Calls have been made within the careers literature for studies focusing on the career experiences of sample groups often neglected in theorising. One could regard self-initiated expatriates (SIEs) as one of these sample groups, especially within the context of a developing country. An interpretivist paradigm, relying on interviews, was adopted for this study using a sample of 25 expatriates working at a South African university. Based on data generated, career success was framed through: 1) quest for career progression; 2) material possessions; and 3) research publication output. Participants deemed factors within the organisation as key to this framing of career success, particularly: 1) the value placed on social networks; 2) the quest for fair remuneration; and finally 3) the availability of opportunities within the organisation. In their endeavours to retain and attract foreign academics, human resources (HR) practitioners can use the findings of this study to inform strategies that assist in developing their staff.
{"title":"Using Narratives to Understand the Experience of Career Success amongst Self-initiated Expatriates in South Africa","authors":"T. Harry, N. Dodd, W. Chinyamurindi","doi":"10.25159/1998-8125/4573","DOIUrl":"https://doi.org/10.25159/1998-8125/4573","url":null,"abstract":"Calls have been made within the careers literature for studies focusing on the career experiences of sample groups often neglected in theorising. One could regard self-initiated expatriates (SIEs) as one of these sample groups, especially within the context of a developing country. An interpretivist paradigm, relying on interviews, was adopted for this study using a sample of 25 expatriates working at a South African university. Based on data generated, career success was framed through: 1) quest for career progression; 2) material possessions; and 3) research publication output. Participants deemed factors within the organisation as key to this framing of career success, particularly: 1) the value placed on social networks; 2) the quest for fair remuneration; and finally 3) the availability of opportunities within the organisation. In their endeavours to retain and attract foreign academics, human resources (HR) practitioners can use the findings of this study to inform strategies that assist in developing their staff.","PeriodicalId":44582,"journal":{"name":"Southern African Business Review","volume":"98 3 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2019-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83233116","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study empirically examined the relationship between human capital development and economic growth in Zimbabwe for the period 1980 to 2015, using time series analysis techniques of co-integration, error correction model, and Granger causality tests. The study was motivated by changes which have characterised the financing of human capital since the country attained independence. A decade after independence, the government was able to adequately finance the social sectors; however, thereafter government financing has been declining since the adoption of the structural adjustment programme. The findings of this study indicate the existence of a short-run and long-run relationship between human capital development and economic growth in Zimbabwe. On the direction and significance of the relationship, the result is mixed. Human capital development, proxied by government expenditure on health, had a significant positive impact on economic growth—both in the short run and the long run—reaffirming that a healthy labour force will be more productive and efficient. Human capital development, proxied by government expenditure on education, was found to negatively impact economic growth in the long run. In conclusion, a positive relationship between human capital development and economic growth in Zimbabwe was found, although the relationship is weak.
