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Estimation of the private investment functions for the South African economy
Dissertation (MBA)--University of Pretoria, 2013.
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2014
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| _version_ | 1867613632929464320 |
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| access_status_str | Open Access |
| author2 | Saville, Adrian |
| author_browse | Saville, Adrian |
| author_facet | Saville, Adrian |
| collection | Thesis |
| dc_rights_str_mv | © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Dissertation (MBA)--University of Pretoria, 2013. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/40771 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:39:14.512Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2014 |
| publishDateRange | 2014 |
| publishDateSort | 2014 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/40771 Estimation of the private investment functions for the South African economy Saville, Adrian ichelp@gibs.co.za Matsila, Nkhangweni Robert UCTD Private equity -- South Africa Investment -- Psychological aspects Dissertation (MBA)--University of Pretoria, 2013. In recent years, private investment has been recognised as a vital engine for economic growth. This growing significance of private investment is largely due to the need to revive global economic growth and consequent job creation following the 2008 global recession. Governments are operating at, or close to, the limits of their respective fiscal budgets because of the stimulus packages. It has therefore become critical to completely understand the drivers of private investment given the different macroeconomic contexts of different countries. Historically, much of the policies to stimulate private investment were based on investment theories established in the developed economies. However, performance of the investment theories in developing countries yielded mixed results. That led to studies focussed on developing countries with a view to develop relevant neoclassical investment theories for developing countries. Initially, such studies were based on a group of developing countries such as Sub-Saharan African countries. The heterogeneity of developing countries within the group impacted on the validity of the results, necessitating the need for a focus on specific individual countries. This study follows this latter approach and is an attempt to estimate the private investment function for South African economy using the multiple regression model. This study is relevant because recently, private investment in South Africa has declined from the peak of 74% of total investment in 2005 to the current level of 63%. This study contributes to the debate on how to reverse this declining trend of private investment. To this end, the relevant data was collected and analysed. The results of the study revealed that private investment in South Africa is positively influenced by an increase in public investment, in savings rate, and the narrowing of the output gap while negatively influenced by increasing uncertainty, interest rates and to a limited extent real exchange rate appreciation.These empirical results suggest that public investment in core infrastructure— though declining—does ‘crowd in’ private investment. Reduction of uncertainty, together with improved quality and policy certainty, will enhance South Africa’s international standing as an attractive investor destination. This way, South Africa will be able to attract some of the huge global savings for domestic investment- one of the benefit of being an open economy. This is despite South Africa’s relatively low domestic savings rate. The significance of economic growth cannot be overemphasised in terms of creating investment opportunities. Economic growth creates investment opportunities. Further, managing inflation and inflation expectations should be conducted with due consideration for impact of monetary policy on private investment. ccgibs2014 Gordon Institute of Business Science (GIBS) MBA Unrestricted 2014-07-15T10:31:30Z 2014-07-15T10:31:30Z 2014-04-30 2013 Mini Dissertation Matsila, NR 2013, Estimation of the private investment functions for the South African economy, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/40771> http://hdl.handle.net/2263/40771 en © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Private equity -- South Africa Investment -- Psychological aspects Estimation of the private investment functions for the South African economy |
| title | Estimation of the private investment functions for the South African economy |
| title_full | Estimation of the private investment functions for the South African economy |
| title_fullStr | Estimation of the private investment functions for the South African economy |
| title_full_unstemmed | Estimation of the private investment functions for the South African economy |
| title_short | Estimation of the private investment functions for the South African economy |
| title_sort | estimation of the private investment functions for the south african economy |
| topic | UCTD Private equity -- South Africa Investment -- Psychological aspects |
| url | http://hdl.handle.net/2263/40771 |