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Abstract - The Effects of Determinants of Government Expenditure on Education and Health: Evidence From SADC Economies
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Abstract: Health and education expenditure play a major role in determining the well-being and development of the people. However, SADC economies have poor health and education indicators, despite high expenditure by governments. The purpose of this study is to assess the determinants of government expenditure on health and education in SADC countries. This study used the annual data covering the period 1997 to 2017. FMOLS1 and DOLS2 are applied to estimate the parameters of each variable understudy. The techniques were developed to estimate and test hypothesis about cointegrating vector to panel data. Overall the results revealed that gross domestic product, population growth and corruption are crucial determinants of health and education expenditure in SADC countries. Therefore, governments in SADC can implement policy that are pro economic growth, and measures that discourages corruption. This can be achieved by allocating high budget on education expenditure, and implementing independent corruption agencies. Keywords: Government Expenditure, Government Expenditure on Education, Government Expenditure on Health, Corruption, Economic Growth, Population, Panel data. |
Abstract - The Impact of Knowledge-Based Economy on Growth Performance: Evidence from South Africa
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Abstract: This article seeks to measure and evaluate the impact of knowledge-based economy on growth performance in South Africa. The study focuses in identifying specific economic pillars that enhance growth performance in South Africa. Although transition from traditional to knowledge-based economy appears structural, the course to digital innovation guides adaptation to the global change. Following the World Bank KAM (knowledge assessment methodology), this article uses data analysis from the 2007 to 2016 to highlighted economic transition in the recent decade. This article uses quantitative methods to analyse secondary data collected from various websites such as SA Statistics, organisation for the Economic Cooperation and Development (OECD) as well as the World bank that publish South African economic data. Data analysis is done using SPSS software version 26 as a major statistical tool for advance data interpretation. However, the study is limited to yearly data frequency compared to quarterly or monthly frequency since statistical data are mostly published per year. The empirical results showed that 67% of GDP (Gross Domestic Product) is explained by the dependent variables namely FDI 9Foreign Direct Investment), R&D 9Research and Development), trade ICT (Information, Communication and Technology) and Computer balance as well as literacy. Innovation system, economic regime, information infrastructure as well as human resources’ elements are statistically significant in improving economic growth in South Africa with a correlation matrix of 81%. Data interpretation showed that transition from traditional to knowledge-based economy is a key driver of national economic prosperity that guarantees long-term survival. Suggestions from the study stipulates that decision-makers should ensure efficiency of knowledge-based economy structure through definition and application of knowledge-related policies tailored to the country’s specifications. The proposed conceptual framework will guide the implementation of successful knowledge-based economy that will enrich growth performance in South Africa. Keywords: Growth, performance, knowledge-based economy, South Africa. |
Abstract - Human Capital and Information and Communication Technology Nexus: The South African Perspective
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Abstract: Despite the fact that South Africa invests a considerable amount in education and also the fact that black youth have higher educational attainment now than at any point in history, education which is seen as a process, the outcome of which is general knowledge and human capital is still facing enormous challenges. Using the bounds testing procedure, the study investigated the human capital and information and communication technology (ICT) nexus in South Africa. This was achieved by regressing investment in ICT and ICT infrastructure variables on one of the human capital variables (education). The literature review has revealed that studies on this issue using time series analysis are relatively thin in the context of South Africa. The results revealed that gross fixed capital formation (ICT equipment) has positive relationship with human capital whereas both the mobile cellular subscriptions per 100 people and fixed telephone subscriptions per 100 people have a negative relationship with human capital in South Africa. The policy implication of this study is that economic policies should recognise the importance of ICT in the development of human capital by bringing utilisation of ICT to some far-off locations within a country, to boost human capital development. Keywords: Government expenditure on education, ICT infrastructure, ICT investment, Autoregressive Distributed Lag, South Africa. |
Abstract - Hindrance to Benefit from the Potential Sources of Finance to Enhance the Growth of Small and Medium Size Enterprises in South Africa
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Abstract: Small and Medium Size Enterprises are increasing playing an important role in economic development of most countries all over the world nowadays. For these small businesses to grow and be sustainable, they require sufficient capital in the form of financial resources to go operational because the lack of funding or access to finance could hamper their growth. The lack of access to finance has been reported to be one of the major causes of small business failure and discontinuity in South Africa. The purpose of this study is to identify the available sources of financial support for the growth of SMEs in South Africa. The study anticipates to find out why despite government’s effort to offer financial support for the growth of the SME sector, the rate of small business failure and discontinuity in South Africa is still one of the highest in the world. A qualitative methodological approach was utilized and interviews were conducted on SME managers on the subject under investigation. It was found that most SME managers in South Africa are ignorant about available sources of finance offered by government to boost the sector. It is imperative for the relevant authorities to revise and improve on the means and mechanisms used to support SMEs such that all small business managers are aware of the availability of this assistance and where and how to access it. In this regard, the government need to set up education and training facilities in different communities where intending and existing small business managers would be educated on the available sources of finance and how to access this funding to start up and grow their businesses. Keywords: Finance, SMEs, failure, success, business, South Africa. |
