Research Articles (Economics)

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Access to health care in post-apartheid South Africa: availability, affordability, acceptability
(Cambridge University Press, 2018) Burger, Ronelle; Christian, Carmen
We use a reliable, intuitive and simple set of indicators to capture three dimensions of access – availability, affordability and acceptability. Data are from South Africa’s 2009 and 2010 General Household Surveys (n=190,164). Affordability constraints were faced by 23% and are more concentrated amongst the poorest. However, 73% of affordability constraints are due to travel costs which are aligned with findings of the availability constraints dimension. Availability constraints, involving distances and transport costs, particularly in underdeveloped rural areas, and inconvenient opening times, were faced by 27%. Acceptability constraints were noted by only 10%. We approximate acceptability with an indicator measuring the share of community members bypassing the closest health care facility, as we argue that reported health care provider choice is more reliable than stated preferences. However, the indicator assumes a choice of available and affordable providers, which may often not be an accurate assumption in rural areas. We recommend further work on the measurement of acceptability in household surveys, especially considering this dimension’s importance for health reform.
Affirmative action in education and Black Economic Empowerment in the workplace in South Africa since 1994: policies, strengths and limitations
(BCES Conference Books, 2017) Herman, Harold D.
This paper explains the concepts of Affirmative Action (AA) and Black Economic Empowerment (BEE) and the policies developed in post-Apartheid South Africa. It compares it to similar policies adopted in different contexts in Malaysia, India and the U.S.A. It explains and critiques the South African policies on AA and BEE, its history since 1994 and how class has replaced race as the determinant of who succeeds in education and the workplace. It analyses why these policies were essential to address the massive racial divide in education and the workplace at the arrival of democracy in 1994, but also why it has been controversial and racially divisive. The strengths and limitations of these policies are juxtaposed, the way it has benefitted the black and white elites, bolstered the black middle-class but has had little success in addressing the education and job futures of poor, working class black citizens in South Africa. The views of a number of key social analysts in the field are stated to explain the moral, racial, divisive aspects of AA in relation to the international experience and how South Africa is grappling with limited success to bridge the divide between the rich and poor.
Alternative definitions of informal sector employment in South Africa
(Stellenbosch University, 2008) Yu, Derek; Essop, Hassan
Before the introduction of the Quarterly Labour Force Survey (QLFS) in 2008, Statistics South Africa (Stats SA) has been using the same methodology to derive the informal sector employment throughout the years, focusing on the enterprise registration status to classify workers (which include both self-employed and employees) as either formal or informal sector workers. Although there are difficulties with attempting to provide any consistent trend data (Yu, 2007 & Essop & Yu, 2008), it is generally accepted that informal sector employment grew relatively more rapidly in the late 1990s, and then stabilized at about 2 million in the early 2000s before it increased (albeit more slowly) again since 2005. Nonetheless, recent papers by Devey, Skinner & Valodia (2006) as well as Heintz & Posel (2008) argue that the current classifications used by Stats SA hide a significant degree of informality in the formal economy, as some formal jobs are characterized by conditions that are typical of informal work. Therefore, they propose alternative definitions of informal sector employment, focusing on worker characteristics instead of enterprise characteristics. This paper aims to address the reliability or otherwise of these recent approaches, as well as to suggest better ways to define informal sector employment.
An analysis of the effectiveness of inflation targeting monetary policy framework in South Africa
(Journal of Economics, Management and Trade, 2019) Sheefeni, J. P. S.; Makuvaza, Leonard; Nyambe, Jacob M.
This study is premised on investigating the effectiveness of inflation targeting in South Africa. The methods of analysis include the Vector Autoregressive model (VAR), the unit root test and cointegration test. The analysis was conducted with the use of EViews version 9. The findings from the study revealed that the response of inflation is not consistent with the Taylor rule hence increases in the repo rate meant to reduce inflation actually increase the inflationary pressures in the economy. This is due to the composition of the Consumer Price Index. Housing constitutes the largest weight on the CPI hence this has an impact on how the Repo rate affects inflation. The autoregression model of inflation showed that the sum of the coefficients is less than one (0.965) showing that inflation targeting has effectively reduced the persistence of inflation in South Africa. Thus monetary framework in South Africa seems to be effective and should thus be advanced for wider economic benefit.
Analysis of the Impact of Fiscal policy on economic growth in South Africa: VECM approach
(2018) Hlongwane, Tshembhani Mackson; Mongale, Itumeleng Pleasure; Tala, Lavisa
Fiscal 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.
