Suchergebnisse

Wealth accumulation aids in the survival and betterment of disadvantaged households. The majority of African households acquire wealth in the form of properties, which form part of their assets. This study aims to investigate the effect of property tax on wealth accumulation. From 1990 through 2019, the study looks at seven African countries: Cameroon, Eswatini, Madagascar, Mauritius, Morocco, South Africa, and Tunisia. The panel vector error correction model (PVECM) was employed as the econometric technique approach. The variables used in the study are property tax, land wealth, political stability, education, and household income. The findings show that property taxes have a positive and significant relationship with wealth accumulation in the long-run in the seven African countries studied. In the short-run, however, the relationship is negative and statistically insignificant. The study recommends a policy review on land ownership to attain easily landed properties and a reduction in property tax.

This study is an empirical analysis of the impact of renewable energy generation on productivity in seven countries in the South African Development Community (SADC). The study operationalizes the alternative hypothesis that renewable energy generation exerts an impact on productivity in the SADC from 1990 to 2019. The study contributes to the literature by employing renewable energy generation as the independent variable, and not renewable energy consumption, which is the case in most studies. The empirical analysis was employed using the panel autoregressive distributed lag (ADRL) model (da Silva, Cerqueira, & Ogbe, 2018). It was established that renewable energy generation had a significant and positive impact on productivity, as measured by gross domestic product (GDP), over the long term. Countries should implement policies aimed at increasing electricity generation from renewable energy sources in order to meet the growing demand for electricity. Infrastructure development, skills training, technical support, and a Just Energy Transition should be the primary emphasis of policy initiatives.

Productive inefficiency and lagging technology progress are major reasons behind the Southern Africa Development Community's (SADC) continued exportation of unprocessed minerals to the world markets. The study seeks to uncover the impact of trade openness on the technical efficiency of the mining sector in selected SADC countries (Botswana, DRC, Namibia, South Africa, Zambia, and Zimbabwe). Technical efficiency is the ability of any production process to produce maximum output from minimum quantities of inputs. A Cobb Douglas Stochastic Frontier Approach in a single-stage maximum likelihood estimation of Green's true fixed effects was used to compute technical efficiency (scores) and the technological progress in the mining sector of SADC. Results indicate that there is no technical efficiency gains from trade liberalization during the period under study together with positive and significant technological progress. A coefficient of 0.72 suggests that a 1% increase in trade openness increases technical inefficiency in the mining sector by 0.72%. The parameter coefficient from the truncated normal distribution of the true fixed effects model indicated that technological progress from one year to the next year would lead to a 2.6% increase in the output index of the mining. Technological progress in the mining sector should target upstream mineral value chains instead of only upgrading technology in one dimension of extraction. In addition, countries should collectively and gradually put across laws that force new investments in the extraction of minerals to erect processing plants in mining value addition of host countries to re-direct economies into a growth path.
AcknowledgmentsThe authors are grateful to the North West University (RSA) for financing this study.
 

Previous studies generally find mixed empirical evidence on the relationship between government spending and economic growth. This study re-examine the relationship between government expenditure and economic growth in South Africa for the period of 1990 to 2015 using the Vector Error Correction Model and Granger Causality techniques. The time series data included in the model were gross domestic Product (GDP), government expenditure, national savings, government debt and consumer price index or inflation. Results obtained from the analysis showed a negative long-run relationship between government expenditure and economic growth in South Africa. Furthermore, the estimate of the speed of adjustment coefficient found in this study has revealed that 49 per cent of the variation in GDP from its equilibrium level is corrected within of a year. Furthermore, the study discovered that the causality relationship run from economic growth to government expenditure. This implied that the Wagner's law is applicable to South Africa since government expenditure is an effect rather than a cause of economic growth. The results presented in this study are similar to those in the literature and are also sustained by preceding studies.

Previous studies generally find mixed empirical evidence on the relationship between government spending and economic growth. This study re-examine the relationship between government expenditure and economic growth in South Africa for the period of 1990 to 2015 using the Vector Error Correction Model and Granger Causality techniques. The time series data included in the model were gross domestic Product (GDP), government expenditure, national savings, government debt and consumer price index or inflation. Results obtained from the analysis showed a negative long-run relationship between government expenditure and economic growth in South Africa. Furthermore, the estimate of the speed of adjustment coefficient found in this study has revealed that 49 per cent of the variation in GDP from its equilibrium level is corrected within of a year. Furthermore, the study discovered that the causality relationship run from economic growth to government expenditure. This implied that the Wagner's law is applicable to South Africa since government expenditure is an effect rather than a cause of economic growth. The results presented in this study are similar to those in the literature and are also sustained by preceding studies.

