The consensus is that price stability promotes sustainable economic growth while excessive inflation harms growth. This study assesses the linkage between inflation and economic growth in South Africa to determine the optimal inflation rate threshold for the sustainable growth of the economy. Quarterly data from 1995 to 2022 was analysed through the ARDL and threshold regressions. The ARDL and threshold regressions estimate established a relationship between inflation and economic growth and computed the optimal inflation rate threshold for economic growth at 6 percent. The results also established that both the repo rate (repurchase rate) and real effective exchange rate have a negative relationship with economic growth. The Toda-Yamamoto causality test result indicated a unidirectional causality runs from inflation to economic growth. These results are crucial for the South African Reserve Bank to discharge its monetary policy functions to attain and maintain price stability. Therefore, this study offers the Bank a roadmap for targeting an inflation rate that aligns with the nation’s long-term objectives for sustainable economic growth.
Earnings disparities in South Africa, and specifically the Eastern Cape region are influenced by a complex interplay of historical, socio-economic, and demographic factors. Despite significant progress since the end of apartheid, persistent disparities in earnings continue to raise questions about the effectiveness of policies aimed at reducing inequality and promoting equitable social system. Individual-level dataset from the 2021 South African general household survey were subjected to exploratory analysis, while Heckman selection model was used to investigate the determinants of earnings disparities in the study area. The results showed that majority of the population are not working for a wage, commission or salary, which also pointed to the gravity of unemployment situation in the area of study. Most of the working population (both male and female) are lowest earners (R ≤ 10,000), and this also cuts across all age-group categories. Majority of working population have no formal education, are drop out, or have less than grade-12 certificate, and very few working populations with higher education status were found in the moderate and relatively high earnings categories. While many of the working population are engaged in the informal sector, those in the formal sector are in the lowest earners group. Compared to any other race, the Black African group constituted the majority of non-wage earners, and most in this group were found in the lowest earners group. Some of the working population who were beneficiaries of social grants and medical aids scheme were found in the lowest, low, and moderate earnings categories. The findings significantly isolated the earnings-effect of age, marital status, gender, race, education, geographic indicators, employment sector, and index of health conditions and disabilities. The study recommends interventions addressing racial, gender, and geographic wage gaps, while also emphasizing the importance of equitable access to education, health infrastructure, and skills development.
This research examines data from 1989 to 2022 across 48 Sub-Saharan African (SSA) countries using a novel panel data regression approach to uncover how conflict undermines economic stability. The study identifies the destruction of infrastructure, disruption of human capital development, and deterrence of investment as primary channels through which conflict negatively impacts economies. These findings support the hypothesis that armed conflict severely hampers economic performance in SSA, highlighting the urgency for effective conflict resolution strategies and robust institutional frameworks. The negative impacts extend beyond immediate losses, altering income growth trajectories and perpetuating poverty long after hostilities cease. Regional spillover effects emphasize the interconnectedness of SSA economies, where conflict in one country affects its neighbors. The research provides innovative insights by disaggregating impact pathways and employing a robust methodology, revealing the complexity of conflict's economic consequences. It underscores the need for comprehensive policy interventions to foster resilience and sustainable development in conflict-prone regions. While there is evidence of potential post-conflict growth, the overall net effect of armed conflict remains profoundly negative, diminishing economic prospects. Future research should focus on strengthening long-term resilience mechanisms and policy measures to enhance the peace dividend. Addressing the root causes of conflict and investing in peace-building efforts are essential for transforming SSA's economic landscape and ensuring sustainable growth and development.
This study analyses the long-run relationship between, and the direction and magnitude of impact of sectoral economic growth and fiscal capacity on government health expenditure. The study was carried out to validates the Wagner hypothesis from sectoral perspective and revenue-expenditure hypothesis for South Africa for the period 1984–2020. Fully modified least squares and dynamic least squares and canonical cointegration regression were used to achieve the objectives of the study. Empirical regression results showed that there is a negative impact of the secondary sector GDP on public health expenditure. Thus, invalidating the Wagner hypothesis and suggesting that secondary sector GDP cannot serves as an answer for public health expenditure. However, there was a positive relationship between tertiary sector GDP and public health expenditure. The study make case for unceasing provision of an enabling environment that continuously support growth of the tertiary sector.
Africa has been fighting against colonialism and Eurocentrism for a long time in an attempt to reverse the regime of oppression and socio-economic marginalization and exploitation, and take back control of its cultural identity and right to self-determination. This adventure requires the recognition and revitalisation of indigenous arts, culture, and law—all of which have been subjugated and ignored during colonial rule. Ironically, the situation has not improved much by the dominating presence of post-independent neo-colonial structures and perpetuated Eurocentric phenomenon that have been ingrained into the socio-cultural and economic fabrics of the African state. This research explores the critical need for integrating science on African indigenous arts, culture, and legal systems, as a way of globalizing as well as revitalizing these elements, towards the ultimate emancipation of the continent from the vestiges of colonialism and Eurocentricism. Relying on the postcolonial, and indigenous knowledge systems theoretical frameworks, the study engages the ethnographic, collaborative and interdisciplinary research approaches, subjecting data obtained to thematic analysis. Underscoring the profound interconnectedness of science, indigenous arts, and cultural heritage, the study argues that combining scientific methods with indigenous African epistemology provides a powerful framework for advancing Africa’s true independence from the protracted legacies of colonialism and Eurocentrism. The research concludes that a holistic integration of these elements therefore, is indispensable for fostering a decolonized and inclusive approach to knowledge production, self-determination and sustainable development, against the background of the rich insights and sustainable practices embedded within the African cultural traditions. Ultimately, the research recommends that embracing and integrating science on indigenous epistemologies can propel Africa towards an emancipated, truly independent, and culturally affirming future, transcending the enduring legacies of colonialism and Eurocentrism.
This study investigated the relationship between telecommunications development, trade openness and economic growth in South Africa. It determined explicitly if telecommunications development and trade openness directly impact economic growth or whether telecommunications strengthen or weaken the link between trade openness and economic growth using the ARDL bounds test methodology. The findings reveal that both telecommunications development indicators and trade openness significantly and positively impact South Africa’s GDP in the short and long terms. The study also found that control variables like internet usage and gross fixed capital formation significantly and positively influence GDP. Conversely, inflation was found to consistently affect GDP negatively and significantly. The findings from the ARDL cointegration analysis affirm a long-run economic relationship between the independent variables and GDP. The study also established that telecommunications development slightly distorts trade in the foreign trade-GDP nexus in South Africa. Despite this, the negative interaction effect is not substantial enough to overshadow the positive impact of trade openness on economic growth. From a policy perspective, the study recommends that South African policymakers prioritise enhancing local goods’ competitiveness in global markets and reducing trade barriers. It also advocates for improving the accessibility and affordability of telecommunications technologies to foster economic development.
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