A Critical Assessment of the Sustainability of South Africa's Fiscal Policy and Related Institutional Frameworks

dc.contributor.advisorMateane, Lebogang
dc.contributor.authorNgewana, Azande
dc.date.accessioned2020-02-07T10:31:17Z
dc.date.available2020-02-07T10:31:17Z
dc.date.issued2019
dc.date.updated2020-01-24T09:51:38Z
dc.description.abstractHistorically, there are many examples of countries that have had to deal with the unpleasant consequences of economic mismanagement. A recent example is Venezuela, which has imploded into hyperinflation. It is therefore important to consider the question of fiscal sustainability in the South African context. This study ultimately aimed to test the sustainability of South Africa’s fiscal policy and public debt, with fiscal policy defined as the satisfaction of the intertemporal budget constraint. The Augmented Dickey–Fuller test was used to assess the stationarity of national government revenue and national government expenditure – both expressed as percentages of GDP – while the Engle–Granger test was used to test the residuals of the regression between national government revenue and national government expenditure for a long-run relationship. A long-run relationship was found between these two variables, suggesting that fiscal policy and South Africa’s public debt are sustainable. However, due to weakened institutions, the South African government should remain aware that the country’s fiscal policy could easily move into unsustainable territory.
dc.identifier.apacitationNgewana, A. (2019). <i>A Critical Assessment of the Sustainability of South Africa's Fiscal Policy and Related Institutional Frameworks</i>. (). ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/30908en_ZA
dc.identifier.chicagocitationNgewana, Azande. <i>"A Critical Assessment of the Sustainability of South Africa's Fiscal Policy and Related Institutional Frameworks."</i> ., ,Faculty of Commerce ,School of Economics, 2019. http://hdl.handle.net/11427/30908en_ZA
dc.identifier.citationNgewana, A. 2019. A Critical Assessment of the Sustainability of South Africa's Fiscal Policy and Related Institutional Frameworks.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Ngewana, Azande AB - Historically, there are many examples of countries that have had to deal with the unpleasant consequences of economic mismanagement. A recent example is Venezuela, which has imploded into hyperinflation. It is therefore important to consider the question of fiscal sustainability in the South African context. This study ultimately aimed to test the sustainability of South Africa’s fiscal policy and public debt, with fiscal policy defined as the satisfaction of the intertemporal budget constraint. The Augmented Dickey–Fuller test was used to assess the stationarity of national government revenue and national government expenditure – both expressed as percentages of GDP – while the Engle–Granger test was used to test the residuals of the regression between national government revenue and national government expenditure for a long-run relationship. A long-run relationship was found between these two variables, suggesting that fiscal policy and South Africa’s public debt are sustainable. However, due to weakened institutions, the South African government should remain aware that the country’s fiscal policy could easily move into unsustainable territory. DA - 2019 DB - OpenUCT DP - University of Cape Town KW - Economic Development LK - https://open.uct.ac.za PY - 2019 T1 - A Critical Assessment of the Sustainability of South Africa's Fiscal Policy and Related Institutional Frameworks TI - A Critical Assessment of the Sustainability of South Africa's Fiscal Policy and Related Institutional Frameworks UR - http://hdl.handle.net/11427/30908 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/30908
dc.identifier.vancouvercitationNgewana A. A Critical Assessment of the Sustainability of South Africa's Fiscal Policy and Related Institutional Frameworks. []. ,Faculty of Commerce ,School of Economics, 2019 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/30908en_ZA
dc.language.rfc3066eng
dc.publisher.departmentSchool of Economics
dc.publisher.facultyFaculty of Commerce
dc.subjectEconomic Development
dc.titleA Critical Assessment of the Sustainability of South Africa's Fiscal Policy and Related Institutional Frameworks
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMCom
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