Austerity measures, infrastructure and economic development in South Africa (1996–2019)
(Vilnius University Press, 2023) Mali, Kukhanyile; Sheefeni, Johannes
The paper aims to establish whether austerity measures promote economic development, improve infrastructure development, and whether they exacerbate infrastructure backlogs. The methodology used is a quantitative research method, sourcing secondary quarterly data from the South African Reserve Bank. The VAR model is used to analyse data between 1994 and 2019. The results showed that austerity measures have a significantly negative role in economic development. Also, they slow down investments that are crucial for infrastructure development. The results also pointed to the exacerbation of infrastructure backlogs caused by austerity measures
Can personal initiative training improve small business success? A longitudinal South African evaluation study
(Sage Publications, 2013) Solomon, Goosain; Frese, Michael; Friedrich, Christian; Glaub, Matthias
High levels of personal initiative will be required to unlock the potential offered by the many untapped resources in Africa in terms of business opportunities. Significant resources are ploughed into the development of the small business sector by governments in Africa, particularly in South Africa. However, there is little evidence that these efforts are sufficiently effective to produce the desired results. Two issues are addressed in this article: (a) whether or not enhancing the personal initiative of owner-managers improves the performance of small businesses, and (b) the moderation of the content and effectiveness of a short training intervention by means of a longitudinal evaluation study, including a control group. The findings show an increase in the training group’s business activities and performance, and also identify the varied contributions of the components of the training.
Casual implication of Oil Production on Carbon Emission and Economic Growth in Nigeria
(Opole University, 2016) Jaiyeola, Afeez; Olufemi, Saibu
The paper investigated the causality among carbon emission, oil production and economic growth in Nigeria’s time series data for the period 1970 to 2013. It estimated an autoregressive distributed lag model and used granger causality mechanism to establish both the effects and causal nexus among the variables. The main finding is that oil production and carbon emission had significant negative effect real per capital growth and a significant causal relationship from crude oil production to carbon emission and economic growth. This finding implied that attempts to quicken real economic growth and enhanced welfare through oil production had led instead to a worsen environment degradation and lower quality of life such that the benefit of oil resources endowment was only seen but not felt by people. Hence, possibly the negative impact of oil resources reported in many previous studies in many oil dependent country might indeed be as a result of induced environmental degradation and health hazard due to higher carbon emission in such countries like Nigeria.
Causal implication of oil production on carbon emission and economic growth in Nigeria
(Opole University, 2016) Jaiyeola, Afeez Olalekan; Saibu, Olufemi Muibi
The paper investigated the causality among carbon emission, oil production and economic growth in Nigeria’s time series data for the period 1970 to 2013. It estimated an autoregressive distributed lag model and used granger causality mechanism to establish both the effects and causal nexus among the variables. The main finding is that oil production and carbon emission had significant negative effect real per capital growth and a significant causal relationship from crude oil production to carbon emission and economic growth. This finding implied that attempts to quicken real economic growth and enhanced welfare through oil production had led instead to a worsen environment degradation and lower quality of life such that the benefit of oil resources endowment was only seen but not felt by people. Hence, possibly the negative impact of oil resources reported in many previous studies in many oil dependent country might indeed be as a result of induced environmental degradation and health hazard due to higher carbon emission in such countries like Nigeria.
Challenges for quality primary education in Papua New Guinea — a case study
(Hindawi Publishing Corporation, 2011) Rena, Ravinder
There is an urgent need to reform the educational system to achieve universal primary education in Papua New Guinea (PNG). Even after 35 years of independence, PNG has been struggling to educate an estimated 2 million elementary- and primary-aged children and faces numerous challenges in providing Education for All (EFA). This study was conducted in four primary schools of Buma Yong area of Lae district ofMorobe Province, PNG. The study revealed that the quality of education has been deteriorated over the past few decades. Many schools in PNG do not have classrooms, teachers, and basic facilities. As a result, the children are losing interest in going to school. The children dropped out of school so as to assist their families in the household and agricultural activities. It also reveals that the dropout rate of girls is more than that of the boys due to the gender disparity in the country. The study recommended that budgetary allocations should be increased so as to improve the infrastructural facilities and encourage the children to attend primary school and thus achieve the Millennium Development Goal/Education For All in PNG.
The challenges of providing water and sanitation to urban slum settlements in South Africa
(Springer, 2015) Makaudze, Ephias M.; Gelles, Gregory M.
