Government transfers, income inequality and poverty in South Africa

2019 ◽  
Vol 46 (12) ◽  
pp. 1349-1368
Author(s):  
Charity Gomo
Keyword(s):  
South Africa ◽  
Income Inequality ◽  
General Equilibrium ◽  
Labor Supply ◽  
South African ◽  
Percent Reduction ◽  
Content Type ◽  
Simulation Results ◽  
Government Transfers ◽  
The Impact

PurposeThe purpose of this paper is to quantify the impact of social or government transfers on income inequality and poverty in South Africa.Design/methodology/approachA top-down, bottom-up (TD-BU) model which combines an econometrically estimated labor supply model, a detailed tax-benefit module and a computable general equilibrium model is used in order to analyze the impact of government transfers on income inequality and poverty in South Africa. The paper uses a merged South African income and expenditure household survey and labor force survey for the year 2000, and a South African social accounting matrix as the main data sets.FindingsSimulation results suggest that doubling of government transfers lead to a 5.5 percent reduction in poverty if a relative poverty measure is used and a 7 percent reduction if an absolute poverty line is used. In addition, simulation results show differences in poverty and inequality measures between the MS-only model and the linked TD-BU model confirming the importance of linking the two models.Originality/valueThe TD-BU approach is important since it explicitly accounts for the following aspects: that labor supply should adjust to changes in the tax-benefit model, general equilibrium effects and the heterogeneity of economic agents. This allows for a richer micro-household modeling.

Economic impact of data localization in five selected African countries

2018 ◽  
Vol 20 (4) ◽  
pp. 337-357
Author(s):  
Mona Farid Badran
Keyword(s):  
South Africa ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Research Paper ◽  
Policy Recommendations ◽  
African Countries ◽  
Content Type ◽  
Cross Border ◽  
The Impact ◽  
The Eu

Purpose The purpose of this study is to quantify the impact of laws and regulations that govern the cross-border flow of data on the economies of five selected African countries, namely, Egypt, Morocco, South Africa, Kenya and Mauritius. Moreover, this study addresses the state of cloud computing in Africa. Finally, policy recommendations are provided in this respect. Design/methodology/approach To reach accurate finding the Global Trade Analysis Project (GTAP) data was used, and then the computable general equilibrium (CGE) was computed to estimate the total cost on the economy. Using the three data regulations linkages indexes (DRLs), the increased administrative cost effect was analyzed on five to six major economic sectors in the target countries. This was followed by estimating the loss in sector-wide total factor productivity (TFP) (for the five to six shortlisted sectors). Using this data, the computable general equilibrium model (CGE) was computed, in order to estimate the economy-wide impact. Based on these findings, a set of recommendations were offered to the policy maker, reflecting the obtained results and conclusions and their implications on drafting data-related policies. Findings The obtained data indexes reveal that Mauritius is the country with the most laws and regulations governing the cross border flow of data, followed by South Africa Egypt to a lesser extent and finally Morocco and Kenya both showing an obvious lack of data regulations. The small value of the estimated elasticity of the selected countries compared to the value of the estimated elasticity in the EU-0.347 shows that the impact of data localization is less in the selected African countries than in the other set of EU countries examined in the research paper. This is because the former has smaller economies with fewer linkages to the global economy and are less reliant on sectors that are heavy users of data. Thus, the overall impact of data localization was not as profound on TFP as is the case in advanced economies. This research paper arrives at the conclusion that fighting the trend of data localization is crucial. In fact, data localization hinders the necessary and essential role of global trade in realizing economic development. Specifically, this is evident in the increase in production costs as reflected in the increase of the prices of goods, which would lead to a decline in incomes. Originality/value Global studies looked at the impact of data localization on the EU, as well as China, India, Korea and Vietnam, providing some data on Asia Pacific. However, no study has ever been conducted on the Middle East and Africa. This study aims to fill this gap. The approach of this study is to capture the extent of data localization mandates encoded in the laws of each of the selected five African countries showing how these mandates govern their cross-border data flow and, in turn, affect their economies. Furthermore, the policy recommendations section of this research paper makes a contribution to the existing literature.