{"title":"Human Capital Development and Economic Growth Nexus in Zimbabwe","authors":"S. Abel, Nyasha Mhaka, P. le Roux","doi":"10.25159/1998-8125/5128","DOIUrl":"https://doi.org/10.25159/1998-8125/5128","url":null,"abstract":"This study empirically examined the relationship between human capital development and economic growth in Zimbabwe for the period 1980 to 2015, using time series analysis techniques of co-integration, error correction model, and Granger causality tests. The study was motivated by changes which have characterised the financing of human capital since the country attained independence. A decade after independence, the government was able to adequately finance the social sectors; however, thereafter government financing has been declining since the adoption of the structural adjustment programme. The findings of this study indicate the existence of a short-run and long-run relationship between human capital development and economic growth in Zimbabwe. On the direction and significance of the relationship, the result is mixed. Human capital development, proxied by government expenditure on health, had a significant positive impact on economic growth—both in the short run and the long run—reaffirming that a healthy labour force will be more productive and efficient. Human capital development, proxied by government expenditure on education, was found to negatively impact economic growth in the long run. In conclusion, a positive relationship between human capital development and economic growth in Zimbabwe was found, although the relationship is weak.","PeriodicalId":44582,"journal":{"name":"Southern African Business Review","volume":"67 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2019-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78198687","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Tax revenue forecasts are important for tax authorities as they contribute to the budget and strategic planning of any country. For this reason, various tax types need to be forecast for a specific fiscal year, using models that are statistically sound and have a smaller margin of error. This study models and forecasts South Africa’s major tax revenues, i.e. Corporate Income Tax (CIT), Personal Income Tax (PIT), Value-Added Tax (VAT) and Total Tax Revenue (TTR) using the Bayesian Vector Auto-regression (BVAR), Auto-regressive Moving Average (ARIMA), and State Space exponential smoothing (Error, Trend, Seasonal [ETS]) models with quarterly data from 1998 to 2012. The forecasts of the three models based on the Root mean square error (RMSE) were from the out-of-sample period 2012Q2 to 2015Q1. The results show the accuracy of the BVAR method for forecasting major tax revenues. The ETS appears to be a good method for TTR forecasting, as it outperformed the BVAR method. The paper recommends that the BVAR method may be added to existing techniques being used to forecast tax revenues in South Africa, as it gives a minimum forecast error.
{"title":"Bayesian Vector Auto-Regression Method as an Alternative Technique for Forecasting South African Tax Revenue","authors":"Mojalefa Aubrey Molapo, J. Olaomi, N. Ama","doi":"10.25159/1998-8125/4416","DOIUrl":"https://doi.org/10.25159/1998-8125/4416","url":null,"abstract":"Tax revenue forecasts are important for tax authorities as they contribute to the budget and strategic planning of any country. For this reason, various tax types need to be forecast for a specific fiscal year, using models that are statistically sound and have a smaller margin of error. This study models and forecasts South Africa’s major tax revenues, i.e. Corporate Income Tax (CIT), Personal Income Tax (PIT), Value-Added Tax (VAT) and Total Tax Revenue (TTR) using the Bayesian Vector Auto-regression (BVAR), Auto-regressive Moving Average (ARIMA), and State Space exponential smoothing (Error, Trend, Seasonal [ETS]) models with quarterly data from 1998 to 2012. The forecasts of the three models based on the Root mean square error (RMSE) were from the out-of-sample period 2012Q2 to 2015Q1. The results show the accuracy of the BVAR method for forecasting major tax revenues. The ETS appears to be a good method for TTR forecasting, as it outperformed the BVAR method. The paper recommends that the BVAR method may be added to existing techniques being used to forecast tax revenues in South Africa, as it gives a minimum forecast error. \u0000 ","PeriodicalId":44582,"journal":{"name":"Southern African Business Review","volume":"77 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2019-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85030578","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Understanding how customers perceive trust and risk when engaging with online pure-play multi-sided platforms (MSPs), has become critical to the performance of digital marketing strategies. This study explored the relationship between perceived trust, perceived risk and user familiarity associated with MSPs. For the purpose of this study, MSPs are conceptualised as firms that operate only online, that seek to provide transacting services to buyers and sellers, and that sell physical offerings in an emerging market context. Primary data were collected through an online instrument across five MSPs and the study reported the results pertaining to differences and similarities between groups and platforms. The results show that while familiarity drives trust, its impact is moderated by perceived risk. Contrary to common belief, the results show gender differences, but do not confirm age differences in trust and the moderation effect of risk. Moreover, the results also show that the influence of familiarity is not significantly different across MSPs.
