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- Volume 7, Issue 1, 2004
South African Journal of Economic and Management Sciences - Volume 7, Issue 1, 2004
Volumes & issues
Volume 7, Issue 1, 2004
Source: South African Journal of Economic and Management Sciences 7, pp 1 –21 (2004)More Less
A government organisation in the water supply business was faced with the challenge of changing their traditional way of doing business to operate as a profitdriven entity. This research focuses on how privatisation has affected front-line service employees. Both the front-line service employees and management were interviewed and included as cases to investigate changes that have occurred as a result of privatisation. These cases revealed that after privatisation front line service employees have received better training, appreciated a better system of communication, experienced a higher degree of empowerment and enjoyed an organisational culture that is more customer focused. The research, however, indicated lower levels of motivation, that employees do not appreciate an improvement in their reward system neither do they get feedback regarding their achievements and that they experience little job security.
Author Pinky Lalthapersad-PillaySource: South African Journal of Economic and Management Sciences 7, pp 22 –44 (2004)More Less
In recent years the informal sector in both less developed countries and in developing countries, including South Africa, has undergone rapid growth. In South Africa, high levels of unemployment and poverty have pushed many of the unemployed into self-employment activities in the informal sector. The informal sector is a highly diversified segment, and street trading is one type of survivalist activity. In South Africa, street trading is conducted mainly by African women, who sell mostly fruits, vegetables and cooked foods. The quintessential feature of informal sector work is its precarious nature, especially as it evades the ambit of social security and labour legislation. This article explores the nature of street trading undertaken in the Johannesburg CBD, characterised by poor working conditions, low income, extremely long hours and overcrowding.
Author A.J. StrydomSource: South African Journal of Economic and Management Sciences 7, pp 45 –57 (2004)More Less
Travel agencies normally receive commission from airlines, tour operators, accommodation establishments and car hire companies in exchange for bookings. Global trends in this commission structure indicate dramatic changes, especially regarding airlines. The majority of them have introduced a system of commission capping, whereby commission paid to travel agencies has been reduced and expectations are that it might even become zero in future. Against this background, travel agencies are considering introducing a system of service fees. It implies that clients will have to pay for services such as the preparation of quotations for national and/or international holidays or business trips. This paper discusses the results of research that was undertaken amongst the middle to higher income classes of the residents of Bloemfontein regarding the introduction of service fees by travel agencies.
Source: South African Journal of Economic and Management Sciences 7, pp 58 –74 (2004)More Less
An increasing number of estate agencies are entering the real estate market in South Africa and many are struggling to survive as competition grows stronger. Customer service has become of overriding importance to establish a differential advantage that will ensure long-term survival. This study investigates customer service by estate agencies in the residential property market of South Africa. The results indicate that estate agencies seem to be aware of the importance of providing good customer service and of being service-oriented, but they do not always seem to realise the need to conduct marketing research and test the actual satisfaction of customers with the services provided, leaving a potential gap between what the customer wants and what the estate agency provides.
Source: South African Journal of Economic and Management Sciences 7, pp 75 –88 (2004)More Less
This article focuses on the experience of the Internet user with regard to purchasing goods and services. A self-administered survey, hosted on a dedicated website, was used as a data collection method and 1005 responses were received. It was found that the period of Internet usage significantly influenced the decision to purchase via the Internet. Another finding was that the period of Internet usage significantly influenced whether those shopping on the Internet searched for, or considered searching for, product and service information online prior to purchasing from non-Internet-based sellers.
Perceived institutional obstacles in doing business : a comparative study of South Africa and the PhilippinesAuthor Mary Jesselyn CoSource: South African Journal of Economic and Management Sciences 7, pp 89 –99 (2004)More Less
There is ample evidence indicating that institutional environments have a direct effect on the performance of small enterprises. Furthermore, perceptions of how the institutional environment will hinder or foster their respective firms shape the actions entrepreneurs take. This research investigates whether there are differences between South African and Filipino entrepreneurs in their perceptions of institutional obstacles in doing business - specifically the government-business interface. A sample size of 615 small and medium sized firm owners from different industries from both countries were provided with a list of 15 areas where the firm is confronted with government action and were asked to evaluate the degree to which these different areas create obstacles for conducting business. A discussion of the overall findings, as well as applicable lessons and future research follows.
Source: South African Journal of Economic and Management Sciences 7, pp 100 –116 (2004)More Less
The Tanzanian economy has remained one of the limited numbers of countries that has experienced a relatively high inflation rate, accompanied by high fiscal deficits for a prolonged period in the absence of any hyperinflation. This paper examines the deficit-inflation relationship in the Tanzanian economy and establishes the causal link that runs from the budget deficit to the inflation rate using cointegration analysis over the period 1967-2001. Some dynamic simulations are done to gauge the effect of a change in the budget deficit and gross domestic product on inflation over time. Due to monetisation of the budget deficit, significant inflationary effects are found for increases in the budget deficit.
Author Adedeji AmusaSource: South African Journal of Economic and Management Sciences 7, pp 117 –131 (2004)More Less
Using data contained in South Africa's national accounts and revenue statistics, this paper constructs time-series of effective tax rates for consumption, capital income, and labour income. The macroeconomic approach allows for a detailed breakdown of tax revenue accruing to general government and the corresponding aggregate tax bases. The methodology used also yields effective rate estimates that can be considered as being consistent with tax distortions faced by a representative economic agent within a general equilibrium framework. Correlation analysis reveals that savings (as a percentage of GDP) is negatively correlated with both capital income and labour income tax rates. Investment (as a percentage of GDP) is positively correlated with the capital income tax rate, an outcome suggestive of the direct relationship between volatile capital inflows into South Africa and capital tax revenue.
Source: South African Journal of Economic and Management Sciences 7, pp 132 –150 (2004)More Less
Even though econometric models and yield curve analysis are useful in assessing the impact of interest rate changes on the economic structure, their power to predict the magnitude and direction of swings in the business cycle is often restricted to the use of short-term interest rates. From an Austrian school perspective on interest rates, empirical evidence suggests that the profitability of heavy industries further downstream outperforms that of light industries in the initial stages of monetary easing, due to a rising demand for investment goods and a rise in capacity utilisation levels. This paper assesses the impact of interest rates changes on the productive structure of the economy by taking into account the effect thereof on sector earnings and ultimately share prices.
Source: South African Journal of Economic and Management Sciences 7, pp 151 –170 (2004)More Less
South Africa has been faced with high inflation rates since the early 1970s. Despite continued monetary discipline the inflation target has not yet been met, highlighting South Africa's price-vulnerability as a small open emerging economy and raising questions about the efficiency of monetary policy. The objectives of this paper are: (i) to analyse the influence of monetary policy on inflation in the small open emerging economy of South Africa, (ii) to highlight the channels other than monetary policy through which inflation can be influenced (iii) to analyse the influence of international prices and the exchange rate on inflation, (iv) to determine the role of the labour market on inflation, especially through wage-push dynamics and (v) to determine the role of demand-pull factors on inflation.
Author Philip Akanni OlomolaSource: South African Journal of Economic and Management Sciences 7, pp 170 –184 (2004)More Less
The objective of this study was to examine the causal relationship between foreign direct investment and economic growth in Nigeria using annual data covering the period 1970 to 2002. The study employed the Granger causality procedure to test the direction of causality between foreign direct investment and economic growth for the Nigerian economy. The endogenous production function was derived to accommodate foreign investment and other domestic policies that could influence growth and foreign investment. The study found a one-way causality between from foreign direct investment to economic growth. The implication arising from this study is that Nigeria should adopt policy whereby FDI is attracted to promote economic growth.