Training the trainer – lessons from the new South Africa

2014 ◽  
Vol 4 (1) ◽  
pp. 17-30
Author(s):  
John Van der Merwe ◽  
Martyn Sloman
Keyword(s):  
South Africa ◽  
South African ◽  
Design Methodology ◽  
New South ◽  
Content Type ◽  
Module Design ◽  
Modern Economy ◽  
The Impact ◽  
The Way ◽  
Corporate Trainers

Purpose – The purpose of this paper is to consider some challenges involved in delivering a programme for the education of corporate trainers in the new South African economy. Design/methodology/approach – The paper reviews the way in which training in organisations has changed in the modern economy; it asks whether “training” has any academic base with knowledge components or whether it is simply a craft discipline carried out in context by experienced practitioners. It examines the particular circumstances that arise in post-Apartheid South Africa and the challenges faced where participants are widespread geographically. Findings – The paper looks at the issues involved in module design under these circumstances and describes a study to determine the impact and value of the programme. It draws some conclusions that may assist in the design of similar programmes elsewhere. Research limitations/implications – The study is based on one university – although it is the first and only course of its type in South Africa. Originality/value – This paper provides an original perspective involving information from several countries.

Do migrants lives matter? A comparison of causes of death between African migrants from SADC countries and South Africans in the post-Apartheid era (2002-2015)

2020 ◽  
Vol 16 (4) ◽  
pp. 459-468
Author(s):  
Lorena Núñez Carrasco ◽  
Abha Jaiswal ◽  
Jairo Arrow ◽  
Michel Kasongo Muteba ◽  
Bidhan Aryal
Keyword(s):  
South Africa ◽  
Health Care ◽  
Infectious Diseases ◽  
South African ◽  
Access To Health Care ◽  
Causes Of Death ◽  
Content Type ◽  
South Africans ◽  
African Migrants ◽  
The Impact

Purpose Migrants historically and currently form an integral part of South Africa. Their importance and contribution to the country’s economy and development are undeniable. Yet, life for African migrants in South Africa is becoming increasingly difficult. An analysis of migrants mortality until now has not been conducted. The purpose of this paper is to compare the trends of the cause of death among South African Citizens (RSA) and African migrants from countries that form part of the South African Development Community (SADC), that make up nearly 70% of the migrants in the country. Design/methodology/approach Using Stats SA data of all registered deaths in South Africa (2002-2015), this paper compares all causes of death (COD) between RSA and SADC migrants. This paper studies the patterns in COD among these population groups for the years 2002 to 2015 in deaths due to infectious diseases and unnatural causes. Logistic regression was used to quantify the odds of dying due to infectious disease and unnatural causes for each population group. This paper included a calculation of the odds of dying due to assault, as a sub-group within unnatural deaths. Findings A total of 7,611,129 deaths were recorded for the local South African population and 88,114 for SADC migrants for the period under study (2002–2015). The burden of mortality for both infectious diseases and unnatural causes was higher for SADC migrants as compared to RSA. SADC migrants were 1.22 times more likely to die from infectious diseases than RSA (P < 0.001, 95% confidence interval (CI) (1.12, 1.23). Similarly, SADC migrants were 2.7 times more likely to die from unnatural causes than South Africans (P < 0.001, 95% CI (2.17, 2.23). The odds of dying from assault was the same as that of unnatural causes. Also, it was found that women were more likely to die from infectious diseases (OR = 1.11, P < 0.001, 95% CI (1.11, 1.11) compared to men, regardless of nationality. Research limitations/implications The bias resulting from migrants who return home to die due to illness, described in the literature as the salmon bias, is present in this paper. This paper, therefore, concludes death due to infectious diseases could be higher among migrants. Practical implications The heightened mortality among SADC migrants can be related to the impact of social determinants of health such as living and working conditions and barriers to access to health care. Moreover, the higher probability of death due to unnatural causes such as assaults constitute a proxy to estimate the impact of xenophobic violence observed in the country over the past decade. Policy interventions should focus on migrant health-care systems. Also, programmes to mitigate and curb xenophobic sentiments should be carried out to address the growing disparity of preventable unnatural causes of death. Originality/value This study offers the first quantification of mortality due to infectious diseases and unnatural causes among RSA and SADC migrants.

