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- Volume 8, Issue 1, 2005
South African Journal of Economic and Management Sciences - Volume 8, Issue 1, 2005
Volumes & issues
Volume 8, Issue 1, 2005
Author Niek SchoemanSource: South African Journal of Economic and Management Sciences 8 (2005)More Less
Extracted from text ... In Memoriam FG Steyn (1940 - 2004) The death of Fritz Steyn, formerly professor of Economics at the University of Pretoria, was a great shock to everyone who knew him. Fritz died of heart failure while he and his wife Francia were on holiday at Struisbaai. He was 64 years old. Fritz was born on 7 December 1940 at Clocolan, in the Free State. He completed his schooling in Uitenhage at Brandwag High School, with which as an old boy, he maintained close ties until his death. He went on to ..
Source: South African Journal of Economic and Management Sciences 8, pp 1 –17 (2005)More Less
Urban renewal and development is an important strategy in the South African government's plans to combat poverty and transform the country's economy. The aim of this study was to investigate the perceptions and attitudes of residents (the local community) towards a mixed-use development in Hout Bay, Cape Town. An exploratory factor analysis was used to reduce 13 usable variables to four factors, labelled as macro-, micro-, location specific-, and infrastructure and superstructure factors. The findings based on the four factors suggest that significant differences exist in the perceptions of development between different socio-economic groups within the community. Regardless of the socio-economic background of residents, they agreed that development should blend in with existing architecture and the character of the area.
Source: South African Journal of Economic and Management Sciences 8, pp 18 –28 (2005)More Less
Insurance provided by captive insurers is one of various forms of risk-financing. The nature and main types of captive insurance companies are discussed. This is followed by the results of an empirical study that focused on South African onshore captive insurance companies. The objectives in establishing and operating a captive insurer, the factors which determine the decision of the parent company to establish and operate a captive insurer and the future and usefulness of insurance provided by captive insurers are some of the aspects that are addressed.
An analysis of an organisational strategy, structure and culture that supports corporate entrepreneurship in established organizations : managementSource: South African Journal of Economic and Management Sciences 8, pp 29 –38 (2005)More Less
The environment in which a business operates is not static. Intensifying global competition and rapid technological progress put pressure on business to change. Better quality and service and lower costs are no longer enough to give a competitive advantage. Adaptability, flexibility, speed, aggressiveness and innovativeness are increasingly necessary. This can be achieved by entrepreneurial organisations. Through corporate entrepreneurship, big business can improve its profitability and competitive standing. This research aims to determine the characteristics of organisational strategy, structure and culture that foster corporate entrepreneurship in large and established companies. These characteristics were applied to an established organisation to evaluate to what extent its strategy, culture and structure would support entrepreneurial activities and initiatives. Data was collected through self-completion questionnaires and analysed by calculating Cronbach alpha values, t-test and ANOVA.
Source: South African Journal of Economic and Management Sciences 8, pp 39 –53 (2005)More Less
The objective of this study was to determine if coping strategies could moderate the relationship between occupational stress and burnout in a sample of police officers. A cross-sectional design was used. A stratified random sample (n = 340) was taken of police members in the Western Cape. The Police Stress Inventory, Maslach Burnout Inventory - General Survey and COPE questionnaire were administered. Structural equation modelling showed that occupational stress due to job demands and a lack of resources leads to burnout. Two coping strategies were identified, namely avoidance coping and approach coping (consisting of active coping, emotional support and turning to religion). Avoidance coping moderated the relationship between occupational stress and burnout. Approach coping had an independent effect on burnout.
Source: South African Journal of Economic and Management Sciences 8, pp 54 –62 (2005)More Less
Entrepreneurial conduct holds the key to economic growth. Thus those businesses that show growth and development are considered entrepreneurial, implying that SMME policy initiatives should focus on businesses with growth potential, and not the small business sector as a whole. The success of a small business seems to depend on the intentions of the owner, together with factors associated with the ability of, and opportunity for, the specific business to grow. The aim of this article is to make use of a multiple linear regression model to determine the variables that impact positively on business growth. In addition to demand factors, it was established that smaller and younger businesses are the ones that grow faster. A successful business also shows a positive correlation between business management skills and entrepreneurial conduct.
