This dissertation attempts in three essays to contribute to the growing body of research on the problems associated with sudden stops of capital inflows, known to have been at the heart of many recent emerging market crises. It does this by developing basic models that can incorporate sudden stops and hopefully make policy relevant recommendations. The first essay develops a simple three date representative agent model of a small open endowment economy without money. It allows sudden stops to occur at date two and asks whether individuals in such a shock-prone world are still better off borrowing than in autarky. Unambiguously, this chapter shows that individuals are better off borrowing than in autarky and provides a tractable core model on which the later chapters build. The second essay then includes a long-term borrowing option as well as country-specific risk premia based on an information asymmetry between domestic borrowers and international lenders. This allows analysis of optimal maturity choices in a meaningful way. The intent is to address questions in the literature concerning whether emerging economies could enhance welfare by imposing short-term capital controls to encourage the use of longer-maturing debt and thus avoid the sudden stop. The results imply that short-term capital controls would generally lower welfare, even when sudden stops are fully anticipated. Finally, the third essay extends the horizon of the model and includes a much wider range of maturities. This allows one to start making sense of maturity bunching (when a country's debt all matures around a given date) which is known to exacerbate sudden-stop related problems. The model shows that maturity bunching can occur endogenously when both risk premia and uncertainty over the duration of the sudden stop are present.

Thesis advisor: Jérôme Taillard / This paper studies the dynamics between levels of M&A activity (average transaction value and number of deals) and crises in seven Latin American countries from the period between 1990 through 2007. Two hypotheses are tested using regression analysis: (1) whether the level of M&A activity increases during crises due to the “bargain hypothesis,” due to the low valuation of target companies, or (2) whether M&A activity decreases due to the financial distress of potential buyers (“financing constraints” hypothesis) or the financial distress of potential targets (“loss of confidence” hypothesis). Analyses at the country and industry level show that the average transaction value of M&A deals decreases with every crisis. Support for the second hypothesis is found within the Manufacturing, Energy and Utilities industry, in which the number of deals increases. / Thesis (BS) — Boston College, 2013. / Submitted to: Boston College. College of Arts and Sciences. / Discipline: Economics Honors Program. / Discipline: Economics.

This study analyzes the effect of capital outflows on economic growth though the channels described in sudden stop literature. Using the autoregressive distributed lag (ARDL) bounds testing approach / it is found that there is a cointegration between capital inflows, real exchange rate and real GDP. The results show that there is a significant positive long-run relation between capital inflows and growth. It is also found that capital inflows affect real output in the short run. The results show that real exchange rate is not a significant determinant of real output both in the short run and long run. Moreover, in order to capture the dynamic responses, a vector autoregressive (VAR) methodology has been employed. The results show that a negative innovation in capital inflows causes real exchange rate depreciation and output contraction.

The first essay explores the dynamic behaviors of mortgage-backed stock returns and their volatility spillovers within the framework of time-varying symmetric, asymmetric and multivariate GARCH-family models. The focus of the chapter is on the dynamics of volatility of the U.S. real estate investment trusts (REITs) and volatility spillovers within the REITs subdivisions as well as between the REITs and the Fannie Mae (FNM) and theFreddie Mac (FRE) mortgage-backed stocks. We analyze risk-return linkages using the GARCH-in-mean (GARCH-M) model. The presence of asymmetric effects of "bad" news and "good" news on conditional financial volatilities is evaluated using the Threshold ARCH (TARCH) model and the exponential GARCH (EGARCH) model. Volatility spillovers and comovements within REITs subdivisions; REITs with FNM and FRE and other selected financial assets are examined using the multivariate GARCH (MGARCH) model. The second essay investigates factors behind the existence of time-varying conditional volatilities of mortgage-backed securities (MBS). This is done by analyzing the impacts of economic volatilities on mortgage-backed financial markets' performance. The relationship between conditional volatilities of the MBS and conditional volatilities of the key economic fundamentals in the housing sector and the macroeconomy are explored. The sensitivity of mortgage-backed stocks to the underlying time-series changes in economic fundamentals, and the extent to which economic volatilities explain the variation in mortgage-backed stocks' volatilities are investigated. Particularly, we examined whether changes in the REITs, FNM and FRE volatilities are linked to and driven by time-varying volatilities of the housing sector economic activity and set of key macroeconomic variables. Thus, the chapter analyzes the impacts of conditional economic volatilities on the conditional volatilities of the REITs, FRE and FNM stocks. The GARCH (p, q) process is used to find conditional volatility dynamics for the economic variables in the study. Then we employ multivariate GARCH (p, q) model to investigate the spillovers and comovements among the conditional economic fundamentals' volatilities and the conditional volatilities of the MBS. The third essay explores the impacts of foreign sector of the economy on the mortgage-backed financial markets and the housing sector. There is large surge of foreign capital flows to the U.S, particularly since late 1990s. The net foreign holdings of U.S. financial assets have become very significant in the U.S. Treasury notes and bonds. Foreign investors also hold a growing share of securities of the U.S. agencies and government sponsored enterprises (GSEs). Similarly, foreign direct investment in the U.S. real estate as well as real estate equities in the form of REITs has grown sharply. To this end, a multivariate vector autoregression (VAR) model is the main tool of analysis. Based on the VAR model, generalized impulse response functions and generalized variance decompositions are employed to evaluate the responses of mortgage interest rates and Treasury yields to the changes in net foreign ownership of U.S. Treasuries and agency bonds.

