scholarly journals Widening the digital divide: A study on the possible impact of the convergence Bill of 2003 on the South African cybereconomy

2014 ◽  
Vol 8 (4) ◽  
pp. 490-497
Author(s):  
EM Da Silva ◽  
CJ Kruger
Keyword(s):  
South Africa ◽  
Digital Divide ◽  
South African ◽  
Developing Country ◽  
Economic Activity ◽  
External Environment ◽  
Present Form ◽  
Financial Resources ◽  
Business Growth ◽  
Long Run

Business does not exist in a vacuum. The external environment is either conducive to or stifles business growth. Van Rooyen (2004: 399) points out that ‘E-business has important implications for South Africa as an emerging economy, as it creates the possibility of better access to various financial resources and eventually increased economic activity. This will affect all sectors in the economy and may lead to generally improved business infrastructure for the country as a whole and for individual business, local authorities and government treasury departments. This is especially important for South Africa as a developing country, which in turn, will make an important contribution to rapid alleviation of private and more rapid reform in the long run’.  A major determinant of the external environment in which business operates is legislation and regulation. It therefore follows that any regulation or legislation pertaining to E-business must be conducive to growth.  The draft Convergence Bill of 2003 is to be tabled in Parliament during its next session.  In this paper it is argued that in its present form, the proposed Convergence Bill is in fact detrimental to organisational growth, a potential kiss of death for E-enabled organisations.

scholarly journals Shopping list development and use of advertisements’ pre-store food-buying practices within different socio-economic status areas in South Africa

2017 ◽  
Vol 119 (12) ◽  
pp. 2880-2902
Author(s):  
Rodney Graeme Duffett ◽  
Crystal Foster
Keyword(s):  
South Africa ◽  
South African ◽  
Developing Country ◽  
Economic Status ◽  
Demographic Characteristics ◽  
Low Ses ◽  
Content Type ◽  
Shopping List ◽  
Food Shopping ◽  
Food Buying Practices

Purpose The purpose of this paper is to determine whether there is a difference in the development of shopping lists and use of advertisements as pre-store food-buying practices in terms of planned shopping by South African consumers who dwell in different socio-economic status (SES) areas. The paper also considers the influence of shopper and socio-demographic characteristics on pre-store food-buying practices in a developing country. Design/methodology/approach A self-administered questionnaire was used to survey 1 200 consumers in retail stores in low, middle and high SES areas in South Africa. A generalised linear model was employed for the statistical analysis of pre-store food-buying practices within the SES area groups in a developing country. Findings South African consumers that reside in high SES area displayed the largest of shopping list development, while consumers who dwell in low SES areas showed the highest incidence of advertisement usage. Several shopper and socio-demographic characteristics were also found to have an influence on pre-store food-buying practices in different SES areas in South Africa. Research limitations/implications A qualitative approach would offer a deeper understanding of consumers’ pre-store food shopping predispositions as opposed to the quantitative approach, which was adopted for this study. A longitudinal design would also provide a more extensive representation of pre-store food shopping practices over a longer time frame than cross-sectional research. The survey was conducted on Saturdays, whereas consumers who shop during the week may have different shopping and socio-demographic characteristics. Practical implications Astute food brands, marketers and grocery stores could use the findings of this study to assist with their marketing efforts that they direct at consumers in different SES areas in South Africa and other developing countries. Social implications The findings of this study may assist consumers in developing countries, especially those who reside in low SES areas, with food-buying strategies to reduce food costs, make wiser purchase decisions and reduce shopping. Originality/value No study (to the best of the researchers’ knowledge) has considered shopping list development and use of advertisements’ pre-store food-buying practices in different SES areas in a developing country. Furthermore, there is a dearth of research analysing shopper and socio-demographic characteristics in relation to pre-store food-buying practices among different SES areas in developing and developed countries.

scholarly journals How applicable is export-led growth and import-led growth hypotheses to South African economy?

2015 ◽  
Vol 4 (2) ◽  
pp. 15-24
Author(s):  
Ntebogang Dinah Moroke ◽  
Molebogeng Manoto
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Adverse Effect ◽  
Time Series ◽  
South African ◽  
Time Series Data ◽  
Series Data ◽  
Long Run ◽  
Reserve Bank ◽  
Equilibrium Relationship

This paper investigated exports, imports and the economic growth nexus in the context of South Africa. The paper sets out to examine if long-run and causal relationships exist between these variables. Quarterly time series data ranging between 1998 and 2013 obtained from the South African Reserve Bank and Quantec databases was employed. Initial data analysis proved that the variables are integrated at their levels. The results further indicated that exports, imports and economic growth are co-integrated, confirming an existence of a long-run equilibrium relationship. Granger causal results were shown running from exports and imports to GDP and from imports to exports, validating export-led and import-led growth hypotheses in South Africa. A significant causality running from imports to exports, suggests that South Africa imported finished goods in excess. If this is not avoided, lots of problems could be caused. A suggestion was made to avoid such problematic issues as they may lead to replaced domestic output and displacement of employees. Another dreadful ramification may be an adverse effect on the economy which may further be experienced in the long-run.

