Can trade liberalisation in South Africa reduce poverty and inequality while boosting economic growth? Macro–micro reflections

2014 ◽  
Vol 31 (2) ◽  
pp. 257-274 ◽  
Author(s):  
Ramos Mabugu ◽  
Margaret Chitiga Mabugu
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Trade Liberalisation ◽  
Poverty And Inequality

scholarly journals South Africa's susceptibility to financial crises

2017 ◽  
Vol 10 (1) ◽  
pp. 69-82
Author(s):  
Henry Cockeran ◽  
Waldo Krugell
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Financial Crises ◽  
Macroeconomic Imbalances ◽  
Poverty And Inequality ◽  
The Face

South Africa has to address the challenges of slow economic growth, poverty, and inequality in the face of precarious macroeconomic imbalances

scholarly journals Assessing the Dynamic Economic Impact of Tourism in a Developing Region in South Africa

2018 ◽  
Vol 10 (5(J)) ◽  
pp. 274-283 ◽  
Author(s):  
De Bruyn C. ◽  
Meyer N. ◽  
Meyer D.F.
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
National Development ◽  
Annual Data ◽  
Full Potential ◽  
Developmental Problems ◽  
Poverty And Inequality ◽  
Developing Region ◽  
Vaal Triangle ◽  
The Impact

According to the National Development Plan (NDP), the three main developmental problems South Africa is facing include: high levels of unemployment, poverty and inequality. Tourism, as an economic sector, has been cited as a possible solution to create much-needed employment and income which could lead to reduced poverty and improved inequality. Tourism could be used in developing regions as a driver of economic growth. The objective of this study is to determine the dynamic impact of the tourism sector on economic growth in a developing region in South Africa, namely the Vaal-Triangle region. The research methodology followed a quantitative design, using a pooled panel approach including the two municipal areas of Metsimaholo and Emfuleni which comprises the Vaal region. Annual data from 2001 to 2017 were used to analyse the impact of growth in tourism on economic growth. Economic growth was set as the dependent variable and tourism measurements such as tourism spending and trips as the independent variables. Results from the analysis confirm the original hypothesis that tourism growth has a significant impact on economic growth. The sector therefore, has the potential to create employment opportunities and alleviate poverty in a developing region if promoted and supported to its full potential.  

scholarly journals Does Remittance Inflow Granger-Cause Economic Growth in South Africa? A Dynamic Multivariate Causality Test

2019 ◽  
Vol 47 (1) ◽  
pp. 86-103
Author(s):  
Sheilla Nyasha ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Causal Link ◽  
Causality Test ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Poverty And Inequality ◽  
Short Run ◽  
Omission Bias

In this study, we examine the dynamic causal relationship between remittances and economic growth in South Africa during the period from 1970 to 2017. Although South Africa is well-known for being a source of cross-border remittances to various countries, especially in the African continent, remittance inflows to South Africa have grown in the recent past. The growth in remittances, on one hand, and the need to fight against poverty and inequality in South Africa and ultimately improve economic growth, on the other hand, prompted the need for this study. The study uses the autoregressive distributed lag (ARDL) approach within a multivariate Granger-causality setting to examine the remittance-growth causal link—in an effort to address the variable-omission bias. The empirical findings of the study show that remittances and economic growth are not causally related in South Africa, irrespective of whether the estimations are done in the long run or in the short run. This finding, though contrary to the expectation, is not surprising, given the level of financial sector development in South Africa.

Conclusion

2017 ◽  
Author(s):  
Roberts Cynthia ◽  
Leslie Armijo ◽  
Saori Katada
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Bargaining Power ◽  
Global Finance ◽  
Middle Income ◽  
Outside Options ◽  
Power Shift ◽  
Global Power ◽  
Common Interests ◽  
Sustainable Economic Growth

The chapter analyzes the prospects for continued BRICS collective financial statecraft. Contrary to initial expectations, the BRICS (Brazil, Russia, India, China, and South Africa) have hung together by identifying common aversions and pursuing common interests within the existing international order. Their future depends not only on their bargaining power, but also on their ability to overcome domestic impediments to the sustainable economic growth that provides the basis for their international positions. To continue successfully with collective financial statecraft, the members must tackle the so-called middle-income trap, as well as their preferences for informal rules originating from their own institutional weaknesses or regime preferences. This study shows that, in the context of a global power shift, the BRICS club has operated to protect the member countries’ respective policy autonomy, while also advancing their joint voice in global governance. Recently, the BRICS have made concrete institutional gains, giving them expanded outside options to achieve specific objectives in global finance.