Inflows of Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) into Sub Saharan Africa (SSA) between 2000 and 2014 remained a minute fraction (at only 2% and 1% respectively) of global inflows. This study seeks to explain this phenomenon by examining the push (global) and pull (domestic) factors that may help to explain inflows of FDI and FPI in SSA and the mechanisms through which these factors affect inflows (the how). As ongoing regional integration efforts in Africa through trading blocs, the study also discusses the role of regional trading blocs in explaining capital flows into SSA. In the process, the research challenges some of the established theories and contributes to policy for managing international capital inflows. The study identifies possible explanatory variables from existing theory and empirical studies. Data on possible determinants of FDI and FPI is largely extracted from the World Bank and IMF databases. The determinants considered are macro-economic, infrastructural, institutional, resource endowment and geographical related. These are modeled into econometric model of FDI and FPI. Several hypotheses on the possible determinants are then tested using panel regressions with random effects. The results indicate that SSA's FDI during the period reviewed is mainly pulled by macroeconomic dynamics, infrastructure and human resources factors and pushed by global macroeconomic performance. Likewise, FPI is largely pulled by GDP and infrastructure factors. The results further show that FDI and FPI inflows in regional trading blocs of SADC, COMESA and ECOWAS are affected by different risk, return, macroeconomic, trade and distance factors. The effects of factors such as distance and macroeconomic factors also vary across the regional trading blocs, suggesting their importance of these blocs in capital flows.

This thesis analyzes the interactions between domestic credit expansion, capital inflows and current account imbalances in a framework of empirical models carried out for Brazil and Turkey. In this context, three vector autoregressive (VAR) models are specified covering the time period between January 2002 and March 2012 for Brazil and 2003 January and 2012 March for Turkey. Real effective exchange rate (REER) and relative yield spreads formed with country specific Embi + indexes are also included in the estimations of the models. The analyses of the models show that capital inflows in these countries trigger the domestic credit expansion which create an upward pressure on import demands and affect current account balances negatively. The results support the implementation of domestic credit tightening policies to reduce the current account imbalances in these countries.

