Faculty of Commerce, Law and Management (ETDs)

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Subject: search.filters.subject.Economic Growth

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Now showing 1 - 5 of 5
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    Implication of Regulated Cannabis Legalisation on Wellbeing and Economic Growth
    (University of the Witwatersrand, Johannesburg, 2022) Quarshie, Emmanuel; Alagidede, Imhotep Paul
    This is a thesis on the cost benefit analysis of cannabis legalisation, public (mis)perception about cannabis usage and cannabis users, the medical application of cannabinoids and their commercial and industrial potential in the new global political economy. The study shows that, although there are misconceptions about cannabis, there is still much to unpack about its effects on human well-being. Drawing on both qualitative and quantitative cross-country dataset from Ghana and South Africa, the study employed a logit model to address the following questions: (a) What does society know about cannabis and its industrial and medical applications? (b) What is the evidence-based scientific claims of cannabis regarding human well-being? (c) What are the existing gaps between perception and knowledge? Among the contributions, this study clarifies the often-misunderstood position of cannabis in society and illuminates the blind side of the role of cannabis as an economic enabler in the post pandemic world. More importantly, while some schools of thought project cannabis as a gateway drug to the infernal realm, this study provides evidenced based on real-time practical experience from well- informed and educated users. The study provides a model for regulated cannabis legalisation, a proper guide on value-added supply chain mechanism, and guiding principles to ensure the model functions properly, based on lessons and best practices from countries that have legalized cannabis, such as the Netherlands, Canada, Lesotho, Malawi, Zambia, South Africa, and Zimbabwe. This study further establishes empirical and theoretical foundations for the key thematic subjects of cannabis use, as well as a policy direction pertaining to its regulated legalisation, prohibition, or decriminalization in Ghana and South Africa. Given the disconnect between knowledge and perception about cannabis, the study recommended knowledge enhancement and adequate advocacy on the pros and cons of cannabis for society to enhance understanding of the benefits and its side effects to provide evidence-based guidance on the medical application and industrial potentials
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    Cost and aconomic growth in Eswatini
    (University of the Witswatersrand, Johannesburg, 2024) Shongwe, Mbongeni Welcome; Kodongo, Otongo
    The sluggish economy and low GDP growth in Eswatini have sparked concerns regarding the efficient allocation of high liquidity towards productive sectors. There is a pressing need to determine if the high cost of credit plays a role in exacerbating this issue. Despite the availability of ample liquidity, it remains unclear if it is effectively channeled into sectors that can fuel economic growth. Therefore, it is intriguing to investigate whether the high cost of credit is a contributing factor to this problem. This study examined the relationship between the cost of credit and economic growth in Eswatini, as well as the impact of banking sector liquidity on cost of credit and the role of excess liquidity in promoting economic growth. The study used the Autoregressive Distributed Lag model (ARDL) to analyse time series data from 1975 to 2021, the study found that factors such as domestic credit, GDP growth, liquid assets to liabilities, and trade significantly influence cost of credit in the short run. In the long run, variables like budget deficit, domestic credit, exchange rate, GDP growth, liquid assets to liabilities, and trade continue to significantly impact cost of credit. The study recommends that policymakers should increase credit availability, diversify credit risk and increase liquid assets relative to liabilities to lower cost of credit. Additionally, promoting financial inclusion and access to credit for SMEs can further stimulate economic growth. A thoughtful and measured approach by policymakers is crucial for creating a stable financial system that supports economic economic growth.
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    The impact of discretionary taxation on economic growth in South Africa
    (2022) Masipa, Makoto Tryphosa
    This paper considers the impact of taxes on long run growth in the South African context for the period: 1994 to 2019. The Autoregressive Distributed Lag (ARDL) bounds test was employed to test the long run cointegrating relationship between the variables. Further, in the study, the long run and the short run models were estimated. The results from the cointegration tests show that there is a significant long run relationship between GDP growth and tax revenue. Supply-side theorists advocate for tax cuts to improve growth; however, the results investigated in this paper are contrary to those espoused by supply-side theorists. Tax revenue can potentially improve growth in South Africa if put to good use. There is a stable long run relationship with high levels of significance between GDP and total factor productivity and between GDP and labour forces. Further, the results show a positive yet insignificant relationship between GDP growth and human capital growth. In the short run, results show that there is a positive and insignificant relationship between GDP and tax revenue as well as between GDP and human capital and labour forces. Finally, the results show a significant and positive relationship between Total factor productivity and GDP. It is recommended that adjustments in the level of government expenditure should be made to promote economic growth in South Africa (Example, invest in education and labour forces for growth).
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    The relationship between stock market development and economic growth: a case of South Africa
    (2021) Ndima, Zanele
    The association between the growth in the economy and development of the stock market has fascinated the attention of several economists and researchers across the world. This area of research has predominantly been performed through panel studies. However, the institutional differences and capital allocation differences between economies makes it challenging to generalise the results. Therefore, there is a need for country specific studies. This research examines the causal connection between the expansion of the equities market (Johannesburg Stock Exchange) and the advancement in the economy from a South African perspective. The research study first establishes the presence of a cointegration relation between the stock market development and economic growth. Secondly, the study explores the ultimate direction of the causal relationship. The outcomes of the Johansen cointegration assessment reveal that the proxies used for stock market development does not affect economic growth except for the number of stocks traded. Using the causality test, the study discovered the existence of a unidirectional causality from stock turnover to growth in the economy. As such, policy makers should focus on developing policies and strategies that promote the liquidity of the stock exchange because it influences the growth in the economy. Originality was incorporated in the research paper by focusing on the period between 2000 and 2019. Since most of the empirical studies examining the association between the expansion of the stock market and advancement in the economy employed panel data, this research employs a time series data, with a concentration on South Africa.
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    The direct and indirect effect of interest rates on economic growth in Botswana
    (2021) Masole, Mbako
    The study determines the direct and indirect effects of interest rates on economic growth through domestic investment, real exchange rate, inflation, foreign direct investment (FDI), trade openness and human capital. The results of this study will guide the appropriate intervention in the use of interest rates in stimulating economic growth. The study uses a quantitative method with multiple regression analysis. It examines the effects of interest rates on economic growth and domestic investment, FDI, inflation, real effective exchange rate and trade openness from 2004 to 2019 in Botswana. The study is highly reliant on secondary data, and quarterly data is used to run the regressions. The results show that the real interest rate in Botswana has a negative effect on domestic investment and inflation, with domestic investment being statistically significant and inflation not statistically significant. However, it has a positive effect on real exchange rate, FDI and trade openness. FDI and real exchange rate is statistically significant whereas trade openness is stastically insignificant. Real exchange rate and trade openness have a positive effect on economic growth, while domestic investment, inflation, real interest rate and FDI have a negative effect on economic growth. Domestic investment is statistically significant, while real exchange rate, inflation, FDI and trade openness are statistically insignificant. On the path analysis, exchange rate, inflation, FDI and trade openness cannot mediate the effect of interest rates on economic growth, whereas domestic investment mediates the effect of interest rate on economic growth. The study concludes that it is critical for policy makers, when making policy decisions on the monetary policy, to bear in mind the influence of interest rate on other macro-economic factors, and how these subsquently affect economic growth. The use of interest rate did not yield the desired results in Botswana, it is therefore rather recommended to consider the use of fiscal policy to stimulate economic growth.