Vol. 10 No. 5(J) (2018)

The study made use of the gravity model to analyze the behavior of South Africa’s trade patterns at industry level. Using SIC 2-digit level data for the period 1996-2013 based on two sub-samples, 1996-2004 and 2005-2013, the study found that trade liberalization was not universally influential on trade patterns. Some industries did not exhibit significant behavior changes as a result of tariff liberalization. The results show that Agriculture, mining ores, crude oil, machinery and transport are the only industries from the selected sample of nine that are significantly influenced by trade liberalization policy. Furthermore, empirical results indicate that trade liberalization hinders extensive margins and does not encourage intensive margins.

This paper explores, the hotly debated topic among economists and policymakers, whether fiscal and monetary policies impact on households by examining the relevance of the absolute income hypothesis in explaining private consumption expenditure and its relationship with household disposable income in South Africa. Worldwide, private consumption expenditure remains a big puzzle for leading consumption function theories. Friedman’s permanent income hypothesis posits that private consumption expenditure is not affected by how much consumers earn on a daily basis, but by what they expect to earn during their lifetime. Friedman’s permanent income hypothesis is at odds with Keynes’s absolute income hypothesis, that private consumption expenditure is affected by fiscal stimulus policies, which are effective for increasing economic activity and employment. Subscribing to the former underrates the potential power of fiscal stimulus policies and other monetary or trade policies that boost short-term income. The overarching objective of this paper is to ascertain whether patterns of private consumption expenditure in South Africa are determined by Friedman or Keynes’s theory. The paper specified econometric equations with quarterly seasonally adjusted data from the South African Reserve Bank for the sample period 1984 to 2015 and estimated them with cointegration techniques consisting of the Engle-Granger two-step approach. The importance of the paper and its scientific novelty are that it is more realistic since it specified models that take into account the reaction time of the dependent variable when the independent variable changes by imposing lags on the variables. The empirical results indicate that in South Africa, when household disposable income changes over time, private consumption expenditure depends more on a household’s previous disposable income than its current disposable income. The main empirical finding is that the absolute income hypothesis is not appropriate in explaining private consumption expenditure in this country. Even when the interest rate was included in a modified absolute income hypothesis, the overall estimates were not robust. Hence, estimates of the short- and long-run regression models were not consistent with the absolute income hypothesis. This is in line with arguments put forward in some extant studies using this model, that the fiscal stimulus policies might not generate the desired increased economic activity and employment. If households use money from the fiscal stimulus policies to bail themselves out of existing debts rather than consume additional goods and services which, would be the catalyzer to increase Gross Domestic Product (GDP).

The purpose of the present study was to analyze the effect of multiple variables on the decision to invest in high versus regular-quality coffee production inputs. Thereby, a laboratory experiment was conducted with one hundred twenty-three undergraduate students, and posterior logistic regressions with random intercept were executed to analyze the collected data. The results showed that when there is a difference in the investment cost between a coffee of higher quality and a coffee of lower quality (regular), there is a slight increase in the odds ratio of investment in quality coffee, when going from an uncertainty condition of income to one with certainty in income of a higher quality coffee. On the other hand, when the cost is equal for both types of coffee, there is a strong increase in the odds ratio when going from an uncertainty condition to one with certainty. In addition, it was found that both the possibility of loss if there is an investment in a higher quality coffee and the ambiguity in the probability of facing a favorable business climate, reduce the odds ratio of investing in higher-quality coffee.

The central aim of this paper is to establish the asymmetric effects of cyclical output on South Africa’s unemployment rate. To achieve this objective, the non-linear autoregressive distributed lag model (NARDL) is applied on quarterly data spanning the periods 1994Q1–2017Q4. For every 10% economic contraction and expansion respectively according to the results, the response of the labour market is asymmetric in the long-run in that it loses more workers during contraction (10.3%) than it employs during recoveries (8%) supporting the labour market hysteresis. This is particularly true post the 2009 Global crisis suggesting that firms might have become more risk-averse to short-lived recoveries in recent years. The weak response of the labour market during expansions supports IMF’s recent proposition that economic recovery alone may not be enough to address South Africa’s unemployment problem.