Centrist television in the democratic South Africa: policymakers fail to answer the regional/local question, 1990-2011

Info ◽  
2013 ◽  
Vol 15 (5) ◽  
pp. 128-140
Author(s):  
Chris Armstrong
Keyword(s):  
South Africa ◽  
Policy Implementation ◽  
Conceptual Framework ◽  
South African ◽  
Public Interest ◽  
Content Type ◽  
The Public ◽  
Media Regulation ◽  
The Impact

Purpose – The purpose of this paper is to explore the disconnect between policy intent and policy implementation in relation to regional/local (sub-national) TV deliverables in South Africa between 1990 and 2011, and evaluate the impact of this disconnect in pursuit of public interest objectives. Design/methodology/approach – The article is based on a research case study in which data extracted from policy documents and interviews were qualitatively analysed via the Kingdon “policy streams” framework and the Feintuck and Varney public interest media regulation framework. Findings – It was found that ruptures in deliberative policymaking, and policy implementation missteps, undermined sub-national TV delivery and, in turn, undermined pursuit of the public interest. Originality/value – By combining a political science conceptual framework with a media policy conceptual framework, the article provides unique insights into South African TV policymaking in the early democratic era.

The effect of carbon performance on corporate financial performance in a growing economy

2018 ◽  
Vol 14 (4) ◽  
pp. 895-916 ◽  
Author(s):  
Fortune Ganda
Keyword(s):  
South Africa ◽  
Growth Rate ◽  
Financial Performance ◽  
South African ◽  
Value Added ◽  
Content Type ◽  
Firm Financial Performance ◽  
Carbon Performance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the impact of carbon performance on firm financial performance by using Republic of South Africa CDP company data from 2014 to 2015. Design/methodology/approach The study considered 63 companies on the Republic of South Africa CDP database. Content analysis was used to extract both carbon performance data and firm financial data. The data were analysed using panel data analysis and partial derivative approaches. Findings The findings indicate that carbon performance produces a positive relationship with return on equity (ROE) and return on sales (ROS). Conversely, it generates a negative relationship with return on investment (ROI) and market value added (MVA). Furthermore, the study highlights that carbon performance pays and that the relationship with financial performance (ROE, ROS, ROI and MVA) deepens as the corporate growth rate increases. Practical implications Companies that integrate carbon performance initiatives reap substantial financial gains, and this relationship is strengthened as the company’s growth rate increases. Originality/value The research questions and data collected from Republic of South African CDP firms are original and provide important evidence on the impact of carbon performance on firm financial indicators. Furthermore, many empirical studies focus on highly industrialised countries; this study examines this issue in the emerging South African economy which has experienced rapid growth of emissions in recent years. While most previous studies on the relationship between carbon performance and firm financial performance used a single class of corporate financial measures, this study used both accounting- and market-based indicators. It also investigated how firm growth moderates the association between carbon performance and diverse financial performance measures. Finally, pressure exerted by green stakeholders since the introduction of the Johannesburg Stock Exchange’s sustainability criteria in 2004, as well as government policies, has a profound impact on the South African business context; it is hence important to examine corporate environmental management activities in the context of the association between carbon performance and firm performance.

Efficiency in South African agriculture: a two-stage fuzzy approach

2018 ◽  
Vol 25 (8) ◽  
pp. 2723-2759 ◽  
Author(s):  
Goodness C. Aye ◽  
Rangan Gupta ◽  
Peter Wanke
Keyword(s):  
South Africa ◽  
South African ◽  
Positive Impact ◽  
Fuzzy Approach ◽  
Social Expenditure ◽  
Two Stage ◽  
Growth Ratio ◽  
Content Type ◽  
African Agriculture ◽  
The Impact

PurposeThe purpose of this paper is to assess the efficiency of agricultural production in South Africa from 1970 to 2014, using an integrated two-stage fuzzy approach.Design/methodology/approachFuzzy technique for order preference by similarity to ideal solution is used to assess the relative efficiency of agriculture in South Africa over the course of the years in the first stage. In the second stage, fuzzy regressions based on different rule-based systems are used to predict the impact of socio-economic and demographic variables on agricultural efficiency. They are compared with the bootstrapped truncated regressions with conditionalαlevels proposed in Wankeet al.(2016a).FindingsThe results show that the fuzzy efficiency estimates ranged from 0.40 to 0.68 implying inefficiency in South African agriculture. The results further reveal that research and development, land quality, health expenditure–population growth ratio have a significant, positive impact on efficiency levels, besides the GINI index. In terms of accuracy, fuzzy regressions outperformed the bootstrapped truncated regressions with conditionalαlevels proposed in Wankeet al.(2015).Practical implicationsPolicies to increase social expenditure especially in terms of health and hence productivity should be prioritized. Also policies aimed at conserving the environment and hence the quality of land is needed.Originality/valueThe paper is original and has not been previously published elsewhere.

