Available statistics on growth trends in the Economic Community of West African States (ECOWAS) are wanting, particularly net per capita growth rates. The analysis of available data from 1970 to 2012 by this study, for instance, shows that the net real GDP growth rate for the ECOWAS is 0.52%. Only four countries had net growth rates above 1% per annum mean growth rate of ECOWAS region. At the estimated growth rate, the prospect of accelerated growth in ECOWAS is very weak. The Barro endogenous growth model states that government provision of services can generate externalities to the private productive activities. Government’s provision of productive services in ECOWAS can ensure long-run per capita output growth without the per capita growth rate running into steady state growth. However, there are divergent views as to whether government provision of services induces long run economic growth. These views are based on different schools of thought. For instance, the economic freedom school argues for minimum government involvement (small governments) to ensure economic and political freedom to induce private investors invest and encourage economic growth. The optimal government school of thought (medium size governments) argues that government spending enhances private productivity growth through the provision of infrastructure, spending on research and development, public education, sewage, other public goods and protection through functional law and order systems. The optimal school of thought also acknowledges that government expenditure can also reduce economic growth through increases in taxation. An increase in taxation reduces the returns on investment of physical and human capital and in research and development (R&D) of private firms. This thesis investigates the impact of government expenditure on the provision of public services on economic growth in ECOWAS. To assess the impact of government expenditure on the provision of services on economic growth of ECOWAS, this thesis assesses whether the size of government, government expenditure and economic institutions promoted economic growth in ECOWAS. The thesis also determines whether per capita government capital expenditure, per capita government consumption expenditure, per capita private capital stock, per capita manufacturing output, per capita services output and per capita agricultural output have any impact on per capita real GDP growth in ECOWAS. To carry out this study, data were collected from United Nations Conference on Trade and Development (UNCTAD) database and Transparency International (TI) database. The data used covered the period of 1970 – 2013. The statistical research methods applied are the time-series methods of panel unit root test, panel co-integration test, and panel regression analysis, using both panel OLS regression models and estimation and inferences in co-integrated panel data regression methods. The panel OLS regression models applied are the panel OLS regression; panel fixed effect model (FEM) regression and the panel random effect model (REM) regression. The estimation and inferences in co-integrated panel data regression models applied are panel VEC regression model, panel DOLS regression and panel FMOLS regression. The panel DOLS regression and panel FMOLS regression models do not have an intercept, unlike their pure time-series models, which have intercepted. To ensure that the parameters estimated are reliable, this thesis conducted diagnostic tests to subject the regression result to scrutiny. The estimated panel data regression using panel OLS regression, panel FEM regression and panel REM regression indicate that the results of the estimated parameters were spurious having both autocorrelations and heteroscedasticity. High values of adjusted R-squares that were approaching one and high significant values of t statistics but very low values of Durbin-Watson Statistics demonstrated the existence of heteroscedasticity and autocorrelation in residuals. The results of the diagnostic tests also show that the DOLS estimated regression model out-performed both VEC and FMOLS regression models based on both aggregate data and per capita data estimated parameters. The results of the parameter estimated using panel VEC and panel FMOLS regression models showed that both panel VEC and panel FMOLS regression models had the problems of their residuals having not only autocorrelations but heteroscedasticity. The panel DOLS regression results were satisfactory, having no multicollinearity, autocorrelations and heteroscedasticity. The estimated panel DOLS regression results were applied to test hypotheses formulated to guide this thesis. Results from panel DOLS estimated parameters show that the existing government size in ECOWAS stimulated economic growth. The results also showed that the government expenditure exhibited an inverted U-shape with respect to economic growth. The thesis also showed that existing government size in ECOWAS significantly stimulated economic growth in the region. The results of regression indicate that economic institutions contribute negatively to the economic growth of the ECOWAS. The results also established that government capital expenditure per capita has significantly engendered economic growth. Government consumption expenditure per capita stimulated economic growth. However, private capital stock per capita has not stimulated economic growth in ECOWAS. Service sector output per capita, agricultural output per capita and manufacturing output per capita stimulated significantly economic growth in the ECOWAS sub-region.

