The correct measure and definition of liquidity in finance literature remains an unresolved empirical issue. The main objective of the present study was to develop, validate and test the liquidity mismatch index (LMI) developed by Brunnermeier, Krishnamurthy and Gorton (2012) empirically. Building on the work of these prior studies, the study undertook to develop a measure of liquidity that integrates both market liquidity and funding liquidity within a context of asset liability management. Liquidity mismatch indices were developed and then tested empirically to validate them by regressing them against the known determinants of liquidity. Furthermore, the study investigated the nexus between liquidity and profitability. The unit of analysis was a panel of 12 South African banks over the period 2005–2015. The study developed two liquidity measures – the bank liquidity mismatch index (BLMI) and the aggregate liquidity mismatch index (ALMI) – whose performances were compared to and contrasted with the Basel III liquidity measures and traditional liquidity measures using a generalised method of moments (GMM) model. Overall, the two constructed liquidity indices performed better than other liquidity measures. Significantly, the ALMI provided a better macro-prudential liquidity measure that can be utilised in dynamic stochastic general equilibrium (DSGE) models, thus presenting a major contribution to the body of knowledge. Unlike the LMI, the BLMI and ALMI can be used to evaluate the liquidity of a given bank under liquidity stress events, which are scaled by theoretically motivated and empirically supported liquidity weights. The constructed BLMI contains information regarding the liquidity risk within the context of asset liability mismatches, and the measure used comprehensive data from bank balance sheets and from financial market measures. The newly developed liquidity measures are based on portfolio management theory as they account for the significance of liquidity spirals. Empirical results show that banks increase their liquidity buffers during times of turmoil as both BLMI and ALMI improved during the period 2007–2009. Subsequently, the improvement in economic performance resulted in a rise in ALMI but a decrease in BLMI. We found no evidence to support the theory that banks, which heavily depend on external funding, end up in serious liquidity problems. The findings imply that any policy implemented with the intention of increasing bank capital is good for bank liquidity since the financial fragility–crowding-out hypothesis is outweighed by the risk absorption hypothesis because the relationship between capital and bank liquidity is positive. / Finance, Risk Management and Banking / D. Phil. (Management Studies)

The study investigates the extent of distributional impacts of labour-intensive road projects using a geographical approach. The aim is to evaluate infrastructural effectiveness. The central premise is that the interface between road investment and economic development has broad implications that are beyond transportation’s basic purpose of providing access and mobility. Communities are motivated by the outcomes and impacts of road infrastructure development in improving the productiveness of the economy, in line with socio-economic development and other multiplying effects. The objective was to describe the nature and delivery mechanisms of labourintensive road projects, evaluate the impact thereof on the project participants and their communities and explore the constraints and challenges experienced by these initiatives. The impact of the Gundo Lashu programme was measured, based on an assessment of programme outputs, outcomes and impacts, to determine whether the project had the desired effects on individual participants and their households. A matched control case study design, using a combination of qualitative and quantitative approaches was adopted. The study found that the Gundo Lashu programme had achieved the expected outputs in terms of the total number of jobs created, total road length constructed and maintained. However, the communities’ socioeconomic outcomes and the impacts of the programme on poverty and sustainable livelihoods were mixed. These conclusions re-affirm the notion that the development of rural road infrastructure alone by labour-intensive construction methods, is not sufficient in tackling poverty. While government is focusing on addressing unemployment and skills development through labourintensive road construction programmes, there is a need to ensure proper integration of government services to make a significant impact. Huge deficiencies exist in the inter-linkages between the programme planning process and the municipal planning system and that there are a number of management and planning, structural and functional, human resources and funding barriers to proper planning, implementation and monitoring of projects within the Gundo Lashu programme. Various challenges and barriers emanates from lack of coordination, political interferences and lack of strategic direction. Key recommendations include comprehensive road planning, better project targeting mechanisms, development of guidelines for future maintenance, skills training and capacity development, and resultsbased monitoring. / Geography / D. Phil. (Geography)