Submitted by Oliver Sleczka (oliver.sleczka@student.unisg.ch) on 2017-12-11T13:34:22Z No. of bitstreams: 1 Performance of Private Equity Funds in Emerging Markets_MPGI Dissertation_2017.pdf: 1511526 bytes, checksum: 5880b1437aa5a15cc2e08f09ac374e4a (MD5) / Rejected by Josineide da Silva Santos Locatelli (josineide.locatelli@fgv.br), reason: Dear Oliver, There are some corrections to do on your thesis, please, see below: The title is different: PERFORMANCE OF PRIVATE EQUITY FUNDS IN EMERGING MARKETS An Empirical Analysis We have: PERFORMANCE OF PRIVATE EQUITY FUNDS IN EMERGING MARKETS - A COMPARATIVE ANALYSIS Page 2: In “Knowledge Field”, must to be your advisor field: Economia e Finanças Internacionais; Page 4: In “Knowledge Field”, must to be your advisor field: Economia e Finanças Internacionais, in “Approval Date” put your presentation date; Page 5: “ACKNOWLEDGMENT” must to be on the middle of the page; After correction, please, post it again on 2017-12-11T14:24:20Z (GMT) / Submitted by Oliver Sleczka (oliver.sleczka@student.unisg.ch) on 2017-12-11T17:40:14Z No. of bitstreams: 1 Performance of Private Equity Funds in Emerging Markets_MPGI Dissertation_2017.pdf: 1511283 bytes, checksum: 77cd6246c673012b4ee5c97c532f3274 (MD5) / Approved for entry into archive by Josineide da Silva Santos Locatelli (josineide.locatelli@fgv.br) on 2017-12-11T17:46:14Z (GMT) No. of bitstreams: 1 Performance of Private Equity Funds in Emerging Markets_MPGI Dissertation_2017.pdf: 1511283 bytes, checksum: 77cd6246c673012b4ee5c97c532f3274 (MD5) / Made available in DSpace on 2017-12-11T17:50:20Z (GMT). No. of bitstreams: 1 Performance of Private Equity Funds in Emerging Markets_MPGI Dissertation_2017.pdf: 1511283 bytes, checksum: 77cd6246c673012b4ee5c97c532f3274 (MD5) Previous issue date: 2017 / This paper investigates the performance of private equity funds in emerging markets based on data of individual fund level returns from 1995 to 2013 obtained from Preqin. The research focus of this thesis lies on performance drivers and return persistence. The analysis is divided in two parts. The first part investigates the relationship between fund performance and fund characteristics focusing on the GP location, the investment focus, as well as the fund size, sequence number, and GP experience. The key objective is to determine significant emerging market-specific performance factors. Our results suggest that funds with a clear geographic investment focus earn significantly higher returns. The second part aims to find evidence for persistence in the performance of emerging market private equity funds. The findings corroborate the hypothesis that unlike in developed markets, performance persistence still exists in emerging markets. / Esta tese investiga o desempenho de fundos de private equity em mercados emergentes, com base em dados de retorno a nível individual dos fundos de 1995 a 2013, obtidos por meio da base de dados Preqin. O foco de pesquisa desta tese é nos drivers de performance e persistência de retornos. A análise é dividida em duas partes. A primeira parte investiga a relação entre a performance e características do fundo, com foco na localização do administrador (GP), foco do investimento, assim como o tamanho do fundo, número de sequência do fundo, e experiência do GP. O principal objetivo é determinar fatores de performance significativos específicos de mercados emergentes. Os resultados sugerem que fundos com um claro foco geográfico de investimentos obtém retornos significativamente mais altos. A segunda parte visa encontrar evidências de persistência na performance de fundos de private equity de mercados emergentes. Os achados corroboram a hipótese de que, diferentemente de mercados desenvolvidos, persistência de performance ainda existe em mercados emergentes.

Dans le premier chapitre, nous avons travaillé sur l’impact d’une réévaluation réelle de la monnaie chinoise sur ses excédents commerciaux. Nous avons suggéré une nouvelle approche pour mesurer cet impact, en utilisant des données de panel relatives aux exportations et aux importations des entreprises à capitaux étrangers et domestiques implantées dans vingt-et-huit provinces chinoises. Nous avons constaté que l’effet d’une réévaluation du Yuan sur les exportations et les importations était plus accentué après l’accession de la Chine à l’OMC. Enfin, d’autres facteurs comme le taux de change nominal et les prix relatifs entrent en jeu dans l’explication de la dynamique des exportations et des importations de la Chine.Dans le deuxième chapitre, nous avons étudié les effets spatiaux sur les exportations et les importations provinciales des entreprises multinationales et domestiques. Nous avons utilisé trois différentes matrices de poids spatiales et maintenu la même division de période qu’au premier chapitre. La méthodologie d’estimation spatiale utilisée a révélé des effets spatiaux importants sur les exportations et les importations des deux types d’entreprises, mais a aussi permis de faire un état des lieux sur l’intégration du marché domestique de la Chine. Dans le troisième chapitre, nous avons étudié les flux de capitaux vers la Chine déguisés en valeur d’échanges commerciaux. Nous avons proposé une nouvelle approche en utilisant les prix des produits échangés les plus susceptibles à la manipulation et étudié leur sensibilité à l’anticipation d’une réévaluation future de la monnaie chinoise. Nous avons trouvé que la balance commerciale de la Chine était surestimée. / In the first chapter, we investigate the impact of a revaluation of the China’s Yuan on its trade balance. We use panel data on export and import of multinational and domestic firms, disaggregated at a regional level in the period 1996-2012.We find significant impact of a revaluation of the Yuan on export and import, the impact differs regionally, time period, and by firms. We also find that other factors like nominal exchange rate and relative prices play significant role in explaining China’s trade balance.In the second chapter, we investigate the spatial effects on China’s trade performance. In fact, we use the same data as in the first essay.We use three different weight matrices to take into account the dynamism in the China’s decentralization policies.We find significant spatial effects on export and import, varying between firms, regions and time period. This essay also reveals important facts on the China’s domestic market integration. In the last chapter, we put forth a new approach to measure capital inflows into China hidden in the regular trade flows. This phenomenon known as trade misinvoicing is suspected to actually overstate China’s trade surpluses.We measure the sensitivity of the prices for some commodities which are the most susceptible to trade misinvoicing to the non-deliverable forward exchange rate for the Yuan in Hong-Kong. We find that, in fact China’s trade balance is relatively overestimated.

