Current sources of financing power infrastructure in developing countries : principal component analysis approach
- Authors: Ayorinde, Emmanuel Oikelomen , Ngcobo, Ntebo , Mathe, Kasenge
- Date: 2019
- Subjects: Economic growth , Developing countries , Power infrastructure financing
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/403834 , uj:33857 , Citation: Ayorinde, E.O., Ngcobo, N. & Mathe, K. 2019. Current sources of financing power infrastructure in developing countries : principal component analysis approach.
- Description: Abstract: Infrastructure plays the dominant role in structuring and positioning every nation’s economy and social development. Infrastructure financing is the blue print in achieving infrastructure development in developing and developed countries. This research project determines the current sources of financing infrastructure in developing countries. The study adopted a quantitative research approach with data gathered from the respondents within power infrastructure development in the region. The findings revealed current sources of financing power infrastructure in developing countries to be commercial bank loans, public finance, private finance, power utility fees, public-private partnership, foreign direct investment. These were seen as current sources of financing power infrastructure in developing countries. Having established that no society can develop without adequate investment in the power infrastructure sector, there is a call for adequate investment in the power infrastructure to foster and re-integrate developing countries in the path of economic development and global relevance. If the central government can direct adequate finance and harness the current sources available to develop power infrastructure in their society, it will ultimately lead to enormous economic growth and social development in the region. This research project will contribute to the development of public infrastructure in developing countries, which will directly influence the development of power infrastructure in the region for the purpose of economic relevance and improvement of lives in the society.
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Social capital as an engine of growth : multisectoral modeling and implications
- Authors: Bofota, Youyou Baende , Boucekkine, Raouf , Bala, Alain Pholo
- Date: 2016
- Subjects: Social capital , Human capital , Economic growth
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/216716 , uj:21543 , Citation: Bofota,Y.B., Boucekkine, R. & Bala, A.P. 2016. Social capital as an engine of growth : multisectoral modeling and implications.
- Description: Abstract: We propose an endogenous growth model incorporating social capital. Social cap- ital only serves as an input in the production of human capital and it involves a cost in terms of the final good. In contrast to alternative specifications, this model en- sures that social capital enhances productivity gains by playing the role of a timing belt that drives the transmission and propagation of all productivity shocks. We find that, depending on the measure of social capital, the elasticity of human capital to social capital varies from 6% to 10%. Finally, we investigate the short-term dynamics and imbalance effect properties of the model, depending on the value of this elastic- ity. In particular, we show that when the substitutability of social capital for human capital increases, the economy is better equipped to surmount initial imbalances as individuals may allocate more working time to the final good sector without impeding economic growth.
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The impact of basic and social infrastructure investment on economic growth and social development in South Africa’s urban and rural municipalities
- Authors: Gnade, H. , Blaauw, D. , Greyling, T.
- Date: 2017
- Subjects: Basic and social infrastructure , Economic growth , Social development
- Language: English
- Type: Articles
- Identifier: http://hdl.handle.net/10210/241403 , uj:24853 , Citation: Gnade, H., Blaauw, D. & Greyling, T. 2017. The impact of basic and social infrastructure investment on economic growth and social development in South Africa’s urban and rural municipalities.
- Description: Abstract: South Africa is characterised by widespread inequality and divided societies, which impede economic growth and social development. Basic and social infrastructure investment can assist in addressing these challenges by promoting economic growth and social development. The aim of this study is to determine if basic and social infrastructure investment differently effect economic growth and social development indicators of urban and rural municipalities respectively. We use a balanced panel data set containing infrastructure, economic, demographic and social indicators for rural and urban municipalities for the period from 1996 to 2012. To address the research question we construct synthetic indices of basic and social infrastructure, using principal component analysis, to be used in panel regression estimations. To estimate our economic growth and social development functions we make use of restricted within LSDV estimation techniques. We use the results on the respective elasticities to evaluate whether the differences between urban and rural municipalities are statistically significant. Our results show that the elasticities of basic and social infrastructure investment generally are more pronounced for economic growth and social development indicators in rural municipalities than in urban municipalities. These findings could potentially influence policy decisions in terms of infrastructure investment in favour of rural municipalities to increase economic growth and social development in these regions, which could contribute to the reduction of spatial inequalities in South Africa.
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Infrastructure for Structural Transformation : A Comeback of Planning?
