How to Increase the Growth Rate in South Africa?

Given the concern about the low growth rates in African countries, this paper deals with the issue of how to increase the said growth rates by using South Africa as a case study. This paper attempts to answer this question by examining the determinants of total factor productivity (TFP) and productivity growth. We utilise the theoretical insights from the Solow (1956) growth model and its extension by Mankiw, Romer and Weil (1992). Our empirical methodology is based on the London School of Economics Hendry’s General to Specific Instrumental Variable method and Gregory and Hansen’s (1996a; 1996b) structural break technique. Our findings imply that variables like human capital, trade openness, foreign direct investment, financial efficiency, democracy and financial reforms improves TFP and productivity growth in South Africa. Importantly, the key determinants appear to be democracy and financial liberalisation.Solow model; total factor productivity; productivity growth.

Access to micro- and informal loans : evaluating the impact on the quality of life of poor females in South Africa

Abstract: Since the early 1980s, many governments have investigated the possibility of utilising access to microloans as a pathway to grow economies out of unemployment and thereby improve people’s quality of life. Studies that have previously investigated the impact of microloans found a positive effect on quality of life. Unfortunately, these mainly measure quality of life using monetary (income) measures rather than assessing the entire multidimensionality of quality of life..

Do Non-Economic Quality of Life Factors Drive Immigration?

This paper contributes to the immigration literature by generating two unique non-economic quality of life (QOL) indices and testing their role on recent migration patterns. Applying the generated quality of life indices in conjunction with other independent welfare measures to an extended gravity model of immigration for 16 OECD destination countries from 1991 to 2000 suggests an insignificant role for QOL in the immigration process. The panel results suggest that other economic variables such as the stock of immigrants from the source country already living in the OECD destination country, population size, relative incomes, and geographic factors all significantly drive the flow of immigration for the sample.immigration, quality of life, gravity model

The East-Asian economic growth miracle : lessons for sub-Sahara Africa

Thesis (M.Com. (Economics))--North-West University, Potchefstroom Campus, 2004.The economic performance of eight East Asian countries - Japan, South Korea, Taiwan, Hong Kong, Singapore, Thailand, Malaysia and Indonesia - have been described as the "East Asian Miracle" because of their economies' significant growth since the 1960s. In these eight countries real per capita Gross Domestic Product (GDP) rose twice as fast as in any other region between 1965 and 1990. In contrast, much of Sub-Sahara African (SSA) remains in poverty with slow growth in many SSA economies over the same period of time. In this light, it is the purpose of this study to identify the determinants of economic growth in East Asia over the period 1960 to 1990, and to determine whether these determinants are also relevant to explain economic growth in SSA. The hypothesis is that the determinants of economic growth in East Asia are similar to the determinants of economic growth in SSA. The experiences of East Asia - Malaysia, Thailand and Indonesia - can probably be most meaningfully compared to SSA economies. In the 1960s, the average levels of GDP in East Asia (Indonesia, Malaysia and Thailand) and SSA were similar. Also, economic structures and the social contexts of countries in East Asia in the 1960s were not apparently so different from those of some SSA countries. East Asia could be characterized as being relatively rich in natural resources but weaker in human resources. This is similar to the situation in many countries in SSA both in the 1960s and today. East Asia also had problems of ethnic conflict and periods of political instability. At the time (circa early 1960s), many expected rapid growth in SSA and stagnation in Asia. The study showed that SSA's exports have a small and declining share in the world trade and that its exports are largely confined to primary products and the importation of non-primary products. The study then showed that the causes for SSA's failure to grow were either because of proximate causes, i.e. exogenous factors such as bad weather, deteriorating terms of trade, fluctuating international interest rates and reduced inflows of foreign aid, or because of ultimate causes i.e. endogenous factors such as, inappropriate domestic policies, including incentive structures, and the mismanagement of public resources. The study found the determinants of East Asia's economic growth to be an outward oriented strategy, which build strong linkages with world markets and technology through an export promotion policy. East Asian countries also pursued conservative macroeconomic policies, which created a stable, predictable environment for investment and trade. Inflation was kept low, exchange rates competitive and debt affordable. Human capital was vigorously invested to develop an educated and technically competent labour force. And finally, competitive markets were maintained for factors to facilitate the structural transformation from primary production to manufacturing and eventually to knowledge-intensive industries. After running a regression analysis, which combined SSA and East Asian growth determinants, it is the findings of this study that policies, institutions and geographical factors determine SSA's growth performance. In particular factors such as initial GDP, exports as a percentage of GDP, government effectiveness, political stability, landlockness and tropics, external debt, population growth rate and literacy rate. If SSA could some way improve their policies and focus on becoming more open to international trade and thus promoting their exports, it may improve their economic growth rate. Although many of the same determinants, which caused East Asia's economic growth were found to be significant in the SSA experience, it was also found that the African dummy were extremely significant. This means that not all the determinants, which caused East Asia's economic growth, could be identified, and thus creates an avenue for further research.Master

