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- Volume 6, Issue 2, 2003
South African Journal of Economic and Management Sciences - Volume 6, Issue 2, 2003
Volumes & issues
Volume 6, Issue 2, 2003
Globalisation and economic growth in South Africa : do we benefit from trade and financial liberalisation?Author Elsabe LootsSource: South African Journal of Economic and Management Sciences 6, pp 218 –242 (2003)More Less
This article investigates whether the process of globalisation, through trade and financial liberalisation, benefits economic growth in emerging market economies in general and in South Africa in particular. The analysis of trade openness and liberalisation in emerging market economies reveals that trade volume has a relative small impact on GDP per capita, while trade liberalisation led to an approximate 50 per cent increase on GDP per capita. The analysis of the financial dimension showed that capital account openness is associated with a 34 per cent increase in real GDP per capita growth over the period, while financial liberalisation seems to have a dramatic impact of approximately 136 per cent. In South Africa approximately 98 per cent of the current growth performance in the country can be explained by the forces of globalisation.
Source: South African Journal of Economic and Management Sciences 6, pp 243 –261 (2003)More Less
The aim of this article is to describe, interpret and critically analyse the political and managerial processes which the newly constituted Cape Town Municipality (CTM) followed in initiating and implementing its performance management approach from 1996-2000. The following research questions were posed: <br>(i) How clearly were the political-administrative vision and values of the CTM formulated and developed? <br>(ii) How was achievement of strategic performance objectives facilitated through management effectiveness and efficiency? <br>(iii) How effectively was a normative framework of international best practice implemented by the CTM? <br>(iv) What was the impact of political and union attitudes and actions on performance management principles and practice? <br>(v) What issues of co-ordination and co-operation were evident in the process?
Author Pinky LalthapersadSource: South African Journal of Economic and Management Sciences 6, pp 262 –273 (2003)More Less
The article is a detailed exposition of the history of the incorporation of African women into paid work in the South African labour market. The interlocking effects of racism, classism and sexism exposed African women to income and job insecurity. Historically, access of African women to the labour market was shaped by the gendered nature of the migrant labour system and by legal measures that restricted women's entry into urban areas and waged work. When African women were allowed into the formal labour market, they were only allowed to undertake the low-skilled, low-paying, menial jobs, were excluded from union benefits and forced to work under exploitative conditions.
Author F.J. MostertSource: South African Journal of Economic and Management Sciences 6, pp 274 –288 (2003)More Less
Enterprises can manage risks in two fundamental ways, namely by physical risk control and by risk financing. The latter comprises external and internal risk financing. As this paper focuses on the latter of these concepts, due attention is paid to the main forms of internal risk financing. Charging losses to current operating profit, arranging loan facilities and implementing equity financing programmes are different forms of internal risk financing. The nature, advantages and various types of captive insurance companies are considered as holding companies can utilise this form of internal risk financing. Special attention is paid to the use of contingency funds as a way of internal risk financing by applying a modelling approach. The conclusions reached should be valuable to business enterprises in particular, but also to non-profit organisations and individuals.
Author Elna MoolmanSource: South African Journal of Economic and Management Sciences 6, pp 289 –303 (2003)More Less
Despite the existence of macroeconomic models and complex business cycle indicators, it would be beneficial to policymakers and market participants if they could look at one well-chosen indicator in predicting business cycle turning points. If one indicator accurately predicts business cycle turning points, it provides an easy way to confirm the predictions of macroeconomic models, or it can eliminate the need for a macroeconomic model if the interest is in the turning points and not in the levels of the business cycle. The objective of this paper is to investigate whether turning points of the South African business cycle can be predicted with only one economic indicator.
A study of corporate travel management in selected South African organisations and a conceptual model for effective corporate travel managementAuthor Berendien LubbeSource: South African Journal of Economic and Management Sciences 6, pp 304 –330 (2003)More Less
South African corporations with a substantial travel expenditure of between R1 million and R300 million per annum are faced with two main issues. The first is the management and control of travel expenditure and the second is the management of the travel process to ensure required service levels at an optimum cost-benefit ratio. The corporation depends heavily on numerous interactive relationships to achieve this. In this article the key elements of corporate travel management are identified and the results of a survey conducted on the way in which corporate travel is managed in terms of each of these elements in selected South African organisations is reported. A conceptual model, based on a "soft value management model" which highlights conflicting values of participants and their commitment to goals is proposed as a foundation on which further research can be conducted.
