scholarly journals Is there a link between economic growth and SMEs success in South Africa

2016 ◽  
Vol 13 (2) ◽  
pp. 249-353 ◽  
Author(s):  
Louise van Scheers
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Success Rate ◽  
South African ◽  
Positive Impact ◽  
The South ◽  
Sustainable Economic Growth

This research analyzes whether there is a link between economic growth and SMEs success in South Africa. The South African economy can only grow with the contribution of growing sustainably SMEs which will accelerate economic growth. The research concluded that SME success has a positive impact on sustainable economic growth in South Africa and that there is a link between economic growth and SME success. The conducted research recommends that by improving the success rate of SME, the South Africa’s stagnating economy

scholarly journals The Contribution of Foreign Direct Investment (FDI) To Domestic Employment Levels in South Africa: A Vector Autoregressive Approach

2019 ◽  
Vol 11 (1(J)) ◽  
pp. 110-121
Author(s):  
Bongumusa Prince Makhoba, ◽  
Irrshad Kaseeram
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Least Squares ◽  
South African ◽  
Empirical Analysis ◽  
Negative Relationship ◽  
Ordinary Least Squares ◽  
Series Data ◽  
The South ◽  
Vector Autoregressive

Several empirical works have yielded mixed and controversial results with regard to the effects of FDI on employment and economic growth. The primary focus of this study is to investigate the contribution of FDI to domestic employment levels in the context of the South African economy. The analyses of the study were carried out using the annual time series data from 1980 to 2015. The macroeconomic variables employed in the empirical investigation include employment, FDI, GDP, inflation, trade openness and unit labour costs. The study used secondary data from the South African Reserve Bank and Statistics South Africa database. The study estimated a Vector Autoregressive/ Vector Error Correction Mechanism (VAR/VECM) approach to conduct empirical analysis. However, the study also employed single equation estimation techniques, including the Ordinary Least Squares (OLS), Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS) and Canonical Cointegrating Regression (CCR) models as supporting tools to verify the VAR/VECM results. This study provides strong evidence of a significant negative relationship between FDI and employment levels in the South African economy. Empirical analysis of the study suggests that the effect of economic growth on employment is highly positive and significant in South Africa’s economy. The study recommends that policymakers ought to invest more in productive sectors that aim to promote economic growth and development to boost employment opportunities in South Africa.

South Africa’s Foreign Policy and the BRICS Formation: Reflections on the Quest for the ‘Right’ Economic-diplomatic Strategy

2017 ◽  
Vol 9 (1) ◽  
pp. 39-61
Author(s):  
Theo Neethling
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Foreign Policy ◽  
South African ◽  
Special Importance ◽  
South African Government ◽  
The South ◽  
African Government ◽  
Economic Diplomacy ◽  
The Right

South Africa’s foreign policy has recently been gravitating away from an appeal to Western powers towards the establishment of new friendships in the Global South, especially with Asia and Latin America. Moreover, the favouring of the Brazil, Russia, India, China and South Africa (BRICS) partnership and a rising tone of anti-Western sentiments have increasingly been evidenced in South Africa’s contemporary foreign policy, which are of major significance to the nature and direction of its economic-diplomatic strategy. Three broad perspectives or main arguments from this article are of special importance: First, most members of BRICS are troubled by slower economic growth, which should be of concern to South Africa’s current foreign policy stand. Second, anti-Western ideological concerns and related presumptions on the part of the South African government that the BRICS formation could potentially assume a counter-hegemonic character vis-à-vis the West are questionable and dubious. Third, South Africa stands to benefit from many networks and opportunities provided by BRICS membership. At the same time, because of its low economic growth, high levels of poverty and lack of employment opportunities, South Africa cannot afford to follow an approach of narrow interest concerning the BRICS formation and to constrain itself in its economic diplomacy. This article argues that the South African government will therefore have to consider the opportunities offered by a more nuanced and pragmatic foreign policy designed on multiple identities.

scholarly journals An Investigation of the Dynamic Effect of Foreign Direct Investment (FDI) and Interest Rates on GDP in South Africa