Although the South African government has, since democratic transition, made considerable progress in providing water and sanitation, there are still many challenges, particularly in slum settlements where many residents lack access to clean water and safe sanitation. The country could experience serious social problems unless new policy and planning measures can be put in place, at both the national and local government levels, to address water and sanitation inadequacies. Already there are ominous signs that the country could face unrest as citizens vent their anger and frustration against poor basic services. The xenophobic attacks (2009/10), the ‘open toilet’ saga (2010/11), and the ‘feces protests’ (2013/14) (protests against the bucket toilet system in Western Cape) all bear evidence of the general discontent of urban people with poor service delivery. This paper discusses the challenges of providing water and sanitation to urban slum settlements in South Africa.
The comparability of income and expenditure surveys 1995, 2000 and 2005/2006
(Stellenbosch University, 2017) Yu, Derek
The Income and Expenditure Survey (IES) conducted by Statistics South Africa (Stats SA) between September 2005 and August 2006 was the third of its kind, after similar surveys in October 1995 and October 2000. The main purpose of the IES is to collect and provide information on income and expenditure patterns of a representative sample of households, so as to update the basket of goods and services required for the compilation of the Consumer Price Index (CPI). Nonetheless, these surveys have also become an important source of information for poverty and inequality analysis, mainly because of the absence of other detailed datasets containing income and expenditure data. There are, however, important reasons why these datasets cannot be unquestioningly compared. This paper attempts to show why.
The comparability of labour force survey (LFS) and quarterly labour force survey (QLFS)
(Stellenbosch University, 2009) Yu, Derek
Statistics South Africa (Stats SA) has been collecting labour market data since 1993 with the October Household Survey (OHS), which was conducted annually between 1993 and 1999, as well as the Labour Force Survey (LFS), which was a biannual survey introduced in 2000 to replace the OHS. In March 2005, consultants from the International Monetary Fund (IMF) were appointed to revise all aspects of the LFS. All documents, processes and procedures relating to the LFS were reviewed, before a report on the findings was presented to Stats SA in June 2005. At the end, it was decided to re-engineer the LFS, and this took place in October 2005. Moreover, consultants were appointed in 2006 to help improve the survey questionnaire, sampling and weighting, data capture and processing systems. Eventually, Stats SA came up with a decision that the LFS would take place on a quarterly basis from 2008, i.e., the Quarterly Labour Force Survey (QLFS) was introduced to replace the LFS.
The comparability of the statistics South Africa October household surveys and labour force surveys
(Stellenbosch University, 2017) Yu, Derek
Statistics South Africa (Stats SA) has been collecting labour market data with household surveys and in a fairly comparable format since 1993. These datasets have been studied and compared extensively in order to better understand the workings of the South African labour market. Many of these studies compare household surveys of different periods in order to identify trends, but the validity of such trends is conditional on the comparability of the different datasets. Besides, the naïve comparisons of the different datasets have been questioned. Other problems include inconsistencies in questionnaire design, coding errors, changes in the sampling frame, the oversampling of agricultural workers in OHS1995, the oversampling of subsistence agricultural workers in LFS2000a and LFS2000b, as well as the oversampling of informal workers in LFS2001a. Most of these issues have received attention in papers by Burger and Yu (2006), Casale, Muller and Posel (2005), and Wittenberg (2004).
Crime and HIV/AIDS in the Western Cape: business support organizations and business owners' perceptions
(Academic Journals, 2007) Isaacs, Eslyn; Friedrich, Christian
Economic growth will be severely curtailed if crime and HIV/AIDS is not effectively dealt with. Despite the fact that the business support organizations and the SMME owners are dissatisfied with the crime situation, the government reports that it is showing a decreasing trend. The research shows that 92% of the respondents are of the opinion that crime negatively affects small and medium enterprises and these owners are spending between $21 and $87 per annum on crime prevention. It was surprising when 52% of the owners mentioned that they have no measures in place to combat crime, whilst 17% have a double inventory and cash control system in place. A further 14% reported that they do a thorough background check before appointing new employees. Sixty percent of respondents believed that unemployment and low self-esteem (15%) are consequences of crime and it was therefore not surprising when 30% indicated that job creation should receive a priority; another 30% believed improved police visibility and 23% was of the opinion that youth programmes and a further 17% suggested that the prosecution system should be more effective. Hundred percent (100%) of the business owners indicated that they do not have a HIV/AIDS policy. Eighty eight percent of the respondents were of the opinion that HIV/AIDS have a negative impact on the small and medium enterprises. Fifty four percent of the respondents believed that HIV/AIDS reduces the workforce and forty six percent opinioned that it decreases the purchasing power of the affected employees. Fifty four percent of the respondents were of the opinion that awareness programmes; 23% thought treatment programmes and it was surprising when 20% of the respondents reported that they do not know what can be done to reduce the HIV/AIDS situation.