This research focused on derivative instruments which are financial securities whose values are derived from the values of underlying assets, such as shares, bonds, currencies or interest rates. Derivatives are predominantly used to manage risks in portfolios (hedging) and trading (speculation). Derivatives have been used for centuries and have developed into one of the largest global financial markets. The most common derivative instruments available to investors are options, futures, swaps and contracts for difference, as they are fairly easy to understand and apply. During the 2008/2009 global financial crisis derivatives, especially credit derivatives, made headlines and although they did not cause the crisis, they accelerated it. Furthermore, the 2008/2009 financial crisis also increased the negative sentiments many investors have towards derivatives. As a result of the crisis the growth in the global derivatives market came to a halt for the first time in decades. In light of the above, the primary objective of this study was to gain a deeper understanding of derivatives trading in emerging markets, especially in the South African context, as these financial securities are very useful portfolio management tools. The aim of this study was to describe the current state of the South African derivatives market; to investigate the role that derivative instruments played in the 2008/2009 global financial crisis; and to identify the variables influencing investors’ decisions whether or not to include derivatives in their portfolios. Given the nature of the problem stated a qualitative or phenomenological research paradigm was adopted. This paradigm was deemed suitable given the exploratory nature of the research. Primary and secondary data for this study were obtained through semi-structured personal interviews with 21 experts in the South African financial services industry and through an extensive literature review, respectively. A research instrument, based on the literature review was developed to facilitate the interviewing process. The results of the empirical investigation show that although the majority of respondents use derivative instruments in managing their portfolios, the South African derivatives market is still in its development phase. Many investors do not use derivatives frequently as they lack knowledge about derivative instruments, receive uncompetitive prices, are restricted by rules and regulations as well as investment mandates. Fourteen variables were identified as having a possible impact on investors' decisions whether or not to use derivatives in their portfolios. The five variables identified in the empirical investigation as being the most important, were the level of information available and the transparency of price determination; investor’s knowledge of different derivative instruments; investor’s level of risk tolerance; the level of liquidity in the market; and investor's knowledge and familiarity with financial markets. The findings of this study suggest that financial institutions, selling and trading derivative instruments, should concentrate on these five variables to make derivatives more attractive investment alternatives for investors. In order for South African investors to consider derivatives as suitable investments more often, it is strongly recommended to educate investors better about these products and decrease the negative sentiments investors have towards derivatives. This should be done by showing and explaining to investors that derivatives are useful hedging and portfolio management tools. It is necessary to state the dangers and benefits of derivatives, as well as the features differentiating them. Financial institutions trading derivative instruments, local education facilities (e.g. universities) and financial markets related organisations should educate investors by providing various educational tools, such as online courses, booklets, seminars or presentations about derivative products on offer. Furthermore, it is highly recommended to make derivative markets more transparent through adequate and appropriate regulations. In that, investors are better protected from counterparty risks and trade in a safer environment due to clearing houses.

The Nelson Mandela Bay Municipality implemented a new regulated public transport system with the objective to support the Economic and Social development of the City. The system will be done by transforming current diversified minibus taxi and bus operations into integrated city wide system which will provide the citizens with efficient, affordable, accessible and safe public transport services. The decision was based on the 2006 Public Transport Plan (PTP) prepared by Nelson Mandela Bay Municipality. The long term strategy is based on the Nelson Mandela Bay 2020 Vision taking into account national and provincial transport policies. (Public Transport Operational Plan Draft 2008). The plan has been developed by the municipality in collaboration with the Eastern Cape Department of Roads and transport supported by the National Department of Transport.

