3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item The economics of government spending: an institutional approach(2019-03-27) Mlilo, MthokozisiThis thesis investigates the role of institutional quality on the impact of government expenditure on economic performance. The thesis consists of five chapters. Chapter 1 provides an introduction of the thesis. Chapters 2, 3 and 4 are empirical chapters examining the role of institutions on the relationship between government expenditure and various indicators of economic performance. Chapter 5 concludes by giving policy recommendations. In chapter 1 we provide a background, motivation, objectives, hypothesis to be tested, gaps in the literature, contributions of the study and the main findings. In chapter 2 we explore how institutional quality affects the government spending-output growth nexus. We estimate a modified growth accounting model found in Hansson and Henrekson (1994) and control for institutional quality by employing panel regression techniques on a panel of 71 countries over a period 1970-2015. Our main estimation technique, 3SLS with seemingly unrelated errors, is able to control for endogeneity and cross equation correlation. We find that the institutional quality variable has a mitigating effect on the relationship between government expenditure and output growth however, government expenditure generally has a negative and detrimental effect on output growth. This suggests that better institutional quality offsets the adverse effects of government expenditure. As such, there is a need to come up with policies that strengthen institutional quality and enhance the effectiveness of government expenditure programs. Chapter 3 we examine the role of institutions on the optimal size of the government. The quadratic method of Armey (1995) and Scully (1994) method are employed on the country (time series regression) and group (panel data regression) estimations. Furthermore, we use the Hansen (1999) panel threshold regression technique to determine the presence of an optimal size and the values thereof. We ascertain that the majority of countries do have a significant optimal size of government. However, we note that the optimal size of government varies across countries and regions. Despite the presence of a non-linear relationship between government expenditure and output growth, there seems to be a marked difference between the size of government across levels of development and institutional arrangements. Countries with better institutions and higher levels of development seem to have a lower optimal level of government size. Perhaps, better institutions and higher levels of development help mitigate the adverse effects of government expenditure on output growth through the minimisation of the scope and scale of government activities, i.e., government size. Chapter 4 investigates the Twin Deficits Hypothesis (TWDH) and the role of institutional quality on a sample of 48 countries for the period 1995-2013. Using the national income accounting decomposition and the approaches in Feldstein and Horioka (1980) and Fidrmuc (2003) we investigate the role of institutional quality and capital mobility on the current account deficits and the government budget deficits (i.e., TWDH) nexus. We apply OLS, fixed effects, random effects regressions and panel cointegration techniques in our analysis. The results from the panel cointegration tests show that a long run relationship exists between the current account balance, investment and the government budget balance. The results reveal that current account deficits are mainly driven by private investment flows. However, we only find support for the Twin Deficits Hypothesis in a sample of developed countries and higher institutional quality countries. The results imply that governments of these countries enjoy financing from international sources and can easily finance their budget deficits without siphoning domestic savings away from investment. This result is unsurprising considering that capital seems to flow towards areas with perceived less risk. This suggests that current account deficits in developing countries are as a result of private agents’ decisions and not driven by government budget deficits.Item An investigation and problematisation of the Entrepreneurial Framework Conditions associated with entrepreneurship amongst Blac(2018) Mkhwanazi, Bongani Sakhile EarthianSouth Africa is faced with the ‘triple threat’ of unemployment, poverty and inequality (National Planning Commission (NPC), 2012). Since democracy, transformation of the economy has been elusive, to the extent that Black Africans, who are the majority population group, have faced increasing deprivations (Stats SA, 2017; Bastos & Bottan, 2016; Viljoen & Sekhampu, 2013). One way to overcome this problem is entrepreneurship, which is known to be a positive contributor to economic growth and employment. In light of this, the Global Entrepreneurship Monitor (GEM) has created a list of Entrepreneurial Framework Conditions (EFC), which are conditions, factors and institutions that can either encourage or discourage the level of entrepreneurial activity in a country or region (Herrington and Turton, 2012; Herrington., Kew & Kew 2015; Herrington, Kew & Mwanga, 