Magister Commercii - MCom (Economics)
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Item Economic analysis of the Shear Separation Floatation (SSF) technology for winery wastewater treatment(University of the Western Cape, 2024) Mgudlwa, Tshawekazi SinakoDifficulties in the treatment of industrial wastewater have become serious challenges in the water and sanitation sectors. The wine industry is among the industries that are seriously affected by the difficulties of effluent treatment to comply with environmental standards. One of the effective methods to control the winery effluent is to install a customised wastewater treatment plant or upgrade an existing plant for better results. Economic analysis is necessary to evaluate the viability of installing the plant as the method for the treatment of wastewater. This dissertation is centered on an economic analysis of a wastewater treatment plant proposed as a solution to improve the wastewater treatment challenges at Winery X by means of a case study. The case study is based on a Shear Separation Flotation (SSF) pilot plant installed at Winery X. The key arguments in study are built on the conventional Cost-benefits analysis (CBA) as the main method of enquiry. The analysis includes Option 1- keeping the existing system and make no change, Option 2- upgrading the existing system with a flotation device which will recover the treated wastewater quality, and Option 3- upgrading the existing system with a flotation device and a Reverse Osmosis unit. Option 3 is expected to recover the treated wastewater quality and reduce the reliance on freshwater intake by at least 50%. Applying all the input variables, the primary economic analysis was conducted. Then, the sensitivity of the results to the varying values of the key input variables was examined. The initial results for the primary economic measures suggest that Options 1 and 2 are not viable while option 3 is viable. However, the sensitivity analysis suggests that option 2 would be viable after 10 years, provided fines are levied for non-compliance while option 3 would be viable and be profitable in 5 years. Therefore, option 3 is the most practical and preferred solution.Item The analysis of revenue productivity of the tax system in South Africa applying the buoyancy and elasticity measures(University of the Western Cape, 2023) Bokwana ,EsethuSouth Africa, like other developing nations, has faced challenges in revenue generation over the years, exacerbated by the COVID-19 pandemic, resulting in fiscal deficits and increased government debt. Evaluating tax productivity and system effectiveness gains importance in identifying revenue sources, areas for improvement, and ensuring fiscal stability. This paper focuses on buoyancy and elasticity measures to assess tax system responsiveness to economic shifts and policy changes. Utilising data from 1982 to 2022 and employing ECM-ARDL estimation techniques, the study analyses short-term and long-term buoyancy and elasticity. Findings reveal insights into the tax system’s revenue generation potential, highlighting its role as an automatic stabiliser. Notably, both short-term and long-term elasticities exceed buoyancy measures.Item Comparing the economic development in the Eastern Cape and Limpopo provinces in South Africa since the advent of democracy(University of the Western Cape, 2024) Mfumu, Zahra; Swanepoel, Christie; Yu, DerekThere have been many studies investigating multi-dimensional poverty in South Africa since the descent of apartheid. Segregation created during the apartheid era left specific provinces vulnerable to multi-dimensional poverty. This study investigates the changes in multi-dimensional poverty, with a focus on the two disadvantaged provinces: Eastern Cape and Limpopo. Households in these two provinces were severely constrained during the apartheid era. Given this fact, this study examined the economic development in the Eastern Cape and Limpopo to measure changes between 2005 and 2021. This research could enable the drafting and implementation of policies that are appropriate to the realities faced by households in these provinces. This study used the 2005, 2013, and 2021 General Household Survey (GHS) data to investigate the relationship of the non-income welfare index within Eastern Cape and Limpopo. The indicators include dwelling type, energy for cooking, water access, refuse removal frequency; sanitation facility; wall material of dwelling; access to telephone and internet; ownership to motor vehicle, computer, fridge, satellite dish/decoder, and or television. In determination to derive a multidimensional non-income welfare index, the study uses the Principal Component Analysis approach as a method.Item Assessing the financial inclusion of micro-, small, and medium enterprises(MSMEs) in South Africa: 2010 and 2020 FinScope MSME data(University of the Western Cape, 2024) Anthony, Calynn Kristen; Matsebula, VelenkosiniThe financial inclusion of micro-, small, and medium enterprises (MSMEs) as major stakeholders in the economy remains meagre. MSMEs are the strongest economic activity drivers worldwide, yet many researchers have studied the effect of financial inclusion on MSMEs as it has become a global priority. International and local studies have agreed that removing certain financial system constraints can improve the financial inclusion status of MSMEs. Yet, local studies focused on this concept for South African MSMEs are scarce. The objective of this study is to assess the financial inclusion of micro-, small, and medium enterprises (MSMEs) in South Africa. This study offers the first of its kind to use FinScope MSME 2010 and 2020 surveys to assess the financial inclusion of MSMEs in South Africa and uses the Multiple Correspondence Analysis (MCA) to derive a financial inclusion index to assess the financial inclusion status of MSMEs. This