scholarly journals The Impact of Productivity, Investment and Real Wages on Employment Absorption Rate in South Africa

2019 ◽  
Vol 8 (12) ◽  
pp. 330 ◽  
Author(s):  
Thomas Habanabakize ◽  
Daniel Francois Meyer ◽  
Judit Oláh
Keyword(s):  
South Africa ◽  
South African ◽  
Absorption Rate ◽  
Labour Productivity ◽  
Series Data ◽  
The South ◽  
Real Wages ◽  
Long Run ◽  
Investment Spending ◽  
The Impact

Many developing countries are facing high levels of unemployment and most people who are employed are poorly remunerated due to low skills and productivity levels. Although jobs are important, a productive job is even more important, not only for employees, but also for employers. South Africa, being a developing country, is also facing the challenge of dramatically high levels of unemployment. This study’s aim was to examine both the short- and long-term impacts of real wages, labour productivity and investment spending on employment absorption rates in South Africa. To establish the existing relationship between variables, the study applied several econometric approaches, such as an autoregressive distributed lag (ARDL) model, error correction model (ECM) and a Toda–Yamamoto causality analysis on quarterly time series data from 1995Q1 to 2019Q1. The results revealed the existence of both short- and long-run relationships among the variables. While a positive relationship was found between employment absorption, investment spending and labour productivity, it was found that real wages negatively impact on long-run employment absorption rates. Additionally, the short-run analysis indicated that the lagged employment absorption rate influences the current rate of employment. Furthermore, the causality tests indicated that a bi-directional causal relationship exists between employment absorption and investment spending; and a uni-directional relationship between employment and both real wages and labour productivity. Based on the findings, the study recommends increments of investment spending and labour productivity that enables the South African economy to carry out more activities that would require more workers, thereby improving the employment absorption rate. The fact that labour productivity positively impacts the employment absorption rate infers the requirement for quality and skilled workers to be absorbed in the South African labour market. Therefore, labour skills improvements appear to be a prerequisite for productivity enhancement and job creation.

scholarly journals The Effects of Foreign Resource Inflow and Savings on the Economic Growth of South Africa: A VAR Analysis

2014 ◽  
Vol 6 (3) ◽  
pp. 232-241
Author(s):  
Temitope L. A.
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Impulse Response Function ◽  
Vector Autoregressive ◽  
Var Analysis ◽  
Long Run ◽  
Domestic Savings ◽  
Low Levels ◽  
Using Data

This study adopts both the Vector Autoregressive (VAR) analysis and the Impulse-Response Function (IRF) to examine the importance and the effects of domestic savings and foreign direct investment (FDI) on South African economy, using data spanning over the period 1975 to 2011. While the level of domestic savings is quite low, compared to other emerging economies, South Africa has also been struggling to attract inflow of foreign resources. The form of savings in South Africa is different from the western way of savings; hence the low levels of domestic savings. The variables considered were tested for stationarity and they were all stationary before proceeding to test for cointegration and then estimate and VAR. The cointegration test revealed that there was at least one cointegrating equation; which signifies that there exists a long-run relationship among the variables. The results from the VAR Granger test of causality depicted that domestic savings lead economic growth, while economic growth leads investment. This result of the IRF also showed that while increased domestic savings is important to improve the level of economic growth in South Africa, it also leads FDI. This means that the economic environment needs to be suitable in order to attract foreign investments. The results obtained are reliable and stable as the model passes a battery of diagnostic tests. The study proposes some recommendations for policy.

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 Re-Visting the Electricity-Growth Nexus in South Africa

2016 ◽  
Vol 11 (1) ◽  
pp. 97-111 ◽  
Author(s):  
Andrew Phiri ◽  
Bothwell Nyoni
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Empirical Investigation ◽  
Research Study ◽  
Electricity Consumption ◽  
Domestic Investment ◽  
Long Run ◽  
Trivariate Analysis

AbstractThis research study contributes to the ever-expanding literature by examining multivariate cointegration and causality relationships between electricity consumption, economic growth and other growth determinants for quarterly South African data collected between 1994/Q1 – 2014/Q4. The motivation behind this current research case study becomes apparent when taking into consideration that no previous studies have gone further than bivariate and trivariate analysis in investigating the electricity-growth nexus in South Africa. In conducting our empirical investigation, our obtained empirical results are two-fold in nature. Firstly, we find significant multivariate long-run cointegration relationships between economic growth, electricity consumption and other growth determinants. Secondly, our empirical analysis offers support in favour of the neutrality hypothesis, that is, the notion of no causal effects existing between electricity consumption and economic growth in the long-run. However, we find that exports directly cause electricity consumption whereas economic growth, domestic investment and employment levels causally flow to exports.

