Papers by Mingiri Kapingura
Journal of Economic Studies, 2011
PurposeThis paper aims to examine the effects of fiscal policy associated with increases in gover... more PurposeThis paper aims to examine the effects of fiscal policy associated with increases in government expenditures, tax revenue and budget deficit on the South African economy.Design/methodology/approachStructural VARs based on the Blanchard‐Quard decomposition identification scheme were used in the empirical analysis. With the aid of quarterly data covering the period 1990:1 to 2008:4, the identified true models are used to estimate various impulse‐response functions. The impulse‐response functions represent the responses of real output and interest rates to shocks from tax revenue, budget deficit and government consumption and investment expenditures.FindingsThe results suggest that the fiscal policy instruments have varied effects on output and interest rates. The effect of the fiscal policy on output appears to be quite modest but persistent; however, the response from interest rate is temporary and substantial most cases.Originality/valueThe debate on the efficacy of fiscal po...
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Cogent Business & Management
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Cogent Economics & Finance
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Cogent Social Sciences, 2019
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International Journal of Economic Policy in Emerging Economies, 2015
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Mediterranean Journal of Social Sciences, 2014
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Mediterranean Journal of Social Sciences, 2014
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International Journal of Education Economics and Development, 2017
This paper discusses the nature of livelihood strategies within the Eastern Cape province of Sout... more This paper discusses the nature of livelihood strategies within the Eastern Cape province of South Africa. The analysis is based on a survey conducted among 2000 households throughout the province. Content and statistical analysis is used to summarise the results. The role played by government structures in the process of livelihood implementation is discussed. Links are drawn between local community resources and the diverse livelihood strategies that households engage in. The results show that there is a very weak link between resources in communities and associated livelihood strategies. Moreover, institutional structures tend to inhibit successful exploitation of such resources in some cases. Regulatory compliance and attendant costs also constrain participation in sustainable resource use.
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Eurasian Journal of Economics and Finance, 2020
This study sought to examine the effects of remittances on economic development on selected SADC ... more This study sought to examine the effects of remittances on economic development on selected SADC states. Remittances are important for the survival of poor individuals, households and societies around the world. The funds sent by migrants are a crucial means of survival that can assist families in buying food, sending children to school and building basic shelter. Given the poor economic development in these SADC countries and the probable development outcomes of remittances, remittances income should be critical to the SADC countries. However, literature shows that relationship between remittances and development is not always clear. Remittances may bring positive or negative effects. It is against this background that this study sought to examine the effects of remittances on economic development on selected SADC states. The study used panel data and the sample included five SADC countries (Zimbabwe, Mozambique, Lesotho, Eswatini and DRC) for the years 2005-2015. The study used a ...
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Development Southern Africa, 2021
The study examines the relationship between savings and economic growth in South Africa for the p... more The study examines the relationship between savings and economic growth in South Africa for the period 1986–2018. The Johansen cointegration technique and the Vector Error Correction Model were employed as methods of analysis. The findings from the study indicate that the effect of savings on economic growth in South Africa is negative . However, a positive relationship between the two variables was established in the short-run. Granger causality tests were also utilised to determine the direction of causality between savings and economic growth. The results revealed that the relationship runs from economic growth to gross domestic savings. Another important observation from the study is the role of investment which was found to have a positive effect on economic growth. This result also supports the idea of promoting investment if the country is to achieve sustainable economic growth.
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International Journal of Environmental Research and Public Health
This study investigated the relationship between sustainable development and crude oil revenue (C... more This study investigated the relationship between sustainable development and crude oil revenue (COR) in selected oil-producing African countries from 1992–2017 using the Pooled Mean Group (PMG) estimators on panel autoregressive distributed lag model (ARDL). Sustainable development was measured with the Human Development Index (HDI). This study was significant for Africa to break away from fiscal over-dependence on natural resource revenue, especially crude oil due to its high volatility and to correct porous institutional outlook. The a priori expectation is that crude oil revenue will tank so much that many countries will record negative positions and might not be to meet fiscal demands in the long run if the situation is protracted. Empirical results revealed that there was no long-term relationship between COR and sustainable development. In other words, the results suggest that any changes to COR have a potential negative effect on sustainable development in the selected countr...