Depuis le vingtième siècle, les flux migratoires ont augmenté entrainant des flux financiers – nommés "remittances" - partant des zones d'immigration vers celles d'émigration. Ces transferts, que les migrants envoient à leurs familles dans leur pays d'origine peuvent générer des effets opposés selon des pays. Cette thèse a pour objectif d'analyser leurs conséquences sur le capital physique et humain dans les pays qui les reçoivent.Le premier chapitre souligne l'impact négatif de ces flux sur le stock de capital ainsi que sur l'offre de travail. Ce revenu supplémentaire durant leur dernière période de vie conduit les individus à moins travailler et moins épargner. Ces transferts peuvent rapprocher ou éloigner les économies de la règle d'or d'accumulation du capital en fonction de leurs caractéristiques. Une politique de taxation est proposée afin de maximiser le bien-être. Le second chapitre étend l'analyse à des économies ouvertes faisant face à des contraintes exogènes de crédit sur le marché international des capitaux. Il montre que les transferts réduisent les incitations des agents à épargner, mais peuvent accroitre l'investissement en capital physique dans certains pays, via les entrées de capitaux, en relâchant directement la contrainte de crédit. Le troisième chapitre développe un modèle de croissance avec accumulation de capital humain, dans lequel les agents empruntent pour s'éduquer. Les contraintes de crédit sont cette fois endogènes : les agents ne peuvent s'engager à rembourser et sont exclus du marché des capitaux en cas de défaut. Ce modèle explique que les "remittances" peuvent générer des effets positifs, dans certains pays, ou négatifs dans d'autres. / Since the twentieth century, migratory flows have largely increased entailing financial flows - named remittances - from immigration areas to emigration areas. These transfers that migrants send to their families in their home countries may empirically lead to positive or negative effects on physical and human capital. This thesis aims at explaining this mixed evidence in developing countries.The first chapter underlines the negative impact of remittances on capital stock but also on labour supply. Due to this additional income in their last-period of life, agents have less incentive to work and save. Remittances may bring economies closer to their golden rule of capital accumulation or further from their golden rule according to their features. A taxation policy is provided in order to maximise the welfare in the home country of the migrants. The second chapter extends the analysis to open economies facing exogenous credit constraints on the international capital market. Even if remittances reduce incentive to save, these flows may increase investment in physical capital in some countries, through capital inflows, by directly relaxing the credit constraints. The third chapter considers a growth model with human capital accumulation in which agents borrow to finance their education. Borrowing constraints are, in this non-commitment framework considered as endogenous: agents may choose to default and are excluded from the financial market in case of default. In accordance with empirical literature, this model is able to explain a negative or a positive impact of remittances on economic growth.

