Thesis (M.A.)--University of Toronto, 2005. / Includes bibliographical references (leaves 108-112).

M.Comm. / This paper empirically examines the effect of financial development on growth in the SADC during the period 1993-2003. To perform this analysis, the study employed a single indicator of financial development, i.e. financial deepening and applied balanced panel model data using a suite of panel models: Ordinary Least Square (OLS), Least Square Dummy Variable (LSDV) and Random Effect Model (REM) econometric methodologies. The results of the study support the view that financial development positively affects economic growth both including and excluding South Africa. This finding suggests that the financial reforms launched in the 1990s can to a certain extent explain the rebound in the economic performance since then. However, further deepening of the financial sector through more financial liberalization in the SADC region will be an important instrument in stimulating investment through more savings and therefore more long-run economic growth.

Thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy in the Faculty of Commerce, Law and Management, Wits Business School at the University of Witwatersrand, Johannesburg 2016 / The primary objective of this study was to investigate the role played by financial market development (FMD) in harnessing international capital flows of foreign direct investment (FDI) and foreign portfolio investment (FPI) in nine selected African economies, from 1980 to 2014. The study employed various econometric techniques such as the Generalised Method of Moments (GMM) for the dynamic panel data, Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration, Vector Error Correction Models (VECM) as well as Granger-causality tests. Using Principal Components Analysis (PCA), we also developed an infrastructural development index, as well as one for financial market development. The results highlighted that FDI to sampled African countries are determined by agglomeration effects, FPI, human capital development, real gross domestic product (GDP) growth, interest rates, inflation, infrastructure, trade openness, institutional quality, natural resources, and only certain individual financial market variables. FDI determinants are magnified by the application of the infrastructural and financial market development indices. FPI inflows, on the other hand, are influenced by FDI, exchange rates, stock market capitalisation, financial system liquidity, FPI agglomeration effects, capital account openness, and real GDP growth rates. The composite FMD index has a positive and highly significant effect on both FDI and FPI inflows to the selected African countries. There is reasonable evidence of bi-directional Granger causality between FDI and FPI, and FPI and overall FMD (FMD index), thus implying complementarity, as well as uni-directional Granger causality emanating from FDI to stock market capitalisation, FDI to domestic credit to the private sector by banks and also from FDI to overall financial market development in Botswana, Cote d’Ivoire, Egypt, Kenya, Mauritius, Morocco, Nigeria, South Africa, and Tunisia. In light of these findings, the policy implications are that African governments need to be conscientised on the benefits of financial market liberalisation and development. An open economy, complemented by adequate infrastructural and financial market development, plus appropriate regulation would play a significant role in attracting the type of international capital flow desired by the African host country’s level of economic development, without the concern of depleting other non-renewable natural resources. / GR2018

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.

Attaining high levels of economic growth and development has been one the goals of the Southern African Development Community (SADC). This paper investigates the relationship between financial liberalisation and economic growth in SADC countries. Annual data for the 15 SADC countries for the period 1985-2011 was used to develop a fixed effect model, generalised method of moments (GMM) as well as the fully-modified OLS (FMOLS) cointegration test. The results revealed that there is a positive relationship between financial liberalisation and economic growth in SADC but there is no long-run relationship between the two variables. It is recommended that the SADC adopt measures to increase the level of financial openness in the region in order to increase economic growth but this policy should be supplemented by other growth enhancing policies in order to increase economic growth over the long-term. However, prior to the increase in the level of financial openness, well-defined property rights and a sound regulatory framework should be in place to monitor the financial liberalisation process in order to avoid financial crises.

