The South African government recognises the need for export growth to contribute towards economic growth and articulates this in different national policy documents. It is evident that the Western Cape Province also recognises the need for export growth, as the province is facing various economic and socio-economic challenges. Therefore, aligning policies to focus on export promotion which supports the labour intensive sectors within the province by uplifting employment and eradicate poverty. The aim of this study is to determine specifically export market diversification opportunities for the Western Cape Province. The main objective is to determine the Western Cape’s world-wide market diversification opportunities with the highest export potential. The literature underlines the importance of export growth and the benefits of export diversification. It can also be concluded that countries operating in the extensive margin are more likely to generate high economic growth and development opportunities. By implementing export diversification strategies, higher employment levels and output growth can be achieved on a provincial and national level. A three-step methodological process to determine the export market diversification opportunities for the Western Cape Province is used. Firstly, the products in which the Western Cape Province has a revealed export specialisation are determined by using the revealed trade advantage (RTA); secondly, the geographical concentration of the Western Cape’s exports of these products is determined by means of the Herfindahl Hirschman Index (HHI); and lastly, the export market opportunities for the Western Cape Province’s export-orientated products that are geographically concentrated are determined by using the decision support model (DSM). The results of the study identified 188 geographically concentrated export products for the Western Cape and 2 866 realistic product-country level export diversification opportunities. It is recommended that the Department of Trade and Industry (DTI) and the Western Cape trade promotion organisation, WESGRO, in collaboration with the relevant export councils and industry associations, use the results of this study to focus their export promotion and diversification strategies on the identified product-country combinations. / MCom, North-West University, Potchefstroom Campus, 2015

South Africa’s sluggish economic growth and limited structural transformation are at the core of the country’s high levels of unemployment and poverty. Why some countries are able to grow and others not has been the subject of much academic debate, with recent literature throwing fresh light on the phenomenon by exploring the relationship between growth and a country’s productive structure. It is argued that countries’ heterogeneous productive structures stem from differences in entrenched capabilities and know-how in producing and marketing a very specific set of products. Investigating and comparing what countries actually produce and how this supports economic development yield valuable insights into why countries differ and what their transformation priorities should be. In this study a new analytical approach is adopted to determine the potential growth paths of South Africa’s broader agricultural sector, the so-called agro-complex. Comprising 1 456 primary and processed products as well as production inputs within the food, feed and fibre segments, this broad sector makes an important contribution to economic development through its direct and indirect linkages with other economic sectors as well as its relatively high labour absorption rate. The wide-ranging economic challenges that South Africa faces have clearly gripped the country’s agro-complex. A growing dependency on imports of higher value, processed food has led to deteriorating terms of trade, while limited innovation and diversification in agricultural exports (coupled with a high proportion of re-exports) is seriously constraining the positive impact that the agro-complex could have on the country’s growth rate. In this study, the productive structure of the agro-complex is analysed through the application of the ‘product space’ framework. This methodology investigates the relatedness between products as reflected in the conditional probability of a product being exported in tandem with another product, considering all global trade flows. The proximity value, the measurement of relatedness, between all 1 456 products is used to arrive at the structure and visible evidence of an agricultural product space network. This structure allows potential diversification pathways to be analysed. Research has shown that a country’s diversification process involves moves along pathways to nearby - and thus related – ‘new’ products, which simplifies the redeployment of existing productive capabilities and knowledge. These pathways are identified according to three strategic values, namely structural transformation, market potential and employment creation. The potential for structural transformation is determined by using a product-level measure of complexity, with higher level complexity (i.e. upgrading) going to the core of structural transformation. The potential market demand is determined by examining the prospects for import substitution; producing re-exported products locally; producing new, high-potential export products; and diversifying into new markets with existing export products (with the latter two categories evident in the results of a Decision Support Model (DSM)). Finally, the potential for employment creation is analysed