A Service of zbw Leibniz-Informationszentrum Wirtschaft Leibniz Information Centre for Economics How to Increase the Growth Rate in South Africa? How to Increase the Growth Rate in South Africa? How to Increase the Growth Rate in South Africa?

Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Department of Economics, Auckland University of Technology, New Zealand Abstract Given the concern about the low growth rates in African countries, this paper deals with the issue of how to increase the said growth rates by using South Africa as a case study. This paper attempts to answer this question by examining the determinants of total factor productivity (TFP) and productivity growth. We utilise the theoretical insights from the Solow (1956) growth model and its extension by Importantly, the key determinants appear to be democracy and financial liberalisation

How to Increase the Growth Rate in South Africa? How to Increase the Growth Rate in South Africa?

Abstract Given the concern about the low growth rates in African countries, this paper deals with the issue of how to increase the said growth rates by using South Africa as a case study. This paper attempts to answer this question by examining the determinants of total factor productivity (TFP) and productivity growth. We utilise the theoretical insights from the Solow (1956) growth model and its extension by Mankiw, Importantly, the key determinants appear to be democracy and financial liberalisation

A Service of zbw

Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Foreign shareholders within the firm and an entrepreneur with previous exporting experience are noted to significantly increase the probability that a firm internationalizes early. However, we find marked differences in the behaviour of indigenous and foreign-invested firms. Thus, while business networks are significant for firms wishing to export indirectly and for older indigenous firms, it is noted to delay the internationalization process of indigenous firms. Also, for an indigenous firm, the greater the foreign experience of its entrepreneur, the less likely it is to start exporting early. Terms of use: Documents i

WIDER Research Paper 2009-16 Early International Entrepreneurship in China: Extent and Determinants

Abstract We use data on 3,948 Chinese firms obtained from the World Bank's Investment Climate Private Enterprise Survey to investigate early international entrepreneurship (international new ventures) in China. The extent of early international entrepreneurship in China is significant: 65 per cent of the exporting firms start export operations within three years. Foreign shareholders within the firm and an entrepreneur with previous exporting experience are noted to significantly increase the probability that a firm internationalizes early. However, we find marked differences in the behaviour of indigenous and foreign-invested firms. Thus, while business networks are significant for firms wishing to export indirectly and for older indigenous firms, it is noted to delay the internationalization process of indigenous firms. Also, for an indigenous firm, the greater the foreign experience of its entrepreneur, the less likely it is to start exporting early

Measuring the Vulnerability of Subnational Regions

Abstract A small but growing literature has been concerned about the economic (and environmental) vulnerability on the level of countries. Less attention is paid to the economic vulnerability of different regions within countries. By focusing on the vulnerability of subnational regions, our paper contributes to the small literature on the 'vulnerability of place'. We see the vulnerability of place as being due to vulnerability in various domains, such as economic vulnerability, vulnerability of environment, and governance, demographic and health fragilities. We use a subnational dataset on 354 magisterial districts from South Africa, recognize the potential relevance of measuring vulnerability on a subnational level, and construct a local vulnerability index (LVI) for the various districts. We condition this index on district per capita income and term this a vulnerability intervention index (VII) interpreting this as an indicator of where higher income per capita, often seen in the literature as a measure of resilience, will in itself be unlikely to reduce vulnerability