{"title":"Perceived Risk, Trust and Familiarity of Online Multi-Sided Pure-Play Platforms Selling Physical Offerings in an Emerging Market","authors":"Marilise Carstens, M. Ungerer, G. Human","doi":"10.25159/1998-8125/5594","DOIUrl":"https://doi.org/10.25159/1998-8125/5594","url":null,"abstract":"Understanding how customers perceive trust and risk when engaging with online pure-play multi-sided platforms (MSPs), has become critical to the performance of digital marketing strategies. This study explored the relationship between perceived trust, perceived risk and user familiarity associated with MSPs. For the purpose of this study, MSPs are conceptualised as firms that operate only online, that seek to provide transacting services to buyers and sellers, and that sell physical offerings in an emerging market context. Primary data were collected through an online instrument across five MSPs and the study reported the results pertaining to differences and similarities between groups and platforms. The results show that while familiarity drives trust, its impact is moderated by perceived risk. Contrary to common belief, the results show gender differences, but do not confirm age differences in trust and the moderation effect of risk. Moreover, the results also show that the influence of familiarity is not significantly different across MSPs.","PeriodicalId":44582,"journal":{"name":"Southern African Business Review","volume":"14 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2019-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86047089","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Reevasha Pillay, Aden-Paul Flotman, Jeremy Mitonga-Monga Monga
The opinion that the workplace should be viewed as a rational environment is being swiftly dismantled by acknowledging and harnessing the power of emotions in favour of individual and organisational outcomes. This study explored the lived experiences of emotional labour among women leaders in the consulting industry in South Africa. A qualitative study was conducted and informed by the hermeneutic phenomenological perspective. Data were gathered through in-depth, unstructured interviews with eight women leaders resident in the Gauteng Province, South Africa. The data gathered were analysed by applying a hermeneutic phenomenological analysis, and interpreted from a work- and personally related emotional labour stance. The empirical findings suggest that these women leaders enjoy very little work-life balance, which is accepted as common practice in this industry. Role complexity and personal life obligations result in role conflict. Their emotional wellbeing is adversely affected, which manifests in guilt, loneliness, loss of identity, alienation, shame and the emotional exhaustion they experience. Furthermore, it seems that adequate organisational support is not experienced by women leaders in this volatile, highly pressured emotional context. This study contributes to the field of Industrial and Organisational Psychology, the literature on emotional labour, as well as human resource practices such as talent management, retention strategies and the career management of women leaders in the consulting industry by making suggestions for human resource practices and future research.
{"title":"Emotional Labour among Women Leaders within the South African Consulting Industry: A Hermeneutic Phenomenological Inquiry","authors":"Reevasha Pillay, Aden-Paul Flotman, Jeremy Mitonga-Monga Monga","doi":"10.25159/1998-8125/4280","DOIUrl":"https://doi.org/10.25159/1998-8125/4280","url":null,"abstract":"The opinion that the workplace should be viewed as a rational environment is being swiftly dismantled by acknowledging and harnessing the power of emotions in favour of individual and organisational outcomes. This study explored the lived experiences of emotional labour among women leaders in the consulting industry in South Africa. A qualitative study was conducted and informed by the hermeneutic phenomenological perspective. Data were gathered through in-depth, unstructured interviews with eight women leaders resident in the Gauteng Province, South Africa. The data gathered were analysed by applying a hermeneutic phenomenological analysis, and interpreted from a work- and personally related emotional labour stance. The empirical findings suggest that these women leaders enjoy very little work-life balance, which is accepted as common practice in this industry. Role complexity and personal life obligations result in role conflict. Their emotional wellbeing is adversely affected, which manifests in guilt, loneliness, loss of identity, alienation, shame and the emotional exhaustion they experience. Furthermore, it seems that adequate organisational support is not experienced by women leaders in this volatile, highly pressured emotional context. This study contributes to the field of Industrial and Organisational Psychology, the literature on emotional labour, as well as human resource practices such as talent management, retention strategies and the career management of women leaders in the consulting industry by making suggestions for human resource practices and future research.","PeriodicalId":44582,"journal":{"name":"Southern African Business Review","volume":"73 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2019-05-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82564189","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this study was to determine whether goodwill, which is measured in accordance with International Financial Reporting Standard 3 (IFRS 3), is value relevant at acquisition and as time progresses, for a period of two years after acquisition. Using the Ohlson model, 126 JSE firm-year observations were tested. It was subsequently found that goodwill was not value relevant at acquisition date but did become value relevant as time progressed. The possible reasons for goodwill not being value relevant at acquisition are attributed to the manner in which IFRS 3 requires goodwill to be measured, the allowance of provisional values under IFRS 3, and the complexities associated with complying with IFRS 3. Goodwill being value relevant as time progresses is attributed to the subsequent measurement requirements of IFRS 3, in particular the annual impairment testing requirement as opposed to the previous amortisation requirements. This study was conducted in a South African context where limited studies on goodwill have taken place. The results are deemed to be useful to investors and standard setters as they hold implications for goodwill accounting practice and changes to goodwill accounting standards.
