Roads Transport Infrastructure and Trade Facilitation in South Africa: The Monte-Carlo Simulation Approach
Edward Kagiso Molefe and Katleho Daniel Makatjane
Trade facilitation is effectively linked to the capacity of existing transport infrastructure. Therefore, the development of transport related infrastructure plays a pivotal role in ensuring that this policy is fully implemented. The primary objective of this current study is to empirically examine the extreme effects of roads transport infrastructure on the implementation of trade facilitation policy (trade simplification and harmonization) in South Africa. This follows the fact that almost 90 per cent of cargo in South Africa and other SADC countries is transported using roads transport. The Threshold Vector Error Correction Model (TVECM) is adopted in this current study to estimate nonlinear effects of roads transport infrastructure on trade facilitation policy. Moreover, this study employs the Ali-Mikhail-Haq copulas and uses the residuals of the TVECM to predict the extreme dependence between roads transport infrastructure and trade facilitation. The results obtained in this study discovered that an estimated TVECM (1) was a good framework for interpreting the co-movement of roads transport infrastructure and trade facilitation in South Africa. The study concluded that roads transport infrastructure has extreme effects on trade facilitation since the correlation margins of the variables are extremely tight. Therefore, without proper roads transport infrastructure in place, trade simplification and harmonization as stipulated in the trade facilitation policy will remain a challenge in South Africa. This will also have a detrimental effects on imports and exports of South Africa since trading will continue to be time consuming and costly.
Keywords: Government Infrastructure Development, Trade Facilitation, Threshold Vector Error Correction Model, South Africa
Life after Retirement and Struggle for Pension in Osun State, Nigeria
Commenting on the significance of pension as a social security measure for cushioning the economic demands that comes with retirement, there are pockets of evidence advancing the commentaries that pension aid in striking an economic balance between the periods of retirement and active service. This statement captures the importance of pension as an essential social security measure. This paper assesses life after retirement and the struggle for pension in Osun State, Nigeria. Previous studies have largely focus on pension policies and reforms, with a scare attention on life after retirement experiences and struggle for pension in Nigeria. The exploratory research design was applied to advance the limit of knowledge on pension and retirement discourse with a total of 28 pensioners selected for interviews through the snowball and convenient recruitment strategies. The Social Contract Theory was utilized to understand major assumptions raised in the study. Findings reveal a number of life after retirement challenges for pensioners including inability to access medical treatment, difficulty in providing for families due to non-payment of pension and strenuous pension verification exercise among others. It was equally shown that the social security responsibilities of the Osun State government towards the welfare of pensioners in the state have been hijacked with political propaganda, while pensioners are left to go through untold hardship. The study recommends for the constitution of a separate pension budget for pension management effectiveness in the state. Lastly, it is recommended that the Osun State government be committed to the well-being of pensioners by avoiding all forms of politicking with the welfare of those who have served the state in various capacities during their active years.
Keywords: Retirement, Pension, State, Social Contract, Nigeria
The Contribution of Agricultural Production on Selected Sustainable Development Goals in the BRICS: A Panel Analysis
Does agriculture contribute to Sustainable Development Goals in the BRICS countries? This question remains one of the unanswered questions in the academic arena. Thus, an examination of this question is crucial. Accordingly, the objectives of the study are twofold. The first objective was to examine the contribution of agriculture on economic growth in the BRICS bloc. The second objective was to investigate the contribution of agriculture on income inequality. The study employed Pooled Mean Group over a period 1995-2018 and found that agriculture production contributes to economic growth and reduces income inequality in the BRICS countries. All the variables met the expected priori and the study confirmed that all the disequilibrium in the short-run could be corrected in the long-run. Therefore, the BRICS government should strengthen the agricultural sector since it is one of its strongholds sector.
Keywords: Agriculture, Sustainable Development Goals, BRICS, Pooled Mean Group
Financial Inclusion and Poverty Alleviation among Smallholder Farmers in Zimbabwe
David Mhlanga, Steven Henry Dunga, and Tankiso Moloi
The study sought to investigate the impact of financial inclusion on poverty reduction in Zimbabwe among the smallholder farmers. It is alleged that financial inclusion can help in achieving seven of the seventeen sustainable development goals (SDGs), which include poverty eradication in all its forms everywhere, ending hunger, achieving food security, ensuring improved nutrition as well as promoting sustainable agriculture and many others. Using the simple regression method, the study discovered that financial inclusion has a strong impact on poverty reduction among smallholder farmers. The study went on to discover that, for the government to tackle poverty especially among the smallholder farmers, it is important to ensure that farmers do participate in the financial sector through saving, borrowing and taking out insurance among other services. So, it is important for the government of Zimbabwe to fully implement policies that encourage financial inclusion such as making sure that farmers find it easy to access financial institutions and encouraging financial institutions to review transaction costs like bank account opening charges periodically, implementing financial education programs among the farmers because these variables are important in influencing farmers to participate or preventing them from using financial services.
Keywords: Financial Inclusion, Smallholder Farmers, Poverty Alleviation, Zimbabwe
Trade Credit Policy: Revisiting Targeting of Trade Payables and Receivables in BRICS Listed Firms
Shame Mugova and Farai Kwenda
The study investigates if firms in BRICS countries pursue a target optimal level of trade credit policy. Trade payables levels may not always at the desired levels and firms take time to adjust from real to target levels. The level of financial sector development may influence firms’ speed and cost adjustment. Employing a dynamic panel data model estimated with the difference and system Generalized Method of Moments estimation techniques on a panel of 3353 listed BRICS non-financial firms, the study established that in pursuit of growth opportunities firms have a deliberate trade credit target levels. Firms pursue a target optimal level of trade payables and trade receivables and firm size affects creditworthiness and access to capital markets, which influences speed of adjustment from current to desired levels of trade payables. Investment in trade receivables require access to capital for additional funding and poorly developed financial sectors makes it costly to adjust towards optimal credit level. Different levels of financial sector development affect access to alternative sources capital which influences optimal trade credit policy.
Keywords: Trade Credit, Financial Sector Development, Trade Payables, Trade Receivables
Aksemsettin Mah. Kocasinan Cad.
Erenoglu Is Merkezi
Fatih – Istanbul, TURKEY
Email: [email protected]
This work is licensed under a Creative Commons Attribution 4.0 International License.