Previous studies generally find mixed empirical evidence on the relationship between government spending and economic growth. This study re-examine the relationship between government expenditure and economic growth in South Africa for the period of 1990 to 2015 using the Vector Error Correction Model and Granger Causality techniques. The time series data included in the model were gross domestic Product (GDP), government expenditure, national savings, government debt and consumer price index or inflation. Results obtained from the analysis showed a negative long-run relationship between government expenditure and economic growth in South Africa. Furthermore, the estimate of the speed of adjustment coefficient found in this study has revealed that 49 per cent of the variation in GDP from its equilibrium level is corrected within of a year. Furthermore, the study discovered that the causality relationship run from economic growth to government expenditure. This implied that the Wagner's law is applicable to South Africa since government expenditure is an effect rather than a cause of economic growth. The results presented in this study are similar to those in the literature and are also sustained by preceding studies.

One of the most pressing problems facing the South African economy is unemployment, which has been erratic over the past few years. This study examined the impact of economic growth on unemployment, using quarterly time series data for South Africa for the period 1994 to 2012.Johansen Co-integration reflected that there is stable and one significant long run relationship between unemployment and the explanatory variables that is economic growth (GDP), budget deficit (BUG), real effective exchange rate (REER) and labour productivity (LP). The study utilized Vector Error Correction Model (VECM) to determine the effects of macroeconomic variables thus REER, LP, GDP and BUG on unemployment in South Africa. The results of VECM indicated that LP has a negative long run impact on unemployment whilst GDP, BUG and REER have positive impact. The study resulted in the following policy recommendation: South African government should re-direct its spending towards activities that directly and indirectly promote creation of employment and decent jobs; a conducive environment and flexible labour market policies or legislations without impediments to employment creation should be created; and lastly government should prioritise industries that promote labour intensive. All this will help in absorbing large pools of the unemployed population thereby reducing unemployment in South Africa.

This study determines the causal relationship that exists between government revenue and government expenditure in South Africa. The study employed annual time series data from the year 1980 to 2015 taken from the South African Reserve Bank. The Johansen multivariate method was employed to test for co-integration and for causality the Vector Error Correction/Granger causality test was employed. The empirical results suggest that there is a long-run relation-ship between government revenue and government expenditure. The causality result suggests that there is no causality between government revenue and government expenditure in South Africa. Thus, policy makers in the short run should determine government revenue and government expenditure of South Africa independently when reducing the budget deficit.

This study determines the causal relationship that exists between government revenue and government expenditure in South Africa. The study employed annual time series data from the year 1980 to 2015 taken from the South African Reserve Bank. The Johansen multivariate method was employed to test for co-integration and for causality the Vector Error Correction/Granger causality test was employed. The empirical results suggest that there is a long-run relation-ship between government revenue and government expenditure. The causality result suggests that there is no causality between government revenue and government expenditure in South Africa. Thus, policy makers in the short run should determine government revenue and government expenditure of South Africa independently when reducing the budget deficit.

Income inequality has been a major issue in South Africa. The 1994 transition from apartheid to democracy and global economic integration presented opportunities and challenges, fostering economic development while exacerbating existing inequalities. Therefore, this study aims to analyze how globalization affects income inequality in the South African economy. It utilizes the autoregressive distributed lag (ARDL) approach on a set of chosen variables. These variables include the Gini index, the Konjunkturforschungsstelle (KOF) globalization index, Gross Domestic Product (GDP) per capita, unemployment rate, inflation rate, and government expenditure. The study covers the period from 1980 to 2022, allowing for a comprehensive examination of the relationship between globalization and income inequality over time. The results obtained from the ARDL bounds test indicate that globalization has a positive long-run equilibrium relationship with income inequality. This means that as globalization progresses, it tends to be associated with higher levels of income inequality. In the short run, globalization exhibits a positive and statistically significant relationship with income inequality. The results of the Granger causality test indicate a unidirectional relationship between globalization and income inequality. This suggests that changes in globalization directly influence income inequality. Consequently, it is crucial to implement short- and long-term policies that address the adverse effects of globalization on income distribution. Policies could include providing support and retraining for workers in vulnerable industries, implementing social safety nets to protect those adversely affected by rapid economic changes, and ensuring equitable access to opportunities created by globalization.