Source: South African Journal of Economic and Management Sciences 8, pp 63 –76 (2005)More Less
The paper attempts to elaborate on the revenue-raising capabilities (economic efficiency and viability) of a value-added tax (VAT) system, particularly in developing countries. The analysis concentrates on the effect of a VAT on tax revenues raised, and the main objective is to determine whether a VAT system generates greater benefits than previously-utilised sales taxes, i.e. pre-existing sales taxes (PEST). Using a panel data regression analysis, our results indicate that while all countries gain revenue from the presence of VAT, it is significantly more in developed countries, although the dummy VAT variable interacted with trade openness enters positively for the lower- and upper middle-income groups. This proves the importance of trade for VAT revenues, but also that VAT combined with interaction variables is conducive to higher tax revenues.
Source: South African Journal of Economic and Management Sciences 8, pp 77 –91 (2005)More Less
A wealth of literature exists concerning the modelling of stock markets, as well as the examination of the relationship between share prices and various economic factors, both theoretically and empirically. However, most studies use data for developed countries in their analyses, while the literature modelling emerging stock markets in general, and the South African stock market in particular, is quite sparse. This study develops a structural, theoretically-founded model of the South African stock market that is estimated using co-integration and error-correction techniques. These techniques respectively estimate the long-term equilibrium level or intrinsic value of the stock market, and the short-term fluctuations around the equilibrium level. According to the results, share prices are co-integrated with the variables dictated by the expected present value model of asset price-determination. The short-term fluctuations are determined by various factors such as interest rates, a risk premium, the exchange rate, foreign stock markets and other variables.
Source: South African Journal of Economic and Management Sciences 8, pp 92 –101 (2005)More Less
Measuring the size of the South African informal economy has received inadequate attention, making it difficult for policy-makers to assess the impact of policy measures to stimulate informal economic activity. This article aims to estimate the size of the informal economy by using the Currency Demand Approach. The empirical results reveal that the informal economy as a percentage of GDP decreased from 1967 to 1993, before levelling off. The growth in the informal economy has also under-performed in comparison to formal economic growth. There appears to be a causal relationship running from the informal to the formal economy. Macroeconomic policies aimed at the formal economy will not necessarily "trickle down" to the informal, while these policies aimed at the informal economy may have a profound effect on the formal economy.
Source: South African Journal of Economic and Management Sciences 8, pp 102 –116 (2005)More Less
This paper uses a relatively new approach to quantify the effects of trade liberalisation on poverty. It relies on the combination of a standard, social accounting, matrix-based, computable general equilibrium model and household micro-data. These two tools are used sequentially in order to simulate the impact of trade policy reform. This framework enables the decomposition of the effects of trade liberalisation, which in turn allows for an analysis of alternative social policy packages. The methodology is applied to Zimbabwe for illustration. The results show that poverty is reduced by tariff-reduction, although the poor households get the least benefits.
The primary demand for oilseeds in South Africa : an Error Correction Linear Approximated Almost Ideal Demand System (ECM-LA/AIDS) : economicsSource: South African Journal of Economic and Management Sciences 8, pp 117 –127 (2005)More Less
The paper presents the results of a study that estimated the demand relations for primary oilseeds in South Africa. The Error Correction version of Linear Approximated Almost Ideal Demand System (LA/AIDS) (ECM-LA/AIDS) were estimated. Time series data for the period 1971-2002 were analysed. Prior tests established weak separability between four oilseeds (sunflower seed, soybeans, groundnuts and cotton seed), indicating that these oilseeds should be modelled together. The results suggest that the demand for oilseeds is negatively influenced by own-price, which is consistent with economic theory, while positive long-term expenditure elasticities suggest that some oilseeds, notably sunflower seed and cotton seed, are luxury commodities in South Africa.