in the light of labour and human capital intensities at product level. The study found that South Africa’s position in the agricultural product space is relatively dispersed. This position is characterised by a proportionally high level of core competencies within the primary agricultural cluster and a limited amount of vertical linkages. Furthermore the analyses showed that, especially the products for which South Africa has developed a significant high level of specialisation such as plums and wines are located in the sparser, less promising, parts of the agricultural product space. Notwithstanding, a total of 60 realistic diversification opportunities are within “reach” from the countries core competencies in the agro-complex. The analysis on structural transformation established that the level of product complexity within the agro-complex is more important for economic development than product diversity per se. It was revealed that South Africa only ranked 69th globally with regards to the complexity of its agro-complex. It was determined that upgrading within the forestry and agro-processing of food clusters hold the most potential for improving this position. The investigation into the potential for diversification driven by market potential revealed fore mostly that the potential for substituting imports as well as re-exports with local production is limited. The market prospects for exporting “new” products and expanding the export destinations of existing products within the agro-complex is much more favourable. It was estimated that most employment creation could be derived from diversification within the primary agricultural cluster although its number of opportunities are limited. Diversification within both the primary agricultural and agro-processing of food clusters was found the have to most favourable prospects for developing the level of human capital within the agro-complex. Based on all three strategic values, the most promising diversification opportunities are located within the forestry cluster. The range of realistic opportunities within the five clusters of the agro-complex form the core for developing product-level diversification strategies. This will ultimately strengthen the position of the agro-complex and boost South Africa’s growth path for the next decade. Hence, the main contribution of this study includes the determination of the structure of South Africa’s agro-complex from a product perspective and its implications for potential growth and development. / PhD (International Trade), North-West University, Potchefstroom Campus, 2014

The South African government recognises the need for export growth to contribute towards economic growth and articulates this in different national policy documents. It is evident that the Western Cape Province also recognises the need for export growth, as the province is facing various economic and socio-economic challenges. Therefore, aligning policies to focus on export promotion which supports the labour intensive sectors within the province by uplifting employment and eradicate poverty. The aim of this study is to determine specifically export market diversification opportunities for the Western Cape Province. The main objective is to determine the Western Cape’s world-wide market diversification opportunities with the highest export potential. The literature underlines the importance of export growth and the benefits of export diversification. It can also be concluded that countries operating in the extensive margin are more likely to generate high economic growth and development opportunities. By implementing export diversification strategies, higher employment levels and output growth can be achieved on a provincial and national level. A three-step methodological process to determine the export market diversification opportunities for the Western Cape Province is used. Firstly, the products in which the Western Cape Province has a revealed export specialisation are determined by using the revealed trade advantage (RTA); secondly, the geographical concentration of the Western Cape’s exports of these products is determined by means of the Herfindahl Hirschman Index (HHI); and lastly, the export market opportunities for the Western Cape Province’s export-orientated products that are geographically concentrated are determined by using the decision support model (DSM). The results of the study identified 188 geographically concentrated export products for the Western Cape and 2 866 realistic product-country level export diversification opportunities. It is recommended that the Department of Trade and Industry (DTI) and the Western Cape trade promotion organisation, WESGRO, in collaboration with the relevant export councils and industry associations, use the results of this study to focus their export promotion and diversification strategies on the identified product-country combinations. / MCom, North-West University, Potchefstroom Campus, 2015

