Fiscal Policy and Unemployment in South Africa: 1980 – 2010

Murwirapachena, Genius; Choga, Ireen; Maredza, Andrew; Mavetera, Nehemiah

doi:10.5901/mjss.2013.v4n6p579

Cited by 16 publications

(15 citation statements)

References 22 publications

(14 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Government spending is positively impacting on unemployment rate, because as we stated above, most of the public spending in the CEE region was directed to social protection purposes or to increase wages in the public sector, not to public investments that would have supported the employment process and would have created jobs in the economies. These findings are in line with those of Feldmann (2006), Bruckner and Pappa (2010, 2012), Genius et al (2013), Nwosa (2014), and Abiad et al (2015).…”

Section: Resultssupporting

confidence: 91%

“…Their results suggest that public spending cannot be used as a quick fix in relation to unemployment. Onodugo, Onyebuchi Obi, Anowor, Nwonye, and Ofoegbu (2017) and Genius, Choga, Maredza, and Mavetera (2013) proved in their study that public spending for consumption purposes and taxation are positively correlated with unemployment, while public expenditure for investments purposes and private investments are negatively correlated with unemployment in an emerging market such as Nigeria or South Africa, respectively. However, there are other studies that proved just the opposite.…”

Section: Literature Reviewmentioning

confidence: 95%

See 1 more Smart Citation

Consumption vs. Investments for stimulating economic growth and employment in the CEE Countries – a panel analysis

Rădulescu

Şerbănescu

Sinisi

2019

Economic Research-Ekonomska Istraživanja

View full text Add to dashboard Cite

The aim of this paper is to find out if the high economic growth rates achieved by the CEE countries are based either on consumption or on investments, considering many exogenous factors that impact on the economic growth and how these factors can contribute to the employment process in the CEE economies to stress if these trends of economic growth and employment are sustainable in the long run. We performed two Panel Least Squares and Pool Least Squares estimations to determine the impact of the exogenous variables on the economic growth (as GDP per capita growth) and on the unemployment rate in the short and long run, depending on the lags of the exogenous variables used in the analysis. We used yearly data series during 2004-2017 for eight selected CEE countries. Our results show that private consumption is positively related with economic growth in the short run, but it doesn't support the job creation process, in the same way as the savings rate can't determine positive effects on the employment. Public spending is strongly and negatively correlated with economic growth and positively correlated with the unemployment rate in the CEE region, while the net export is weakly impacting on the economic growth in the CEE region and doesn't support the employment process in this area. The impact of the domestic investments on the economic growth is weaker in the CEE area than the impact of both private and public spending, but they are positively correlated with the economic growth and negatively correlated with the unemployment rate, while the correlation of the foreign direct investments (FDIs) with both economic growth and unemployment is very weak, as it is the case of net exports. We conclude that the economic growth in the CEE area is mainly based on the private consumption in the short run but the private consumption doesn't support the job creation process either in the long run or in the short run. The qualitative factors included in the analysis by using global competitiveness index (corruption control, bureaucracy, infrastructure quality, governance effectiveness, political stability, ARTICLE HISTORY

show abstract

Section: Resultssupporting

confidence: 91%

Section: Literature Reviewmentioning

confidence: 95%

Consumption vs. Investments for stimulating economic growth and employment in the CEE Countries – a panel analysis

Rădulescu

Şerbănescu

Sinisi

2019

Economic Research-Ekonomska Istraživanja

View full text Add to dashboard Cite

show abstract

“…This means that a percent change in defense expenditure (dexp) and health expenditures (hexp) are associated with 0.2222% and 3.6458% increase in unemployment rate in the long run, as established by [10] study. Hence, defense and health expenditures have larger positive effect on unemp in the long run (0.2222 and 3.6458) than in the short run (0.0515 and 0.8451), this result is in line with the studies of [28,29]. The study employed dynamic panel Approach of two-step system Generalized Method of Moments (GMM) techniques for empirical analysis.…”

Section: Discussion Of Findingssupporting

confidence: 82%

Impact of Disagregated Public Expenditure on Unemployment Rate of Selected African Countries: A Panel Dynamic Analysis

Onuoha¹,

Oyeyemi²

2019

JEMT

View full text Add to dashboard Cite

The study examined the impact of disaggregated public expenditure on unemployment rate in Angola, Togo and Tunisia with panel data spanning from 2000 to 2017. The data were majorly sourced from the World Bank Indicator. The study employed Generalized Method of Moments (GMM) techniques for empirical analysis. The findings of two-step system GMM showed that expenditure on infrastructure and education reduce unemployment rate, while expenditure on defense and health increase unemployment rate in the region. The short-run elasticity estimate showed that infrastructure and education expenditures reduce unemployment rate by 9% and 1.83%. A unit rise in defense and health expenditure increase unemployment rate by 5.2% and 84.5%. The long-run elasticities of infrastructure and education expenditure reduce unemployment rate by 3.8% and 7.89%, while the long-run defense and health expenditure elasticities increase unemployment rate by 22.and Tunisia. The policy implication is that, the positive relationship between expenditure on health and unemployment could be attributed to mismanagement of government funds due to corruption, while that of defense and unemployment could be high rate of insecurity and crimes in the region.Therefore, the study recommended among others a drastic measure to further improve the education sector through adequate investment in education that will help in skills, development and training.

show abstract

“…Unemployment is another ordeal challenging South Africa. The unemployment rate increased from 19.1% in 1994 to 26.1% in 2010, averaging 24.8% between 1994 and 2010 (Murwirapachena et al, 2013). In South Africa, unemployment differs according to race, gender, and educational qualification.…”

Section: Inequality Poverty and Unemploymentmentioning

confidence: 98%

Exploring The Incidents Of Strikes In Post-Apartheid South Africa

Murwirapachena

Sibanda

2014

IBER

Self Cite

View full text Add to dashboard Cite

Since the right to strike was recognised in the South African Constitution, strike actions have been a common phenomenon in the country. Causes of strikes in South Africa are multifaceted and their effects detrimentally catastrophic. This paper explored the incidents of strikes in post-apartheid South Africa and it analysed newspaper and other published articles to track down the occurrence, causes, and effects of strikes in South Africa. In this paper, it was established that the main causes of strike actions range from poverty, inequality, and unemployment to union rivalry and the undemocratic nature of the labour relations. It also established the effects of strike actions which are both social and economic. To achieve labour market stability, this paper recommended the democratisation of labour relations, the creation of sound stakeholder relations, turning employees into employers through indigenisation policies, and the implementation of a national minimum wage.

show abstract

Fiscal Policy and Unemployment in South Africa: 1980 – 2010

Abstract: Unemployment is one of the most topical challenges facing South

Cited by 16 publications

References 22 publications

Consumption vs. Investments for stimulating economic growth and employment in the CEE Countries – a panel analysis

Consumption vs. Investments for stimulating economic growth and employment in the CEE Countries – a panel analysis

Impact of Disagregated Public Expenditure on Unemployment Rate of Selected African Countries: A Panel Dynamic Analysis

Exploring The Incidents Of Strikes In Post-Apartheid South Africa

Contact Info

Product

Resources

About