The annual budget cycle in urban road/transport authorities by implication requires transport infrastructure projects to be ranked in terms of their relative value, to enable project selection by starting from the most deserving proposal. This follows from the fact that the total cost of feasible projects practically always exceeds available funds, signalling the need for some kind of selection protocol. Cost benefit analysis (CBA), when applied in a narrow sense, is not suitable for this purpose as it focuses on economic efficiency only. Attempts to broaden it have been criticized by some scholars. Although the diversity of impacts points to a multi-criteria analysis (MCA) approach, this is considered unscientific in certain quarters; at best, its practical value needs to be demonstrated. In the case of the City of Tshwane (CoT), problems with current project appraisal are evident in that different methods – none of which is defensible – are used, sometimes resulting in rankings that are contradictory. This thesis therefore attempts the following: (a) to develop a basic approach that combines the best elements of traditional methods; (b) to customize this approach to the specific context and needs of road authorities in the municipal sphere of government, using CoT as an example; and (c) to demonstrate the application of the resulting appraisal framework, utilizing appropriate decision-support software for this purpose. Recommendations include the following: An appraisal framework should combine CBA and MCA by adopting an overall MCA approach with economic efficiency – focusing on the optimal allocation of scarce resources – as one of the decision criteria. For completeness‟ sake, three additional decision criteria are deemed necessary: equity (focusing on income distribution impacts); sustainability (focusing on environmental impacts); and compatibility (focusing on the alignment of projects with stated goals and objectives). This framework may well apply to road authorities in other spheres of government – the optimum application in each case will depend on the composition of the relevant decision-making team. The inherent nature of project appraisal requires a two-phased approach in all cases: the evaluation of mutually exclusive alternatives, followed by the ranking of independent projects. State-of-the-art decision support software is indispensable for implementing this framework. / Transport Economics / D. Com. (Transport Economics)

A number of developing countries have been on a quest to attract foreign direct investment (FDI) with the intention of increasing capital inflow through technological spillovers and transfer of managerial skills. FDI can increase economic growth and development of a country by creating employment, and by doing so, increasing economic activity that will lead to economic growth. South Africa is one of the economies that strive to attract more FDI inflows into the country to be able to improve its economy, and the country has adopted policies that drive the motive to attract FDI inflows. This study investigated the effect of FDI on sectoral growth over the period 1970–2014. The purpose was to find out where in the three key sectors of South Africa FDI is more significant. The review of theoretical and empirical literature on FDI revealed that FDI has a diverse effect on economic growth, both in developed and developing countries. Theoretical literature analysed the behaviour of multinational firms and the motive behind multinationals investing in foreign countries. According to Dunning (1993), firms have four motives to decide to produce abroad, namely natural resource-seeking, market-seeking, efficiency-seeking and strategic asset-seeking. Empirical studies on sectors show that FDI inflows affect different sectors in different ways, and that the agricultural sector does not usually gain from FDI inflows, whereas subsectors in the industry and services sector grow from receiving FDI inflows. Sectoral analysis revealed that the services sector receives more FDI inflows, when compared to the agriculture and industry sector. The study followed an econometric analysis technique to test the effect of FDI inflows on the agriculture, industry and services sectors. The augmented Dickey–Fuller and Phillips–Perron tests were used to test for unit root. Both tests revealed that variables were not stationary at level, but that they become stationary at first difference. Vector autoregressive (VAR) models were estimated, and four types of diagnostic tests were performed on them to check the fitness of the models. The tests showed that residuals of the estimated VARs were robust and well behaved. The Johansen cointegration test suggested there is cointegration and that there is a long-run relationship between variables. Following the existence of cointegration, the estimated Vector error correction model (VECM) results showed that FDI has a significant effect on the services and industry sector, but has a negative effect on the agricultural sector. Impulse response analysis results revealed the correct signs, and confirmed the VECM results. FDI inflows explain a small percentage of growth in agriculture and industry, but a sizable and significant percentage in the services sector. / Economics / M. Com. (Economics)

