorded large capital inflows in recent years, reversing a trend of outflows. Much of this new capital inflow has been in the form of portfolio investment. This has been attributed to large domestic capital markets in South Africa. This surge in portfolio flows has raised the question whether these flows will be sustained or will instead be reversed in the near future. Some observers argue that the recent flows are inherently unsustainable because in many cases they have short maturities. In light of this, this study, then, sought to establish the impact of portfolio investment on economic growth in South Africa. The study used annual data from 1990 to 2012. The data was tested for stationarity using the Phillips Perron and Augmented Dickey- Fuller tests. This was followed by cointegration, after which the vector error correction modelling was carried out.Item The relationship between foreign direct investment and economic growth: A South African case study(University of Fort Hare, 2015) Sisinyana, Matolweni NomutshetshiThis study investigates the relationship between Foreign Direct Investment and economic growth in South Africa over the period of 1990-2012 with quarterly time series data being employed in the study. Since theory suggests a positive long-run relationship between Foreign Direct Investment and economic growth, it is crucial to examine whether Foreign Direct Investment has played a role in increasing economic growth of South Africa. The current study employed the Romer (1990) endogenous growth theory in order to explain how Foreign Direct Investment contributes to economic growth of South Africa. The Johansen test of co integration was employed by the current study to determine any presence of a long-run relationship between Foreign Direct Investment and economic growth in South Africa. According to the cointegration results of the current study, the presence of cointegration between Foreign Direct Investment and economic growth was found to exist and as a result the Vector Error Correction Model (VECM) was estimated.Item The impact of the exchange rate on the manufacturing sector in South Africa (1983-2012)(University of Fort Hare, 2015-07) Ongujobi, Olamide DorisThe study, in its quest to explore the impact of Real Exchange Rate on the manufacturing sector in South Africa over the quarterly period 1983-2012 (30years), a VAR technique and VECM by Johansen (1991, 1995) estimation techniques were used. The study adopted Hodge (2012) model using five variables with GDP manufacturing as the dependent variable and the independent variables include; real exchange rate, gross fixed capital formation, interest rate and trade openness. The empirical analysis shows that real exchange rate has a significant impact on the South Africa manufacturing Sector. The impulse response and variance decomposition analysis in this study also revealed that interest rate has a significant impact on the South African manufacturing Sector. Furthermore, gross fixed capital formation has a positive impact on the manufacturing sector. The same cannot be said about the trade openness in the short: run.Item The impact of electricity prices on ecinomic growth: A case study of South Africa(University of Fort Hare, 2015-05) Mazambani, Faith RumbidzayiThis study examines the impact of electricity prices on economic growth in South Africa using Vector Error Correction Model (VECM) and the Johansen approach to co-integration. The results confirm that a stable, long-run relationship exists between electricity prices and economic growth. The empirical results show that there is a unique negative long-run relationship between electricity prices and economic growth. We find that higher electricity prices have a negative impact on economic growth. This indicates that as electricity prices increase, aggregate output in the economy will become constricted thereby reducing gross domestic product and thus reducing economic growth in South Africa.Item The Impact of Human Capital Development on Economic Growth in South Africa(University of Fort Hare, 2015-09) Makaula, Ndzwana MalizoleHuman development index as the measure of human capital development has always attracted interest of economists, researchers and policy makers. Government across the globe, South Africa in particular is also trying to improve the human capital by pumping more investments on, such as education and health. But the issue whether improved level human capital result in economic growth is still divisive. This study uses HDI (human development index) as the proxy for human capital and GDP (Gross Domestic Product) as proxy for economic growth for the period 1980-2011. The Johansen cointegration test was employed to analyse the long run relationship between HDI and its determinants as specified in the model.Item Determinants of Exchange Rate Volatility in South Africa(University of Fort Hare, 2015) Dewing, DesireeThe rand is observed to have experienced volatility in recent times, which was particularly pronounced during times of crises such as the East Asian Crisis of 1998 and the global financial crisis of 2008. The purpose of this study is to identify key macroeconomic variables that determine exchange rate volatility in South Africa, and to also determine the contribution of each of these variables to volatility. The study makes use of quarterly data from 1994 to 2014. Volatility is measured by means of a generalized autoregressive conditional heteroscedasticity approach. Estimation techniques employed