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 The Sectoral Employment Intensity of Growth in South Africa

2019 ◽  
Vol 23 ◽  
Author(s):  
Njabulo Innocent Mkhize
Keyword(s):  
South Africa ◽  
South African ◽  
Output Growth ◽  
Job Seekers ◽  
The South ◽  
Tertiary Sector ◽  
Business Services ◽  
Jobless Growth ◽  
Long Run ◽  
Sectoral Composition

Concerns have been expressed recently about the inability of the South African economy to provide adequate employment for the increasing number of job seekers. This paper investigates how sectoral employment intensity of output growth in the eight non-agricultural sectors of the South African economy has evolved in the period from the first quarter of 2000 to the fourth quarter of 2012, with a view to identifying key growth sectors that are employment intensive. Empirical findings of the study suggest that total non-agricultural employment and GDP do not move together in the long run, implying that jobless growth occurred in South Africa during the period under review. This supports the view that South Africa has become less labour-intensive and more capital-intensive. Results of a sectoral composition confirm a long-run relationship between employment and growth in the finance and business services, manufacturing, transport and utilities sectors. In particular, the results suggest that sectors within the tertiary sector are the best performing sectors in terms of employment intensity of output growth, reflecting the changing structure of the economy and the nature of employment shifting away from primary towards the tertiary sector. Investment in the tertiary sector is necessary to foster new employment opportunities and can assist in improving overall employment intensity in South Africa.

scholarly journals South African Sucrose Quality in Sugar: Determinants and its Empirical Implications

2017 ◽  
Vol 9 (5(J)) ◽  
pp. 106-121
Author(s):  
Mishelle Doorasamy ◽  
Bruce Rhodes
Keyword(s):  
South Africa ◽  
Water Content ◽  
Soil Water ◽  
Soil Water Content ◽  
South African ◽  
Sugar Cane ◽  
Series Data ◽  
Average Temperature ◽  
Long Run ◽  
Sucrose Level

The study investigates which factors determine sucrose quality in the South African sugar cane production process. Though South Africa is the 8th largest producer of sugar cane in the world and the highest in Africa, a decline has been observed in the production of high quality sugar in the country. The study adopts the Auto Regressive Distributive Lags (ARDL) technique to analyze sugar cane production time series data from 1980 to 2016 in South Africa. Ten variables were tested, including Average Temperature, Stalk growth, Evaporation, and Soil Water Content (100mm). Our findings revealed that on both the short and long run, some of the variables investigated have the tendency of increasing sucrose level in sugar cane while an increase in other variables would decrease sucrose level altogether. However, the impact of Soil Water Content (100mm) appears not to be statistically significant on sucrose production in our regression model in the short and long run. Of special interest are Stalk growth (Reference sugar cane) and average temperature, as their values are more significantly germane as regards the quantity of sucrose obtained during sugar cane processing in South Africa. 

scholarly journals A Study on the Gender Digital Divide: Overcoming the Under-Representation of South African Women in the IT Sector

2019 ◽  
Vol 9 (2) ◽  
pp. 151
Author(s):  
Seetha Nesaratnam ◽  
Tengudzeni Nkosingiphile Mamba ◽  
Jugindar Singh Kartar Singh
Keyword(s):  
South Africa ◽  
Digital Divide ◽  
South African ◽  
Gender Gap ◽  
Gender Stereotyping ◽  
African Women ◽  
Leadership Roles ◽  
The Rich ◽  
South African Women ◽  
Depth Interviews

In South Africa, women are grossly underrepresented in the Information Technology (IT) sector result of gender stereotyping and discrimination. According to the Independent Communications Authority of South Africa (ICASA) Report (2017), only 21% of executives in the IT sector are women. This has caused high unemployment of women IT graduates. The purpose of this study therefore is to explore and investigate the antecedents that influence and impact the phenomenon of the gender digital divide in South Africa. The study explores new antecedents of the digital gender divide that influences motivation of women to participate in the IT sector. This study used a qualitative approach through in-depth interviews of South African women in the IT sector. The rich volume of data collected was analysed via a thematic analysis. The analysis confirmed existing antecedents gleaned from literature and also uncovered three new dimensions, namely, networking, impartial mentorship and HR as motivators for women in the IT sector. The findings of the study also provides for a better understanding on the barriers that perpetuate the unequal gender gap problem especially in managerial and leadership roles. 

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