Determinants of private investments in South Africa

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dc.contributor.advisorAlhassan, Abdul Latifen_ZA
dc.contributor.authorSesele, Mmathaboen_ZA
dc.date.accessioned2018-11-23T06:58:36Z
dc.date.available2018-11-23T06:58:36Z
dc.date.issued2018en_ZA
dc.description.abstractThis paper reviews the causal connection between private investment; interest rates and macroeconomic uncertainty in South Africa on a yearly time series data range between 1980 and 2014. This research was encouraged by the continually weakening private investment in South Africa relative to total investment. There is a need to turn around this pattern. This research contributes towards a greater comprehension of the variables and their direction of impact in the examination of the pattern of private investments and additionally, the impacts of interest rate and macroeconomic uncertainty on private investment in SA. The study employs an ARDL model for co-integration to explore the presence of a long-run relationship between the variables and the granger causality within VECM to check the interrelations among the series. The findings reveal that all variables are co-integrated to suggest the existence of a long-run relationship among private investment, long-term interest rates and bond spread. The results show that macroeconomic uncertainty exerts an adverse influence on private investment, in accordance with economic theory. In contrast to the theory, the long-term interest rates coefficient is positive and significant in the projected equation. Therefore, the conclusion is that the interest rate contributes toward the reduction in private investment. Keeping in mind the end goal to resuscitate private investment, government ought to consider receiving approaches that lift total request, offering greater venture motivations, facilitating credit limitations by forming a more productive and vigorous money-related framework, decreasing macroeconomic vulnerabilities, encouraging foundation improvement, and empowering inflows of outside speculation.en_ZA
dc.identifier.apacitationSesele, M. (2018). <i>Determinants of private investments in South Africa</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,Research of GSB. Retrieved from http://hdl.handle.net/11427/29077en_ZA
dc.identifier.chicagocitationSesele, Mmathabo. <i>"Determinants of private investments in South Africa."</i> Thesis., University of Cape Town ,Faculty of Commerce ,Research of GSB, 2018. http://hdl.handle.net/11427/29077en_ZA
dc.identifier.citationSesele, M. 2018. Determinants of private investments in South Africa. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Sesele, Mmathabo AB - This paper reviews the causal connection between private investment; interest rates and macroeconomic uncertainty in South Africa on a yearly time series data range between 1980 and 2014. This research was encouraged by the continually weakening private investment in South Africa relative to total investment. There is a need to turn around this pattern. This research contributes towards a greater comprehension of the variables and their direction of impact in the examination of the pattern of private investments and additionally, the impacts of interest rate and macroeconomic uncertainty on private investment in SA. The study employs an ARDL model for co-integration to explore the presence of a long-run relationship between the variables and the granger causality within VECM to check the interrelations among the series. The findings reveal that all variables are co-integrated to suggest the existence of a long-run relationship among private investment, long-term interest rates and bond spread. The results show that macroeconomic uncertainty exerts an adverse influence on private investment, in accordance with economic theory. In contrast to the theory, the long-term interest rates coefficient is positive and significant in the projected equation. Therefore, the conclusion is that the interest rate contributes toward the reduction in private investment. Keeping in mind the end goal to resuscitate private investment, government ought to consider receiving approaches that lift total request, offering greater venture motivations, facilitating credit limitations by forming a more productive and vigorous money-related framework, decreasing macroeconomic vulnerabilities, encouraging foundation improvement, and empowering inflows of outside speculation. DA - 2018 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2018 T1 - Determinants of private investments in South Africa TI - Determinants of private investments in South Africa UR - http://hdl.handle.net/11427/29077 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/29077
dc.identifier.vancouvercitationSesele M. Determinants of private investments in South Africa. [Thesis]. University of Cape Town ,Faculty of Commerce ,Research of GSB, 2018 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/29077en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentResearch of GSBen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherDevelopment Financeen_ZA
dc.titleDeterminants of private investments in South Africaen_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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