Household savings, financing and economic growth in South Africa

Mongale, Itumeleng Pleasure; Mashamaite, Tumelo; Khoza, Nyiko

doi:10.15208/beh.2018.09

Cited by 3 publications

(4 citation statements)

References 12 publications

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“…Gross Domestic Product is the total value of goods and services produced within the borders of an economy or a country during a given period of time measured in market prices (Ribaj and Mexhuani, 2021;Mogale, Mashamaite and Khoza, 2018;Zwane, Greyling and Maleka, 2016;Jagadeesh, 2015).…”

Section: Gross Domestic Product Growth (Gdpg)mentioning

confidence: 99%

Stokvel saving and banking sector liquidity in South Africa: cointegration and short-run dynamics

Ngcobo,

Joseph,

MaseTshaba

2023

IJRBS

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Stokvel is a term used in South Africa to denote an informal saving club. A large population of South Africa are members of one stokvel or the other. A large amount of stokvel savings go unaccounted for in the banking sector resulting in distortions in the flow of funds in the banking sector. Thus, the objective of this paper was to establish the presence of a long-run relationship and causality between stokvel savings, money supply, gross domestic product growth rate and banking sector liquidity in South Africa. Applying the Autoregressive Distributed Lag (ARDL) and Error Correction Model (ECM) techniques on quarterly time series data for the period from 1987Q3 to 2020Q1, the study reveals that in the long run, stokvel savings and money supply were found to have a negative relationship with banking sector liquidity albeit insignificant, however, gross domestic product growth rate exhibited a negative and statistically significant relationship at 1%. The coefficient of the error correction model (ECM(-1)) was, as expected, negative and statistically significant thus providing evidence of a short-run relationship. This study concludes that informal savings must be included in the formal banking services to harness the cash that is held by the informal sector and thus improve banking sector liquidity while minimizing the prevalence of financial disintermediation.

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Section: Gross Domestic Product Growth (Gdpg)mentioning

confidence: 99%

Stokvel saving and banking sector liquidity in South Africa: cointegration and short-run dynamics

Ngcobo,

Joseph,

MaseTshaba

2023

IJRBS

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“…In our investigation of the Causality between two or more variables, the series must be stationary; that is, the series must have no seasonality, a constant mean, and a constant autocorrelation structure and tend to return to the long-term trend following a shock. We cannot use time series that are nonstationary; that is, those that have a non-constant mean, a non-constant variance, and a non-constant autocorrelation over time (Yuan et al 2007, cited in Akinwale and Grobler, 2019; Asteriou & Hall, 2011, cited in Mongale et al 2018). If we fit regressions that use nonstationary series, our results will be spurious, and their outcomes cannot be used for forecasting or prediction (Granger and Newbold, 1974; cited in Akinwale and Grobler, 2019).…”

Section: Stationarity Testmentioning

confidence: 99%

“…If we fit regressions that use nonstationary series, our results will be spurious, and their outcomes cannot be used for forecasting or prediction (Granger and Newbold, 1974; cited in Akinwale and Grobler, 2019). Therefore, it is vital to check whether the series is stationary (Mongale et al, 2018). Several tests, including the Augmented Dickey-Fuller (ADF), Phillips-Perron, DFGLS, Levin-Lin-Chu and Im-Pesaran-Shin, are used for testing stationarity, also called unit root tests.…”

Section: Stationarity Testmentioning

confidence: 99%

Untitled

2022

JORIT

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This paper examines the governance, efficiency, and development of the Agricultural Knowledge and Innovation System (AKIS) in Bulgaria. The Governance of AKIS includes diverse governing agents, a variety of rules, mechanisms and modes for agents, and the process of governing, and the outcome (specific order and efficiency) of the governance. First, participants in the country's AKIS and the type of their relations are specified. Second, a diagnosis of the state and trends in AR&D is made.The study is based on available data from statistical sources, official reports, fields surveys as well as assessments of a panel of leading experts in the area and stakeholders' representatives. The study has found out that AKIS of the country consists of diverse and numerous organizations, for which activities and complex relations have no sufficient official or other reliable information. Bulgarian AKIS demonstrates low resource endowment and efficiency, domination of outdated public institutions and undeveloped private sector, insufficient sharing of knowledge and innovations, slow and uneven application of modern technologies, varieties, production and management methods, digitalization, etc. in different types of farms, subsectors of agriculture and regions of the country.

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“…Lag-order selection criteria for Y Our next step is to check for the stationarity of variables(Mongale et al, 2018) to sieve away non-stationary series, that is, those that have a non-constant mean, a non-constant variance, and a non-constant autocorrelation over time(Yuan et al, 2007 cited in Akinwale and Grobler, 2019; Asteriou and Hall, 2011 cited in Mongale et al…”

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confidence: 99%

Institutional Quality and Economic Growth in Tanzania

GIBOGWE¹,

NIGO²,

KUFUOR³

2022

JoRIT

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In this paper, we use the ARDL method to find the Impact of institutional quality on economic growth in Tanzania from 1990 to 2021. The ARDL technique frees variables from residual correlation as all variables are assumed to be endogenous. They distinguish between dependent and explanatory variables in any long-run relationship, identify the co-integrating vectors with multiple co-integrating vectors, and derive the Error Correction Model (ECM) or Error Correction Model (ECM) Vector Error Correction Model (VECM) by integrating short-run adjustments with long-run equilibrium without losing extended-run information. Our results show all adjustment terms in the respective models that have a long-run relationship have correct (negative) signs and are more than one, implying there is convergence in the long run; that is, the models returned to their long-run equilibrium; the rate (or speed) at which this happened ranged between 15% to 106.6% annually. Institutional quality has a significant affirmative (0.047) causal long-run effect on economic growth

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Household savings, financing and economic growth in South Africa

Cited by 3 publications

References 12 publications

Stokvel saving and banking sector liquidity in South Africa: cointegration and short-run dynamics

Stokvel saving and banking sector liquidity in South Africa: cointegration and short-run dynamics

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Institutional Quality and Economic Growth in Tanzania

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