- Authors: Gottschalk, Ricardo , Sampath, Padmashree Gehl
- Date: 2021
- Subjects: Infrastructure , Investment , Economic growth
- Language: English
- Type: Journal article
- Identifier: http://hdl.handle.net/10210/494071 , uj:44821 , Citation: Gottschalk, R. and Sampath, P.G., 2021. Infrastructure for Structural Transformation: A Comebackof Planning?. Journal of Infrastructure Development, 13(1), pp.53-64. , DOI: 10.1177/09749306211023667
- Description: Abstract: This article examines how infrastructure development may best support structural transformation in developing countries. It critiques ongoing emphasis by multilateral financial institutions and other actors on infrastructure as an asset class and their focus on bankable projects. The article considers this approach too narrow for real economic transformation and argues development requires a more holistic approach, one that includes project assessment based on developmental criteria. Drawing on the pioneers of development and more recent literature on infrastructure systems, the article proposes development planning as a more promising approach and assesses how developing countries are faring regarding infrastructure planning for growth and transformation.
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Savings and economic growth: a historical analysis of the relationship between savings and economic growth in the Cape Colony economy, 1850-1909
- Authors: Greyling, Lorraine , Verhoef, Grietjie
- Date: 2017
- Subjects: Cape Colony , Economic growth , Financial deepening
- Language: English
- Type: Articles
- Identifier: http://hdl.handle.net/10210/244413 , uj:25272 , Citation: Lorraine Greyling & Grietjie Verhoef (2017) Savings and economic growth: a historical analysis of the Cape Colony economy, 1850–1909, Economic History of Developing Regions, 32:2, 127-176, DOI: 10.1080/20780389.2017.1327808
- Description: Abstract: The savings-development nexus is a topical issue in current development literature.No study has yet explored this relationship in nineteenth-century ‘SouthAfrican’ colonies. An historical analysis of the development of the savings’ trends in South Africa may assist in understanding development trends in the twentieth century. Apart from general descriptions of the nature of economic activity in the Cape Colony very little is known about the role of savings and financial sector development in the growing colonial economy. This paper describes and surveys the nature of financial markets in the Cape Colony between 1850 and 1909 and seeks to explain the relationship between savings and economic growth. Savings is defined in the broad sense of monetary and non-monetary savings and would be assumed to be a proxy for financial development in the Cape Colony. This paper contributes to the economic history literature on the colonial past of South Africa by using recently compiled data on the GDP (Greyling & Verhoef 2015) as well as monetary savings and non-monetary savings (livestock) to test whether the general view that ‘financial development is robustly growth promoting’ can be substantiated in the last half of the nineteenth-century Cape Colony. The Johansen vector error correction model technique is applied to determine the relationship between savings and economic growth. It is found that despite the expectations in the literature that financial deepening contributes to economic growth, the Cape Colony did not display such causal relationship in the period under review.
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The relationships between entrepreneurial factors and economic growth and development : the case of selected European countries
- Authors: Meyer, Daniel Francois , Meyer, Natanya
- Date: 2020
- Subjects: Economic growth , Entrepreneurial factors , Entrepreneurial intentions (EI)
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/438926 , uj:38169 , Citation: Meyer, D.F. & Meyer, N. 2020. The relationships between entrepreneurial factors and economic growth and development : the case of selected European countries.
- Description: Abstract: Globally, entrepreneurship and its link to economic growth, development and prosperity has been a topic of continued discussion. Entrepreneurship provides various direct and indirect positive results within developed and developing economies. Research suggests that the entrepreneurship development may have a positive effect on several economic variables. The purpose of this study, therefore, was to identify the relationships between three entrepreneurial variables (entrepreneurial intention - EI, Early-stage entrepreneurial activity - TEA and established business ownership - EBO) and, firstly, economic development using GDP per capita and, secondly, economic growth (GDP) using an econometric analysis method. The study followed a quantitative empirical approach using secondary data from 2001 to 2019 for selected European countries (Austria, Croatia, Hungary, Poland and Slovenia). Countries were selected based on their homogeneous traits and availability of data. Long and short-run relationships between the mentioned variables were tested using a pooled panel analysis. Results indicated a long-run relationship between the variables by using the Fisher-Johansen cointegration analysis. Further results of the analysis indicated that both TEA and EBO are significant predictors at 5% significant levels respectively of economic development (GDP per capita) and economic growth (GDP). In conclusion, the study proved that links between the mentioned variables do exist and that entrepreneurial activity should be stimulated and supported as it has a significant impact on economic growth and development at various degrees of impact.