The primary objective of this study was to examine the broader impact of institutional quality on enhancing foreign direct investment (FDI) and foreign portfolio investment (FPI) inflows in a sample of twelve emerging market economies for the period 2007 to 2017. We specifically sought to answer questions related to the key drivers of FDI and FPI inflows into emerging markets, with a particular emphasis on the role played by institutional quality factors. We further sought to interrogate the long-run and causal relationships between the key variables of FDI, FPI and institutional quality, in respect of the sample of emerging markets. The study employed the Principal Components Analysis (PCA) to construct a composite index for institutional quality composed of the six Worldwide Governance Indicators. Various other econometric models were applied, including the dynamic panel data generalised method of moments (GMM) model, the panel autoregressive distributed lag (ARDL) model for dynamic heterogeneous panels, and the panel vector error correction model (VECM). The results revealed that FDI in the selected emerging markets was, in the main, attracted by economic growth and institutional quality. Institutional quality, economic rowth and capital account openness were positive determinants of FPI inflows; however, stock market development stood out as the foremost determinant factor. In addition to finding long-run, cointegrating relationships between the key variables, it emerged that there was bi-directional causality between FDI and FPI, as well as between FDI and institutional quality in the long run. Despite the latter findings, the results further suggested that the long-run relationship between the two foreign capital inflows, i.e. FDI and FPI, was more of a substitutability or trade-off nature in our sample of emerging markets. In light of these findings, we recommended that it would be in the best interests of these emerging markets if the responsible policymakers continued to liberalise these economies. Further, it was shown that in order to attract inward international capital flows, financial liberalisation should be coupled with the strengthening of the domestic institutional environment.Strengthening institutions could curtail the persistence of institutional weaknesses and insulate emerging market economies from the adverse effects of volatile capital flows, and in the long-run enhance international capital inflows. / Inhloso enkulu yalolu cwaningo kwaye kuwukuhlola umthelela obanzi kwizinga leziko ekuqiniseni uhlelo lokutshalwa ngqo kwezimali ezweni langaphandle (foreign direct investment; FDI) kanye nemali engena mayelana nokuthengwa kwamagugu (shares, stocks and bonds) angenisa imali ezweni elingaphandle (foreign portfolio investment; FPI) kwizimakethe zamazwe eziyishumi nambili esikhathini esiphakathi kuka 2007 ukufika ku 2017. Empeleni besifuna ukuphendula imibuzo emayelana nezikhwezeleli ezisemqoka eziheha uhlelo lwe-FDI kanye ne-FPI ezimakethe ezifufusayo, ikakhulu kugxilwe kwindima edlalwa yizinto ezihlobene nezinga leziko. Siqhubekela phambili nokuphenya izinhlobo zobudlelwano besikhathi esinde kanye nobudlelwano obuyimbangela phakathi kwamavarebuli asemqoka e-FDI, i-FPI kanye nezinga leziko, mayelana nesampuli yezimakethe ezisafufusayo. Ucwaningo lusebenzise uhlelo lwe-Principal Components Analysis (PCA) ukwakha imvange yezinkomba ukwenzela izinga leziko eliqukethe izinkomba eziyisithupha ezibizwa phecelezi nge-Worldwide Governance Indicators. Amanye amamodeli alinganisa ezomnotho asetshenzisiwe, kuxutshwa phakathi idatha yamaphaneli eguquguqukayo ebizwa nge-dynamic panel data generalised method of moments (GMM) model, uhlelo lwe-panel autoregressive distributed lag (ARDL) model ukwenzela amaphaneli ahlukahlukene futhi aguquguqukayo, kanye nohlelo lwe-panel vector error correction model (VECM). Imiphumela iveze ukuthi i-FDI ezimakethe ezikhethiwe ezisafufusa, esikhathini esiningi, iye yahehwa ukuhluma komnotho kanye nezinga leziko. Izinga leziko, ukuhluma komnotho kanye nokuvuleka kwe-akhawunti yemali bekuyizinto eziyizinkomba ezinhle zokungena kwe-FPI; yize-kunjalo, ukuthuthukiswa kwemakethe yesitoko kuvele kwagqama ngaphezulu njengenkomba ekhombisayo. Ukwengeza