Thesis submitted in fulfilment of the requirements for the degree Master of Technology: Public Management in the Faculty of Business at the Cape Peninsula University of Technology 2013 / This study investigated the role of the informal business sector in local economic development with reference to Buffalo City Metropolitan Municipality (BCMM) as one of the possible solutions to deal with socio-economic challenges in the region. This study described the state of the informal business sector, the contributions thereof in local economic development, and the level of responsiveness from local authorities in Buffalo City Metropolitan Municipality. A survey questionnaire was administered to informal business actors in BCMM and semi-structured interviews were conducted with BCMM managers in the Business Development and Local Economic Development Directorates who were purposively selected because of the positions that they hold in the municipality. This study found that the informal business sector is underdeveloped in BCMM, and is imbued with development challenges, namely; support services such as infrastructure (designated municipal trading stalls) and access to financial support and the lack of strategy/policy dedicated to the prioritisation of the needs of the informal business sector. The informal business sector in BCMM is dominated by small and micro businesses. The municipality acknowledges the contributions of the informal business sector in local economic development from a job creation (selfemployment) and poverty alleviation perspective. However, the business environment of the informal business actors requires urgent development and support to stimulate and encourage the gains of this sector and the role that it plays on local economic development.

Thesis (MTech (Business Administration (Entrepreneurship)))--Cape Peninsula University of Technology, 2017. / Entrepreneurial activities are very evident within the Cape Metropole as the proliferation of small, medium and micro-sized enterprises (SMMEs) will attest. The most recent literature confirms the preponderance of immigrants in these economic activities. This phenomenon is unfolding against the backdrop of the contingent of challenges which they face which are not limited to discrimination, limited access to finance from formal financial institutions, inadequate skills, and language barriers. The limited access which they have to obtaining finance from formal financial institutions constitutes one of the most significant obstacles for many immigrant entrepreneurs. There is evidence to suggest that in response to this state of affairs, immigrants resort to unconventional means to obtain finance for their entrepreneurial activities. It has been found that, immigrants form self-help financial associations which are known as stokvels in South Africa as a means of obtaining the finances which are needed for the start-ups and even for the growth of their businesses. In fact, it could be asserted that the inability of immigrant entrepreneurs to obtain loans from commercial banks and other related financial institutions has resulted directly in the creation of immigrant-run informal financial institutions such as stokvels. Consequently, the main objective of this study was to assess the role which stokvels which are known in Cameroon as “njangis” or “tontines”, play in the start-ups and growth of businesses which are owned by Cameroonian immigrants in the Cape Metropole. Both quantitative and qualitative approaches and research methods were used to conduct this study. The quantitative and qualitative data was collected through the administration of a questionnaire and the conducting of face-to face interviews respectively, owing to the nature of the target population. The data which was collected from the respondents who completed the questionnaires was captured, categorised and analysed in relation to the research questions through the use of SPSS statistical software and the findings were presented in the form of frequency tables and pie charts. The study ascertained that “njangis” play a very important role in the businesses of Cameroonian immigrants and in their daily lives as they are not only a source of capital for the start-ups and expansion of the businesses of their members, but they also provide a means of saving money, as most of them do not have access to bank accounts. According to some of the respondents, some of the “njangis” even serve as forums for discussing business ideas. Like most other organisations, stokvels have their own unique challenges, which will be discussed comprehensively in Chapter Four, particularly with respect to the methods which are employed to overcome them. It is the considered opinion of the researcher that it is in the domain of entrepreneurship in particular that South African citizens could learn a great deal from immigrants from other African countries about the successful starting and running of small, medium and micro sized businesses as recent literature has demonstrated quite conclusively the significant contribution which their entrepreneurial enterprises make to the development of the South African economy, in terms of both earning revenue for the South African government and providing employment to South African citizens.

Submitted in fulfilment of the requirements of a Degree of Master of Technology: Business Management, Durban University of Technology, Durban, 2017. / Positive women entrepreneurial support can change the entrepreneurial spirit, attitude and perceptions among the women communities with specific references to rural women in the northern region of KwaZulu-Natal province. A lot of previous research survey about how SMMEs can improve women’s socio-economic challenges did not properly include those women living in the rural places such as KwaZulu-Natal. This study aims to analyse the use of SMMEs as a strategic tool for women’s socio-economic empowerment in rural northern KwaZulu-Natal. The study was conducted within the rural areas of northern KwaZulu-Natal using qualitative method. The sample for the study consisted of 250 respondents of rural women SMMEs. The respondents were selected using quota sampling. Respondents were asked to complete 2 page questionnaires with an interviewer present to assist. The data analysis was done by using SPSS version 24.0. The results were presented through tables and bar graphs. The main aim of the study was to investigate and describe the use of SMMEs as a strategic tool, to identify factors influencing the use and to examine to what extent they affect the use of SMMEs as a strategic tool for women empowerment. The findings of the study reveals that rural women SMMEs are mostly affected by external factors while on the other hand they also indicated that lack of proper training and entrepreneurial education have impact on the day- to -day running of their businesses. The study was limited by the exploratory nature and small sampling size. Therefore, generalisation of the findings should be done with care and further research is encouraged and should include other places in the area. / M

