Browsing by Author "Hlongwane, Tshembhani Mackson"
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Item Analysis of the Impact of Fiscal policy on economic growth in South Africa: VECM approach(2018) Hlongwane, Tshembhani Mackson; Mongale, Itumeleng Pleasure; Tala, LavisaFiscal policy ensures macroeconomic stability as a precondition for growth at the macro level. This study investigates the impact of fiscal policy on economic growth of South Africa from 1960 to 2014 through a Cointegrated Vector Autoregression approach. It seeks to contribute to the existing literature as well as in designing effective fiscal policy programmes which can propel economic performance. Theresults of the long run estimates revealed that government tax revenue has a positive and significant long run influence on economic growth, whereas the government gross fixed capital formation and budget deficit have a negative impact on real GDP. For that reason, the study recommends that some expansionary fiscal policy measures should be strengthened since they play a very important role in the economy so as to meet the government target of the National Development Plan Vision for 2030.Item The effect of South African public debt on economic growth: An ARDL cointegration approach from 1961-2017(University of Western Cape, 2019) Hlongwane, Tshembhani Mackson; Ocran, Matthew KofiThis study investigates the effect of public debt on economic growth in South Africa since 1961-2017. Public debt stock is disaggregated into external debt and domestic debt in order to determine the effect of each on economic growth independently. The study employed the ARDL bound test to estimate the long and short run relationship among several macroeconomic variables - real economic growth, domestic debt, external debt, budget deficit, inflation rate and investment. An error correction model was used to analyses the short-run disequilibrium. The results show that there is a short and long run equilibrium relationship between foreign debt, domestic debt, budget deficit, inflation rate and economic growth. The empirical results indicate that external debt negatively affects the real GDP growth in South Africa, both in the short and long-run. Several policy implications emerged from the empirical results. To keep public debt more manageable, South Africa should improve its debt management. Furthermore, the country can make use of debt to equity swaps by privatizing underperforming parastatals. This would make them competitive and efficient.Item Essays on financial market development, monetary policy, and financial stability in South Africa(University of the Western Cape, 2022) Hlongwane, Tshembhani Mackson; Sheefeni, JohannesLike in many other countries, the South African financial markets play an important role in the transmission of monetary policy and are crucial for promoting financial stability in South Africa. The goal of financial market development is to make the financial system better able to share risks effectively by combining domestic and international savings to finance investment and consumption. This thesis examined financial market development, monetary policy, and financial stability in South Africa from 2003 and 2020. The study aimed at addressing four specific objectives. Firstly, the study gives an overview of the financial market, monetary policy conduct and financial stability in South Africa. Secondly, it investigated the dynamic interactions between financial market and monetary policy in South Africa.