Exchange rate pass-through to import prices in South Africa: Is there asymmetry?

There is growing emphasis on the role played by the private sector in alleviating poverty in Africa. At the same time, greater focus is being placed on cash transfers as a poverty alleviation tool. This paper provides an economic rationale for private sector involvement in the provision of cash transfers. Previous research has focused on how the financial sector can provide payment solutions. In addition to payment mechanisms, the paper examines other avenues through which the private sector can contribute to cash transfer programmes .business taxes and Corporate Social Responsibility (CSR). Reducing corruption in tax administration and an enabling investment climate are essential if business taxes are to be a sustainable financing source for cash transfers. Governments can incorporate CSR into national policies and strategies which identify cash transfers as a poverty alleviation instrument. Cell phone banking, mobile branches, Point of sale (POS) technology and low cost banking are increasing access to financial services by the poor. These financial innovations can be used to make cash transfer payments.Exchange rate pass-through, Asymmetric pass-through, VECM, South Africa

What characterises high-growth firms in South Africa? Evidence from World Bank Enterprise Survey

In the past two decades, considerable efforts have been made to promote small and medium enterprises as a catalyst for job creation in many countries, including South Africa. However, globally a growing body of evidence shows that only a small segment of small and medium enterprises in an economy accounts for 50 to 70% of net new jobs. Using the World Bank Enterprise Survey and logit and quantile regressions, this paper empirically explores the characteristics of high growth firms in South Africa. The study finds that firms that are less than 6 years create more jobs than the average firm in the sample. The results further suggest that the typical high-growth firms are black-owned

The Effects of Technology-as-Knowledge on the Economic Performance of Developing Countries: An Econometric Analysis using Annual Publications Data for Botswana, Namibia, and South Africa, 1976-2004

Extant literature indicates that technology, and by implication its underlying knowledge base, determines long-run economic performance. Absent from the literature with respect to developing countries are quantitative assessments of the nexus between technology as knowledge and economic performance. This paper imposes a simple production function on annual pooled observations on Botswana, Namibia, and South Africa over the 1976-2004 period to estimate the marginal impacts of technology as knowledge on economic performance. It finds that capital (k), openness to trade (τ), and even the share of government expenditure of GDP (G) among other factors, influence economic performance. However, the economic performance of countries like Botswana, Namibia, and South Africa depends largely on technology, technological change, and the basic knowledge that forms the foundation for both. For instance, measured as a homogenous “manna from heaven”, technology is the strongest determinant of real per capita income of the three nations. The strength of technology as a determinant of performance depends on the knowledge underpinnings of technology measured as the number of publications (Q, q). Both Q and q are strongly correlated with the countries’ performance. This suggests that the “social capability” and “technological congruence” of these countries are improving, and that developing countries like Botswana, Namibia, and South Africa gain from increased investment in knowledge-building activities including publishing. Obviously there is room for strengthening results, but this analysis has succeeded in producing a testable hypothesis

What characterises high-growth firms in South Africa? Evidence from World Bank Enterprise Survey

CITATION: Mthimkhulu, A. & Aziakpono, M. 2016. What characterises high-growth firms in South Africa? Evidence from World Bank Enterprise Survey. South African Journal of Business Management, 47(4):a76, doi:10.4102/sajbm.v47i4.76.The original publication is available at https://sajbm.orgIn the past two decades, considerable efforts have been made to promote small and medium enterprises as a catalyst for job creation in many countries, including South Africa. However, globally a growing body of evidence shows that only a small segment of small and medium enterprises in an economy accounts for 50 to 70% of net new jobs. Using the World Bank Enterprise Survey and logit and quantile regressions, this paper empirically explores the characteristics of high growth firms in South Africa. The study finds that firms that are less than 6 years create more jobs than the average firm in the sample. The results further suggest that the typical high-growth firms are black-owned.https://sajbm.org/index.php/sajbm/article/view/76Publisher's versio

What impedes micro, small and medium firms’ growth the most in South Africa? Evidence from World Bank Enterprise Surveys

CITATION: Mthimkhulu, A. M. & Aziakpono, M. J. 2015. What impedes micro, small and medium firms’ growth the most in South Africa? Evidence from World Bank Enterprise Surveys. South African Journal of Business Management, 46(2): a88, doi:10.4102/sajbm.v46i2.88.The original publication is available at https://sajbm.orgThe growth of Micro, Small and Medium Enterprises (MSMEs) is often regarded as a solution to persistent unemployment in developing countries. Studies have shown that access to finance is the most serious obstacle to MSMEs’ growth. This paper investigates key obstacles to the growth of MSMEs in South Africa using the World Bank Enterprise Surveys of 2003 and 2007. Two approaches are used to determine the key obstacles. The first improves on the simple count-of-ratings method used by many researchers. The second estimates the effects of obstacles on growth through sequential multivariate regressions based on the Growth Diagnostics framework by Hausmann, Rodrik & Velasco (2005) and identifies two levels of obstacles’ intensities: binding constraints with negative and significant effects and constraints with notable effects whose negative effects are significant but less than the binding. From both count- and regression-based analyses, access to finance is a relatively less important obstacle. The count-based analysis finds crime to be the top obstacle. In the regressions, ‘courts’, which refers to the efficacy of the legal system and thus related to crime, is binding. Electricity and transportation of goods are the constraints with notable effects.https://sajbm.org/index.php/sajbm/article/view/88Publisher's versio

Toxicological evaluation of ethanol leaf extract of Pterocarpus santalinus on lungs, stomach, brain and hematological parameters of Wistar rats

AbstractIn this study, the effects of subacute Pterocarpus santalinus (rosewood) consumption on lung, brain, stomach, and hematological parameters in Wistar rats were evaluated. Mice of both sexes were used in the experiment. Groups 2, 3, and 4 were given 100, 200, and 400 mg/kg of red sandalwood, and group 1 was given distilled water (10 ml/kg). Animals were kept in standard cages for 28 days and extracts were taken orally before being weighed and sacrificed. Histological analysis was performed using the hematoxylin and eosin (H&E) staining technique. The brain, spleen, and stomach were also carefully removed and examined histologically. RBC, HGB, and MCV decreased slightly (P < 0.05), but there was no change in neutrophils, basophils, eosinophils, or platelets. No significant (P < 0.05) changes were observed in the brain, spleen, and stomach of mice in all dose groups. Lung histopathological analysis showed no difference in alveolitis and perivasculitis at doses of 100 and 200 mg/kg, but there were no changes in the brain and intestines. The plant is also safe to eat. Due to minor hematological effects, caution is advised with long-term use