{"title":"The Value Relevance of Aged Goodwill: A South African Study","authors":"Fatima Zahra Omarjee, Y. Yasseen, Waheeda Mohamed","doi":"10.25159/1998-8125/3868","DOIUrl":"https://doi.org/10.25159/1998-8125/3868","url":null,"abstract":"The purpose of this study was to determine whether goodwill, which is measured in accordance with International Financial Reporting Standard 3 (IFRS 3), is value relevant at acquisition and as time progresses, for a period of two years after acquisition. Using the Ohlson model, 126 JSE firm-year observations were tested. It was subsequently found that goodwill was not value relevant at acquisition date but did become value relevant as time progressed. The possible reasons for goodwill not being value relevant at acquisition are attributed to the manner in which IFRS 3 requires goodwill to be measured, the allowance of provisional values under IFRS 3, and the complexities associated with complying with IFRS 3. Goodwill being value relevant as time progresses is attributed to the subsequent measurement requirements of IFRS 3, in particular the annual impairment testing requirement as opposed to the previous amortisation requirements. This study was conducted in a South African context where limited studies on goodwill have taken place. The results are deemed to be useful to investors and standard setters as they hold implications for goodwill accounting practice and changes to goodwill accounting standards.","PeriodicalId":44582,"journal":{"name":"Southern African Business Review","volume":"35 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2019-05-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76330417","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Matthias Mpareke Ngwangwama, M. Ungerer, J. Morrison
One of the long-running debates within the research dealing with developing countries’ situations, has been the extent to which management theories and practices rooted in the developed countries’ perspectives can be applied by organisations in the developing countries. To contribute to this debate, this study aimed to discover new insights that could highlight the superseding management practices and activities associated with the effectiveness of organisations in a developing country. The study applied an inductive research approach through data obtained via interviews from 54 key role players and ultra-elites in organisations such as members of the board, management and employees. Qualitative research techniques were used to analyse data. The study findings suggest context-specific management practices and activities, unique from those typically cited in the developed countries, as influencing the effectiveness of organisations in Namibia. Moreover, the study found that management practices and activities related to human fundamentals, such as those embodied in the resource-based view of organisations, appear to be significantly associated with the effectiveness of companies in the Namibian context. The findings of the study have theoretical and practical value for those teaching, consulting and leading organisations in developing countries, especially in African organisations. Also, the findings have value for organisational development and design specialists, human resources professionals, Namibian business practitioners, and expatriates who manage operations and people in Namibia.