Author Robert W. VivianSource: South African Journal of Economic and Management Sciences 6, pp 331 –345 (2003)More Less
It has been accepted for over 270 years that the expected monetary value (EMV) of the St Petersburg game is infinite. Accepting this leads to a paradox; no reasonable person is prepared to pay the predicted large sum to play the game but will only pay, comparatively speaking, a very moderate amount. This paradox was 'solved' using cardinal utility. This article demonstrates that the EMV of the St Petersburg game is a function of the number of games played and is infinite only when an infinite number of games is played. Generally, the EMV is a very moderate amount, even when a large number of games is played. It is of the same order as people are prepared to offer to play the game. There is thus no paradox. Cardinal utility is not required to explain the behaviour of the reasonable person offering to play the game.
Source: South African Journal of Economic and Management Sciences 6, pp 346 –368 (2003)More Less
This study supports the conventional wisdom that openness to trade is good for investment and economic growth. Whether this conclusion leaves space for institutional quality as a complimentary policy to determine the success of trade liberalization in Africa is the objective of this paper. The theoretical model and empirical analysis show how the behavior of government bureaucrats can be used to explain the impact on investment of the interaction between increased openness to trade and the quality of institutions. Empirical work is conducted using panel data observed over three periods: 1985-1990, 1990-1995, and 1995- 2000.
Author George G. DjolovSource: South African Journal of Economic and Management Sciences 6, pp 369 –383 (2003)More Less
A major presumption underlying the current debate on pharmaceutical prices in South Africa is that South African medicines are priced at levels out of line with comparable products in other countries. This paper presents some empirical evidence in an attempt to ascertain the validity of these presumptions. The results provide little support for the view that South African prices are in need of controls over and above those already existing through competition. The evidence reveals that recent calls and public policy proposals for parallel importation and its variant reference pricing are misplaced. To put forward such proposals without taking account of existing empirical knowledge for policy (or legislative) making purposes is a less than optimal approach.
Source: South African Journal of Economic and Management Sciences 6, pp 384 –398 (2003)More Less
The world economic system's transformation from a dominantly massproduction model, to a mass-customisation model is seen as creating a demand for personal information on consumers. This has lead many consumers to feel the need to protect their information because businesses request personal information during commercial transactions. This conceptual paper addresses information privacy as a marketing-related issue with an inter-disciplinary nature and aims to illustrate how marketing and economics can work together in a more cohesive manner. The information privacy issue is presented as striking a fair balance between the privacy interests of consumers, the financial interests of businesses, and the sustainability of an economy in the global environment. The paper concludes that consumer information privacy will always remain an issue of protection for consumers, an ethical issue for marketers, and is fast becoming an issue of social responsibility for government.
Source: South African Journal of Economic and Management Sciences 6, pp 399 –418 (2003)More Less
The purpose of this article is to gain insight in the South African tobacco industry, its influence on the community and the role of anti-tobacco campaigns. This is done by conducting an empirical investigation of the attitudes and behaviour of smokers and non-smokers regarding the national government campaigns against tobacco products. Consequently, it will contribute in determining the efficiency of the anti-tobacco campaigns as well as the effect of the Tobacco Products Control Amendment Act, 1999 (Act 12 of 1999) on smokers and non-smokers. It is postulated that by applying the principles of marketing (demarketing and remarketing) it could contribute significantly in influencing smoking behaviour amongst South Africans.
Author F. Le R. BooysenSource: South African Journal of Economic and Management Sciences 6, pp 419 –438 (2003)More Less
Poverty is likely to deepen as the AIDS epidemic takes its course, with households being caught up in a vicious cycle of poverty and HIV / AIDS. This paper shows that affected households are poorer than non-affected households, regardless of whether income is measured at the household, per capita or adult equivalent level and regardless of the poverty line or poverty measure employed in measuring poverty. The incidence, depth and severity of poverty are worse amongst affected households, particularly amongst affected households that have experienced illness or death. The evidence underscores the importance in the longer term of economic policies focused on job creation and education in mitigating the impact of HIV / AIDS, with poverty alleviation through an enhanced social safety net being important in the short to medium-term.