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Economic inequality is associated with extreme rates of temporal discounting, which is a behavior... more Economic inequality is associated with extreme rates of temporal discounting, which is a behavioral pattern where individuals choose smaller, immediate financial gains over larger, delayed gains. Such patterns may feed into rising global inequality, yet it is unclear if they are a function of choice preferences or norms, or rather absence of sufficient resources to meet immediate needs. It is also not clear if these reflect true differences in choice patterns between income groups. We test temporal discounting and five intertemporal choice anomalies using local currencies and value standards in 61 countries. Across a diverse sample of 13,629 participants, we found highly consistent rates of choice anomalies. Individuals with lower incomes were not significantly different, but economic inequality and broader financial circumstances impact population choice patterns.
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Cogent Business & Management
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Global Business and Economics Review
The study examines the determinants of three forms of foreign capital, cross-border bank flows (C... more The study examines the determinants of three forms of foreign capital, cross-border bank flows (CBF), foreign direct investment (FDI) and oversees development assistance (ODA) in the SADC region over a period from 1980 to 2012 utilising the 3SLS model and the GMM. The empirical results reveal that both domestic and foreign factors are important determinants of private external financial flows (FDI and CBF) to the SADC region. In all the regressions estimated in the study, foreign variables emerged to be significant in influencing the flow of finance to the region. This suggests that events in developed countries can reduce the amount of external financial flows to the developing countries. Thus, relying on foreign capital flows may humper growth prospects in the SADC countries. This therefore suggests that mobilisation of domestic resources can be an avenue worth exploring to enable sustainable long-term growth in the region.
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Journal of Economics and Behavioral Studies
The importance of the bond market to the financial system and broader economy of a country cannot... more The importance of the bond market to the financial system and broader economy of a country cannot be underestimated. Thus this study seeks to establish the determinants of liquidity in the South African bond market using monthly data covering the period 1995 to 2009, employing the Johansen cointegration test and the Vector Error Correction Model. Empirical results reveal that there is a longterm relationship between the selected macroeconomic variables and bond market liquidity in South Africa. Based on the empirical results, it is recommended that authorities should keep inflation at low and stables levels as well as a stable currency. Of great importance in the study is the role played by foreign investors in the bond market. The positive impact of the foreign investor participation on the bond market liquidity in South Africa suggests that authorities should remove restrictions on foreign investor activities to enhance liquidity in this important market.
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Development Southern Africa
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African Journal of Economic and Management Studies
Purpose The purpose of this paper is to examine the relationship between financial sector develop... more Purpose The purpose of this paper is to examine the relationship between financial sector development and inequality in South Africa for the period from 1990 to 2012. Unlike previous studies, the study examines the role of both the broad measure of financial sector development (Bank credit to the private sector) and a measure of financial inclusion (ATMs). Design/methodology/approach Utilising quarterly data, the autoregressive distributed lag bounds testing model approach to cointegration test was estimated. The approach was preferred due to its compatibility with data of different orders and flexibility. Findings The findings indicate that financial development, especially when it is inclusive reduces the level of inequality in South Africa both in the short- and long-run. The results also highlighted that economic growth, external trade activities and government activities have played a very important role in reducing inequality in South Africa. On the other hand the empirical re...
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The Journal of Developing Areas
ABSTRACT:The majority of countries in the SADC region are experiencing low levels of domestic sav... more ABSTRACT:The majority of countries in the SADC region are experiencing low levels of domestic savings. This calls for the need to explore other sources of capital to bridge the gap between domestic capital demand and supply, and one such source is external financial flows. It is with this background that this study examined the causal relationship between external financial flows and economic growth in the SADC region for the period from 1980 to 2012 employing Panel granger causality test under the fixed effects approach. Panel granger causality tests are more efficient because of the larger number of observations which increases the degrees of freedom as well as reducing collinearity amongst the explanatory variables. In addition, the fixed effects approach does take into account potential heterogeneity of the individual cross sections. Unlike the previous studies, the study disaggregates the different forms of external financial flows. Based on the data from the World Bank, the empirical results reveal that at aggregate regional level there exists a bidirectional causal relationship between economic growth and external financial flows in the region. However when foreign capital flows are disaggregated, the effect is not the same. FDI exhibits bidirectional causality with growth in the majority of the countries in the SADC region. On the other hand cross border bank flows was found to have an insignificant causal relationship with economic growth. ODA and remittances reveal a unidirectional causality from the two types of capital to economic growth. The empirical results also revealed that those countries which are “better off” and sound in the region rely less on aid and remittances and are able to attract private foreign capital such as FDI. At the same time countries which are “worse off” rely more on ODA and remittances. The results imply that the state of the country acts as an important determinant factor attracting foreign capital flows to the SADC region. The other implication which is inferred from the results is that countries in the SADC region should integrate to benefit from cross border bank flows.
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Papers by Mingiri Kapingura