{"title":"Management Practices and Activities Influencing the Effectiveness of Organisations in Namibia","authors":"Matthias Mpareke Ngwangwama, M. Ungerer, J. Morrison","doi":"10.25159/1998-8125/5566","DOIUrl":"https://doi.org/10.25159/1998-8125/5566","url":null,"abstract":"One of the long-running debates within the research dealing with developing countries’ situations, has been the extent to which management theories and practices rooted in the developed countries’ perspectives can be applied by organisations in the developing countries. To contribute to this debate, this study aimed to discover new insights that could highlight the superseding management practices and activities associated with the effectiveness of organisations in a developing country. The study applied an inductive research approach through data obtained via interviews from 54 key role players and ultra-elites in organisations such as members of the board, management and employees. Qualitative research techniques were used to analyse data. The study findings suggest context-specific management practices and activities, unique from those typically cited in the developed countries, as influencing the effectiveness of organisations in Namibia. Moreover, the study found that management practices and activities related to human fundamentals, such as those embodied in the resource-based view of organisations, appear to be significantly associated with the effectiveness of companies in the Namibian context. The findings of the study have theoretical and practical value for those teaching, consulting and leading organisations in developing countries, especially in African organisations. Also, the findings have value for organisational development and design specialists, human resources professionals, Namibian business practitioners, and expatriates who manage operations and people in Namibia.","PeriodicalId":44582,"journal":{"name":"Southern African Business Review","volume":"22 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2019-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81307895","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
At the heart of the public service sector within a developing country such as South Africa, is the contentious issue of good service delivery. However, numerous budget cuts, high vacancy rates and service delivery demands have an impact on the wellbeing of middle managers. This study investigates: 1) the relationship between sense of coherence, work engagement and burnout; and 2) whether there is a difference in socio-demographic variables. The study employed a quantitative research method, using primary data from a convenience sample (N = 172) of middle managers within a public service organisation. The correlational and inferential statistical analysis revealed a significant statistical relationship between the variables, namely sense of coherence, work engagement, and burnout. Significant differences were also found between respondents in terms of marital status and depersonalisation or cynicism. Overall, the results showed that the respondents experienced high levels of sense of coherence, work engagement and professional efficacy. This study has highlighted the wellbeing of employees within the public sector in a developing country.
{"title":"Employee Wellness amongst Middle Managers in a South African Public Sector Organisation","authors":"Nisha Harry, F. Gallie","doi":"10.25159/1998-8125/4140","DOIUrl":"https://doi.org/10.25159/1998-8125/4140","url":null,"abstract":"At the heart of the public service sector within a developing country such as South Africa, is the contentious issue of good service delivery. However, numerous budget cuts, high vacancy rates and service delivery demands have an impact on the wellbeing of middle managers. This study investigates: 1) the relationship between sense of coherence, work engagement and burnout; and 2) whether there is a difference in socio-demographic variables. The study employed a quantitative research method, using primary data from a convenience sample (N = 172) of middle managers within a public service organisation. The correlational and inferential statistical analysis revealed a significant statistical relationship between the variables, namely sense of coherence, work engagement, and burnout. Significant differences were also found between respondents in terms of marital status and depersonalisation or cynicism. Overall, the results showed that the respondents experienced high levels of sense of coherence, work engagement and professional efficacy. This study has highlighted the wellbeing of employees within the public sector in a developing country.","PeriodicalId":44582,"journal":{"name":"Southern African Business Review","volume":"41 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2019-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87404458","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The main objective of this paper is to explore job seekers’ perception of an organisation’s corporate social performance (CSP) credentials as a plausible consideration in the employment decision-making process as suggested by existing literature. Similarly, the paper provides a contextual extension of previous studies that were conducted in different cultural work environments. The paper developed a conceptual model based on a literature survey in order to achieve its objectives. A survey of 515 final year undergraduate and postgraduate students in a public university in Gauteng, South Africa, was conducted to empirically determine the relationship between various dimensions of CSP in relation to a job seeker’s attractiveness to an organisation. The economic responsibility dimension of CSP was found to have the greatest influence on organisational attractiveness to job seekers. Previous studies used organisational level as the unit of analysis in arriving at conclusions, without corresponding evidence at the individual level of analysis. Our analysis in this study was conducted at an individual level, thus filling an existing gap in the literature. This paper further extends the work of some previous scholars on job pursuit intention. The study is, however, limited by our assumption that all participants would enter the labour market immediately after graduation, without