2016/17). This research study investigated the EFCs associated with Entrepreneurial Activity (EA) and sustainability amongst Black Africans, whether the policies that the government has implemented encourage and sustain EA amongst Black Africans, and if differences exist between the EFCs associated with Black-owned enterprises and those identified by GEM. A qualitative research design located in the interpretive paradigm was utilised for methodology and analysis purposes, and in-depth interviews were conducted with established Black African business owners in Johannesburg. This study’s overall findings were similar to the GEM’s findings; however two main findings may be isolated as having uniquely affected the respondents, i.e. race and finance. Race in particular has served as both a curse and a blessing for entrepreneurs; it is one of the first characteristics that are used to make value judgements on the abilities of these entrepreneurs. While government policies and programmes provide assistance on the basis of race and merit in an attempt to even the playing field, the administration of these policies fails entrepreneurs as they are susceptible to corruption. Furthermore, race is particularly complex as it is intertwined in all of the other factors, including finance, which was the second most commonly identified factor in determining access to, and success in, entrepreneurship. It is recommended that the findings of this study be used as a basis for a larger, more in-depth study, which may provide more conclusive results, and the Government is advised to seek the perspectives of entrepreneurs when formulating entrepreneurship-related policies.Item Does industrialisation increase economic growth? : evidence from upper-middle income countries and the implications for South Africa(2018) Bell, Jason FrankIn a world that is rapidly changing through massive improvements in technology and innovation, many developing countries find themselves with a trade-off as to whether to pursue industrialisation or not. Industrialisation and de-industrialisation are referred to as changes in the share of the manufacturing sector in GDP and/or employment (Tregenna, 2011). In the past, many countries have successfully integrated various industrialisation policies into their policy frameworks, which saw their economies grow, increasing the standard of living of the population. Industrialisation is typically in the form of either export-led or import-substitution policy, with each having contrasting ways of achieving the same goal – economic growth and development. The current paper employs both statistical and case study analyses in attempting isolate the effect manufacturing has on economic growth at both the aggregate and individual country level. The results would suggest that increases in manufacturing no longer have the significant growth-enhancing effects as detailed throughout history. However, through a detailed analysis of different factors and policies which contributed to the successes or failures of other upper-middle income economies such as Brazil, Malaysia, and Turkey, we argue that South Africa has a lot to potentially gain from the re-industrialisation of the economy.Item Determinants of household saving: evidence from the national Income dynamics study(2018) Qabazi, NoncebaThis study investigates the determinants of household savings in South Africa using panel data estimation techniques and National Income Dynamics Study (NIDS) data for the period 2008-2015. Results show that household savings habits in South Africa are strongly driven by sociodemographic factors such as income, relative income, asset ownership and white population group representation. Whereas household size, home ownership, household expenditure and black population group representation remain plausible arguments for household dissaving in South Africa. To some extent, these findings imply that strategies to increase household savings in South Africa should improve the distribution of income and employment among the population. There is also a need for an in-depth analysis as to why and how the country’s black population can be encouraged to improve on household savings.Item Whiteness re-aligned : naratives of white residents from Munsieville, Krugersdorp(2017) Mabaso, NkululekoThis research project is concerned with meanings of whiteness that are produced at its margins (the margins of whiteness). I challenge the dominant thesis of Whiteness Studies which theorises about whiteness as a social construct that is homogeneous and monolithic. Instead, I suggest that whiteness is best conceptualised as a structure. To this end I highlight the experiences of white people who do not embody the hegemonic and normalised form of whiteness. My primary method is an ethnography of white residents of the informal settlement in Munsieville, Krugersdorp. The participants in my study live in an area that is predominantly occupied by black people, most of whom are economically and socially better-off. Along with ethnographic observations, I used interviews to collect data. These were useful for providing a glimpse of the participants’ life histories. Most of them ‘inherited’ their poverty from their parents, the generation of ‘poor whites’ who lived under the colonial and