Browsing by Author "Machobani, Dennis"

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    Examining the relationship between governance and gross fixed capital formation in Sub-Saharan Africa
    (University of the Witwatersrand, Johannesburg, 2024) Machobani, Dennis; Mahonye, Nyasha
    This study delves into the intricate relationship between governance and Gross Fixed Capital Formation (GFCF) in Sub-Saharan Africa (SSA), aiming to address the substantial infrastructure deficit in the region. Employing the System GMM methodology, the primary research question focuses on understanding the correlation between institutions and GFCF in SSA. Subsequent sub-questions delve into the relationships between political stability and GFCF, as well as the composite index of institutions and GFCF. Policy recommendations highlight the pivotal role of good governance, advocating for reforms, institution strengthening, and enhanced transparency. The study's outcomes emphasize the intricate interplay of diverse factors impacting GFCF, prompting policymakers to adopt comprehensive strategies for sustainable development. Persistent effects of past investment choices underscore the necessity for continuous efforts to incentivize investment. Key determinants such as trade policies, current account balances, gross domestic savings, and government expenditure are identified, suggesting targeted interventions to stimulate private sector engagement and cultivate an environment conducive to heightened investment in Sub-Saharan Africa.
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    Testing for the uncovered interest parity hypothesis in South Africa
    (2016) Machobani, Dennis
    The findings of the research have implications on the efficiency of the South African exchange rate market, and by extension, the efficiency of similar emerging foreign exchange markets. The study used Ordinary Least Square Approach and Johansen cointegration. Despite their theoretical appeal, and in line with a dozen of related past literature, the findings of the research generally favour the rejection UIP, PPP and IFE. The findings have implications on some regulatory measures that can be undertaken by the financial authority to improve the efficiency of the foreign exchange market. While there have been extensive studies on uncovered interest parity (UIP), purchasing power parity(PPP), and the international Fisher effect(IFE), research has scarcely tested these hypotheses in the context of emerging markets. This study attempts to bridge the existing gap by testing the three related parity condition for South Africa.