The role of private capital flows and financial deepening in the economic growth of South Africa

dc.contributor.advisorAlhassan, Abdul Latif
dc.contributor.authorKarimatsenga, Sharon
dc.date.accessioned2018-09-04T14:24:13Z
dc.date.available2018-09-04T14:24:13Z
dc.date.issued2018
dc.date.updated2018-08-16T08:34:03Z
dc.description.abstractThis research examines the role of Private Capital Flows (PCF) and Financial Deepening in the economic growth of South Africa. Using secondary data obtained from the South African Reserve Bank and the World Bank online databases for the period 1990 to 2015, we examine the relationship between these three variables using the Autoregressive Distributed Lag (ARDL) bounds testing procedure. The causal relationship between the variables is further investigated using the Granger Causality test. Where previous studies mainly focus on investigating the relationship between capital flows and economic growth; and that of financial deepening and economic growth in South Africa independently; this study looks at the interrelationship between these three variables. Contrary to our expectations, the findings from the research suggest that there is no significant long run relationship between these variables in South Africa; however we found significant unidirectional short run causal relationships between the variables. The study established that in the short run, economic growth granger causes private capital flows; financial deepening granger causes private capital flows and that economic growth granger causes financial deepening. These findings imply that putting in place policies that encourage economic growth will lead to improvements in both PCF and financial deepening in the short run. In turn, improvements in financial deepening will also foster improvements in PCF in the short run. The results, policy implications, and future research are discussed.
dc.identifier.apacitationKarimatsenga, S. (2018). <i>The role of private capital flows and financial deepening in the economic growth of South Africa</i>. (). University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB). Retrieved from http://hdl.handle.net/11427/28392en_ZA
dc.identifier.chicagocitationKarimatsenga, Sharon. <i>"The role of private capital flows and financial deepening in the economic growth of South Africa."</i> ., University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB), 2018. http://hdl.handle.net/11427/28392en_ZA
dc.identifier.citationKarimatsenga, S. 2018. The role of private capital flows and financial deepening in the economic growth of South Africa. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Karimatsenga, Sharon AB - This research examines the role of Private Capital Flows (PCF) and Financial Deepening in the economic growth of South Africa. Using secondary data obtained from the South African Reserve Bank and the World Bank online databases for the period 1990 to 2015, we examine the relationship between these three variables using the Autoregressive Distributed Lag (ARDL) bounds testing procedure. The causal relationship between the variables is further investigated using the Granger Causality test. Where previous studies mainly focus on investigating the relationship between capital flows and economic growth; and that of financial deepening and economic growth in South Africa independently; this study looks at the interrelationship between these three variables. Contrary to our expectations, the findings from the research suggest that there is no significant long run relationship between these variables in South Africa; however we found significant unidirectional short run causal relationships between the variables. The study established that in the short run, economic growth granger causes private capital flows; financial deepening granger causes private capital flows and that economic growth granger causes financial deepening. These findings imply that putting in place policies that encourage economic growth will lead to improvements in both PCF and financial deepening in the short run. In turn, improvements in financial deepening will also foster improvements in PCF in the short run. The results, policy implications, and future research are discussed. DA - 2018 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2018 T1 - The role of private capital flows and financial deepening in the economic growth of South Africa TI - The role of private capital flows and financial deepening in the economic growth of South Africa UR - http://hdl.handle.net/11427/28392 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/28392
dc.identifier.vancouvercitationKarimatsenga S. The role of private capital flows and financial deepening in the economic growth of South Africa. []. University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB), 2018 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/28392en_ZA
dc.language.isoeng
dc.publisher.departmentGraduate School of Business (GSB)
dc.publisher.facultyFaculty of Commerce
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherfinance
dc.subject.otherprivate capital flows
dc.subject.othereconomic growth
dc.subject.otherSouth Africa
dc.titleThe role of private capital flows and financial deepening in the economic growth of South Africa
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMCom
uct.type.filetypeText
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