include the Johansen Cointegration and vector error correction model.Item Impact of Foreign Direct Investment on Export growth of the host country: A case study of South Africa(University of Fort Hare, 2015) Chamangwana, Millicent RThis study attempts to establish the relationship between Foreign Direct Investment and the export growth in South Africa. The link between Foreign Direct Investment and export growth is well documented in the literature and econometric techniques using data from 1978-2010 are utilised to investigate in the case of South Africa. Johansen Co-integration Techniques and the Error Correction Method for long-run and short-run analyses respectively have been applied. After considerable evaluation it is established that indeed Foreign Direct Investment plays an important role in export growth as two equations are estimated, one with the stock of FDI and one without. Results show that when the stock of FDI is added it has supply-increasing effects on exports.Item An examination of the demand for money in Swaziland: A cointegration and vector error correction mechanism aproach(University of Fort Hare, 2014) Tatenda, Mawire WillardExamining the money demand function is an area which has received attention at both the academic and policy discourse levels due to its impact on the effectiveness of monetary policy. Based on this background, the study examined the money demand function in Swaziland from 1994 to 2013 using quarterly data. Following the review of the theoretical and empirical literature, a model linking the money demand function to its determinants was specified. The Johansen cointegration test was utilised to examine the long-term relationship between the money demand function and its determinants. The results showed that there is a long-term relationship between the money demand function and its determinants as specified in the model. The VECM was also specified to analyse the short-term interaction between the money demand function and its determinants, the results showed that in the event that there is disequilibrium, it takes about 51 % for it to correct. The CASUM and the CASUMSQ were also estimated to analyse the stability of the money demand function in South Africa. The results showed that there are periods in which the money demand function is not stable in Swaziland.Item Are African stock markets intergrated? the case of JSE and selected African Stock markets(University of Fort Hare, 2014-09-30) Ncube, GaileGenerally 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.Item Are African stock markets intergrated? The case of JSE and selected African stock markets(University of Fort Hare, 2014-09-30) Ncube, GaileGenerally 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.Item Power and Knowledge in the Implementation of the Great Limpopo Transfrontier Conservation Area: The Case of Sengwe in Zimbabwe.(University of Fort Hare, 2010-01) Sibanda, ManasaIn this thesis I investigate power relations among various actors in Transboundary Natural Resource Management (TBNRM) settings. I look at their effects in relation to control over and access to resources, local farming and conservation practices and on the livelihoods of local people. I focus on the Great Limpopo Transfrontier Conservation Area (GLTFCA) and on the Sengwe prefecture in particular, part of which is a contested area that is designated as a wildlife-corridor (which I refer to as the Corridor). This, small but vital component of the park links Zimbabwe with the rest of the conservation area. While not much research has been done there the effects of the initiative bring about a total transformation to the livelihoods of approximately 5000 local people. When this Corridor was introduced in 2000, legislation required a total displacement of the human settlement. Almost a decade after its establishment land for relocation has not been set aside, nor have any compensatory plans been put in place.Item The Relationship between Exports and Economic Growth: An Empirical Case Study of the South Africa Auto Mobile Industry(University of Fort Hare, 2012-03-25) Taylo, Nani-MariThe dissertation investigates the relationship between automobile exports and economic growth in South Africa. Given the amount of investment and government assistance that has gone into assisting and developing the South African automobile industry via the Motor Industry Development Programme, this study examines whether the increase in automobile exports has impacted on economic growth. A demand-side model of the Export-Led Growth hypothesis is estimated in order to analyse the magnitude of the impact of automobile exports on growth. The results of the VECM and Dynamic Granger Causality test reveal that vehicle exports have a long-run positive impact on economic growth and that a uni-directional causal relationship is found to run from vehicle exports to economic growth. Even though vehicle exports are found to have a relatively significant impact on economic growth, domestic demand factors are concluded as being the key contributor of economic growth in South Africa.Item The contribution of the motor industry to the South African economy(University of Fort Hare, 2011-12) Tyatya, KhanyaThe automobile industry in South Africa consists of the vehicle production sector and the components sector. The vehicle manufacturing sector includes Original Equipment Manufacturers (OEM) or vehicle assemblers. Four OEM's are based in the Eastern Cape namely Volkswagen, Daimler Chrysler, Ford Motor Company