Chile

2017 ◽  
Author(s):  
Guillermo Cruces ◽  
Gary S. Fields ◽  
David Jaume ◽  
Mariana Viollaz
Keyword(s):  
Economic Growth ◽  
Labour Market ◽  
Unemployment Rate ◽  
Educational Level ◽  
International Crisis ◽  
Occupational Position ◽  
Rapid Economic Growth ◽  
Poverty And Inequality

During the 2000s Chile achieved rapid economic growth and improved most labour market indicators: the unemployment rate fell; the mix of employment by occupational position and sector improved; the educational level of the employed population, the percentage of registered workers, and labour earnings increased; and all poverty and inequality indicators decreased. The economy suffered a recession during the international crisis of 2008, but recovered quickly. The chapter shows that some labour market indicators were negatively affected by the crisis. The unemployment rate was the only indicator that did not return to its pre-crisis level by the end of the period studied.

scholarly journals Non-bank financial institutions and economic growth: Evidence from Africa’s three largest economies

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Ronald Rateiwa ◽  
Meshach J. Aziakpono
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Financial Institutions ◽  
Time Series Data ◽  
Bank Lending ◽  
Series Data ◽  
The Sustainable Development ◽  
Long Run ◽  
The Relationship

Background: In order for the post-2015 world development agenda – termed the sustainable development goals (SDGs) – to succeed, there is a pronounced need to ensure that available resources are used more effectively and additional financing is accessed from the private sector. Given that traditional bank lending has slowed down, the development of non-bank financing has become imperative. To this end, this article intends to empirically test the role of non-bank financial institutions (NBFIs) in stimulating economic growth.Aim: The aim of this article is to empirically test the existence of a long-run equilibrium relationship between economic growth and the development of NBFIs, and the causality thereof.Setting: The empirical assessment uses time-series data from Africa’s three largest economies, namely, Egypt, Nigeria and South Africa, over the period 1971–2013.Methods: This article uses the Johansen cointegration and vector error correction model within a country-specific setting.Results: The results showed that the long-run relationship between NBFI development and economic growth is relatively stronger in Egypt and South Africa, than in Nigeria. Evidence in respect of Nigeria shows that such a relationship is weak. The nature of the relationship between NBFI development and economic growth in Egypt is positive and significant, and predominantly bidirectional. This suggests that a virtuous relationship between NBFIs and economic growth exists in Egypt. In South Africa, the relationship is positive and significant and predominantly runs from NBFI development to economic growth, implying a supply-leading phenomenon. In Nigeria, the results are weak and mixed.Conclusion: The study concludes that in countries with more developed financial systems, the role of NBFIs and their importance to the economic growth process are more pronounced. Thus, there is need for developing policies targeted at developing the NBFI sector, given their potential to contribute to economic growth.

The Myth of Middle Class Moderation: African Lessons for South Africa

1988 ◽  
Vol 16 (2) ◽  
pp. 45-48
Author(s):  
Pauline H. Baker
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Middle Class ◽  
Empirical Research ◽  
Political Behavior ◽  
Economic Performance ◽  
Political Stability ◽  
Underlying Assumption ◽  
Coup D'etat ◽  
The Government

An underlying assumption that ocurs in both conventional wisdom and in many academic analyses of political behavior is the notion that a critical linkage exists between political change and economic performance. The assumption is that economic growth is either a precondition or a correlate of democracy and political stability. Little empirical research has been done to test the validity of this widely held assumption as it applies to multicultural societies. Moreover, in the African environment, the assumption seems to operate only in selected cases or in ways that defy categorization. Jerry Rawlings, for example, said he led his first coup d’etat in Ghana because the government was going to devalue the currency; he led his second coup, in part, because the next government was going to devalue; and, during his own tenure in office, he has presided over a 1000 percent devaluation.

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