{"title":"Exploring Dimensions of Corporate Social Performance as a Strategy for Attracting Quality Job Seekers","authors":"Aretha Mazingi, O. Samuel","doi":"10.25159/1998-8125/5310","DOIUrl":"https://doi.org/10.25159/1998-8125/5310","url":null,"abstract":"The main objective of this paper is to explore job seekers’ perception of an organisation’s corporate social performance (CSP) credentials as a plausible consideration in the employment decision-making process as suggested by existing literature. Similarly, the paper provides a contextual extension of previous studies that were conducted in different cultural work environments. The paper developed a conceptual model based on a literature survey in order to achieve its objectives. A survey of 515 final year undergraduate and postgraduate students in a public university in Gauteng, South Africa, was conducted to empirically determine the relationship between various dimensions of CSP in relation to a job seeker’s attractiveness to an organisation. The economic responsibility dimension of CSP was found to have the greatest influence on organisational attractiveness to job seekers. Previous studies used organisational level as the unit of analysis in arriving at conclusions, without corresponding evidence at the individual level of analysis. Our analysis in this study was conducted at an individual level, thus filling an existing gap in the literature. This paper further extends the work of some previous scholars on job pursuit intention. The study is, however, limited by our assumption that all participants would enter the labour market immediately after graduation, without ","PeriodicalId":44582,"journal":{"name":"Southern African Business Review","volume":"2014 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2019-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88041233","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
South Africa is fast approaching a “fiscal cliff” owing to rising government expenditure on civil service remuneration, social security grants and interest payments on government debt. The fiscal cliff is defined as the point where civil service remuneration, social security grants and interest payments on government debt account for 100 per cent of government tax revenue. Currently these three items account for some 70 per cent of the government’s tax revenue. The South African government has already increased the value-added tax (VAT) rate from 14 per cent to 15 per cent, but a reduction in government expenditure must also be considered to avert the fiscal cliff. Unnecessary government expenditure must, therefore, be identified and eradicated. One example where savings can be recorded is expenditure on imported vehicles purchased for the government vehicle fleet at central and provincial government level. These vehicles can easily be substituted by the purchase of locally-produced vehicles. Research in this paper shows that a policy of exclusive purchases of locally-produced vehicles for the government fleet at central and provincial government level would (based on 2017-figures) lead to fiscal relief, higher employment in the automotive manufacturing sector and a once-off positive economic growth impact for the South African economy. This matter has also found some support amongst members of Parliament.
{"title":"The South African Government Vehicle Fleet must be Local","authors":"J. Rossouw, L. Weyer","doi":"10.25159/1998-8125/4974","DOIUrl":"https://doi.org/10.25159/1998-8125/4974","url":null,"abstract":"South Africa is fast approaching a “fiscal cliff” owing to rising government expenditure on civil service remuneration, social security grants and interest payments on government debt. The fiscal cliff is defined as the point where civil service remuneration, social security grants and interest payments on government debt account for 100 per cent of government tax revenue. Currently these three items account for some 70 per cent of the government’s tax revenue. The South African government has already increased the value-added tax (VAT) rate from 14 per cent to 15 per cent, but a reduction in government expenditure must also be considered to avert the fiscal cliff. Unnecessary government expenditure must, therefore, be identified and eradicated. One example where savings can be recorded is expenditure on imported vehicles purchased for the government vehicle fleet at central and provincial government level. These vehicles can easily be substituted by the purchase of locally-produced vehicles. Research in this paper shows that a policy of exclusive purchases of locally-produced vehicles for the government fleet at central and provincial government level would (based on 2017-figures) lead to fiscal relief, higher employment in the automotive manufacturing sector and a once-off positive economic growth impact for the South African economy. This matter has also found some support amongst members of Parliament.","PeriodicalId":44582,"journal":{"name":"Southern African Business Review","volume":"11 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2019-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85144914","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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