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Carbon dioxide (CO2), whose atmospheric volume has been increasing, is the principal greenhouse gas (GHG) that causes global warming and climate change. Climate change from increasing greenhouse gases (GHGs) has broad health and environmental influences. Human-emitted GHGs constitute a significant cause of global warming. The main objective of this article is to assess the influence of technological innovation, economic growth, fossil energy use, renewable energy consumption, and globalisation on CO2 emissions (CO2Es) in South Africa over the observation period 1990–2020. The Dynamic Ordinary Least Squares (DOLS) estimator was implemented to examine the relationship between the constituents. The study results indicate that economic growth, fossil energy use, technological innovation, and globalisation boost CO2Es, whereas renewable energy consumption reduces CO2Es. The output of the canonical cointegrating regression and fully modified least squares estimators also supports the output of the DOLS estimator. We concluded that, in South Africa, a rise in economic growth, fossil energy use, technological innovation, and globalisation results in an upsurge in CO2Es. In contrast, an increase in renewable energy consumption leads to a reduction in CO2Es. This research work contributes to the discourse on CO2Es in the South African context. The study recommends that policymakers in South Africa should design policies that foster the formation of a low-carbon country, the consumption of renewable energy, and the implementation of environment-friendly technological innovations that reduce the use of fossil energy. Highlights: • This study assessed the impact of economic growth, technological innovation, fossil energy use, renewable energy consumption, and globalisation on CO2Es in South Africa. • The analysis revealed that economic growth, fossil energy use, technological innovation, and globalisation boost CO2Es, whereas renewable energy consumption reduces CO2Es. • There is a need to incorporate policies that promote the development of a low-carbon economy. [ABSTRACT FROM AUTHOR]

Research and experimental development (R&D) is an important driver of economic growth and productivity. Gross expenditure on domestic R&D (GERD) is a country's total expenditure on R&D performed by all sectors of the economy. South Africa's GERD as a percentage of its GDP (GERD/GDP) remains below government targets and has stagnated over the past decade, largely due to declining business sector R&D. This paper aims to identify the drivers of firm-level R&D intensity, defined as the firm's R&D expenditure as a percentage of turnover. It is the first South African study to examine both micro- and macro-economic drivers of firm R&D, with a paucity of literature on this topic for middle-income countries. Using the South African National R&D Survey data, the study utilized the Generalized Method of Moments (GMM) model and found that public financial support for firms, smaller firm-size, firm-level collaboration, political stability, foreign direct investment, and public R&D investment are positively associated with firm R&D intensity. The results highlight the importance of public financial support for smaller firms and investments in higher education and research institutions in promoting firm-level R&D, thereby providing useful policy insights for boosting business sector and economy-wide R&D expenditure and reaching national GERD/GDP targets. [ABSTRACT FROM AUTHOR]

Results on the connection between financial development and CO2 emissions are presented in contradicting ways in earlier research. In order to solve this conundrum, the Environmental Kuznets Curve (EKC) framework is used in this study to examine both the direct and indirect effects of financial development on environmental degradation. Our empirical analysis is supported by the cutting-edge dynamic ARDL simulations framework for the 1960–2020 time span in South Africa. The estimated results, which are based on five separate financial development indices, corroborate South Africa's claim that the country's financial development prevents pollution. For South Africa, we also confirm the validity of the EKC theory. The results of the indirect channels demonstrate that financial development also lessens the negative impacts of income, energy usage, trade openness, and foreign direct investment (FDI) on pollution emissions. A weak financial structure is also necessary for the viability of the polluted haven hypothesis (PHH), which is examined using trade openness and FDI variables. For each of these variables, PHH vanishes at a particular point in financial development. Last but not least, increased industrial value-added increases pollution emissions, whereas increased technical innovation decreases the former. On the basis of these findings, South Africa should offer financial incentives and tax breaks to attract green FDI and encourage investments that prioritize environmental sustainability. These incentives can include grants, subsidies, and preferential tax rates for FDI projects that align with South Africa's environmental goals. Providing a favourable investment climate for green projects can stimulate sustainable economic growth and attract responsible investors. [ABSTRACT FROM AUTHOR]

The purpose of this study is to test whether the relationship between external debt and economic growth is symmetric or asymmetric in South Africa using annual time series data from 1985 to 2021. The study employed NARDL bounds and Breitung nonparametric cointegration estimation methods. Breitung, Bierens nonparametric, and ZA unit root test are used to check for the order of integration of the variables. The results from NARDL bounds and Breitung nonparametric cointegration test confirm a long run relationship between the variables. The results indicate that the responsiveness of GDP to positive shocks of external debt is less than that to negative shocks. An increase in external debt is associated with a decrease in GDP, while a decrease in external debt is associated with an increase in GDP. The study suggests that South African economy should keep its external debt sustainable so as not to harm economic growth. [ABSTRACT FROM AUTHOR]

Water, energy, and food are economic resources whose security and sustainability affect human livelihood. This paper is dedicated to exploring the influence of economic indicators on the security and sustainability of these resources within the water–energy–food (WEF) nexus. The research employed a quantitative approach, gathering data through a structured questionnaire from 282 WEF management professionals in South Africa. The collected data were subjected to statistical analyses, including mean score ranking, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM) using EQS and SPSS software. The results of this study highlight the significant impact of economic indicators on the sustainable security of WEF resources. The mean ranking revealed that there is a need to understand people's economic power for resource sustainability. The CFA and SEM analyses identify four key economic indicators that influence resource security: WEF resource pricing mechanisms, employment rates in the WEF sectors, WEF resource importation, and WEF resource exportation. In conclusion, managing economic indicators within the WEF nexus calls for strategic investment based on comparative advantage. The study provides valuable policy recommendations to support this approach. [ABSTRACT FROM AUTHOR]

