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The role of private capital flows and financial deepening in the economic growth of South Africa
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...
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| Other Authors: | |
| Format: | Thesis |
| Language: | English |
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Graduate School of Business (GSB)
2018
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| _version_ | 1867613256671035392 |
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| access_status_str | Open Access |
| author | Karimatsenga, Sharon |
| author2 | Alhassan, Abdul Latif |
| author_browse | Alhassan, Abdul Latif Karimatsenga, Sharon |
| author_facet | Alhassan, Abdul Latif Karimatsenga, Sharon |
| author_sort | Karimatsenga, Sharon |
| collection | Thesis |
| description | 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. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/28392 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:33:15.376Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2018 |
| publishDateRange | 2018 |
| publishDateSort | 2018 |
| publisher | Graduate School of Business (GSB) |
| publisherStr | Graduate School of Business (GSB) |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/28392 The role of private capital flows and financial deepening in the economic growth of South Africa Karimatsenga, Sharon Alhassan, Abdul Latif finance private capital flows economic growth South Africa 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. 2018-09-04T14:24:13Z 2018-09-04T14:24:13Z 2018 2018-08-16T08:34:03Z Master Thesis Masters MCom http://hdl.handle.net/11427/28392 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce University of Cape Town |
| spellingShingle | finance private capital flows economic growth South Africa Karimatsenga, Sharon The role of private capital flows and financial deepening in the economic growth of South Africa |
| thesis_degree_str | Master's |
| title | The role of private capital flows and financial deepening in the economic growth of South Africa |
| title_full | The role of private capital flows and financial deepening in the economic growth of South Africa |
| title_fullStr | The role of private capital flows and financial deepening in the economic growth of South Africa |
| title_full_unstemmed | The role of private capital flows and financial deepening in the economic growth of South Africa |
| title_short | The role of private capital flows and financial deepening in the economic growth of South Africa |
| title_sort | role of private capital flows and financial deepening in the economic growth of south africa |
| topic | finance private capital flows economic growth South Africa |
| url | http://hdl.handle.net/11427/28392 |
| work_keys_str_mv | AT karimatsengasharon theroleofprivatecapitalflowsandfinancialdeepeningintheeconomicgrowthofsouthafrica AT karimatsengasharon roleofprivatecapitalflowsandfinancialdeepeningintheeconomicgrowthofsouthafrica |