apartheid eras. Historically, the participants were direct beneficiaries of the apartheid policies that were meant to assist ‘poor white’ people. This history shapes their feelings of nostalgia for the ‘good old days’ and of vulnerability in post-1994 South Africa. These feelings influenced their attachment to apartheid conceptions of blackness and whiteness and their irrational fear of black people (the swart gevaar). Alongside this attachment and fear, my study shows that the residents of Munsieville have developed an ‘ambivalent intimacy’ with the black people in their neighbourhood which has resulted in the formation of a different kind of whiteness. This re-aligned whiteness is a result of the articulation of their race and class position. Key Words: Whiteness, ‘Poor Whites’, Blackness, Structure and Articulation.Item Integration and leadership in Southern Africa: South Africa's strategy, opportunities and limitations(2018) Mamphogoro, Rabelani DanielAfter South Africa experienced a political transition in 1994, the regional integration dynamic in southern Africa also went under a considerable change. The new South Africa became a natural member of the Southern African Development Community (SADC), and also adopted the Southern African Customs Union (SACU). South Africa’s accession into SADC and its membership in SACU raised questions about its capability to lead and strengthen regional integration in the southern African region. Also central to this question was the debate around the best institutional framework that South Africa should use to promote regional integration in southern Africa. However, since the 1994 political transformation, South Africa has maintained a neutral policy position and strove to prove its capacity to lead and integrate the southern African region using both SADC and SACU. Thus, South Africa’s policy position has inspired two postures that are evoking that Pretoria should take a decisive policy position that will reflect on the path that it is has chosen to promote regional integration in southern Africa. However, despite the evocations from these two perspectives, South Africa has not yet taken either side of the policy positions on its approach to regional integration in southern Africa. Therefore it is against this background that this study seeks to engage into the argument of these perspectives, however, driven by the main objective of assessing South Africa’s capacity to lead, drive and strengthen southern African regional integration in the post-1994 era.Item Valuable or devalued? An ethnography of mine work in crisis(2015) Sheerin, Anne MarshallResearch in the mining community of Carletonville focused on how individuals negotiate and contest different value orientations in trying to construct a workable moral economy. Based on in-depth qualitative interviews and observations of respondents from lower and higher wage classes, the report deconstructs the elements of differential value sets that are redefining and sometimes destabilizing the moral economy and underlining views of inequality. Wage disputes are seen not only as mine workers' expressions of economic injustice but perhaps more crucially as a form of control and protection of their craft and status. The dominance of global economic governance and decision-making is leading to more acute internal divergences but can also be a starting point for a discussion about the impact of conflicts in social values.Item The determinants of ideological moderation in the South African party systems: 1994-2014(2017) Adaken, LetitiaThe purpose of this study is to examine the causes of ideological moderation in the South African party system in the post-1994 period. Previous research stresses the non-left-right feature of politics and when it recognises the centrist feature of major parties and moderation of the party system, the causes of the latter are unexplained. The deficiency in previous research is that moderation and limited left-right disagreements as fundamental causes of broader political dynamics are overlooked — moderate systems foster political consensus and democratic stability. In this study I critically examine three theoretical causal variables that account for moderation: the electoral system, the electorate, and the dominant party. This study relies on a measurement of party system fragmentation, and voter and party system polarisation, as well as an intensive qualitative assessment of the ANC. The evidence is based on a number of nationally representative surveys that measure public opinion; interviews with political party leaders and representatives, and officials from labour and business; and document analysis. The finding is that the ANC as the dominant party is the main driver of moderation in the party system. Coupled with electoral dominance, the centripetal, non-dogmatic, pragmatic and flexible tendencies that characterise the ANC permit the party to induce and stabilise party system moderation. This study: develops a causal framework for understanding moderation; builds on previous research about the centrism of major parties and the moderation of the party system (both quantitatively and qualitatively); departs from the argument about the fragmented and rightist nature of the opposition bloc and the race-based approach