study aims to fill the gap in the literature by using recent data and a different methodology to measure the financial inclusion of MSMEs in South Africa. The relationship between the computed MSME financial inclusion index and various explanatory variables is tested using the Ordinary Least Squares regression model. Thereafter, the likelihood of being financially excluded is measured by running probit regressions.Item Determinants of export diversification in Rwanda(University of the Western Cape, 2023) Umuhoza, Pelagie; Johannes P. S., SheefeniSince Rwanda gained independence in 1962, the country’s export diversification has become a crucial tool for enhancing economic development, economic growth, and Balance of payment. This is why Rwanda expanded the list of not only export products but also the economic integration blocks. However, the country’s export still needs to be of a better standard. The export diversification factors still need to be investigated for more efficient export policies. The purpose of this research is to determine the factors that contributed to Rwanda’s export diversification using time series data from 1980 to 2014. In this study, the ADF and PP tests were utilized to assess the stationarity properties of the unit root test, the ARDL model was conducted to test the co-integrating amongst the variables, while the estimated short-run ECM was also derived. The empirical results demonstrated that trade openness, terms of trade, and GDP per capita, have insignificant negative impacts on export diversification both in the short and long term, while infrastructure has a significant positive impact on export diversification. However, FDI had an insignificant positive influence on the country’s export diversification.Item Examining the South African labour market outcomes during the coronavirus pandemic of 2019(University of the Western Cape, 2023) Botha, Jade Joy; Yu, DerekThe South African labour market is distinguished by dismally significant levels of unemployment and even higher levels of youth unemployment. The COVID-19 pandemic imposes the risk of adding further pressure on South Africa’s already exasperated labour market and thus contributing to greater unemployment levels amongst South Africans. To combat the effects of the COVID-19 pandemic, the South African government imposed lockdown levels to reduce socio-economic activities and thereby minimise the health effects and spread of the virus. The continuous lockdowns unfortunately placed constraints on business activities and led to increased levels of unemployment. The outcomes reveal that the burden of this unemployment resultant of the COVID-19 pandemic falls to minority groups, such as the youth, African women and lowly educated. This study analysed the 2020-2022 Quarterly Labour Force Survey data as well as the first five waves (also taking place in 2020-2021) of the National Income Dynamics Study – Coronavirus Rapid Mobile Survey (NIDS-CRAM) panel data to investigate who were the hardest hit in the labour market by the COVID-19-driven economic lockdown. The specific focus was on the profile of people (e.g., gender, race, age cohort, province, area type, educational attainment, work characteristics) suffering the greatest increase of unemployment during the abovementioned period, with the aid of various statistical and econometric analyses. The QLFS data showed that low-educated Africans aged 25-44 years and those involved in low skilled occupation categories were most susceptible to job loss. In addition, the NIDS-CRAM data showed that for those who were still employed in February 2020, just over 50% worked in all five waves, 14% worked in four waves and 9% in three waves. Only 0.5% and 1.8% turned out to be unemployed and inactive in all five waves, respectively. Finally, for the February 2020 employed who lost their jobs and became unemployed in April 2020 (wave 1), 60% of them worked again but 22% remained unemployed in March 2021 (wave 5).Item Investigating the discouraged workseekers in the South African labour market(University of the Western Cape, 2023) Sauls, Jay-Dee; Yu, DerekSouth Africa is notorious for its socio-economic problems, namely extreme poverty, inequality, and unemployment. These problems have been persistent during the apartheid era and even since the advent of democracy. High unemployment remains a pivotal factor facing South Africa. Despite the South African government’s attempt to reduce poverty through implementing and introducing new policies and legislation unemployment remains high. There have been a vast number of studies examining the characteristics of the employed and unemployed, but very few studies examined the characteristics of discouraged workseekers in great detail. There is lack of empirical literature that explicitly focused on the discouraged workseekers, yet it is important to know who they are and whether there is something that can be done to assist them to actively seek work. The study therefore will aim to conduct a comprehensive investigation on the discouraged workseekers for the period 1995 to 2019 within South Africa. Using the Statistics South Africa’s numerous labour market surveys in 1995-2019, as well as the first five available waves of the National Income Dynamics Study data conducted in 2008- 2016, the empirical findings showed that discouraged workseekers are most likely to be of the African race, females, between the ages of 25 and 34 years old, with incomplete secondary education, residing within rural areas and primarily in KwaZulu-Natal. The study concluded by suggesting various policy recommendations to provide further support to the discouraged workseekers, such as the promotion of volunteer work, promotion of quality and quantity of education, promote transport subsidies for job seeking and lastly to review the National Minimum Wage.Item Investigating school-level