- A-Z Publications
- South African Journal of Economic and Management Sciences
- Previous Issues
- Volume 6, Issue 4, 2003
South African Journal of Economic and Management Sciences - Volume 6, Issue 4, 2003
Volumes & issues
Volume 6, Issue 4, 2003
Trade liberalisation, competitiveness and the real exchange rate (RER) : an analysis of developments in South Africa during the 1990sSource: South African Journal of Economic and Management Sciences 6, pp 643 –665 (2003)More Less
This paper tests whether tariff liberalisation has lead to increased competitiveness in the South African economy. The 46 sectors of the South African economy are classified as exportable, importable, importable and exportable and non-tradable. The impact of trade liberalisation on domestic prices for importables and exportables is then assessed by making use of real exchange rate calculations. It is concluded that while increased globalisation of production processes in South Africa may have improved the competitiveness of the tradable sector, tariff liberalisation played a minimal role in improving competitiveness in the manufacturing sector.
The effects of macroeconomic instability and inflation on sustainable real growth in South African firmsSource: South African Journal of Economic and Management Sciences 6, pp 666 –692 (2003)More Less
This empirical study is an investigation of the impact that inflation and other factors have had on the growth of business firms in South Africa. Using the model of sustainable growth, an empirical multivariate model is developed to test a variety of assumed relationships and to isolate the impact of inflation. A data set of South African firms' financial statements during the period 1983- 1996 was assembled to permit a detailed examination of these firms' financial performance during South Africa's period of isolation. Utilising both direct and indirect measures of inflation, we determine that inflation affects growth in a negative manner. By combing firm-level and macro data issues relating to the endogeneity of inflation, we argue that macroeconomic instability is the true factor adversely affecting firm growth during this period of time.
Source: South African Journal of Economic and Management Sciences 6, pp 693 –723 (2003)More Less
The need to quantify the impact of the informal sector has thus far not received adequate attention so as to allow policy makers, informal sector enterprises and the formal sector to determine which specific areas of the economy should be further analysed for the purposes of ascertaining the linkages that exist between the formal and informal sectors. In this study, an attempt is made to quantify the linkages between the formal and informal sector, using the 1993 South African Input-Output Table. By disaggregating the formal and informal sectors, it has been possible to determine specific coefficients for both sectors. The "importexport" concept has been used to show how these sectors are interrelated. The multiplier analysis confirms that certain sectors of the informal sector may be more responsive to changes in the final demand than the formal sector.
Author B.C. MitchellSource: South African Journal of Economic and Management Sciences 6, pp 724 –743 (2003)More Less
This study analyses the motivation of entrepreneurs for starting a business. More specifically, it aims to identify whether entrepreneurs have common motives for starting their own business, and whether men and women have different reasons for becoming entrepreneurs. A motivation scale and openended questions were used to measure motivation on a sample of more than 100 entrepreneurs. The results of a factor analysis indicate that entrepreneurs have various reasons for starting a business, and are primarily motivated by the needs for independence, material incentives and achievement.
Source: South African Journal of Economic and Management Sciences 6, pp 744 –764 (2003)More Less
While American investors have been able to buy mortgage-backed securities since the late 1970s and asset-backed securities since the mid-1980s, investors in South Africa have not become involved in this growing market. Securitisation also spread to Europe, South America, Asia and Australia during the 1980s. The first securitisation in South Africa was completed in 1989, but since then only a few securitised products have been offered to the investment community. The aim of this article is to investigate the reasons for the lack of growth in securitisation in South Africa and to determine whether securitisation will grow to be a significant market in South Africa. The methodology used includes interviews held with investors, securitisation specialists and other structured finance specialists from the banking community. Experience from other countries is noted and included in this article.
Source: South African Journal of Economic and Management Sciences 6, pp 765 –784 (2003)More Less
The Internet is a cost-effective and efficient way of distributing information to all stakeholders in a transparent, globalised business environment. The aim of this study was to determine the current state and level of adoption of the Internet as a delivery and communication mechanism for disseminating online/digital annual reports in the largest listed companies in South Africa. The population selected for the survey was the 2001 <I>Financial Mail</I> top 300 (SA Giants) companies. The research was conducted by analysing the corporate websites of the selected companies, to establish the existence of a corporate website and whether the full annual report was available electronically. The study also investigated the relationship between digital annual reports and company characteristics. The investigation revealed that those companies with websites and digital annual reports are profitable companies.
Source: South African Journal of Economic and Management Sciences 6, pp 785 –801 (2003)More Less
Software piracy is a significant issue for managers of organisations, especially in developing countries. There are several factors which contribute to software piracy, and which are investigated in this study. This study consists of a literature review, and reports on empirical research, which was conducted using a survey instrument to determine if software piracy is prevalent in South Africa. The findings confirm the results of previous studies. The conclusion is made that software piracy will always exist and that stricter measures are needed to prevent its occurrence.