Mandatory corporate social responsibility assurance practices

2015 ◽  
Vol 28 (4) ◽  
pp. 515-550 ◽  
Author(s):  
Barry Ackers ◽  
Neil Stuart Eccles
Keyword(s):  
South Africa ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
South African ◽  
Listed Companies ◽  
Annual Reports ◽  
Content Type ◽  
Mandatory Requirement ◽  
Corporate Social ◽  
The Impact

Purpose – Despite its voluntary nature, the Johannesburg stock exchange (JSE) requires all listed companies to apply the King III principles, including providing independent CSR assurance. King III has accordingly made independent CSR assurance a de facto mandatory requirement, albeit on an “apply or explain” basis. The purpose of this paper is to examine the impact mandatory corporate social responsibility (CSR) assurance practices in South Africa, within a King III context. Design/methodology/approach – To understand the impact of King III on South African CSR assurance practices, a longitudinal study covering reporting periods both before and after King III implementation. The first stage reviewed the annual reports of the 200 largest JSE-listed companies to establish the frequency of CSR assurance provision. The second stage involved performing a content analysis on the CSR assurance reports. Findings – King III is driving the institutionalisation of CSR assurance practices in South Africa, as evidenced by the growth in CSR assurance since the implementation of King III. The study also found that the audit profession’s dominance was being eroded by specialist CSR assurors providing higher levels of assurance, despite concerns about the rigour of their assurance methodologies. Voluntary CSR assurance practices have resulted in the inconsistent application of CSR assurance practices, impairing the ability of stakeholders to understand the nature and scope of CSR assurance engagements. It is argued that this deficiency may be overcome through the imposition of a mandatory CSR assurance regime. Originality/value – The pervasive impact of the King Code of Governance on South African organisations makes it appropriate to examine its impact on South African CSR assurance practices. As such, this paper represents one of the first studies to specifically consider the impact of a mandatory regulatory requirement for independent CSR assurance and suggests a future direction for global CSR assurance practices.

South Africa’s bold and unique experiment in CSR practice

2016 ◽  
Vol 11 (2) ◽  
pp. 110-129 ◽  
Author(s):  
Gary Malcolm Mersham ◽  
Chris Skinner
Keyword(s):  
South Africa ◽  
Public Relations ◽  
South African ◽  
Historical Context ◽  
Generic Model ◽  
Content Type ◽  
Black Economic Empowerment ◽  
Recent Developments ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this study is to describe the current practice of corporate social responsibility (CSR) in South Africa, its linkage to corporate social investment (CSI), the impact of new Black Economic Empowerment (BEE) legislation and the contribution that South African public relations practice can have on the development challenges facing the continent of Africa. Design/methodology/approach Empirical data and reports drawn from various industry and evaluative sources is interpreted in the context of key contemporary elements of practice. The last part of the article provides a theoretical discussion of the public relations role as a “change” agent in South Africa and for the continent of Africa as a whole. Findings The South African Government’s prescriptive stance on transformation and BEE has thrust the reconsideration of CSR onto every corporate agenda in South Africa. With set targets and expenditure requirements, CSI has become a performance-driven pursuit among businesses seeking to improve their overall BEE scores. At the Pan-African level, a generic model of African public relations with a strong developmental focus is required for the education and training of public relations professionals. Research limitations/implications African public relations practice challenges accepted normative approaches in the conceptualisation of a sustainable new global model of the profession. More research will be needed to show how the African humanist approach might impact on the debate about the political, social and economic relevance of the profession in society and the reputation of the profession worldwide. Originality/value This study provides historical context for recent developments in public relations in South Africa, providing insights into the direction of the development of public relations practice in Africa.

