Scielo RSS <![CDATA[South African Journal of Economic and Management Sciences ]]> http://www.scielo.org.za/rss.php?pid=2222-343620120003&lang=es vol. 15 num. 3 lang. es <![CDATA[SciELO Logo]]> http://www.scielo.org.za/img/en/fbpelogp.gif http://www.scielo.org.za <![CDATA[<b>The psychological consequences of unemployment in South Africa</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000300001&lng=es&nrm=iso&tlng=es The objective of this study was to investigate the affective experiences, attitudes to work, and job application behaviour of unemployed people. A survey design was used and samples (N = 381) were drawn from unemployed people in the North West Province. The Experiences of Unemployment Questionnaire was administered. Regarding affective experiences, being unemployed was described as very unpleasant and it was associated with boredom, loneliness, uncertainty about the future, concerns about financial matters, emptiness and conflict. When it came to the participants' attitudes to work, the results showed that almost 96 per cent of them regarded work as important, particularly because it provides meaning. Regarding job application behaviour, the results showed that most of the participants would like to find a job within the month, and they expected to do so. Almost 78 per cent of the participants were asking people for a job at least once a week or more often. Most of them asked friends and acquaintances for employment information, but unemployed people also reported that they looked out for advertisements. People with poor education had the most negative experiences of unemployment and saw work as more important than did those with better education. <![CDATA[<b>The prevalence and magnitude of job insecurity</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000300002&lng=es&nrm=iso&tlng=es This study investigates the prevalence and magnitude of job insecurity experienced by employees in an organisation undergoing major transformation, while taking cognisance of intercorrelations among its sub-dimensions. The research adopted a formal, hypothesis-testing approach whereby quantitative data was collected using a cross-sectional survey method from a sample of 1620 employees. The findings indicate that threats to salient job features/total job and feelings of powerlessness trigger the potential for job insecurity. This study identifies conditions that increase the potential for job insecurity. Recommendations are presented for reducing the prevalence and magnitude of job insecurity. <![CDATA[<b>Corruption and multinational companies' entry modes</b>: <b>Do linguistic and historical ties matter?</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000300003&lng=es&nrm=iso&tlng=es The literature on FDI entry modes and corruption tends to convey the idea that corruption leads to a choice between low equity modes, i.e. joint ventures with local partners, and non-equity modes, namely exports and contracting, in order to avoid contact with corrupt state officials. Recently, some studies have argued that despite corruption, linguistic and historical ties between home and host countries lead MNCs to prefer high-equity modes. Focusing on a rather unexplored setting, the African countries, most specifically the Portuguese-speaking ones (PALOP - Países Africanos de Língua Oficial Portuguesa), which include countries where levels of corruption are very high (e.g., Guinea-Bissau and Angola), high (e.g., Mozambique, Sao Tome and Principe), and intermediate (e.g., Cape Verde), maintaining also close linguistic and historical ties with Portugal, we found that the FDI entry mode is associated with the less corrupt markets. Thus, our results do not support the recent contention that cultural and historical links are likely to perform a mediating role, by fostering foreign direct investment, in supporting African countries to overcome the dismal growth some have been facing in the last few decades. On the contrary, our findings highlight the pressing need for these countries to combat corruption if higher economic growth via FDI attraction is envisioned. <![CDATA[<b>The scope for mobilising public opinion against corruption</b>: <b>The attitudes of KwaZulu-Natal University students</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000300004&lng=es&nrm=iso&tlng=es The aim of this study is to ascertain perceptions of public sector corruption that university students, as potentially influential members of society, hold. The study is based on a purposive sample of 509 first - and second-year university students. Descriptive and non-parametric bivariate analysis suggests that students overwhelmingly regard public sector corruption as an important issue. In addition, there appear to be remarkable degrees of consensus as to what actions are perceived as corrupt even if there is evidence of mismatches between students' beliefs and likely actions. At least some of this dissonance may be explained by the finding that respondents' corruption perceptions are biased by gender and ethnicity. These are challenges that programmes aimed at inspiring mass public opinion to join the fight against corruption may have to address. <![CDATA[<b>The regulatory treatment of liquidity risk in South Africa</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000300005&lng=es&nrm=iso&tlng=es The Basel accord describes the regulatory capital requirements for credit, market and operational risk. The accord aims to provide guidelines to level the playing field for all internationally active banks and to protect consumers against these risks. Despite the growing significance to bank solvency of liquidity risk, it is omitted from the new accord². Banks are not required to measure and manage this risk yet they are often considerably exposed to the threat of severely diminished liquidity. This omission from the accord could have dire consequences for banks and the economy in which they operate: liquidity crises can occur without warning and spread quickly to other parts of the financial system. This article critically explores current practices in South Africa and proposes guidelines for effective liquidity risk regulation. <![CDATA[<b>Basel III countercyclical capital rules</b>: <b>implications for South Africa</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000300006&lng=es&nrm=iso&tlng=es The financial crisis has been blamed on many entities, institutions and individuals as well as the Basel II accord which had just begun to be implemented globally when the crisis erupted. The criticisms resulted in the construction of Basel III, a series of measures designed to augment and repair (but not replace) the Basel II accord. One of these adjuncts addresses the problem of economic procyclicality and suggests ways to mitigate it through capital charge increases when economies overheat and capital charge reduction in economic contractions. The consequences of this proposed measure's introduction for South African banks is explored. <![CDATA[<b>Towards inflation targeting in Egypt: The relationship between exchange rate and inflation</b>]]> http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222-34362012000300007&lng=es&nrm=iso&tlng=es Since the Egyptian economy has recently moved towards inflation targeting, it became very important to know whether exchange rate movements have serious inflationary implications or not. To investigate this subject, the study aims to analyse the relevance of inflation with the exchange rate by using the Granger-causality test. Two indicators of inflation will be used, the consumer price index (CPI) and wholesale price index (WPI). In general, the results show a strong relationship between the two variables in a way that may give support to the application of 'flexible inflation targeting regime instead of strict inflation targeting regime'.