External Imbalances and the Valuation Channel

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dc.contributor.advisorKotzé, Kevinen_ZA
dc.contributor.authorWhitehead, Basil Thomasen_ZA
dc.date.accessioned2017-10-04T14:27:12Z
dc.date.available2017-10-04T14:27:12Z
dc.date.issued2017en_ZA
dc.description.abstractSouth Africa has been a net debtor of international capital since the South African Reserve Bank began measuring the international investment position in 1956. This surplus in the financial account has been partially used to finance the persistent current account deficit, which has given rise to a large negative net international financial position. The current practice for calculating the size of the financial account is to net off the size of the foreign assets and foreign liabilities, where use is made of the flow values at the date of transfer. In this paper we seek to incorporate the effects of changes in the values of these foreign assets and liabilities, which would ultimately effect the sustainability of an external imbalance. After we derive appropriate measures of the respective variables, we make use of a Bayesian structural vector autoregressive model that is able to capture stylised features that relate to the volatility of financial returns. We find that an increase in returns acts in a similar way to that of an improvement in the trade balance, which provides a more favourable external imbalance.en_ZA
dc.identifier.apacitationWhitehead, B. T. (2017). <i>External Imbalances and the Valuation Channel</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/25529en_ZA
dc.identifier.chicagocitationWhitehead, Basil Thomas. <i>"External Imbalances and the Valuation Channel."</i> Thesis., University of Cape Town ,Faculty of Commerce ,School of Economics, 2017. http://hdl.handle.net/11427/25529en_ZA
dc.identifier.citationWhitehead, B. 2017. External Imbalances and the Valuation Channel. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Whitehead, Basil Thomas AB - South Africa has been a net debtor of international capital since the South African Reserve Bank began measuring the international investment position in 1956. This surplus in the financial account has been partially used to finance the persistent current account deficit, which has given rise to a large negative net international financial position. The current practice for calculating the size of the financial account is to net off the size of the foreign assets and foreign liabilities, where use is made of the flow values at the date of transfer. In this paper we seek to incorporate the effects of changes in the values of these foreign assets and liabilities, which would ultimately effect the sustainability of an external imbalance. After we derive appropriate measures of the respective variables, we make use of a Bayesian structural vector autoregressive model that is able to capture stylised features that relate to the volatility of financial returns. We find that an increase in returns acts in a similar way to that of an improvement in the trade balance, which provides a more favourable external imbalance. DA - 2017 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2017 T1 - External Imbalances and the Valuation Channel TI - External Imbalances and the Valuation Channel UR - http://hdl.handle.net/11427/25529 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/25529
dc.identifier.vancouvercitationWhitehead BT. External Imbalances and the Valuation Channel. [Thesis]. University of Cape Town ,Faculty of Commerce ,School of Economics, 2017 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/25529en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentSchool of Economicsen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherEconomicsen_ZA
dc.titleExternal Imbalances and the Valuation Channelen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMComen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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