Financial challenges experienced by South African non-profit organisations regarding CSR implementation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nobuntu Sibisi ◽  
Anoosha Makka
Keyword(s):  
South Africa ◽  
South African ◽  
Negative Impact ◽  
Successful Implementation ◽  
Structured Interviews ◽  
Donor Funding ◽  
Content Type ◽  
Non Profit ◽  
Financial Challenges ◽  
The Impact

Purpose The purpose of this paper is to understand the financial challenges experienced by non-profit organisations (NPOs) when implementing corporate social responsibility (CSR) initiatives in South Africa. These challenges have a negative impact on NPOs because they impede the successful implementation of CSR projects. Design/methodology/approach A qualitative research method and a purposive sampling strategy were used in this study. Semi-structured interviews were conducted with 13 employees from three NPOs in South Africa from the education, enterprise development and health and social development sectors. Content analysis was used to examine the data. Findings The findings revealed that NPOs in South Africa experience serious financial resource challenges, notably, overreliance on donor funding; difficulty in obtaining donor funding; limited donor funding available; intense competition from other non NPOs to secure donor funding; donors unwilling to fund operational costs and prescribing exactly how funds should be used; and donors signing non-binding contracts on the provision of funding. Research limitations/implications The sample size of the study was small, namely, three NPOs from Gauteng Province (Johannesburg) in South Africa. Therefore, this study covered only one geographic area of South Africa and the findings cannot be generalised across other provinces of the country. Practical implications The results of this study could have implications for donors and NPO employees involved in CSR activities in South Africa. Originality/value This study bridges a gap in literature by revealing the key financial challenges experienced by South African NPOs in implementing CSR initiatives and the impact of those challenges on their CSR efforts.

scholarly journals The impact of flexible corporate governance disclosures on value relevance. Empirical evidence from South Africa

2018 ◽  
Vol 18 (3) ◽  
pp. 369-385 ◽  
Author(s):  
Jonty Tshipa ◽  
Leon Brummer ◽  
Hendrik Wolmarans ◽  
Elda Du Toit
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Financial Crisis ◽  
South African ◽  
Financial Reporting ◽  
Value Relevance ◽  
Content Type ◽  
Listed Firms ◽  
Asset Value ◽  
The Impact

PurposeConsidering that the Johannesburg Stock Exchange (JSE) has enacted in its Listings Requirements, compliance of listed firms to International Financial Reporting Standards (IFRS) and King Code of Good Corporate Governance, this study aims to investigate the impact of internal corporate governance attributes on the value relevance of accounting information in South Africa.Design/methodology/approachThe fixed effect generalised least squares regression is used for the period from 2002 to 2014. Proxies for internal corporate governance are the size of the board, leadership structure, board activity, staggered board, boardroom independence, presence of key committees and board gender diversity. Value relevance is measured using the adjustedR2derived from a regression of stock price on earnings and equity book values by following Ohlson’s accounting-based valuation framework.FindingsThe findings suggest that the net asset value per share is value-relevant in South African listed firms and also when the boardroom is largely independent. The value of earnings per share (EPS) is more robust when corporate governance structures, such as separating the roles of chief executive officer and chairperson, proportion of board-independent board members and presence of board committees, are in place. This suggests that EPS favours agency and resource dependence theories.Practical implicationsThe value relevance of accounting information in the South African financial market underscores the importance of requisite rules and supervision regarding financial reporting to allow asset owners and managers in the allocation of capital decisions. This study supports the view that corporate governance plays a key role in ensuring, amongst others, credible financial reporting. The outcome of this study could inform the JSE to enforce, even stricter, compliance with IFRS and corporate governance to improve the value relevance of financial information.Social implicationsSignificant corporate governance reforms around the world suggest that regulators and policy makers consider corporate governance as a pertinent tonic in ensuring, amongst others, credible financial reporting. The implications of the study might assure users of financial information of how compliance to corporate governance practices may influence the value of the firm. This paper provides empirical evidence in the South African context that EPS, unlike net asset value per share, is driven by corporate governance structures.Originality/valueThe period of this study is unique, because it covers a relatively stable economic period before the financial crisis, a challenging and unstable period of time when the financial crisis materialised, and the aftermath of the financial crisis. In addition, the examination period of the study also covers the two corporate governance reforms in South Africa, King II in 2002 and King III in 2009, as well as the new Companies Act No. 71 of 2008. These exogenous factors may influence the results.

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