Cost management is key to project implementation and an important tool for maximizing profit nonetheless it has been a major challenge for most indigenous construction firms in Ghana. The study seeks to investigate the important factors influencing cost management practices among indigenous construction firms in Ghana and to ascertain whether there is a significant difference between the responses of the categories of the firm (construction and consultancy firms) in Ghana. A total of 82 questionnaires were retrieved from 100 administered questionnaires to professionals with indigenous construction firms representing 82% response rate. Data gathered were analyzed descriptively using Mean Item Score (MIS) via SPSS version 24 to identify the most important factors. The Kaiser-Meyer-Olkin Measure of Sampling Adequacy and Bartlett’s test of sphericity conducted showed a KMO score of 0.894. Bartlett’s test of sphericity also revealed a significance level of 0.000 (p˂0.05). The ANOVA suggest that there is no significant difference between the responses between the categories of firms. Indigenous firms are encouraged therefore to consider managing disagreement between project team members by ensuring constant project implementation meetings and to understand ground conditions of projects by visiting proposed sites prior to estimation and tendering. Finally, communication and expenditure control measures should be enhanced and introduced respectively. The implication of this study while contributing to the discourse on cost management practices of indigenous constructions firms in Ghana, also outlines the major (highly ranked) factors influencing indigenous firms in the management of project cost, before, during and after project implementation.

South Africa is currently running inflation targeting monetary policy since the year 2000 solely to achieve price stability. However, the persistent depreciation of the rand is making keeping inflation within the stipulated band very cumbersome. The objective of this paper is to find the duration taken by price indices to respond to exchange rate fluctuations. A Recursive VAR was used to investigate exchange rate passthrough (ERPT) to tradable prices in South Africa. Using monthly data, we find producer prices contributing highly to inflation with an average of 22% of fluctuations passed to prices. Large and persistent ERPT especially on import and producer prices accompanied by high wage demands and a depreciating currency are worrying factors for South Africa. Policy makers are advised to consider targeting the exchange rate if inflation is to be kept under control.

A lot has been published on burnout within the service industry; however, an in-depth investigation of job stressors and burnout in both the safety and health sectors of Namibia has been left unexplored. This study investigated the relationship between job demands-resources and burnout. Burnout occurs when an individual is exposed to emotional and interpersonal stressors on the job (exhaustion, cynicism and professional efficacy). Job demands require continuous efforts and job resources are aspects of the organisation that are helpful in achieving goals, reducing costs of job demands and stimulating growth and development. The sample is made up of police officers (n=482) and nursing staff (n=672) from various regions within Namibia (n=1154). Results were analysed using the SPSS (version 24) to assess the relationships between the variables. The results revealed exhaustion had a relationship with the workload, resources and organisational support. Lower levels of workload, accompanied with higher levels of resources and organisation support would reduce exhaustion. The workload can be managed by making using of timemanagement training, improving delegation, and by ensuring the employees have mentors and supervisory support. Training opportunities improve work resources and reduce work stress. Healthy coping strategies, like being active and meditation help to alleviate stress (exhaustion). Having healthy work relations enhances organisational support and improves coping mechanisms of employees.

This study evaluates consumers’ willingness to pay (WTP) a premium for organic vegetables and fruits in Pietermaritzburg metropolis, KwaZulu-Natal province, South Africa, using data collected from 210 consumers approached during their food shopping. The standard economic approach to valuation was extended by including psychological factors. The results from the empirical model show that psychological factors (behavioural control, attitude and subjective norms) exerted more influence on consumers’ WTP for organic products. In addition, socio-demographic factors such as gender, education, number of children in a household, high income and race, are statistically significant in explaining consumers’ WTP for organic food. Policy implications for advancement and improved promotion, sales and consumption of organic food products were discussed.

The paper modelled the BRICS exchange rates using the Vector Autoregressive (VAR) model. Monthly time series data ranging from January 2008 to January 2018 was used. All the analysis was computed using the R programming software. The study aimed to determine a suitable VAR model in modelling the BRICS exchange rates and determine the linear dependency between the financial markets (in particular BRICS exchange rates). Optimal lag length of one (1) was selected using the SIC. The VAR model with lag length one was fitted and the parameters were estimated. The results revealed that there is a unidirectional relationship amongst the BRICS exchange rates. The VAR (1) model did not satisfy all the diagnostic tests, therefore forecasting future values of the BRICS exchange rates could not be computed. Recommendations for different approaches were formulated.

Since its introduction in 2008, the value and popularity of Bitcoin have risen exponentially. Despite being 10 years old, the concept of crypto currency is fairly new in South Africa. The increase in the value of Bitcoin, together with extensive media coverage, has led to the creation of a Bitcoin economic system with many South Africans jumping on the Bitcoin bandwagon. This study aims to identify the determinants affecting end-user adoption of Bitcoin in South Africa and to determine the main use of the crypto currency by South Africans. A research model was developed utilising constructs from the technology acceptance model and theory of planned behaviour. The model was then tested empirically by utilising two survey-based questionnaires, one for current users of Bitcoin and one for non-users. For users, perceived usefulness and access to facilitating conditions were the primary determinants influencing their decision to adopt the crypto currency while lack of trust and social influences were the primary reasons non-users chose not to adopt Bitcoin.