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Modelling asymmetric relationship between exports and growth in a developing economy : evidence from Namibia
- Authors: Mosikari, Teboho Jeremiah , Eita, Joel Hinaunye
- Date: 2020
- Subjects: Economic growth , Export , Asymmetric modelling
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/437114 , uj:37942 , ISSN: (Online) 2222-3436 , Citation: Mosikari, T.J. & Eita, J.H., 2020, ‘Modelling asymmetric relationship between exports and growth in a developing economy: Evidence from Namibia’, South African Journal of Economic and Management Sciences 23(1), a2905. https://doi.org/ 10.4102/sajems.v23i1.2905
- Description: Abstract: Background: Namibia is an open economy where international trade accounts for a greater proportion of gross domestic product (GDP). Openness of the Namibian economy for the period 2010 to 2018 has been on average 111% of GDP. The high level of openness of the economy raised an important question on the relationship between export and economic growth in Namibia. Previous studies investigated the linear relationship between these two variables. The investigation was also done at an aggregate level. This raises important questions on whether the relationship between export and economic growth is asymmetric. It also raises an important question on whether this relationship is sector specific. Aim: In order to fill the gap in previous research, this study investigates the asymmetric or non-linear relationship between the main export sectors and economic growth in Namibia. A non-linear relationship between the two variables will indicate that negative and positive values of the explanatory variables have different effects on the dependent variable. This analysis is done for the main export sectors of the Namibian economy in order to ensure the policy recommendations are sector specific. Setting: Standard economic theoretical models on the relationship between export and economic growth are used to test the non-linear relationship between the two variables. The study covers the period 2010–2018 and focuses on the three main export sectors (diamonds, manufactured food and live animal products) and growth of the Namibian economy. Methods: This study uses non-linear autoregressive distributive lag in order to estimate the asymmetric relationship between the main export sectors and economic growth of Namibia. The estimation is done for the three main exporters of the Namibian economy. Results: The results indicate that there is a symmetric relationship between main export sectors and economic growth of the Namibian economy. The results show that an increase (positive values) in export of the three main export products will cause economic growth to improve. Negative values (decrease in export) will cause economic growth to deteriorate. Conclusion: The results suggest that estimating the non-linear relationship for different sectors of the economy (instead of estimating the relationship at aggregate level for total exports) will ensure that economic policies are sector-specific. The results further suggest that when exports are declining, expansionary policies will be the appropriate responses.
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The effects of remittances on economic growth in sub-Saharan Africa
- Authors: Muchemwa, Learnmore
- Date: 2012-10-16
- Subjects: Economic growth , Sub-Saharan Africa - Economic policy
- Type: Thesis
- Identifier: uj:10402 , http://hdl.handle.net/10210/7860
- Description: M.Comm. , The subject of the growth effects of remittances is characterised by different and conflicting perspectives. While migration optimists believe in positive growth effects of remittances, migration pessimists, on the other hand, challenge this position and claim that remittances have either a negative or statistically insignificant effect on economic growth. Those for remittances argue that remittances have a positive effect on economic growth mainly through subsequent increases in investment capital and human capital. Migration pessimists, however, stress that remittances negatively impact economic growth, mainly, because of inflationary pressures and moral hazards that result in reduced labour supply. Given such contrasting literature, this study makes an attempt to contribute to the existing literature by assessing the growth-effects of remittances in twenty-nine Sub-Saharan Africa countries over the period 1980-2008. The Arellano-Bover/Blundell-Bond GMM one-step estimator is used in the assessment. Empirical results from the study reveal evidence supporting for statistically significant positive growth effects of remittances in Sub-Saharan Africa. The study further reveals that these positive growth effects of remittances in Sub-Saharan Africa happen through the human capital channel. Even when heterogeneity of sub-regions is taken into account, there is still evidence showing positive growth effects of remittances in Sub-Saharan Africa. Results, however, reveal that in West Africa, remittances have a low positive effect on economic growth.
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Human capital and economic growth in South Africa : a cross-municipality panel-data analysis
- Authors: Ngepah, Nicholas , Saba, Charles Shaaba , Mabindisa, Ntombomzi Gloria
- Date: 2021
- Subjects: Human capital , Economic growth , Panel causality
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/483237 , uj:43850 , Citation: Ngepah, N., Saba, C.S. & Mabindisa, N.G. 2021. Human capital and economic growth in South Africa : a cross-municipality panel-data analysis.
- Description: Abstract: Background: In the literature, human capital has been identified as a key economic variable that isneeded to promote growth; hence this study explores the components of human capital, that is,different skill levels in order to capture the real effect of the employed labour on economic outputacross the municipalities of South Africa. Aim: This study investigates the effect of human capital of employed labour on economic output andgrowth in South Africa. Setting: The study focusses on the balanced panel of 269 South African municipalities for the period 1993to 2016. Method: The study utilises panel causality test and the Generalised Method of Moments (GMM) estimationtechniques. Results: A panel causality test confirms bidirectional causality between human capital and total output aswell as between total employment and total output. The resultant aggregate findings suggest that humancapital has a positive and a significant impact both on total output and economic growth. The disaggregatedproxy of human capital shows that higher levels of skilled employment is associate with higher total outputand economic growth. Conclusion: The findings on the effect of skilled employment on economic growth are in line withtheoretical literature and therefore the study concludes that human capital in the form of skilled labour has apositive effect on both economic output and growth in South Africa. This informs policy to prioritise the up-skilling of the labour force in order to contribute positively towards value generating economic activities in South Africa.
