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Abstract - Economic Activities of Mining Production and Agricultural Economic Growth in South Africa
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Abstract: South Africa is experiencing declining mining sector output that is economically detrimental as it leaves large numbers of mining workers unemployed. Unskilled retrenched mine workers from about 5,906 abandoned mines resulted in a discrete jump in the productive wealth of poor South Africans, as trends in mining profits declined. It is precisely this challenge that made economic succession planning in South African mines a potentially attractive policy option in the fight against poverty. This paper provides some of the first well-identified estimates of the viability of how post mining transformation can take place through agricultural production. Therefore, the paper aims to examine the relationship between the mining production economic activities and the agricultural economic growth using South African data. Employing the autoregressive distributive lag approach and impulse response functions, it has been found that the mining production has a significant long run relationship and can positively influence the agricultural economy. This is in line with the views of Rostow (1959) that mining production can be associated with agricultural activities and be used as a tool for post mining transformation. Therefore, it can be recommended that mines can engage to formulate policies that address post mining transformation into agricultural activities to redirect labor skills when the time of closing mines come. Suggested policies range from skill redirection of mine workers to agricultural activities. For instance, plantation of some fibrous plants that can grow well in mining land, and engage in some more economic activities like manufacturing and tourism of those agricultural products. Keywords: Unemployment, post mining transformation, autoregressive distributive lag, agricultural production. |
Abstract - The Implications of Labour Productivity and Labour Costs on the South African Economy
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Abstract: The research has shown that labour productivity growth has been slowing down. This trend is suggesting that the gains in the quality of employment in several regions of the world might be difficult to sustain. Furthermore, the South African workers were found to have the greatest amount of unproductive time and they are said to be having one of the lowest employee productivity stats in the world. The purpose of this study was to investigate the implications of labour productivity and labour costs on the South African economy. The Ordinary Least Square (OLS) based Autoregressive Distributed Lag (ARDL) approach was employed to analyse the quarterly time series data from 1998 to 2018. Since South Africa is faced with several challenges such as high levels of unemployment, higher wage bills and high levels of poverty; this study is envisaged to provide an empirical evidence to policymakers and union leaders alike to begin to recognise more fully the importance of labour productivity and labour costs towards economic growth. The results indicate that labour productivity has a significant positive impact on economic growth however labour costs have a significant negative impact on the economy of South Africa. Policy formulation should focus on policies that can help to improve the quality of the labour force in order to achieve desired economic growth levels that can help to increase the levels of employment and the reduction of poverty. Similarly, both the workers and the labour unions should be cautious not to milk the cash cow until it dies. Keywords: Labour productivity, Manufacturing, Economic growth, Autoregressive Distributed Lag, South Africa. |
Abstract - The Effect of Financial Crises on Growth and FDI in some African Countries: A Panel VECM Approach
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Abstract: This study investigates the effects of financial crises on economic growth and foreign direct investment in some African countries. A panel vector error correction model is used for the analysis of annual time series data for the period 1994 to 2014. From economic growth model, in the long run, it is observed that gross domestic product per capita is positively influenced by investment, trade and foreign direct investment; with investment and trade being statistically significant. Gross domestic product per capita has a negative significant relationship with real effective exchange rate. On the other hand, in the long run, the investment model shows that investment has a significant positive relationship with both gross domestic product per capita and investment; while it has a negative significant relationship with real effective exchange rate and trade. Also observed from the results is that financial crisis has a negative relationship with both economic growth and foreign direct investment. This study recommends more openness of the economy so as to promote both economic growth and inflow of foreign direct investment in countries. It also recommends the need to encourage more gross fixed capital formation in order to promote both economic growth and foreign direct investment. Keywords: Financial Crisis, Foreign Direct Investment, Economic Growth and Panel Vector Error Correction Model. |
Abstract - Financial Deepening and Sustained Economic Growth in Nigeria: What Nonlinear Models Reveal
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Abstract: Motivated by the desire to expose a possible nonlinearity and non-proportionality in linking financial deepening and economic growth, we investigated the finance-growth nexus from a linear and nonlinear perspective using dataset from Nigeria for 1981: Q1 to 2017: Q4. Using the Autoregressive Distributed Lag (ARDL) and Nonlinear Autoregressive distributed Lag (NARDL) models, and it was found that economic growth tends to adjust nonlinearly to financial deepening than it does linearly. This is expected to guide policy makers towards ensuring that the linearity and nonlinearity polarity of the finance-growth nexus are always factored-in while formulating policies relative to driving sustained growth through financial deepening. Keywords: ARDL, NARDL, Financial Deepening, and Economic Growth. |
Abstract - Zimbabwe’s Special Maize Programme for the Import Substitution (Command Agriculture) Scheme: A Hit-and-Miss Affair
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Abstract: Increasing food insecurity levels and large import expenditure have been major concerns for the government of Zimbabwe in recent years, leading to the development and implementation of different policies aimed at addressing these issues. In the wake of the devastating drought of 2015, in which only a quarter of the country’s annual maize requirement was produced, the Zimbabwean government instituted a targeted command agriculture scheme known in policy terms as the Special Maize Programme for Import Substitution (SMPIS). The programme aimed to increase maize production and to reduce the grain import expenditure of the country. The scheme, although viewed by many as a panacea to the country’s increasing food insecurity levels, was equally criticised by many as a drain on the highly depleted financial resources of the country, and arguments have emerged on the merits and demerits of the scheme for the struggling economy. This paper analyses the impact of the SMPIS on maize production and importation in Zimbabwe, as well as the gains and losses of the programme to the Zimbabwean economy. Keywords: Command Agriculture, Maize, Imports, Government, Inputs, Subsidy. |