phezu kolwazi olutholakele esikhathini esinde, ukuhlangana kobudlelwano obuphakathi kwamavarebuli asemqoka, kuye kwavela ukuthi kwakunezimbangela ezikhomba izindlela ezimbili zokungena kwezimali ezitshalwa ngaphandle, zona yilezi i-FDI kanye nezinga leziko esikhathini esinde. Naphezu kolwazi olutholakele kamuva, imiphumela iqhubeka nokuphakamisa ukuthi ubudlelwano besikhathi eside obuphakathi kwezinhlelo zokutshalwa kwezimali ezivela emazweni angaphandle, lezo zinhlelo yilezi, i-FDI kanye ne-FPI, bezingendlela ikakhulukazi yokushintshana/yokumisela noma yokushintshelana ngokuhweba kwisampuli yethu 5 yezimakethe ezisafufusayo. Mayelana nalolu lwazi olutholakele, sincome ukuthi kuzohambisana nokuthandwa yilezi zimakethe ezisafufusa uma ngabe abenzi bemigomo ababandakanyekayo baqhubeke nokususa izihibe zomnotho kula mazwe asafufusa. Ngaphezu kwalokho, kuye kwavezwa ukuthi ukuze kuhehwe izimali zamazwe angaphandle, uhlelo lokususwa kwezihibe zomnotho lufanele luhambisane nokuqiniswa kwesizinda esiyiziko lasekhaya. Ukuqiniswa kwamaziko kungaqeda isimo esintengayo seziko futhi kungasusa izimakethe zamazwe asafufusayo kwisimo esingagculisi sezimali ezingenayo, kanti esikhathini eside lokhu kungaqinisa ukutshalwa ukungena kwezimali ezivela emzaweni angaphandle / Maikemisetso magolo a thutopatlisiso eno e ne e le go tlhatlhoba ditlamorago ka bophara tsa boleng jwa ditheo mo go tokafatseng keleloteng ya dipeeletso tsa tlhamalalo tsa kwa dinageng tse dingwe (FDI) le dipeeletso tsa dipotefolio tsa kwa dinageng tse dingwe (FPI) mo sampoleng ya diikonomi tse somepedi tsa mebaraka e e tlhagelelang mo pakeng ya 2007 go fitlha 2017. Re ne re totile go araba dipotso tse di malebana le ditsamaisi tsa botlhokwa tsa keleloteng ya FDI le FPI mo mebarakeng e e tlhagelelang, go lebeletswe thata seabe sa dintlha tsa boleng jwa ditheo. Gape re ne re lebeletse go tlhotlhomisa go nna sebaka se se telele le sebako sa dikamano magareng ga dipharologantsho tsa botlhokwa tsa FDI, FPI le boleng jwa ditheo, malebana le sampole ya mebaraka e e tlhagelelang. Thutopatlisiso e dirisitse Tokololo ya Dintlha tsa Botlhokwa (PCA) go aga tshupane ya dikarolo ya boleng jwa ditheo e e nang le Disupi di le thataro tsa Lefatshe lotlhe tsa Bolaodi. Go dirisitswe gape dikao tse dingwe tse di farologaneng tsa ikonometiriki, go akarediwa sekao sa dynamic panel data generalised method of moments (GMM) sa data ya phanele e e farologaneng, sekao sa panel autoregressive distributed lag (ARDL) sa diphanele tse di farologaneng le sekao sa panel vector error correction (VECM). Dipholo di senotse gore FDI mo mebarakeng e e tlhophilweng e e tlhagelelang e ne tota e ngokiwa ke kgolo ya ikonomi le boleng jwa ditheo. Boleng jwa ditheo, kgolo ya ikonomi le go bulega ga akhaonto ya kapitale e nnile diswetsi tse di siameng tsa keleloteng ya FPI; fela tlhabololo ya mebaraka ya setoko e tlhageletse jaaka ntlha e e kwa pele e e swetsang. Go tlaleletsa mo go fitlheleleng botsalano jwa pakatelele le jo bo kopanang jwa dipharologantsho tsa botlhokwa, go tlhageletse gore go na le go sebako sa dintlhapedi magareng ga FDI le FPI gammogo le magareng ga FDI le boleng jwa ditheo mo pakeng e e telele. Le fa go ntse go na le diphitlhelelo tse di kailweng la bofelo, dipholo gape di tshitshinya gore botsalano jwa paka e e telele magareng ga keleloteng ya kapitale ya kwa ntle k.g.r. FDI le FPI ke jwa mofuta wa go emisetsa se sengwe ka se sengwe mo sampoleng ya rona ya mebaraka e e tlhagelelang. Ka ntlha ya diphitlhelelo tseno, re atlenegisa gore go tlaa bo go le mo dikgatlhegelong tsa mebaraka eno e e tlhagelelang gore ba ba rweleng maikarabelo a go dira dipholisi ba ka tswelela go repisa diikonomi tseno. Mo godimo ga moo, go bonagetse gore go ngokela kelelo e e tsenang ya kapitale ya boditšhabatšhaba, go repisiwa ga merero ya ditšhelete go tshwanetse ga tsamaisiwa le maatlafatso ya tikologo ya ditheo tsa 7 selegae. Go maatlafatsa ditheo go ka fedisa go tswelela pele ga makoa a ditheo le go sireletsa diikonomi tsa mebaraka e e tlhagelelang mo ditlamoragong tse di maswe tsa dikelelo tse di maswe tsa kapitale, mme kwa bokhutlong, go tokafadiwe kelelo ya kapitale ya boditšhabatšhaba / Finance, Risk Management and Banking / M. Com. (Financial Management)