This thesis focuses on the labour process within the minibus taxi industry in East London, South Africa. This industry is structurally situated within the informal sector or economy but is marked by contradictory processes of formalisation and in-formalisation. Though the taxi industry seems to straddle the formal and informal economies in South Africa, the study is conceptually framed in terms of the informal sector but in a critically-engaged fashion. The very distinction between formal and informal economies, whether in South Africa or elsewhere, is open to dispute; and, even if accepted, there are differing conceptualisations of the relationship between the ‘two’ economies. Also, the conceptual clarity of the term ‘informal economy’ has been subject to scrutiny, given the vast range of activities it is said to incorporate. While the distinction between formal and informal economies may be a useful conceptual starting-point, this thesis demonstrates that it is analytically useful to speak of degrees and forms of formalisation and in-formalisation along a continuum, rather than to dichotomize economies. The thesis therefore analyses in depth the competing and tension-riddled processes of formalisation and in-formalisation in the minibus taxi industry, and with a specific focus on the labour process.

Agriculture is a major employer of labour in South Africa with about 8.8% of the total labour force directly involved in agricultural production (StatsSA, 2007a). Farm wages and working conditions in the Albany district were researched in 1957 by Roberts (1958) and 1977 by Antrobus (1984). Research in 2008, involving face-to-face interviews of a sample survey of 40 Albany farmers, was undertaken to update the situation facing farm labourers and allowed for comparisons with the work previously done. Farm workers were governed by common law until 1994 when the government intervened with legislation. The introduction of the Basic Conditions of Employment Act (1997) for farm workers, amended in 2002 to include minimum wage legislation, and the Extension of Security of Tenure Act (ESTA) of 1997 impacted the supply and demand of farm workers. Other impacts have been due to the Albany district experiencing an increase in the establishment of Private Game Reserves and game-tourism with a simultaneous decline in conventional farming. It was concluded from the survey conducted that minimum wage legislation decreased the demand for regular and increased the demand for casual labour, which incur lower costs including transaction costs, than their regular counterparts. The ESTA of 1997 contributed to a decreased number of farm residents, which had spin-off affects on the supply of labour. Farmers experienced a simultaneous price-cost squeeze, which furthermore decreased the demand for labour. Studying the working and living conditions showed that farm workers had limited access to educational and recreational facilities which negatively impacted the supply of labour.

In this study an analysis of the long-term equilibrium relationship between economic growth measured as real GDP growth and private capital inflows is explored. The link between private capital inflows and economic growth is well-documented in the literature. However, a void in the literature relates to examining the cointegrating relationship between private capital inflows and economic growth particularly for South Africa. It is widely claimed that private capital inflows foster economic growth by closing the savings/investment gap. However, clarity on this point is necessary because of the seemingly unclear nature of the relationship in the literature. The exact form of this relationship as well as the nature of capital flows that could impact on real growth requires further investigation. Moreover, what exactly happens to this relationship in an economic crisis such as recently recorded in the global financial crisis is not clear. The analysis is undertaken by employing cointegration and vector error correction modeling approach using quarterly data for the period 1989q4-2009q4. This study employs the Johansen (1998) cointegration test. This technique distinguishes itself since it establishes the long run relationship between variables. Thereafter, residual diagnostic checks are performed on the variables. Our results show among others, that private capital inflows have impacted positively on the growth of the South African economy. The areas for further research that emerge from this study include the effect of some government policies on economic growth that should also receive more attention in the future since political instability slows down investment.