The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa

dc.contributor.advisorGossel, Sean
dc.contributor.authorNdzululeka, Khanya
dc.date.accessioned2021-02-24T05:42:47Z
dc.date.available2021-02-24T05:42:47Z
dc.date.issued2020
dc.date.updated2021-02-23T13:49:04Z
dc.description.abstractThis study examines the interactions between derivatives trading, portfolio flows and economic growth in South Africa over the period 2000: Q1 to 2018: Q4. As derivatives are widely accepted as effective risk management solutions in developed nations, and can facilitate capital flows to emerging markets, there is a need to investigate the empirical relationships between derivatives, portfolio inflows and economic growth. A vector error correction model was used in addition to conducting Granger causality, impulse response functions and variance decomposition tests to analyse the relationship between the factors of interest. The efficiency of the model was established using standard diagnostics, which confirmed the overall significance of the model. The VECM results find a positive short- and long-run relationship between portfolio flows, derivatives trading and economic growth in South Africa. The Granger causality tests, impulse response analysis and variance decompositions find a short-run relationship only between portfolio flows and derivatives trading. The implications are thus that derivatives trading can lead to an increase in portfolio flows.
dc.identifier.apacitationNdzululeka, K. (2020). <i>The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa</i>. (). ,Faculty of Commerce ,Graduate School of Business (GSB). Retrieved from http://hdl.handle.net/11427/32949en_ZA
dc.identifier.chicagocitationNdzululeka, Khanya. <i>"The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa."</i> ., ,Faculty of Commerce ,Graduate School of Business (GSB), 2020. http://hdl.handle.net/11427/32949en_ZA
dc.identifier.citationNdzululeka, K. 2020. The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa. . ,Faculty of Commerce ,Graduate School of Business (GSB). http://hdl.handle.net/11427/32949en_ZA
dc.identifier.ris TY - Master Thesis AU - Ndzululeka, Khanya AB - This study examines the interactions between derivatives trading, portfolio flows and economic growth in South Africa over the period 2000: Q1 to 2018: Q4. As derivatives are widely accepted as effective risk management solutions in developed nations, and can facilitate capital flows to emerging markets, there is a need to investigate the empirical relationships between derivatives, portfolio inflows and economic growth. A vector error correction model was used in addition to conducting Granger causality, impulse response functions and variance decomposition tests to analyse the relationship between the factors of interest. The efficiency of the model was established using standard diagnostics, which confirmed the overall significance of the model. The VECM results find a positive short- and long-run relationship between portfolio flows, derivatives trading and economic growth in South Africa. The Granger causality tests, impulse response analysis and variance decompositions find a short-run relationship only between portfolio flows and derivatives trading. The implications are thus that derivatives trading can lead to an increase in portfolio flows. DA - 2020_ DB - OpenUCT DP - University of Cape Town KW - Development Finance LK - https://open.uct.ac.za PY - 2020 T1 - The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa TI - The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa UR - http://hdl.handle.net/11427/32949 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/32949
dc.identifier.vancouvercitationNdzululeka K. The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa. []. ,Faculty of Commerce ,Graduate School of Business (GSB), 2020 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/32949en_ZA
dc.language.rfc3066eng
dc.publisher.departmentGraduate School of Business (GSB)
dc.publisher.facultyFaculty of Commerce
dc.subjectDevelopment Finance
dc.titleThe relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMCom
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