Scielo RSS <![CDATA[South African Journal of Economic and Management Sciences ]]> http://www.scielo.org.za/rss.php?pid=2222-343620120002&lang=es vol. 15 num. 2 lang. es <![CDATA[SciELO Logo]]> http://www.scielo.org.za/img/en/fbpelogp.gif http://www.scielo.org.za <![CDATA[<b>Fiscal regime changes and the sustainability of fiscal imbalance in South Africa</b>: <b>a smooth transition error-correction approach</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000200001&lng=es&nrm=iso&tlng=es In addition to the conventional linear cointegration test, this paper tests the asymmetry relationship between fiscal revenue and expenditure, by making a distinction between the adjustment of positive (budget surplus) and negative (budget deficit) deviations from equilibrium. The analysis uses quarterly data for South Africa. The paper reveals that government authorities in South Africa are more likely to react more quickly when the budget is in deficit than when in surplus, and that the stabilisation measures used by government are fairly neutral at low deficit levels; that is, at deficit levels of 4 per cent of GDP and below. We conclude that the assumption that adjustment towards equilibrium is always present and of the same strength under all circumstances, is not valid in the case of fiscal data on South Africa; and that that fiscal sustainability in South Africa has been attained at the expense of a reduction in the ratio of expenditure to GDP on education, and a relatively constant ratio of expenditure to GDP on health. The paper noted that a priori one would expect that such a decline in the allocations to sectors which could stimulate growth and which in turn could generate future revenue, may pose a threat to the accumulated fiscal space. In South Africa the main fiscal challenge, therefore, is to find ways through which the recent gains in fiscal solvency can be consolidated. <![CDATA[<b>Foreign direct investment to Africa</b>: <b>trends, dynamics and challenges</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000200002&lng=es&nrm=iso&tlng=es The FDI debate is often characterised by generalities about the importance of these flows within the global context. This article aims to unpack the African-specific FDI issues in order to get a clearer and more substantiated understanding of the current trends, dynamics and challenges, with emphasis on the period since 2000. The research concludes that nominal flows to the continent are on the increase, with exponential increases over the past decade. The descriptive analysis indicates that flows to the continent are unevenly spread and are concentrated in the largest economies and/or in petroleum-/oil-exporting countries. The impact of FDI on growth and investment in particularly smaller economies indicates that FDI inflows are making a substantial contribution to these economies and illustrates the importance of this source of investment. The econometric analysis reveals that oil exporters and the size of the economy are powerful explanatory variables in explaining FDI flows to Africa, with trade openness a positive, but less powerful variable. <![CDATA[<b>Macroeconomic impact of Eskom's six-year capital investment programme</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000200003&lng=es&nrm=iso&tlng=es This study analyses the impact of an increase in Eskom's capital expenditure on the overall macro and sectoral economy using both a Time-Series Macro-Econometric (TSME) model and a Computable General Equilibrium (CGE) model. The simulation results from the TSME model reveal that in the long run, major macro variables (i.e. household consumption, GDP, and employment) will be positively affected by the increased investment. A weak transmission mechanism of the shock on the macro and sectoral economy is detected both in the short run and long run due to the relatively small share of electricity investment in total investment in the economy. On the other hand, the simulation results from the CGE reveal similar but more robust positive impacts on the macro economy. Most of the short-run macroeconomic impacts are reinforced in the long run. <![CDATA[<b>Financial liberalisation and the dynamics of firm leverage in a transitional economy</b>: <b>evidence from South Africa</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000200004&lng=es&nrm=iso&tlng=es This paper examines the dynamics of corporate capital structures for listed non-financial firms in South Africa. The dynamic models of capital structure have been utilised to document several findings of empirical significance. First, transaction costs reduce dramatically in the post liberalisation regime, and the associated speed of adjustment is more pronounced, and statistically significant for the post liberalisation epoch. Second, financial liberalisation has a significant impact on the capital structure speed of adjustment. Third, the results confirm most of the theoretical predictions of capital structure theories; however, the relationship is more significant in the post liberalised regime. Finally, new evidence has been revealed on what determines the debt maturity structure of firms in a transitional economy. <![CDATA[<b>Identifying risks facing the South African tourism industry</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000200005&lng=es&nrm=iso&tlng=es Even though risks certainly influence travel and tourism patterns, very little research has been conducted into how the industry generally perceives and manages risks. This article aims to (i) identify the risks the South African tourism industry deems important; (ii) construct a matrix for assessing the various risks identified and (iii) determine whether sectors of the industry rate the importance of risks differently. In total, there were 212 responses to the questionnaire in the survey on South African tourism businesses. The statistical analysis included a factor analysis and an ANOVA (analysis of variance). Nine factors were identified and the ANOVA confirmed that sectors do perceive differing levels of importance in the various risks. The risk assessment matrix showed that internal risks are rated among the most important, even though little attention is paid to these in the literature. <![CDATA[<b>The strategic implications of black empowerment policy in South Africa</b>: <b>a case study of boundary choice and client preferences in a small services firm</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000200006&lng=es&nrm=iso&tlng=es This paper studies the relationship between a firm’s boundary choices within its value chain and the BEE pressures it faces from its clients. The paper shows that BEE policy alters the value chain preferences of a firm’s clients. These changes in client preferences motivate the firm to altering its boundaries. More important, boundary changes due to BEE are implemented in a way that ensures that the firm retains crucial architectural knowledge, which preserves its competitive advantage. Firms therefore do not respond passively to BEE-induced changes in client preferences, but aim to meet BEE aims within their broader strategic environment. <![CDATA[<b>Expanding the suite of measures of gender-based discrimination</b>: <b>gender differences in ablution facilities in South Africa</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000200007&lng=es&nrm=iso&tlng=es International treaties, national legislation and local by-laws all advocate the equal treatment of men and women, but claims of gender-based discrimination continue. Indicators of discrimination against women, including employment ratios and differences in income, show that there have been considerable gains in the recent past. These measures are, however, often biased. In this study a different, specific and concrete method of describing and detecting discrimination is presented, namely the difference in the number of ablution facilities provided for each gender group in public spaces. Ablution facilities at airports, train stations and shopping centres in four major South African cities (N=128) were inspected. Medium to large differences in the respective number of facilities were found (eta¬≤ .05 to .13), with women receiving fewer service facilities than men. These results suggest that, despite progressive legislation and vigorous affirmative action in South Africa, local women are still being discriminated against on a very concrete, visible level. The effectiveness of the measurement tool is also discussed.