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Causal relationship between air transport, tourism and economic Growth : joinpoint regression and granger causality analysis
- Authors: Pisa, Noleen
- Date: 2018
- Subjects: Causality , Tourism , Economic growth
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/278217 , uj:29851 , Citation: Pisa, N. 2018. Causal relationship between air transport, tourism and economic Growth : joinpoint regression and granger causality analysis.
- Description: Abstract: The aim of this study is twofold: to describe the overtime changes in trends and to investigate the causal relationship between air transport, tourism and economic growth for South Africa between 1995 and 2015. Using an ecological design, Joinpoint regressions tailed at p<0.05 were computed for each variable to determine annual percentage changes. Causality and co-integration were inferred through the Granger causality and the Johansen co-integration tests. Additionally, a vector auto-regressive model (VAR) was computed to test for linear inter-dependencies among the variables. Significant increases were observed for all variables between 1995 and 2015. The results of the stationary tests showed that that air transport variables were stationary the first differences while the tourism variables and GDP variables were stationary at second difference. Cointegration tests can be applied on series that are stationary at the same level. Therefore no further inference was made on the relationship between air transport variables and GDP. Both the cointegration and causality tests did not provide evidence of causality and long run relationships between GDP and tourism variables. However, a proportion of the variance in tourism expenditure and tourism receipts was shown to be explained by GDP through the VAR model. The results imply potential associations between tourism and GDP in South Africa.
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Economic growth and obesity in South African adults: an ecological analysis between 1994 and 2014
- Authors: Pisa, Pedro T. , Pisa, Noleen M.
- Date: 2017
- Subjects: Economic growth , Obesity , South Africa
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/238178 , uj:24417 , Citation: Pisa, P.T. & Pisa, N.M. 2017. Economic growth and obesity in South African adults: an ecological analysis between 1994 and 2014.
- Description: Abstract: To assess the trend associations between South Africa’s economic growth using various economic growth indicators (EGIs) with adult obesity prevalence over a specified period of time. Methods: Data for obesity levels reported was obtained from national surveys conducted in South African adults between the periods of 1994 to 2014. EGIs incorporated in the current analysis were obtained from the World Bank and IHS Global insight databases. Obesity prevalence is presented by gender, urbanisation level and ethnicity. EGIs congruent to the time points where obesity data are available are presented. Unadjusted time trend plots were applied to assess associations between obesity prevalence and EGIs by gender, urbanisation level and ethnicity. Results: Females present higher levels of obesity relative to males for all time points. For both males and females, an overall increase in prevalence was observed in both rural and urban settings over‐time, with urban dwellers presenting higher obesity levels. An overall increase in Gross Domestic Product (GDP) per capita and Household Final Consumption Expenditure (HFCE) per capita was observed. The Gini coefficient for all ethnicities except the white group increased between 1998 and 2003 but declined by 2012.
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Military expenditure and economic growth : evidence from a heterogeneous panel of African countries
- Authors: Saba, Charles Shaaba , Ngepah, Nicholas
- Date: 2019
- Subjects: Military expenditure , Economic growth , Heterogeneous panel
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/404202 , uj:33888 , Citation: Charles Shaaba Saba & Nicholas Ngepah (2019) Military expenditure and economic growth: evidence from a heterogeneous panel of African countries, Economic Research- Ekonomska Istraživanja, 32:1, 3586-3606 , DOI: https://doi.org/10.1080/1331677X.2019.1674179 , ISSN: 1331-677X (Print)
- Description: Abstract: This study investigates the causal relationship between military expenditure and economic growth by using a balanced panel of 35 African countries spanning 1990 to 2015. It uses the more recently developed bivariate heterogeneous panel causality, GMM and SGMM estimation techniques. The country-by-country causality results reveal:(i) no causal relationship between military expenditure and growth in seven countries; (ii) unidirectional causality from military expenditure to growth in two countries; (iii) unidirectional relationship from growth to military expenditure in fourteen countries; and (iv) bidirectional relationship in twelve countries. These findings imply: (i) that the seven African countries with no causality can pursue defence policy objectives independently from growth policy objectives; (ii) in the fourteen countries, the fact that growth causes military expenditure and not vice versa implies that, defence decisions are not made in a way as to relatively promote growth; (iii) two African countries effectively use military expenditure for growth aims, hence military expenditure causes growth; and (iv) the bidirectional causality in the 12 countries implies that both growth and defence policy objectives can be pursued together. The GMMs results show that military expenditure has a significant negative impact on growth in Africa
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Technology Innovation, trade openness and economic growth in Saudi Arabia : an autoregressive distributed Lag approach
- Authors: Sanusi, K. A. , Akinwale, Y. O. , Eita, J. H.