and out-of-school factors influencing the performance at selected secondary schools in the Eastern Cape Province, Amathole west district(University of the Western Cape, 2023) Kohli, Nontandazo; Bayat, AmienaEducation is considered vital not only for personal development but also for community development and the social development and economic prosperity of countries. The quality of basic education in post-apartheid South Africa has become a public concern as South Africa’s learners rank below many other developing countries in internationally benchmarked measures, including its poorer neighbours. Grade repetition and drop-out rates are alarmingly high indicators that, despite many interventions by the national government over the past three decades, the basic education system is not working. Underperformance in South African secondary schools is particularly characteristic of historically and economically disadvantaged areas such as the Amathole District Municipality in the Eastern Cape province. The passes obtained in the National Senior Certificate (NSC) examination are considered a benchmark of performance in Grade 12, the exiting year of basic schooling. This study investigated the school-level and out-of-school-level factors that influence the underperformance of selected schools in the Amathole West education district that perform poorly in the NSC examinations.Item An analysis of management's approach to occupational health and safety in the Western Cape chemical sector(University of the Western Cape, 2002) Le Roux, P.J; Hirschsohn, PEmployers in South Africa are keen to be referred to as being responsible when dealing with workplace health and safety. However, the poor health and safety record of South African companies generally and especially in the mining and fishing sectors is internationally known. Many observers comment that the picture at plant level does not reflect a commitment and willingness by management to even implement the minimum standards stipulated by legislation without pressure from external sources such as government enforcement agencies or export market pressure. It is well known that the lives of black labourers were worth little during the apartheid era as workers were simply replaced when injured, killed or unable to perform duties due to illness. This legacy still exists today under high unemployment rate in the country does not allow workers the freedom to turn down jobs in high-risk environments or to refuse unsafe tasks. The steady increase of work-related injuries and diseases reported under the Compensation for Occupational Injuries and Diseases Act it came into effect in 1993, is sufficient proof of this sad state of affairs with 289 952 accidents and 3615 occupational diseases reported during the 199711998 financial year. The fatality rate reported in 1996 was 2 220 inclusive of all sectors in the economy. These figures illustrate the need for a new mental model that will value human life irrespective of colour or status in the economy.Item A comparative analysis of multidimensional poverty in South Africa focusing on the Western Cape and Eastern Cape between 1996 and 2016(University of the Western Cape, 2022) Draai, Eden-Lee; Beukes, RochelleRemarkable progress has been made in South Africa since the transition from Apartheid to a democracy. Despite this, socio-economic challenges persist, and poverty remains a major problem in post-apartheid South Africa. Considerable efforts have been undertaken by the government to alleviate poverty among the people of South Africa by implementing various policies and programmes. Unfortunately, the nature of these programmes has not demonstrated a large impact on changing poverty holistically and on a sustained basis as the extent of poverty is still very different across provinces. When trying to understand the nature and extent of poverty, many local studies focus on the money-metric approach to measuring poverty. However, poverty is a multidimensional concept hence, this thesis will concentrate on measuring multidimensional non-money-metric poverty levels and trends. By applying the fuzzy sets approach, this thesis aims to determine how poverty levels and trends of non-money-metric poverty in South Africa have changed between 1996 and 2016. After which the Western Cape and Eastern Cape will be compared by investigating the differences in multidimensional poverty levels and trends between the two provinces. The data utilized are the 10% sample Censuses of 1996, 2001 and 2011 as well as the Community Surveys of 2007 and 2016.Item The decentralisation of primary health care in the metropolitan region of Cape Town(University of the Western Cape, 2002) Sechel, Shaheeda; Black, P.A.In the interest of holistic integrated management, all functions and resources of primary health care should be transferred to the local authority through the process of decentralisation. Thereby placing all such services under a single authority. The reallocation of resources to local authority alternatives can reduce the cost of providing primary health care seryices. Such reduction does not necessarily imply budgetary savings; rather, it may imply increasing the number of people who are served or improving the quality of services for a given level of expenditure. The motive for decentralisation, if any, emerges from the majoritarian nature of the political process, efficiency and equity considerations.Item The decentralisation of primary health care in the metropolitan region of Cape Town(University of the Western Cape, 2002) Black, P.A.; Shaheeda SechelIn the interest of holistic integrated management, all functions and resources of primary health care should be transferred to the local authority through the process of decentralisation. Thereby placing all such services under a single authority. The reallocation of resources to local authority alternatives can