Increasing sophistication of exchange traded fund (ETF) indexation methods required that a comparison be drawn between various methodologies. A performance and risk evaluation of four pre-selected ETF indexation categories were conducted to establish the diversification benefits that each contain. Fundamentally weighted, equally weighted and leveraged ETFs were compared to traditional market capitalisation weighted ETFs on the basis of risk and return. While a literature review presented the theory on ETFs and the various statistical measures used for this study, the main findings were obtained empirically from a sample of South African and American ETFs. Several risk-adjusted performance measures were employed to assess the risk and return of each indexation category. Special emphasis was placed on the Omega ratio due to the unique interpretation of the return series‟ distribution characteristics. The risk of each ETF category was evaluated using the exponentially weighted moving average (EWMA), while the diversification potential was determined by means of a regression analysis based on the single index model. According to the findings, fundamentally weighted ETFs perform the best during an upward moving market when compared by standard risk-adjusted performance measures. However, the Omega ratio analysis revealed the inherent unsystematic risk of alternatively indexed ETFs and ranked market capitalisation weighted ETFs as the best performing category. Equal weighted ETFs delivered consistently poor rankings, while leveraged ETFs exhibited a high level of risk associated with the amplified returns of this category. The diversification measurement concurred with the Omega ratio analysis and highlighted the market capitalisation weighted ETFs to be the most diversified ETFs in the selection. Alternatively indexed ETFs consequently deliver higher absolute returns by incurring greater unsystematic risk, while simultaneously reducing the level of diversification in the fund. / MCom (Risk Management), North-West University, Vaal Triangle Campus, 2014

Is home biasness common among modern investors? To which extent do Swedish investors diversify their investments on an international level? Does home biasness negatively affect the investors performance? To answer these questions, correlation tests of various international indices ranging over four different time periods are conducted, in order to see if correlation between markets are stronger today than before, as stronger correlation would render diversification less useful. To enhance the study, the holdings of the top ten Swedish funds, measured in fund capital according to Morningstar, is reviewed, based on data collected per 2014-12-31 from the Swedish Financial Supervisory Agency (FI). This gives an overview of how the funds diversify their investments internationally, these funds will in turn represent the average Swedish investor in the thesis. By constructing a bullet curve from a set of international indices, the author will analyse to which grade international diversification is useful. The results are that international diversification isn’t as beneficial as theory suggests it is. The reason for it may be due to stronger correlation between international markets in the past 15 years. Most of the Swedish funds tends to be rather home biased in their investments, as about a quarter of the holdings usually are placed in Swedish assets, and in accordance with the results of the indices development, the more home biased they are to Sweden, the better they tend to perform. / Hur vanligt är egentligen home biasness hos den moderna investeraren? Till vilken grad diversifierar egentligen den vanliga Svenska investeraren sina tillgångar internationellt? Påverkar en eventuellt inhemskt investeringsfilosofi investeraren negativt? Korrelationstester för olika världsindex kommer utföras, så att en överskådade blick kan fås över hur världsmarknader rör sig allt mer symmetriskt, då starkare symmetri mellan marknader minskar nyttan av internationell diversifiering. Data om innehav från Sveriges topp tio fonder, sett till fondförmögenhet utifrån Morningstar, har samlats från finansinspektionen per 2014-12-31. Dessa fonder ska representera den typiske Svenska investeraren och dess diversifieringsvanor. Genom att ha samlat data från ett flertal internationella index har effektiv front samt en fiktiv kombination av index skapats för att få fram huruvida avkastning i relation till risk ökar genom internationell diversifiering. Denna kombination av index jämförs sedan mot utveckling av en handfull internationellt samlade index för att se om diversifiering förbättrar avkastningen i relation till risk. Resultatet säger att det index som är mest diversifierade inte är så gynnsamt som teorin påstår. Anledningen till detta kan bero på den ökade korrelationen bland aktiemarknader idag jämfört med för 15 år sedan. De flesta Svenska fonderna har en större andel av sitt innehav i Svenska värdepapper och överlag, förutom diverse undantag, så har det gynnat dessa fonder i avkastning sett till risk.

Digital divide research has recently begun to address the functional gaps between Internet-connected technologies, specifically mobile and wired devices. This study uses nationally representative survey data from the Pew Internet and American Life Project to address this area of research and explores how smartphone-dependence compared to multi-modal access impacts Internet use among key demographic groups including race, sex, age, income, and education. This study also explores how demographic characteristics and smartphone use interact to affect reliance on smartphones and perceptions of the utility of mobile devices. Results show that race, sex, age, income, and education, exhibit different rates of smartphone-dependence, and also perform different online activities with their smartphones. Minorities and younger users are more likely to be smartphone-dependent and multi-modal users suggesting that these demographic groups are adopting mobile Internet technologies faster than Whites and older individuals. Minorities also use smartphones for more news and information activities than Whites, which contradicts traditional usage gap predictions.