2018 ◽  
Vol 10 (5(J)) ◽  
pp. 29-37
Author(s):  
Thomas Habanabakize ◽  
Daniel F Meyer
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Foreign Direct Investment ◽  
South African ◽  
Significant Relationship ◽  
Direct Investment ◽  
Positive Relationship ◽  
Positive Impact ◽  
Long Run ◽  
Repo Rate

Economic growth in South Africa has been in the “doldrums” for the past decade. If well managed, foreign direct investment (FDI) and repo rate (interest rate) could have a positive impact and assist in rapid economic growth so urgently needed in South Africa. FDI has been a driving force for growth in many developing economies. Not enough has been done to attract FDI in South Africa. The country has enormous ability and capacity to attract FDI inflows and to have the advantages from it. A quantitative research approach was used to analyse the association amongst the variables which include FDI, GDP and repo rate in the South African economy. The South African Reserve Bank database was used and the period analysed is from 2000 to 2016. Statistical and econometric methods such as correlation analysis, unit root tests, ARDL Bounds test for cointegration, an error correction model (ECM), and the Granger causality tests were used. Subsequently, after the econometric model was estimated, findings indicated the existence of a long-run relationship between the three variables. While, a significant positive relationship exists between FDI and GDP, a negative long-run relationship was found between GDP and repo rate and interestingly a nonsignificant relationship between repo rate and FDI. In the short run, the positive effect of FDI on GDP is minimal whilst a significant and positive relationship exists between GDP and repo rate. The results did also show some limitations in the results, with regards to FDI and repo rate that there is no significant relationship between the variables, meaning that repo rate does not have an impact on FDIs. Although some long-run evidence was found of FDI playing a role in economic growth in South Africa, such impact is limited. Also very interesting is that the repo rate and FDI do not have a statistically significant relationship. This could be due to the rising risks associated with investments in the country. In conclusion, there are many variables which could have a positive impact on the attraction of FDIs and such factors will be explored further in future studies. 

scholarly journals Reforming the health sector in South Africa – Post 1994

2015 ◽  
Vol 5 (3) ◽  
pp. 167-179
Author(s):  
Melody Brauns ◽  
Anne Stanton
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Health Sector ◽  
South African Government ◽  
The South ◽  
African Government

This article reviews the efforts of the South African government in recognising development challenges of the post-apartheid era and assesses the approaches employed to bring about economic growth and to address inherited inequalities.

scholarly journals The impact of economic growth on unemployment in South Africa: 1994 – 2012

2015 ◽  
Vol 12 (4) ◽  
pp. 699-707
Author(s):  
Handson Banda ◽  
Ireen Choga
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Time Series Data ◽  
Positive Impact ◽  
Labour Productivity ◽  
Real Effective Exchange Rate ◽  
Series Data ◽  
Long Run ◽  
The Impact

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.

scholarly journals Incentives for the manufacturing sector: what South Africa can learn from Malaysia and Singapore

2015 ◽  
Vol 8 (1) ◽  
pp. 105-124
Author(s):  
Lenatha Wentzel ◽  
Kerry De Hart
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Foreign Investment ◽  
Manufacturing Sector ◽  
South African Government ◽  
Manufacturing Companies ◽  
The South ◽  
African Government ◽  
Similarities And Differences

The expansion of the manufacturing sector is one of the South African government’s focus areas for economic growth and employment creation. The research on which this article is based identified additional incentives, applicable to the manufacturing sector, which the South African government could introduce to encourage investors to choose the South African manufacturing sector as a desired investment destination. The incentives provided to manufacturing companies by the governments of Malaysia and Singapore and those provided by the South African government are compared in order to examine the similarities and differences between these incentives. In the light of these findings, recommendations are made for additional incentives in South Africa to promote investment in South African manufacturing companies and reduce some of the barriers that prevent local and foreign investment in the country.

scholarly journals A CGE Simulation Of A Flat Tax As A Possibility For Tax Reform In South Africa