- Date: 2021
- Subjects: Technology innovation , Trade openness , Economic growth
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/489359 , uj:44617 , Citation: Sanusi, K.A., Akinwale, Y.O. & Eita, J.H. 2021. Technology Innovation, trade openness and economic growth in Saudi Arabia : an autoregressive distributed Lag approach.
- Description: Abstract: Technology innovation and trade openness have been playing strategic roles towards economic development in emerging and developing economies in recent time. This study explores the dynamic relationships between technological innovation, trade openness and GDP in Saudi Arabia between 1989 and 2019. The study used autoregressive distributed lag (ARDL) and the results show that GDP is cointegrated with technology innovation and trade openness, which signifies long run association among the variables. Moreso, using error correction model technology innovation and trade openness have short run impacts on economic growth. Furthermore, Pairwise Granger causality indicates a causality running from each of technology innovation and trade openness to GDP growth with no feedback. This supports an innovation-led and trade liberalisation economy. This result therefore suggests a more strategic opening of the Saudi Arabia’s economy to external trade and a massive investment in research and development and technology innovation by the Saudi government for the achievement of a strong, steady and sustainable economic growth by year 2030 and beyond.
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The economic growth and food and nutrition security nexus in Zimbabwe : a three-decade perspective
- Authors: Tinarwo, J. , Mutsambwa, B. , Uwizeyimana, D. E.
- Date: 2020
- Subjects: Food and nutrition security , Economic growth , Structural adjustment programmes
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/457573 , uj:40609 , Citation: Tinarwo, J., Mutsambwa, B. & Uwizeyimana, D.E. 2020. The economic growth and food and nutrition security nexus in Zimbabwe : a three-decade perspective.
- Description: Abstract: The causal relationship between food and nutrition security and economic growth is a hotly contested debate; that is, food and nutrition security results in economic growth, or economic growth results in food and nutrition security. This article reviews the relationship that has existed between economic growth and food and nutrition security in Zimbabwe since 1990. The research methodology used in this article is to analyse past and contemporary literature on the economic growth and food and nutrition security nexus in order to answer the following question: What has been the nexus between economic growth and food and nutrition security in Zimbabwe over that last three decades? The research findings suggest that food and nutrition security generally reflects the trajectories of the prevailing socio-political and economic environment over the last three decades. In essence, food and nutrition insecurity in Zimbabwe is not due to lack of economic growth but because the country has struggled to address its longstanding socio-economic and political woes. The persistent debt overhang, budget deficits, land reform, climate change, and post-harvest losses must be addressed satisfactorily in order to solve the food crisis in Zimbabwe. Principally, for policymakers, the research findings contribute to an understanding of the factors that promote enhanced food and nutrition security in Zimbabwe.
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An appraisal of the role of good institutions in stimulating economic growth and development in sub-Saharan Africa
- Authors: Ukwandu, Damian C. , Jarbandhan, Vain B.
- Date: 2017
- Subjects: Institutions , Development , Economic growth
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/256084 , uj:26876 , Citation: Ukwandu, D.C. & Jarbandhan, V.B. 2017. An appraisal of the role of good institutions in stimulating economic growth and development in sub-Saharan Africa. Loyola Journal of Social Sciences, Vol. XXXI, No.2, Jul- Dec 2017.
- Description: Abstract: Good institutions were pivotal to the emergence of capitalism and hence the creation of wealth, prosperity and development in the world. In this paper, the authors argue that one of the reasons for the poverty and underdevelopment in sub- Saharan Africa is the weak institutional framework which exists in these countries. The laws, rules and regulations governing businesses and entrepreneurial activities are either too weak or ineffective, and could be riding roughshod over any political interest or individual. The paper presents evidence from the literature to amplify the view that strong and effective institutions are fundamental to reinvigorating economic growth and development. Finally, the authors suggest that a complete overhaul and rejuvenation of the institutional framework which exists in the countries of sub-Saharan Africa is crucial to the creation of jobs, and the alleviation of poverty and underdevelopment.
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