to the electorate; and extends the debate about the ANC by arguing that left-right movement occurs within centrist terrain, and that the party is not an amorphous or client entity but a clearly defined one. I also add to: the growing body of knowledge that finds no necessary connection between proportionalism, extremist party positioning and polarisation; the idea that party system polarisation is less reflective of voter polarisation; and concur with previous research that argues that the role of a pivotal centre party is critical for the party system.Item Analysis of the determinants of poverty in South Africa(2016) Kgaphola, Hlali KemediThis research dissertation investigates what factors drive poverty in South Africa using annual data from 1996 to 2013. In an attempt to contribute towards a better understanding of what contributes to poverty in South Africa, the researcher adopted three types of research questions: a contextual research question, a main research question and an applied research question. The central questions of this study was “what drives poverty in South Africa?” and “how do these drivers influence poverty trends in South Africa?” The study recognises poverty as a multi-dimensional phenomenon, in addition to the unidimensional money-metric definition of poverty for analysis purposes. Consequently although the study adopts the monetary definition of poverty as a framework to poverty analysis; it also incorporates other variables that capture the multi-dimensional nature of poverty relevant to the South African context. The study uses various data analysis tools including descriptive statistics, line graphs, bivariate analysis, and trend analysis to investigate the relationship between poverty and the variables in this study. Consistent with Klasen (2000) and Finn et al. (2013), the main findings were that there is a negative relationship between poverty and government expenditure on health, housing, energy, public order and safety, and access to credit in South Africa. On the contrary, government expenditure on education is found not to reduce poverty in South Africa, neither is unemployment found to increase poverty in South Africa. The research concluded that although certain variables are expected to reduce or increase poverty, remedial policy interventions by Government and country specific economic structure mitigate these a prior expectations. From these findings the researcher makes recommendations, contributing to how scholars (and government) can further their attempt to alleviate poverty in South Africa.Item Demographic and socioeconomic factors associated with under-5 mortality in KwaZulu-Natal, South Africa(2016) Hlongwa, Mbuzeleni NBACKGROUND: Under-5 children in KwaZulu-Natal are highly exposed to dying before reaching five years of life. Studies have been conducted to understand the demographic and socioeconomic factors that influence under-5 mortality, both nationally and internationally, with some contradicting findings on the association between some socioeconomic and demographic factors and under-5 mortality. While some studies found child mortality to be significantly associated with rural geographical place of residence, the reverse has also been established. The purpose of this study was to examine the association between socioeconomic and demographic factors and under-5 mortality in KwaZulu-Natal, South Africa. DESIGN: The study was cross-sectional, and utilises 2011 Census secondary data set from Statistics SA. Overall, the census revealed that 55 476 children under the age of 5 had died in the 12 months prior to the census nationally. In KwaZulu-Natal this figure was 15 356. The 10% sample showed that 1 474 under-5 children had died in the same period in KwaZulu-Natal. STATA 12.0 was used for the analysis. Binary logistic regression model was used to examine the association between under-5 mortality and the independent variables. RESULTS: The major findings of the study indicated that (i) male children were 1.22 times more likely to die compared to female children under the age of 5 years; (ii) mothers who had no schooling (AOR=1.82); mothers with primary level of education (AOR=2.43); and mothers with secondary level of education (AOR=1.77), were more likely to experience under-5 mortality compared to mothers with tertiary level education; (iii) mothers whose age at first birth was between 15-19 years (AOR=1.47) and those whose age at first birth was between 25-34 years (AOR=2.14) were more likely to experience under-5 mortality compared to mothers whose age at first birth was between 35-49 years; (iv) Black mothers were more likely to experience under-5 mortality compared to Indian mothers (AOR=5.99); (v) mothers who were employed were 1.22 times more likely to experience under-5 mortality compared to unemployed mothers. Lastly, under-5 mortality was less likely amongst mothers in the medium households compared to those from low income households (AOR=0.65). CONCLUSION: This study found that socioeconomic and demographic factors substantively determine under-5 mortality in KwaZulu-Natal. Evidence from this study suggest that interventions aimed at reducing under-5 mortality should focus on black women, the younger women, the less educated and those with low household income.