reduce the cost of providing primary health care services. Such reduction does not necessarily imply budgetary savings; rather, it may imply increasing the number of people who are served or improving the quality of services for a given level of expenditure. The motive for decentralisation, if any, emerges from the majoritarian nature of the political process, efficiency and equity considerations.Item Investigating the economic relationship between buy-back centres and plastic waste recycling entrepreneurs(University of the Western Cape, 2022) Kamanzi, Mwajuma; Christian, CarmenPersistently high unemployment level and rate remains as one of South Africa‟s most serious social and economic problems. Over the years, entrepreneurship has been identified as one of the main vehicles to create jobs and alleviate poverty. South Africa is one of the finest plastic recyclers in the world with almost 50% of plastics used as inputs come from recycled plastics (Plastics SA, 2019). This presents an opportunity: Buy-back centres (BBCs) in the waste management industry have proven to be economically feasible with many of these centres employing people and profiting from selling recyclable materials to recyclers. Focusing on the Western Cape, in 2019, the province generated about 150 000 tonnes of plastics with the market value estimated at between R474 and R632 million per year.Item Analysing the effects of public expenditure on economic growth in South Africa(University of the Western Cape, 2022) Woodhouse, Carla; Sheefeni, Johannes P SSince the commencement of South Africa’s democracy in 1994, South Africa has made tremendous progress with a focus on sustainable economic growth. Due to data limitations because of the Covid-19 pandemic, the study drew on quarterly data for the period 1997 to 2018 to examine the effect of public investment on economic growth in South Africa. The study drew data from World Bank and The International Monetary Fund, making use of real gross domestic production, general government capital stock, private capital stock, research and development and total employment were used. The analysis was conducted with the use of EViews 12.Item The relationship between attaining Matric and labour market outcomes in South Africa(University of the Western Cape, 2022) Ndlebe, Andiphe; Yu, DerekThe South African labour market is characterised by a persistently high level and rate of unemployment and constrained capacity to create jobs. Given these conditions in the labour market, it is of interest to understand the role educational attainment plays in labour market outcomes. While literature on overall educational attainment and labour market outcomes exists in South Africa, focusing on the general relationship between the two variables, few studies explicitly focus on examining Matric in terms of labour market outcomes. Existing literature shows that possessing Matric presents considerably more possibilities of finding employment than lower grades. Given the key role of secondary completion for labour market outcomes, this study therefore investigated whether having Matric is still sufficient to ensure good labour market outcomes.Item Life stories of leading social entrepreneurs in Cape Town: Balancing business goals, strategic innovation and social value creation(University of the Western Cape, 2022) Machikicho, Delphino Taona; Hirschsohn, PhilipThe growth of the social enterprise sector in Africa is a testament to the need for social value creation. In developing economies such as South Africa there are macroeconomic challenges that government and business fail to address. Therefore, it is pivotal for social enterprises to address these challenges and succeed in creating social value. This thesis aims to investigate the key success factors that ensure sustainability for social enterprises. An exploratory approach is applied through the life stories of five social entrepreneurs and in-depth case studies of their leading social enterprises based in the Western Cape Province of South Africa.Item An investigation into the developmental model of social welfare service delivery: a Western Cape case study(University of the Western Cape, 1998) Demas, Carla; Thompson, LisaThis study explores the extent to which welfare policy in South Africa is suitable to the country's needs and is translated into practice. lt focuses on the White Paper for Social Welfare and looks specifically at the developmental model of welfare. The study draws on the experiences of various stakeholders within the welfare sector, such as social work lecturers, social work students, social welfare practitioners and the director of developmental social welfare. The study indicates that the developmental approach has potential to the address the welfare needs in South Africa. However, factors such as confusion about the meaning of the term developmental social work and the lack of resources have limited the extent to which this approach is translated into practice and consequently it's potential to transform social welfare in South Africa. 