Theses and Dissertations

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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.
The effects of politics and economic performance on stock markets in South Africa
(University of Fort Hare, 2023-11) Yokwana, Azania; Makhetha-Kosi, P; Ndlovu, Nomusa
The aim of the study was to investigate the effects of politics and economic performance on the stock market performance in South Africa for the period 2000 to 2022. Using the Autoregressive Distributed Lag model, the results found that economic performance as indicated by GDP per capita and political stability have significant effects on the South African stock market. The results showed that remittances, inflation, and political stability have a negative impact on stock market performance. On the other hand, control of corruption, GDP, and the combined effect of GDP and political stability have a favorable impact on stock market performance. The findings indicate that the economic performance has a substantial and lasting influence on the stock market capitalization, which serves as an indicator of the stock market performance in South Africa.
Determinants of financial sector development in the Southern African Development Community (SADC) region
(University of Fort Hare, 2024-05-07) Nomandla, Inga; Kapingura, FM; Ngonyama, N
The study examines the determinants of financial sector development in the SADC region for the period 2006-2020. Six models for financial sector development were estimated using the Generalized Method of Moments (GMM) estimation technique. The study focused on macroeconomic, geographic, and institutional variables. In the banking sector model, both geographic factors have a positive effect on financial sector development. However, population growth has a significant effect whilst population density has an insignificant effect on financial development. When it comes to macroeconomic factors, Foreign Direct Investment (FDI) has significant positive effect on financial development whilst GDP has insignificant positive effect on financial development. Both institutional factors show a positive effect on financial development but, the rule of law has a significant effect whereas government effectiveness has an insignificant effect on financial development. When it comes to the financial market, both geographic factors thus population growth and population density have statistically significant negative effects on financial sector development. Macroeconomic factors reveal that GDP is positively related to financial development and the effect is insignificant. Conversely, FDI has a statistically significant negative connection with financial development. Lastly, both institutional factors have significant relationships with financial development. However, political stability has a negative relationship with financial development, but the rule of law is positively related to financial development. The empirical findings underscore the importance of strengthening the rule of law to foster financial sector stability. Additionally, increasing interest rates can incentivize banks, thereby promoting financial development and economic stability.
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.
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.
The impact of public debt on economic growth in South Africa
(Faculty of Management and Commerce, 2024-11) Febana, Ntokozo; Makhetha-Kosi, P
This study investigates the impact of public debt on economic growth in South Africa between 1990 -2022. The study employed the ARDL model to estimate the long run and ECM for the short run. After performing an ARDL bounds test, co-integration was determined. The long-run model was estimated, and the results showed that government debt and investment negatively impact economic growth and the impacts are statistically significant. On the other hand, government expenditure showed a positive coefficient, it lacked statistical significance, suggesting that its impact on GDP growth may not be robust. The dummy variable representing structural breaks, particularly the transition to democracy in 1994. In the short run, public debt and investment has an impact on economic growth and the impact is negative. Government expenditure is the only variable that has short run positive impact on economic growth. Several policy implications emerged from the empirical results. In South Africa investments are directed towards unproductive sectors or are subject to high levels of inefficiency and corruption. The economic instability can lead to underutilization of capital and resources, further dampening the growth effects of investment. Therefore, it is essential for policymakers to focus not only on the quantity of investment but also on improving its quality and ensuring a stable economic environment. In this study, the non-significant results might indicate inefficiencies or the presence of offsetting negative factors, such as high levels of corruption or misallocation of resources. Hence the government should reduce corruption by effectively implementing the rule of law.
The impact of foreign capital inflow on domestic savings in South Africa
(University if Fort Hare, 2017-06-30) Mhloluvele, Nonkululeko
This study examined the impact of foreign capital inflow on domestic savings in South Africa􀀋. Data was extracted from the World Bank from 1990-2014. The study employed the Johansen co-integration technique to analyse the long run relationship between the variables of interest. Having established the presence of co-integration, the vector error correction model was also estimated to analyse the short run interaction between the variables. The long run results illustrated that there is a positive relationship between domestic savings and foreign direct investment, remittances and GDP per capita, while on the other hand there is a negative relationship between domestic savings, interest rate and ODA. Granger causality tests were also conducted and the results indicate that the different forms of external financial flows Granger cause savings in South Africa. What is interesting from the empirical results is the negative relationship between interest rate and domestic savings which implies that South Africans are net borrowers as the income effect surpasses the substitution effect. This in part explains the low levels of domestic savings being experienced by South Africa since an increase in interest rate results in people paying more debt and this will reduce domestic savings. In addition, the results also suggest that foreign capital flows complement savings in South Africa.
The impact of electricity prices on sectoral output in South Africa.
(University if Fort Hare, 2017-03-26) Gonese, Dorcas
The aim of this research was to investigate the impact of electricity prices on sectoral output in South Africa from 1994 to 2015, using the three basic panel data estimators. The contribution of this study is unique in three aspects. First, it explicitly tests for the impact of electricity prices on sectoral output. Secondly, the research uses the panel data analysis which allows for control of unobserved heterogeneity and variables in the model. More so, the study shows that, besides electricity prices, there are other factors which affect sectoral output in South Africa. The research employed the Hausman test to identify the fixed effect as the appropriate estimator to use among the three estimators (pooled, fixed and random effect). More so, the feasible generalised least of squares (FGLS) and Driscroll Kraay (SCC) estimators were employed to control for heteroscedasticity, autocorrelation and cross-sectional dependence of the model of the study. The Hausman test results indicate the fixed effect as the appropriate estimator which allows cross-sectional differences. Therefore, the seemingly unrelated regression (SUR) model was employed to analyse output response to electricity price changes at sectoral level. Electricity prices were found to be statistically significant to explain the sectoral output movements in South Africa.
The impact of foreign direct investment on labour productivity of the automotice sector in South Africa
(University of Fort Hare, 2016-01) Lawana, Nozuko
The 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.
The impact of portfolio investment on economic growth in South Africa
(University of Fort Hare, 2015-01) Tenderere, Morris
The 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.
The relationship between foreign direct investment and economic growth: A South African case study
(University of Fort Hare, 2015) Sisinyana, Matolweni Nomutshetshi
This 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.
The impact of the exchange rate on the manufacturing sector in South Africa (1983-2012)
(University of Fort Hare, 2015-07) Ongujobi, Olamide Doris
The 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.
The impact of electricity prices on ecinomic growth: A case study of South Africa
(University of Fort Hare, 2015-05) Mazambani, Faith Rumbidzayi
This 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.
The Impact of Human Capital Development on Economic Growth in South Africa
(University of Fort Hare, 2015-09) Makaula, Ndzwana Malizole
Human 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.
Determinants of Exchange Rate Volatility in South Africa
(University of Fort Hare, 2015) Dewing, Desiree
The 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.
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 R
This 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.
An examination of the demand for money in Swaziland: A cointegration and vector error correction mechanism aproach
(University of Fort Hare, 2014) Tatenda, Mawire Willard
Examining 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.
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.
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.
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, Manasa
In 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.

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