Thirteen years in the new democratic South Africa, South Africa is still faced with socio-economic problems such as high rates of unemployment, shortage of housing, crime and HIV/Aids. Buffalo city falls within the Amathole District Municipality (ADM). ADM population is estimated at + 1, 67 million, being predominantly rural and living in low socio-economic conditions. The demographic trends of ADM population depict high poverty, illiteracy and unemployment rates, rendering them prone to high morbidity and mortality (www.amathole.gov.za, 2007). The aim of this research was to assess the role of the SMMEs in the socio-economic development of Buffalo City. This study is based on exploratory quantitative and qualitative research methodologies. Using a convenience sampling technique structured questionnaires were used to collect data amongst 28 SMMEs in Buffalo City. The findings of this study suggest that SMMEs play a vital role in the socio-economic development of Buffalo City. The SMMEs create employment and incomes; provide human capital investment in form of training programs and HIV/Aids programs; make donations to community structures; give sponsors to various sports clubs and food to the homeless. Finally SMMEs contribute towards tax revenues that in turn help reduce poverty and redistribute wealth. However, SMMEs in Buffalo City face a number of constraints, namely, lack of access to funding, lack of operating space, and high cost of property to lease and difficulty in finding trained competent staff. Further, the perceptions of the SMMEs about the adjudication of tenders was some biasness in the adjudication of tender in favour of those who were close to the public officials. There was no accountability and professionalism amongst the adjudicating officials. Finally the government was not doing enough to encourage SMME development in Buffalo City. In view of the socio-economic benefits of the SMMEs in Buffalo city, it is recommended that support programmes to the SMMEs should be enhanced. On the basis of the findings in this study, it is suggested that assistance to the SMMEs should go beyond institutional support such as Ntsika, Khula, DTI and/or SEDA but should be targeted to funding opportunities for the SMMEs. Commercial banks should be involved in ensuring that SMMEs obtain access to funding. Infrastructural facilities such as affordable business premises should be provided for the SMMEs. Affordable premises will reduce the overhead costs of the SMMEs and in turn increase the profits of these SMMEs. Increase the profits of the SMMEs will ensure the survival of the SMMEs and will in turn contribute towards the upliftment of the socio-economic status of the people who would have otherwise been unemployed, destitute and poor.

Thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy, in the Faculty of Commerce, Law and Management, School of Economic and Business Sciences. 27 March 2019 / This thesis investigates the role of institutional quality on the impact of government expenditure on economic performance. The thesis consists of five chapters. Chapter 1 provides an introduction of the thesis. Chapters 2, 3 and 4 are empirical chapters examining the role of institutions on the relationship between government expenditure and various indicators of economic performance. Chapter 5 concludes by giving policy recommendations. In chapter 1 we provide a background, motivation, objectives, hypothesis to be tested, gaps in the literature, contributions of the study and the main findings. In chapter 2 we explore how institutional quality affects the government spending-output growth nexus. We estimate a modified growth accounting model found in Hansson and Henrekson (1994) and control for institutional quality by employing panel regression techniques on a panel of 71 countries over a period 1970-2015. Our main estimation technique, 3SLS with seemingly unrelated errors, is able to control for endogeneity and cross equation correlation. We find that the institutional quality variable has a mitigating effect on the relationship between government expenditure and output growth however, government expenditure generally has a negative and detrimental effect on output growth. This suggests that better institutional quality offsets the adverse effects of government expenditure. As such, there is a need to come up with policies that strengthen institutional quality and enhance the effectiveness of government expenditure programs. Chapter 3 we examine the role of institutions on the optimal size of the government. The quadratic method of Armey (1995) and Scully (1994) method are employed on the country (time series regression) and group (panel data regression) estimations. Furthermore, we use the Hansen (1999) panel threshold regression technique to determine the presence of an optimal size and the values thereof. We ascertain that the majority of countries do have a significant optimal size of government. However, we note that the optimal size of government varies across countries and regions. Despite the presence of a non-linear relationship between government expenditure and output growth, there seems to be a marked difference between the size of government across levels of development and institutional arrangements. Countries with better institutions and higher levels of development seem to have a lower optimal level of government size. Perhaps, better institutions and higher levels of development help mitigate the adverse effects of government expenditure on output growth through the minimisation of the scope and scale of government activities, i.e., government size. Chapter 4 investigates the Twin Deficits Hypothesis (TWDH) and the role of institutional quality on a sample of 48 countries for the period 1995-2013. Using the national income accounting decomposition and the approaches in Feldstein and Horioka (1980) and Fidrmuc (2003) we investigate the role of institutional quality and capital mobility on the current account deficits and the government budget deficits (i.e., TWDH) nexus. We apply OLS, fixed effects, random effects regressions and panel cointegration techniques in our analysis. The results from the panel cointegration tests show that a long run relationship exists between the current account balance, investment and the government budget balance. The results reveal that current account deficits are mainly driven by private investment flows. However, we only find support for the Twin Deficits Hypothesis in a sample of developed countries and higher institutional quality countries. The results imply that governments of these countries enjoy financing from international sources and can easily finance their budget deficits without siphoning domestic savings away from investment. This result is unsurprising considering that capital seems to flow towards areas with perceived less risk. This suggests that current account deficits in developing countries are as a result of private agents’ decisions and not driven by government budget deficits. / PH2020