A research report submitted in partial fulfilment of the Degree of Master of Commerce (Economics/Economic Science) in the School of Economic and Business Sciences, University of the Witwatersrand, 2018 / World trade has become a significant factor in improving standards of living, creating employment, improving countries’ balance of payments and making it possible for consumers to have a wide variety of goods and services to choose from (Vijayasri, 2013). Living examples of some of the benefits of world trade are those brought by the African Growth and Opportunity Act (AGOA) initiative. [No abstract provided. Information taken from introduction]. / XL2019

This research focused primarily on certain bilateral agreements as well as relevant multilateral agreements that govern the world's investment system. Attention is given to governance in the world of foreign direct investment and the aims and objectives of the integration initiative, as well as to the centrality of investment law in the scheme. The role of investment and the effect this have on the development of Africa is also a focal point of this paper. The central objective of the integration initiative is also looked at against the backdrop of investment-rating agencies and investment flows around the world.

A project report submitted in partial fulfilment of the requirements for the degree of Masters of Management (Finance and Investment) in the Faculty of Commerce, Law and Management Wits Business School, University of the Witwatersrand, 2016 / It is well acknowledged that infrastructure provision is linked to economic growth , in particular airports are viewed a strategic catalysts to this growth bringing about increased opportunities for trade, tourism, and serving as an enabler for business. African airports have historically suffered underinvestment as a result of competing priorities for government funding; growing safety concerns, increased traffic growth and globalisation, and the need for refurbishment and modernisation of systems. African nations are now beginning to spend considerable amounts on aviation infrastructure. The purpose of this study evaluate the financing mechanisms available to governments, to access the role that airport economic regulation plays in attracting investment and the potential of leveraging the securitisation model for the financing of aviation infrastructure. It was found that, no one funding mechanism is king and that airport owners and operators should attempt a diversification strategy towards their funding sources, taking into account that the investment appetite of various investors will be different at the various phases of infrastructure project delivery. It was found that airport regulation is key to harnessing the certainly of future cash flows required by private investors , and may be the required mechanism to off load the financial burden of smaller airports from the government budgets. Lastly it was found that development finance institutions may be the biggest benefactors to utilising the securitisation model to unlock further developmental funding; key to this is the support of institutional investors. / XL2018

Report submitted in partial fulfilment of the requirements for the degree of Master of Management in Finance and Investment Faculty of Commerce, Law and Management Wits Business School University of the Witwatersrand Johannesburg, South Africa / The development of transportation infrastructure, including airports, plays a vital role in economic growth in emerging markets. However, government budget allocations for this purpose are often insufficient to realise the full benefits. Project finance and Public Private Partnerships (PPPs) in particular, have been used to enable private sector participation in the financing of airport development. Airports PPPs have successfully been implemented worldwide, including, to a lesser extent, in emerging markets and Sub-Saharan Africa (SSA). There is a lack of literature on the benefits, risks, challenges and opportunities associated with airport PPPs in SSA, which this research aims to address. Case studies of recent airport PPPs in Brazil and India provide an outline of the emerging market context and insight into factors that affected these airport PPPs. In-depth interviews with two representatives of governments in SSA provide a rich view on the perceived benefits, risks, challenges and opportunities associated with airport PPPs in Africa. This research has found that airport PPPs can contribute to airport developments in SSA by enabling the private funding of airport upgrades and expansions. However, governments have an important role to play in providing an enabling environment for private investors by improving investability and implementing clear and practical PPP legislation, aviation policies and economic regulation of airport services. The limited institutional capacity and domain expertise of SSA governments is perceived as a challenge to the implementation of airport PPPs in the region. The low level of air traffic and small number of airports that handle more than one million passengers per annum further limit the opportunities for airport PPPs in SSA, although strong GDP growth provides an encouraging sign. Successful airport PPPs require the participation of private consortia with expertise in airport operations, construction and infrastructure concessions. Financing of airport PPPs is done preferably from domestic sources and development finance can play an important role. There are risks associated with the foreign ownership of key national infrastructure and a reliance on private sector to provide public infrastructure. Lighter forms of PPPs that limit the private sector risk exposure may be more suitable to the low-traffic and high-risk environment in SSA. / MT2017