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A common finding in the international trade literature is that economic integration leads to export diversification. By documenting a positive link between joining the European Economic and Monetary Union and bilateral export concentration, the leading essay shows that this is not always the case. Using a panel data approach, I find that exports between the Eurozone members are on average more concentrated than those among countries which do not share the euro. Central to this outcome is that some economic integration agreements, such as the European Economic and Monetary Union, may lead to a drop in not only trade but horizontal FDI costs as well. Theoretically, the results can be explained by the substitutability between exporting and horizontal FDI within a two-sector, two-firm type model which allows for sectoral trade cost heterogeneity. Since the early 1970s, a series of international environmental agreements (IEAs) were signed, ratified, and enforced throughout the developed and developing nations. Regarding IEAs as potential barriers to trade, the second essay seeks to quantify their impact on industry-level exports by using a gravity regression approach. I proceed by classifying industries into dirty and clean based on their average emission intensities and find that the ratification of IEAs is associated with a significant reduction in export flows. The decrease is more pronounced for industries which are classified as dirty or for those which are characterized by high emission intensities per unit of output. Additionally, climate change IEAs bring about a compositional shift towards cleaner exports. Lastly, climate change and acid rain IEAs are found to engender leakage effects. No such evidence is recovered for ozone depletion accords. The third essay adds to the literature on the Kyoto protocol and the carbon content of bilateral trade. It does so by analyzing the effect of ratifying the Kyoto protocol on exports, the carbon dioxide (CO2) intensity of exports, and the CO2 emissions embodied in exports within a novel dataset of 149 countries. For parties that took on binding emission caps, the ratification of Kyoto protocol leads to (i) lower CO2 emissions embodied in exports, (ii) lower CO2 emission intensities, but (iii) higher overall exports. For the same group of countries, a year-by-year analysis underlines a permanent decline in both the CO2 emission intensity and the CO2 content of their exports. Furthermore, the analysis also points out to a short-run decline in exports. In the long run, however, exports are estimated to recover. Also, the commitment type or whether a party was designated as a transition economy at the time of ratification are found to shape the above three outcomes.

This empirical study has shown that optimal portfolios need approximately 10 securities to diversify away the unsystematic risk. This challenges previous studies of randomly chosen portfolios which states that at least 30 securities are needed. The result of this study sheds light upon the difference in risk diversification between random portfolios and optimal portfolios and is a valuable contribution for investors. The study suggests that a major part of the unsystematic risk in a portfolio can be diversified away with fewer securities by using portfolio optimization. Individual investors especially, who usually have portfolios consisting of few securities, benefit from these results. There are today multiple user-friendly software applications that can perform the computations of portfolio optimization without the user having to know the mathematics behind the program. Microsoft Excel’s solver function is an example of a well-used software for portfolio optimization. In this study however, MATLAB was used to perform all the optimizations. The study was executed on data of 140 stocks on NASDAQ Stockholm during 2000-2014. Multiple optimizations were done with varying input in order to yield a result that only depended on the investigated variable, that is, how many different stocks that are needed in order to diversify away the unsystematic risk in a portfolio. / <p>Osäker på examinatorns namn, tog namnet på den person som skickade mejl om betyg.</p>

Thesis (MComm)--Stellenbosch University, 2011. / ENGLISH ABSTRACT: This study analyses the relationship between mineral rent and Botswana’s economic diversification. The analysis is done by; 1) providing an overview of Botswana’s economy and development, 2) explaining the economics of minerals, 3) describing Botswana’s mineral economy, 4) examining how mineral rent is generated and utilised in Botswana, 5) analysing the economic diversification of Botswana, 6) investigating constraints faced by Botswana in diversifying the economy, and 7) concluding by offering recommendations that can assist policy makers with decisions regarding economic diversification. The economic value of minerals is measured by the rent they earn. Rent is profit above the normal return on total investment and is due to the scarcity of minerals. Management of minerals to achieve sustainability requires that rent is recovered through various taxes and be invested in economic activities that can provide income and employment for the future generation. In Botswana, mineral rent is generated from royalty payments, profit taxes and withholding tax on remitted dividends. Total resource rent was estimated at P160 million