Thesis submitted in partial fulfilment of the requirements for the degree of Masters in Arts in (Political Studies) University of the Witwatersrand February, 2015 / The ANC ascended to government against the backdrop of a rapidly changing global political economic order after the end of the Cold War. This effectively marked the collapse of communism as a global political force and the concomitant dominance of neoliberalism. In 1996, the African National Congress government adopted the Growth Employment and Redistribution strategy (GEAR) as its new economic blue print, through which it would pursue its transformation agenda. In so doing, the ANC circumvented economic policy consultation processes with its political alliance partners and declared GEAR ‘non-negotiable’. This research argues that the shift to GEAR was essentially an economic policy alignment with the dominant post -Cold War neoliberal discourse and practice. It was fashioned deliberately by key ANC policy makers who had bought into the neoliberal assumption that development would occur after economic growth had been attained. The GEAR strategy privileged market led reforms which subordinated the transformation agenda to orthodox macroeconomic considerations. The pro-market bias which began with the adoption of the GEAR strategy has continued to shape South Africa’s post-apartheid economic policy environment to a significant extent.

A Research Report submitted in partial fulfilment of the Degree of Master of Economic Science in the School of Economic and Business Sciences, University of the Witwatersrand / The objective of the study is to analyse the effect former homeland status on poverty in South Africa. The study uses 2011 Census community profiles data from Statistics South Africa and cartographic data. Two methodologies are used in order to identify the effect of former homeland status on poverty, i.e., Ordinary Least Squares (OLS) and Regression Discontinuity Design (RDD). Notably, the RDD model is the main model as it formally identifies the treatment effect by comparing former and non-former homelands within a quasi-experimental framework. The results indicate that former homeland areas experience higher poverty levels relative to non-former homeland areas. The analysis shows that a large portion of the “raw” poverty differential is explained by differences in observed characteristics between former and non-former homeland areas. The remaining difference is attributable to former homeland status. The ‘scarring effect’ is small but statistically significant. Thus, the results call for government intervention aimed at reducing differences in observed characteristics of former and non-former homeland areas. The study notes that such mechanisms will narrow the difference in poverty rates but might not close it entirely since part of the difference is structural and depends on the rate at which the ‘scarring effect’ fades overtime. / NG (2020)

Research presented for the degree of Master of Management in the field of Public and Development Management to the Faculty of Commerce, Law and Management of the University of Witwatersrand. March 2016 / As an economic hub of Africa, South Africa has been experiencing an influx of economic and political migrants leading to the ethnic diversification of its population. This trend has incited a xenophobic atmosphere due to frustrations from locals, and has led to violent attacks towards foreign nationals. In particular, the Somali population has endured a high number of attacks as this group has successfully penetrated the informal business market in the townships of South Africa. Government has responded to these xenophobic attacks by proposing, amongst others, a Licensing of Businesses Bill in 2013. The bill has been criticised by the public as it is considered a hostile policy that aims to enforce regulations that restrict foreign nationals from operating businesses in the informal sector. This political dilemma has also led to questions as to how this policy response may have an effect on social cohesion in unequal societies where violence against Somalis is prevailing. The Klipspruit community was selected as it forms part of the City of Johannesburg that has a significant amount of Somali informal traders. The purpose of the study was to examine the root causes of violence against Somalis and the potential of the governments’ policy response to mitigate this phenomenon. In particular, the study also investigated the effect of the proposed Licensing of Businesses Bill on social cohesion development between Somalis and South Africans in Klipspruit. The qualitative research findings indicate that violence against Somalis was due to the economic situation, lack of regulation, competition and business miscommunication. The responses were generally driven by the perception that the government of South Africa introduced a bill that is fostered by nationalistic interests to the detriment of foreign nationals such as Somalis. It is therefore recommended that the government develops a way to enhance power sharing in decision-making processes, monitoring and correcting inequalities amongst culturally distinct groups, promoting cultural diversity and integration through education and lastly ensuring that the government acts in a constitutional manner. / GR2018