1lItem Austerity measures and their role on infrastructure and economic development in South Africa: A review of the period 1996 – 2019(University of the Western Cape, 2022) Mali, Kukhanyile; Sheefeni, JohannesThe global economy is a complex system. Due to globalization, the South African economy has become interconnected and integrated into the global economic system. Thus, it is a complex system influenced by domestic and international activities. South Africa is also a country that has been troubled with many challenges in the past. It is a nation that emerged from apartheid, a discriminatory Afrikaner system that legislated the discrimination, disinvestments, and exploitation of blacks, mainly Africans, by whites in all spheres of society (Christie and Collins, 1982). Despite the democratic breakthrough that was achieved by the ANC and its allies through struggle and negotiations, South Africa still faced a triple threat of unemployment, poverty, and inequality along racial lines.Item Government intervention to alleviate poverty in South Africa, with a specific focus on poverty in the Eastern Cape(University of the Western Cape, 2014) Sithole, Nceba; Stoltz, ElizabethWhen the new democratic government in South Africa came to power in 7994, it inherited a legacy of inequality, unemployment and poverty. Mindful of this triple challenge the government's first socio-economic policy framework, the White Paper on Reconstruction and Development (RDP) of 1994, stated the commitment to priorities poverty eradication in South Africa. The Bill of Rights guarantees specific rights, referring to housing, healthcare and social security, to empower the poor. The greatest challenge facing the South African government was to provide the institutional support and to implement appropriate policies to reduce the extent of poverty and unemployment in South Africa. The government therefore established the necessary legislature and institutions and embarked on numerous policy strategies. A fact that complicates policy intervention is that the extent of poverty is very different across provinces. Households in rural areas are in a relatively worse position than households in urban areas and rural woman are in an even worse position. According to official statistics from Statistics South Africa, Limpopo and the Eastern Cape are the poorest provinces. This study investigated the nature of government intervention towards poverty relief. Through the use of various instruments, such as social grants, the delivery of basic services and housing, the government focuses on the relief of income, non-income and asset poverty. The main aim of this study was to answer the question of whether government intervention has made any difference to the quality of life of the poor. The situation of the Eastern Cape was investigated as a case study of the larger poverty problem and focused primarily on income, non-income and asset poverty. As is the position nationally, the majority of the poor in the Eastern Cape live in the rural areas and women and the youth are the worst affected groups. The empirical analysis shows that both income and non-income poverty has declined in Eastern Cape, particularly since 2000. The study also pointed out various instances of government failure and other specific challenges. However, despite the fact that poverty relief has been a policy priority since 1994 and despite numerous policies and programmes, the extent of poverty remains unacceptable.Item The lack of adequate housing in the Western Cape and its impact on the environment: A theoretical analysis(University of the Western Cape, 1998) Hassan, Mohamed; Schultz, Carl- ErikThe debate, about the role of the State, involves both normative and ethical judgements. Thus, what should the state do and not do? How can the desired ends be attained most efficiently? What distribution of income and services is socially just / desirable? Economic change must proceed apace with political dispensation. Democracy pre-supposes that conflicting needs and desires of the various groups in society can be fairly sorted out through enfranchisement and participation. This can only be judged as fair if its base (society) has shared values, which is only possible if society is not too divided by inequality in Income, Wealth and Opportunity. A precondition for success is an increase in per capita income i.e. economic growth. South Africa in many ways has Third World characteristics. This and its racially associated differences requires urgent attention. Apartheid has resulted in the nation foregoing several decades of potential economic and human development gains. Apartheid has resulted in a number of development issues reaching crucial / crisis levels ( Van Der Berg: 1991 :A): -Dualism resulting in85Yo of income inequality (O. Shima, 1962) -Income inequality, with a gini coefficient of 0.6. -Rural to urban unemployment, urban growth outstripped urban infrastructural and industrial development. -Squatter settlements resulting in the concentration of poverty, crime, dehumanization, etc. -Unemployment at a conservative estimate of 40%. Whites reinforced the initial inequality in technological endowment with customary discrimination and legislative measures which prevented equal access to social services and employment opportunities, hence the accumulation of wealth. The budget was one of the major forms of economic discrimination in South Africa. It is also the most effective instrument available for redistribution and restitution. The budget will have to bear a large part of the burden for ensuring a smooth transition to sustainable democracy. The dilemma in South Africa lies in reconciling democracy with a limited tax capacity. Large scale increases in social transfers seem premature in the light of large scale unemployment, underemployment, the lack of an institutional basis for such transfers, and most importantly, the resource constraints. The causes of the economic malaise are sufficiently numerous that only multi-dimensional strategies would be likely to succeed. Policies will have to be implemented over longer periods of time and will have to be guided and nurtured all the way through. The development process must be based on participatory processes and upon consensus by society at large. What we had in the past is what Jerry Eckert calls "...….unfettered capitalism placed in an un egalitarian setting....". As a result we are now faced with these development problems. Since apartheid entailed a redistribution from nonwhites to whites, the demise of apartheid should imply a redistribution from the rich to the poor, which in reality is from the whites to the non-whites. So, non-whites have a basis for redress.