Source: South African Journal of Economic and Management Sciences 6, pp 802 –822 (2003)More Less
As actual budget balances reflect both cyclical developments and discretionary measures, they are not very useful when seeking to assess the orientation of underlying fiscal policy and possible structural imbalances in the budget balance. The influence of fluctuations in economic growth on the government's budget balance can be examined by decomposing the actual budget into a cyclical and a structural or cyclically adjusted component. The former component shows the effect on the government budget of cyclical fluctuations in economic activity, the latter reflects what the budget balance would be if economic activity were at its trend level. This paper calculates the extent to which fiscal policy stabilises output fluctuations in South Africa and estimates the cyclically adjusted budget balance of the consolidated general government as an alternative fiscal indicator that can contribute to more effective fiscal policy and fiscal analysis.
Source: South African Journal of Economic and Management Sciences 6, pp 823 –847 (2003)More Less
This study examines the degree of competition and efficiency within the commercial banking sector of Botswana. By applying the Herfindahl index, the paper provides an empirical methodology for assessing competition and market concentration among commercial banks. The study also utilises alternative measures of bank input and output by developing simple descriptive indices to assess the level of efficiency in Botswana's banking sector. Overall, the results indicate that the implementation since 1989, of policies to liberalise and reform financial sector activities has contributed to increased competitiveness and efficiency amongst Botswana's commercial banks.
Author Ndem Ayara NdiyoSource: South African Journal of Economic and Management Sciences 6, pp 848 –867 (2003)More Less
This study analyses the long-term trend in knowledge diffusion and productivity growth in Nigeria using a translog specification. The results indicate the need for technological upgrading and imply that policies designed to promote technological development should address the complementarities between different factors of production. The article, thus, provides some support for the argument that total factor productivity (TFP) is technological knowledge and can impact significantly on productivity in a developing economy.
Changing approaches to financing and financial management in the South African Local Government sectorAuthor D. SingSource: South African Journal of Economic and Management Sciences 6, pp 868 –880 (2003)More Less
Sections 152 and 153 of the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996) have given local government a developmental mandate. Local government has a constitutional obligation to participate in national and provincial development programmes. Local government should become a powerful development catalyst in collaboration with other spheres of government, the non-governmental sector and the local citizenry. It has to address social, economic and infrastructural backlogs and inequalities in a stable and sustainable manner to ensure developmental outcomes are reached. Different financing and financial management policies, strategies, structures, processes and procedures have to be instituted with a view to transformation and innovation. Constant and consistent monitoring, analysis and evaluation of these policies, strategies structures, processes and procedures should ensure these constitutional imperatives.
Source: South African Journal of Economic and Management Sciences 6, pp 881 –904 (2003)More Less
The objective of this research is to determine the relationship between coping and stress on the one hand and suicide ideation among police members on the other. A cross-sectional survey design was used. The study population (N = 307) consisted of uniformed police members in the Eastern Cape Province of South Africa. The COPE, Police Stress Inventory, Adult Suicide Ideation Questionnaire and a Biographical Questionnaire were used as measuring instruments. The results showed that passive coping strategies are related to suicide ideation. A discriminant analysis showed that suicide attempt, passive coping strategies, medical conditions, use of alcohol, problem-focused coping strategies and police-specific demands correctly classified 64.29 per cent of participants who scored high on suicide ideation.
Author R.J. SnelgarSource: South African Journal of Economic and Management Sciences 6, pp 905 –916 (2003)More Less
Despite the acceptance of salary survey market data as justification for salary differentials, the whole area of collection, analysis, and interpretation has not been subject to the same scrutiny as hiring practices and testing. Many aspects of surveys have been ignored by researchers. Little can be said about the effects of different formats in the accuracy of data obtained, about ensuring comparability of job matches, about how representative relevant markets surveys are, or about reliability of analysis of survey results. This study has revealed the extent to which individual survey position averages have been obscured by the inclusion of data from different position grades. As a result, different approaches to the analysis of data from the same salary survey have resulted in different pay lines/curves.
Famine in Africa - Causes, Responses and Prevention, Joachim von Braun, Tesfaye Teklu and Patrick Webb : book reviewAuthor T.I. FenyesSource: South African Journal of Economic and Management Sciences 6, pp 917 –919 (2003)More Less
Extracted from text ... 917 Book Review Famine in Africa - Causes, Responses and Prevention Joachim von Braun, Tesfaye Teklu and Patrick Webb The Johns Hopkins Press Baltimore and London, 1998 In this important book the authors present the results of field work and other research from different parts of Africa. According to them, a famine is a catastrophic disruption of the social, economic and institutional systems involved with food production, distribution and consumption. For a long time famines have been considered anomalies - crises that must be remedied by short-term relief activities so that the normal process of development ..