Cyclicality of size, value, and momentum on the Johannesburg Stock Exchange
(Taylor & Francis, 2021) Kapche Fotso, Moise Herve; Brown, W G P
The study examines the cyclical behaviour of style premiums on the Johannesburg Stock Exchange (JSE) over the period 2002–2018. More specifically, the study establishes whether there is a contemporaneous relationship between style premiums and certain regime dynamics. The examination period extends over two consecutive business cycles, each with an upward and a downward phase. A robust factor-mimicking portfolio construction procedure is employed. Findings show that the small-cap risk premium shrinks significantly or becomes negative during downward phases while the momentum premium is strongly positive throughout the study period, but is lower during downward phases.
Decolonisation of institutional structures in South African universities: A critical perspective
(Cogent OA, 2019) Albertus, Rene W
In 2015, using social media, a new generation of South African university students launched the social justice movement #FeesMustFall. The call for social justice, equity and equality has been a burning issue in South Africa’s education system since the dark days of apartheid. In 1976, non-white students revolted against the apartheid government and many lost their lives during the protest. On 15 October 2015, 40 years later, students from all demographics mobilised to launch a protest under the theme #FeesMustFall against institutional racism which did not die with apartheid. The roots of this movement are symptomatic of deep social and economic concerns rooted in the apartheid history of South Africa. Through the use of social media, students mobilised protest marches in all regions of the country to demand justice, equality and equity. This paper discusses and describes the lack of transformation in South Africa’s higher education which has perpetuated institutional racism for decades.
Demand for money in Namibia: An ardl bounds testing approach
(Asian Online Journals, 2013) Sheefeni, Johannes Peyavali Sheefeni
This paper examines the demand for money in Namibia. Time series techniques such as unit root test, cointegration and Autoregressive Distributed Lag (ARDL) approach were utilized on quarterly data for the period 2000:Q1 to 2012:Q4. The results based on the unit root test shows that the variables are integrated of order one. The bound testing approach to cointegration reveal that there is no cointegration among real money aggregates (M1 and M2), real income, inflation and interest rate. Therefore, the stability of demand for money function could not be established.
Determinant of the relationship between labour force participation in South Africa for both male and female
(University of Cape Town, 2016) Jaiyeola, Afeez Olalekan
Reducing poverty and inequality are key challenges in South Africa. Access to the labour market and earnings differentials are the main drivers of poverty and inequality in South Africa (Leibbrandt et al.,2010). Educational attainment and quality of education play an important role in determining labour market success but remain strongly correlated with socioeconomic status (Spaull, 2010). Labour force participation increased significantly in the late 1990s and early 2000s and employment, though growing, could not keep pace (Branson and Wittenberg, 2007). The increase in participation was primarily driven by an increase in African participation, especially among females, the youth and those with less education. Kingdon and Knight (2008) and Casale and Posel (2002) attribute the increase in female participation to the decrease in marriage rates, increase in single person households, improvements in educational attainment and the loss of male employment. The rise in young participants can also, in part, be attributed to the Department of Education discussion of a policy in 1995 to reduce the number of over- age learners in schools.
Do Share Allocations to the Indigenous Investor Drive the Demand for IPOs?
(MDPI, 2023) Tajuddin, Ahmad Hakimi; Gopal, Kanesh; Mohd-Rashid, Rasidah; Mehmood, Waqas; Sadik-Zada, Elkhan Richard
The purpose of this paper was to investigate the impact of allocating shares to the indigenous (Bumiputera) investors on the oversubscription ratio of IPO. This factor is unique to Malaysian IPOs and would enable us to reflect the signaling theory. Data on 348 IPO firms listed on Bursa Malaysia over a span of 17 years from 2002 to 2018 were examined using a cross-sectional regression analysis. The findings demonstrated no significant impact arising from the fractions of shares allocated to Bumiputera investors on the oversubscription ratios, except that the revised guidelines on the Bumiputera equity requirement had a significant negative influence on oversubscription. Further tests showed that the influence of such share allocation on oversubscription was moderated by firm size, which was proxied by market capitalization. The findings lend support to the signaling theory, indicating that the demand for IPOs will be slightly higher for larger firms listed in bigger markets.

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