2014 ◽  
Vol 30 (6) ◽  
pp. 1693
Author(s):  
Lumengo Bonga-Bonga ◽  
Martin Perold
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Tax Reform ◽  
Empirical Investigation ◽  
The South ◽  
Flat Tax ◽  
Cge Modelling ◽  
Tax Systems ◽  
Widespread Interest

During recent years, there has been widespread interest in South Africa for the so-called flat tax systems that appear to have been implemented successfully in Eastern Europe. This paper applied a CGE modelling technique to compare the performance of the South African economy in case alternative tax systems, namely the progressive and the flat tax systems, are applied. The counterfactual situation whose effects are tested in this paper is a 10% decrease in the VAT rate consistent with some popular call for the reduction of the degree of the regressiveness of VAT. The key performances of the South African economy are assessed in terms of economic growth, the welfare of households, equity and employment. On the basis of this empirical investigation the flat tax has a slight edge over the current progressive system.

scholarly journals Transformation and development towards a fully inclusive society and economy in the City of Johannesburg, South Africa

2017 ◽  
Vol 6 (1) ◽  
pp. 63-74
Author(s):  
Paul Kibuuka
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Development Strategy ◽  
Social Transformation ◽  
Growth And Development ◽  
International Investment ◽  
Inclusive Society ◽  
Sustainable Economic Growth ◽  
The City

This paper analyzes the state of economic growth and development in the City of Johannesburg (COJ) South Africa as by the year 2016 and presents a case for transformation and development of the City towards a fully inclusive economy and society. The research reveals that faster and sustainable economic growth in addition to proactive pro-equity policies are a sine qua non for inclusive growth and participation in the City, where the triple challenges of poverty, inequality and unemployment persist more than 20 years into the democratic dispensation. During the last 17 years the City economy has grown at almost the same pace as the national South African economy with a trend reflective of major world economic events. Going forward, the South African economy is projected to grow at less 2% annually in the next 3 years. In terms of the City, the prognosis is that the City will either continue to trace the national economic growth rate or decline from 2% in 2016 to 1% in 2018. In order to achieve the objectives and goals of the Johannesburg 2040 Growth and Development Strategy in the long term and the City Integrated Development Plan in the medium term, the City leadership and administration will need to begin by not only addressing factors that inhibit economic efficiency including crime and corruption, but also the provision of a critical pipeline of skills required by industry in order to attract local and international investment. The increase in investment is expected to broaden the revenue base and to strengthen the financial capacity of the City to roll out services to the previously disadvantaged communities so as to bring them into the mainstream of economic empowerment and social transformation.

South Africa in the Contemporary World

1973 ◽  
Vol 3 (3) ◽  
pp. 17-27
Author(s):  
Colin Legum ◽  
Margaret Legum
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
The South ◽  
Contemporary World ◽  
Rapid Economic Growth ◽  
External Relations ◽  
The World ◽  
The Republic

Two great changes have been brought by twenty-five years of apartheid rule in South Africa. Its internal contradictions have been sharpened by the simultaneous attempts to divide the country along even more rigid color lines and to stimulate more rapid economic growth; and its external relations have declined to the point where the Republic today has become the “polecat of the world.” These two developments are inextricably linked so that it makes little sense to try and describe the South African situation without focussing on their interrelationship.

The Higher Educational and Industrial Challenges Facing South Africa

1995 ◽  
Vol 9 (2) ◽  
pp. 105-114
Author(s):  
Thomas G. Whiston
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
South Africa ◽  
South African ◽  
National Policy ◽  
Policy Agenda ◽  
The South ◽  
African Higher Education ◽  
Global North ◽  
South African Higher Education

South Africa, following the dismantling of Apartheid, now faces enormous educational, industrial and economic challenges. Simultaneously it must address gargantuan social and infrastructural problems, attend to the most urgent basic needs while also encouraging significant economic growth. The author has recently completed an extensive survey and analysis of the South African higher education challenge within the context of the critical, social, industrial and environmental dilemmas which must be ameliorated. In this article, he provides an overview of the problems to be faced and suggests a national policy agenda to address those challenges and dilemmas. In one sense the South African ‘dilemma’ is a microcosm of the global ‘North–South’ divide.

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