in 1979, but by the 2008/09 financial year, rent had increased by more than tenfold and was estimated at P10.56 billion. Diamond mining generates most of the rent and accounts for most of all the economic value of minerals, between 98 percent and 99 percent from 2004 and 2009. Copper nickel is the second most important resource after diamonds with a contribution that is between 1.03 percent and 1.34 percent of total resource rent in the 2007/08 and 2008/09 financial years. Coal, gold and soda ash are much less valuable from an economic perspective. In the 1973/74 financial year, the mining industry contributed about 34 percent to Gross Domestic Product (GDP) at current prices and a high of 48 percent in 2000/01, although contribution declined to 40 percent in 2007/08. The mining industry contributed about 90 percent to total exports in 2001. In the same year, diamonds contributed about 85 percent to total exports and about 95 percent to the mining sector’s exports. Since minerals took centre stage in the economy of Botswana, rent has been utilised to acquire foreign reserves abroad and finance development priorities such as the provision of health care, education and infrastructure. Part of the rent is also used to develop economic diversification through targeted initiatives that increase private sector involvement in economic activity. Even though that is the case, the Ogive Index shows that from 1973 to 2009, economic diversification has taken place, but at a slow pace. Slow economic diversification is a result of structural problems such as; a small domestic economy, high transportation costs, high cost of doing business, not fully benefitting from regional trade and vulnerability to transitional challenges like the economic crisis’. To overcome these problems, Botswana should benchmark in other mineral-rich countries to address internal capacity problems and production deficiencies. The country should also strive to benefit from international trade at a bilateral, regional and multilateral level. / AFRIKAANSE OPSOMMING: In hierdie studie is die verhouding tussen mineraalontginningsurplus en Botswana se ekonomiese diversifikasie ontleed. Hierdie ontleding is gedoen deur 1) ’n oorsig te bied van Botswana se ekonomie en ontwikkeling; 2) die ekonomie van minerale te verduidelik; 3) Botswana se mineraalekonomie te beskryf; 4) die manier waarop mineraalontginningsurplus in Botswana gegenereer en benut word, te ondersoek; 5) die ekonomiese diversifikasie van Botswana te ontleed; 6) beperkings waarvoor Botswana te staan kom in die diversifikasie van die ekonomie te ondersoek; en 7) af te sluit met aanbevelings wat beleidmakers kan help met besluite oor ekonomiese diversifikasie. Die ekonomiese waarde van minerale word gemeet deur die ontginningsurplus wat dit verdien. Ontginningsurplus is wins bo die normale rendement van die totale belegging en is in gebruik weens die skaarste van minerale. Die bestuur van minerale vir volhoubaarheid vereis dat ontginningsurplus deur verskeie soorte belasting verhaal word en in ekonomiese aktiwiteite belê word wat inkomste en werkverskaffing vir die toekomstige generasies kan verskaf. In Botswana word mineraalontginningsurplus uit tantièmebetaling, winsbelasting en terughoubelasting op geremitteerde dividende gegenereer. Die totale hulpbronontginningsurplus is in 1979 op P160 miljoen geraam, maar teen die 2008/09- finansiële jaar het die ontginningsurplus tienvoudig vermeerder en is dit op P10.56 biljoen geraam. Diamantontginning genereer die meeste van die ontginningsurplus en is verantwoordelik vir die grootste gedeelte van die totale ekonomiese waarde van minerale – tussen 98% en 99% vanaf 2004 tot 2009. Nikkeliet is die tweede belangrikste hulpbron ná diamante,met ’n bydrae van tussen 1.03% en 1.34% van die totale hulpbronontginningsurplus in die 2007/08- en 2008/09- finansiële jaar. Steenkool, goud en soda-as is aansienlik minder waardevol vanuit ’n ekonomiese perspektief. In die 1973/74- finansiële jaar het die mynwese ongeveer 34% tot die bruto binnelandse produk (BBP) teen huidige pryse bygedra, met ’n hoogtepunt van 48% in 2000/01, alhoewel die bydrae tot 40% in 2007/08 afgeneem het. Die mynwese het ongeveer 90% tot totale uitvoere in 2001 bygedra. In dieselfde jaar het diamante ongeveer 85% tot totale uitvoere en ongeveer 95% tot die mynbedryf se uitvoere bygedra. Sedert minerale die kern van Botswana se ekonomie begin vorm het, is ontginningsurplus gebruik om buitelandse reserwes te verkry en ontwikkelingsprioriteite, soos die verskaffing van gesondheidsorg, opvoeding en infrastruktuur, te finansier. ’n Gedeelte van die ontginningsurplus word ook gebruik om ekonomiese diversifikasie te ontwikkel deur teikeninisiatiewe wat die privaat sektor se betrokkenheid by ekonomiese aktiwiteit bevorder. Ten spyte hiervan, toon die Ogive-index dat ekonomiese diversifikasie wel van 1973 tot 2009 plaasgevind het, maar dat dit teen ’n stadige pas geskied het. Stadige ekonomiese diversifikasie is ’n gevolg van strukturele probleme soos ’n klein binnelandse ekonomie, hoë vervoerkoste, hoë sakekoste, streekshandel waaruit voordeel nie ten volle verkry word nie en kwesbaarheid vir oorgangsuitdagings soos die ekonomiese krisis. Botswana moet met ander mineraalryk lande normeer om interne kapasiteitsprobleme en produksiegebreke die hoof te bied. Die land moet ook daarna streef om op ’n bilaterale, streeks- en multilaterale vlak uit internasionale handel munt te slaan.