The relationship between financial inclusion and economic well being in South Africa
- Authors: Genukile, Lwazi
- Date: 2023-00
- Subjects: Commerce in economics
- Language: English
- Type: Masters theses , text
- Identifier: http://hdl.handle.net/11260/10053 , vital:74934
- Description: Financial inclusion has been regarded as a solution to the problem of poor economic well-being by providing quality access to financial services. It also contributes to resource and income distribution and boosts consumption and investment, which lead to an overall stimulation in economic well-being. The aim of the study was to examine the relationship between financial inclusion and economic well-being in South Africa. To achieve this, the study examined the long-run and short-run relationships between financial inclusion and economic well-being in South Africa using quarterly time-series data from 1992 to 2020. The data was obtained from World Bank economic indicators and a SARB statistics enquiry. The study used the Autoregressive Distributed lag bound test and the Error Correction Model to examine the long-run and short-run relationships of the variables. The Granger causality test was conducted to identify the directional causality amongst the variables. The variables used in this study were GDP per capita (GDPPC) as a measure of economic well-being, which is the dependent variable, whereas bank account holders, access to credit, and insurance were used as major explanatory variables. The study discovered that in the long-run, bank account holders and access to credit have a positive significant relationship with GDP per capita, whilst inflation rate indicated a negative relationship with GDP per capita. However, in the short-run results, the study revealed that insurance and inflation rate have a positive relationship with GDP per capita, whereas access to credit presented a negative relationship with GDP per capita. The Granger causality test only indicated a bi-directional causality between inflation rate and GDP per capita. A diagnostic test was conducted in the model and the results revealed that all instruments used in the model are valid and reliable. Based on these findings, the existence of a positive relationship between financial inclusion and economic well-being can be confirmed, hence validating the hypothesis in South Africa. This study recommends that government and policy-makers should focus more on accelerating the expansion of access to credit and insurance at lower transactional costs and management fees, especially for the poor and most vulnerable population in the country. Furthermore, the access to credit, insurance and economic well-being relationship should take place in an inflation framework-sensitive environment. , Thesis (Masters) -- Faculty of Economics and Financial Sciences, 2023
- Full Text:
- Date Issued: 2023-00
- Authors: Genukile, Lwazi
- Date: 2023-00
- Subjects: Commerce in economics
- Language: English
- Type: Masters theses , text
- Identifier: http://hdl.handle.net/11260/10053 , vital:74934
- Description: Financial inclusion has been regarded as a solution to the problem of poor economic well-being by providing quality access to financial services. It also contributes to resource and income distribution and boosts consumption and investment, which lead to an overall stimulation in economic well-being. The aim of the study was to examine the relationship between financial inclusion and economic well-being in South Africa. To achieve this, the study examined the long-run and short-run relationships between financial inclusion and economic well-being in South Africa using quarterly time-series data from 1992 to 2020. The data was obtained from World Bank economic indicators and a SARB statistics enquiry. The study used the Autoregressive Distributed lag bound test and the Error Correction Model to examine the long-run and short-run relationships of the variables. The Granger causality test was conducted to identify the directional causality amongst the variables. The variables used in this study were GDP per capita (GDPPC) as a measure of economic well-being, which is the dependent variable, whereas bank account holders, access to credit, and insurance were used as major explanatory variables. The study discovered that in the long-run, bank account holders and access to credit have a positive significant relationship with GDP per capita, whilst inflation rate indicated a negative relationship with GDP per capita. However, in the short-run results, the study revealed that insurance and inflation rate have a positive relationship with GDP per capita, whereas access to credit presented a negative relationship with GDP per capita. The Granger causality test only indicated a bi-directional causality between inflation rate and GDP per capita. A diagnostic test was conducted in the model and the results revealed that all instruments used in the model are valid and reliable. Based on these findings, the existence of a positive relationship between financial inclusion and economic well-being can be confirmed, hence validating the hypothesis in South Africa. This study recommends that government and policy-makers should focus more on accelerating the expansion of access to credit and insurance at lower transactional costs and management fees, especially for the poor and most vulnerable population in the country. Furthermore, the access to credit, insurance and economic well-being relationship should take place in an inflation framework-sensitive environment. , Thesis (Masters) -- Faculty of Economics and Financial Sciences, 2023
- Full Text:
- Date Issued: 2023-00
The relationship between energy price and economic growth in South Africa
- Authors: Takentsi, Siyakudumisa
- Date: 2021-00
- Subjects: Commerce in economics
- Language: English
- Type: Masters theses , text
- Identifier: http://hdl.handle.net/11260/10272 , vital:74954
- Description: This study empirically investigated the relationship between energy prices and economic growth in South Africa by employing the auto regressive distributed lag (ARDL) bounds test technique for the period from 1994 to 2019. The ARDL model is capable of detecting hidden co-integration relationships and perfectly works even in the series that are integrated of different orders. The study found the presence of a long-run relationship between the variables. The findings revealed that electricity prices have a negative impact on economic growth in the long run and short run, while crude oil prices highlighted a positive linkage with economic growth in the long run and short run. The Granger causality analysis indicated the non-existence of causal relationship between energy prices and economic growth in South Africa. However, in South Africa the Granger causality found unidirectional causality from labour productivity to economic growth and from gross fixed capital formation to economic growth. The study recommends that the government should take steps to mitigate the effects of rising in electricity prices. , Thesis (Masters) -- Faculty of Economics and Financial Sciences, 2021
- Full Text:
- Date Issued: 2021-00
- Authors: Takentsi, Siyakudumisa
- Date: 2021-00
- Subjects: Commerce in economics
- Language: English
- Type: Masters theses , text
- Identifier: http://hdl.handle.net/11260/10272 , vital:74954
- Description: This study empirically investigated the relationship between energy prices and economic growth in South Africa by employing the auto regressive distributed lag (ARDL) bounds test technique for the period from 1994 to 2019. The ARDL model is capable of detecting hidden co-integration relationships and perfectly works even in the series that are integrated of different orders. The study found the presence of a long-run relationship between the variables. The findings revealed that electricity prices have a negative impact on economic growth in the long run and short run, while crude oil prices highlighted a positive linkage with economic growth in the long run and short run. The Granger causality analysis indicated the non-existence of causal relationship between energy prices and economic growth in South Africa. However, in South Africa the Granger causality found unidirectional causality from labour productivity to economic growth and from gross fixed capital formation to economic growth. The study recommends that the government should take steps to mitigate the effects of rising in electricity prices. , Thesis (Masters) -- Faculty of Economics and Financial Sciences, 2021
- Full Text:
- Date Issued: 2021-00
- «
- ‹
- 1
- ›
- »