Thesis (MTech (Human Resource Management))--Cape Peninsula University of Technology, 2018. / Broad-Based Black Economic Empowerment (B-BBEE) has been the epitome of policy reform pervading South Africa (SA) since 1994, the end of apartheid. Often making media headlines, it inherently arrogates itself to all stakeholders engaged in commerce with/within SA. The impetus for the study ensued owing to recent (2013) changes to the B-BBEE legislative landscape. More specifically, the focus of the study was on one segment: Qualifying Small Enterprises (QSEs), operating within the same realm as Small Medium and Micro Enterprises (SMMEs). The rationale for such a focus stemmed from this market segment’s seemingly rigid response to such change, deemed to support this study’s results. The literature review embarked upon in Chapters 2 to 4, that is, collecting secondary data, provided for a solid foundation relative to a subject matter embedded with technical jargon and often driven by highly emotive/subjective inputs from stakeholders. The literature primarily drew from untested assumptions: these were mainly due to the high degree of contentiousness surrounding B-BBEE as subject matter, the lack of research (statistical results) relative to B-BBEE legislative change and more specifically, the lack of the latter relative to this study’s scope. The above introduction initiates the notion of there being inherent demarcations to this study, dictating the most relevant research design and methodology suited thereto. A pragmatic research philosophy was adopted, owing to its qualitative, exploratory enquiry. Furthermore, the unit of analysis, consisting of 16 samples, was conveniently selected. Although convenience sampling was regarded the most suitable approach to collecting data, it gave rise to the study’s biggest limitation: its inability to generalise findings. On that note, its findings were in line with the researcher’s precedential assumption upon its initiation: legislative change to Broad-Based Black Economic Empowerment (B-BBEE) for Qualifying Small Enterprises (QSEs) lead(s) to non-compliance and impeded transformation goals. The results give rise to a plethora of valuable insights into the dynamics of the industry, not only for strategic direction to be set for/by stakeholders on both a micro and macro level, but also providing a solid foundation relative to further research to be embarked upon – a notion highly advocated in supporting the integration of sustainable transformation in modern South Africa (SA).

The current study examines the extent and magnitude by which global and regional shocks are transmitted to the volatility of returns in the stock markets of South Africa, Egypt, Nigeria, Botswana, Mauritius and Egypt. This is done so as to make inferences on the level of the domestic market‟s integration into the regional and world capital markets. By applying multivariate and univariate GARCH models, using weekly data from June 1995 to May 2010, the main empirical findings are threefold. Firstly, the volatility analytical framework finds statistically significant and time-varying volatility spillover effects from the regional and global markets to the South African market. Global shocks are generally stronger and account for up to 23.9 percent of the volatility of South Africa‟s equity market compared to weaker regional factors which account for less than 1 percent of domestic variance. Only in countries with strong bilateral trade and economic links with South Africa, such as Botswana and Namibia, is it found that regional factors are more dominant than global factors for domestic volatility. Compared to the other African markets, the joint influence of foreign shocks on domestic volatility is highest in South Africa and Egypt, two of Africa‟s largest and most developed markets. The results further demonstrate that for all the African markets the explanatory power of both regional and global factors for domestic volatility is not constant over time and tends to increase during turbulent market periods. Secondly, the analysis of the determinants of South frica‟s second moment linkages with the global market suggests that the volatility of the exchange rate plays a cardinal role in influencing the magnitude by which global shocks affect domestic volatility. The increased global integration in the second moments cannot be attributed to either increased trade integration, convergence in inflation rates or to convergence in interest rates between South Africa and the global markets. Lastly, tests were conducted to examine whether there have been contagion effects from the regional and global markets to South Africa from the 1997 Asian crisis and the 2007/8 global financial crisis. The results show no evidence of contagion during either the East Asian currency crisis or the recent global financial crisis to South Africa, while some African markets, such as Egypt, Mauritius and Botswana, exhibit contagion effects from either crisis. Overall, the empirical findings generally support the view that African markets are segmented both at the regional and global levels as domestic volatility is more influenced by local idiosyncratic shocks (the proportion not attributable to either global and regional factors). However, the volatility of South Africa, and to a lesser extent Egypt, remains relatively more open to global influence. This implies that the potential for gains from international portfolio diversification and the scope for success of policies aimed at the stabilisation of equity markets in these markets exist.