Doctoral thesis submitted in fulfilment of the requirements for the award of Doctor of Philosophy The Graduate School of Business Administration, Wits Business School University of the Witwatersrand June, 2017 / Financial sector development has been projected to play a very significant role in economic growth through the provision of improved quality and quantity of financial services. While financial development–growth nexus has received much attention in the literature, important research gaps still remain largely in areas such as financial–real sector interaction in growth trajectory, threshold effects, finance–volatility–shocks linkages; and legal system–information asymmetry nexus. Knowledge of these relationships is extremely crucial in regulating the financial sector and conducting prudent macroeconomic policy more generally. Using sub–Saharan Africa (SSA) as a case, this thesis consists of four self–contained empirical essays each investigating a critical gap relying on several advanced econometric techniques. In the first essay, we examine the effect on economic growth when financial sector growth outstrips the solvency needs of the real sector. In this context, we find that more than two–thirds of our sampled countries in SSA have experienced at least one episode of excessive credit growth relative to real sector needs. While financial development supports economic growth, the extent to which finance helps growth depends crucially on the simultaneous growth of real and financial sectors. The elasticity of growth to changes in either size of the real sector or financial sector is higher under balanced sectoral growth. We also show that rapid and unbridled credit growth comes at a huge cost to economic growth with consequences stemming from financing of risky and unsustainable investments coupled with superfluous consumption fuelling inflation. However, the pass–through excess finance–economic growth effect via the investment channel is stronger. A good understanding of the optimal level of credit consistent with long run economic growth is needed as existence of an undisturbed equilibrated growth of real and financial sectors is a necessary condition for a smooth economic growth. By introducing a previously missing link, our findings resolve the seemingly conflicting and highly contested results in the finance–growth literature. The second essay investigates whether the impact of finance on growth is conditioned on the initial levels of countries‟ income per capita, human capital and financial development. While financial development is positively and significantly associated with economic growth, our evidence suggests that, in almost all the threshold variables, below a certain estimated threshold, financial sector development is positively and insignificantly related to growth. In other words, below the threshold level of per capita income, human capital and the level of finance, economic growth is largely insensitive to financial development while significantly influencing economic activity for countries above the thresholds. The main conclusion drawn is that higher level of finance drives long run growth and so is the overall level of income and human capital. In the third essay, we disaggregate volatility into its various components in examining the effect of financial development on volatility as well as channels through which finance affects these volatility components. What emerged is that while financial development affects business cycle volatility in a non–linear fashion, its impact on long run fluctuation is imaginary. More specifically, well–developed financial sectors dampen volatility. The findings also revealed that while monetary shocks have large magnifying effect on volatility, their effect in the short run is minuscule. The reverse, however, holds for real shocks. The channels of manifestation shows that financial development dampens (magnifies) the effect of real shocks (monetary shocks) on the components of volatility with the dampening effects consistently larger only in the short run. A key implication emanating from this essay is that, strengthening financial sector supervision and cross–border oversight may be very crucial in examining the right levels of finance and price stability necessary to falter economic fluctuations. In the final essay, the study re–interrogates the role of law in financial development in the light of evolving legal systems in SSA as well as how legal origin explain cross–country differences in economic volatility through its effect on information asymmetry. Our evidence suggests that legal origin significantly explains cross–country differences in financial development and economic volatility. More importantly, relative to civil law, English common law countries and those in Southern Africa have higher financial sector development both in terms of financial activity and banking efficiency on the back of lower volatility. While private credit bureau positively (negatively) affects financial development (economic volatility) with economically large impact for English legal legacy countries, the latter effect is contingent on the form of legal origin suggesting that, the establishment of information sharing offices per se may be insufficient in taming growth vagaries. The effectiveness of law is exceedingly relevant. At the policy front, maintaining more agile and effective legal systems that are responsive to changing financial landscape while forcing economic agents to improve information infrastructure is healthy for both financial sector development and macroeconomic stability. / MT2017