and General Motors with rest spread across Gauteng (Nissan & BMW) and Kwa-Zulu Natal (Toyota). A number of component suppliers support these OEM's. About 40% of South Africa's vehicle output comes from the Eastern Cape maintaining the country's position as an automotive competitor in Africa and the world (Department of Trade and Industry, 2009).Item The determinants of demand for public transport in South Africa(University of Fort Hare, 2011-10) Seleng, Tshegofatso PriscillaThis study analyses the determinants of demand for public transport in South Africa, using quarterly data covering the period from 1990-2009. The study initially provides an overview of the South African public transport system and population trends. Based on the review of the theoretical and empirical literature on transport, the study specifies a model of public transport demand in South Africa. Tests for stationarity and unit roots in the series (both informal and formal tests), and co-integration test have been performed. The co-integration test is done using the Johansen (1990, 1995) methodology. A vector error correction model is run to provide robust determinant variables on public transport. The results revealed that in the short run, the demand for public transport depends positively and significantly on GDP per capita growth and negatively on prices for public transport and fuel prices. However, over the long run, the demand for public transport depends negatively on GDP per capita growth as expected, but positively on the other variables including the growth in employment levels.Item Investigating the impact of capital account liberation on economic growth: A study of South Africa(University of Fort Hare, 2011) Khumalo, Sibanisezwe AlwynAbstract The increased interest in capital flows has made it imperative to understand how they impact a particular economy. The Global drive for an interlinked world economy has increased the need for monetary authorities and Governments to able to effectively deal with any negative spins off from capital flows and also be able to take advantage of positive effects capital flows may have on an economy. The study seeks to understand how the change to lift restrictions on capital flows into the South African economy may have impacted on economic growth.Item Does wage inflation cause price inflation in Zimbabwe(1970-2008)(University of Fort Hare, 2010) Nyamazuzu, ZvikomboreroThere has been much debate in literature on the direction of causality between price inflation and wage inflation. The Johansen procedure suggests that wage growth and price inflation are cointegration. Variables used in this study are real interest rates, money supply growth, real wages, productivity, real exchange rate and price inflation. This study employs an Error Correction Model (ECM) together with the Granger causality test to examine the causal relationship which is presumed to exist between these two variables. The empirical findings of the study show that (i) there is a long run relationship between price inflation and wage growth and (ii) there is bidirectional causality between inflation and wage growth. This shows that there is both cost push and demand pull inflation in Zimbabwe. ResultsItem An empirical investigation of the balance sheet channel of monetary policy transmission in South Africa(University of Fort Hare, 2009-12) Mudita, KelvinThe intention of this study is to outline an empirical framework of the balance sheet channel of monetary policy transmission in South Africa. Specifically, this study examines how monetary policy decisions are transmitted, through the balance sheet of business firms, to the real economy. The study is motivated by the fact that credit has now occupied an important role in the funding of new capital investment in South Africa. Thus, the balance sheet channel may become a relevant channel in the monetary policy transmission process.Item An Analysis of Casuality between Savings and Economic Growth in South Africa: (1980-2006)(2008-11) Murombo, TakundaThe causal relationship between savings and economic growth has largely remained a debatable subject despite much research into this relationship. A number of recent empirical studies cast doubt on the unidirectional relationship using both time series and cross sectional data and have come up with different results supporting the possibility of bi-directional causal relationships. The literature has also suggested the relationship may differ from country to country.Item A Comparative analysis of the determinants and behavior of investment demand between South Africa and Zimbabwe(University of Fort Hare, 2007) Malumisa, SambuloThe study investigates the determinants of private investment in South Africa and Zimbabwe employing annual data over the period 1980-2006. The focus is on Gross Domestic Product (GDP), Government Debt, Inflation, and interest rate policies. The data is subjected to stationarity and co integration tests, applied Vector Autoregressive and error correction models to estimate long- and short-run coefficients. The results suggest that GDP for both countries has a positive effect on private investment over the period of study. Government debt has a crowding out effect on private investment for Zimbabwe, for South Africa the effect is insignificant. Inflation for both countries negatively affects private investment. An interesting results supported data for developing countries is the positive relationship between interest rates and private investment.