While innovation is vital to economic growth, African nations lag far behind in the development frontier than China. The paradox is that most developing countries' investment in innovation is proportionately far less than their developed counterparts. This article examines the contributions of innovation investments towards economic development in South Africa. We employed the autoregressive distributed lag (ARDL) bound testing and the Granger causality approach to analyse the annual time series data from 1990 to 2022 from the South African Reserve Bank. The findings revealed the positive impact of innovation investments (expenditures on ICT and R&D) on economic development in South Africa. The current study employed a relatively new ARDL bounds testing approach to analyse quantitative data to provide empirical evidence, which according to the literature, is not always evident and remains hard to quantify on the impact of innovation investments on economic development in South Africa. The study recommends that developing economies address the basics in the form of robust investment in human capital and upward investments in higher education. [ABSTRACT FROM AUTHOR]

This study investigates the impact of South Africa's current account balance on its economic growth from Q1 2015 to Q4 2022 using Auto Regressive Distributed Lags (ARDL) technique. This study incorporates qualitative variables like COVID-19 to understand its effect on the South African current account and economic growth rate. Generally, the results show that the South African current account deficit impacted economic growth in both the long and short run. COVID-19 also affected the current account significantly in both the long and short run, thus causing more deterioration on the South African current account and subsequently affecting the economic growth rate negatively. This study recommends more competitive export promotion and import substitution by investing in and developing domestic productivity. This study also recommends an acceleration of the tabled COVID-19 recovery initiatives through an alliance between the government and private sector. [ABSTRACT FROM AUTHOR]

The South African government has made considerable investments to ensure the sustainability and productivity of the aquaculture sector. Therefore, this study investigates the impact of financing aquaculture on economic growth, unemployment, and entrepreneurship period of 1994 to 2019. The study employs an autoregressive distributed lag (ARDL) bounds testing approach to check the dynamic causality between the study variables. The results show that there is a negative and statistically insignificant relationship between aquaculture financing and economic growth. Furthermore, aquaculture financing is positively associated with unemployment and entrepreneurship. The study encourages linkages between aquaculture smallholder farmers and commercial farmers to exchange knowledge and training. Therefore, revamping aquaculture strategies to promote productivity in the sector is necessary. Improvement in the aquaculture technological system is required, which can be achieved through better facilities and greater financial support to boost the aquaculture sector. There is therefore a need to invest more in technological innovation. [ABSTRACT FROM AUTHOR]

This study examined the causal relationship between ICT, income inequality and economic growth in South Africa using data from 1990 to 2021. Three measures of ICT were used in the study, namely fixed telephone lines subscription, mobile cellular subscriptions and the proportion of people using the internet to the total population. Employing the autoregressive distributed lag approach, the study found a unidirectional causal flow from income inequality to ICT across all measures of ICT employed. Another unidirectional causal flow from economic growth to ICT was found in the short run when ICT was measured by fixed telephone lines and mobile cellular. When internet access was used as a measure of ICT, a bidirectional causality between internet access and economic growth in the short run and a unidirectional causal flow from internet access to economic growth was confirmed. Across all three measures of ICT, no causal relationship was confirmed between economic growth and income inequality. The study points to the importance of economic growth in increasing ICT access and the crucial role that internet access has on economic growth in South Africa. Policy implications are discussed. [ABSTRACT FROM AUTHOR]

The South African Defence Industry has undergone several significant changes during the past six decades, with its current state being deemed unfavourable for continued survivability. To develop a robust understanding of the industry, a review of the scientific literature (and government policies) has been undertaken to chart the trends in the industry through the decades. South African political ideologies in the sixties and seventies resulted in a need for self-sufficiency in defence. By the late eighties, increased military spending resulted in a powerful and capable defence industry, but the end of apartheid and regional conflicts saw an expected sharp drop in the defence budget. The Strategic Defence Package offered some respite in terms of exports, but this has declined in the recent past. The defence budget has remained at a steady low value for two decades, with no real possibility of an increase. To maintain relevance and ensure organisational resilience, the remnants of the South African Defence Industry should use the Defence Industry Strategy as a baseline to develop robust local relationships to drive innovation and foster economic growth, while also strengthening international market share by strengthening unique South African technologies. [ABSTRACT FROM AUTHOR]

The study evaluates the connection amid public expenditure on education, health in relation with economic growth in South Africa. The data span across 1990-2020. The study employed VAR technique to analyse the data. The findings signify that domestic general government health expenditure had a negative influence on economic growth in the second period but a positive impact in the first and third periods. GEED has consistently had a favorable and substantial effect on economic expansion. Experience has a detrimental effect on the second period and a good one on the first and third. Imp has a comparable effect on economic growth to exports, contributing favorably to growth in the first and third periods and adversely to growth in the second. Essentially, national growth strategies need to be tailored to encourage expenditure on health and education for advancement of the economy. [ABSTRACT FROM AUTHOR]

South African economy is widely known to contribute significantly to the carbon emissions due to usage of heavy machinery and equipment involved in production process. This study examines the linkage among carbon emissions, export, gross domestic product, and urban population growth in South Africa. The study employs the Autoregressive Distributed Lag model to evaluate the linkage among outlined variables, using annual data from 1981 to 2021. The findings indicate that a 1% increase in urban population leads to 1% decrease in carbon emissions. Furthermore, a 1% increase in economic activities (GDP) leads to a rise in carbon emissions. This corroborates rising exports with GDP that is rising thereby resulting in carbon emissions. The study recommends platforms that educate the populace, especially the youth on the management of carbon emissions in their daily home and business activities should be encouraged. More investment into clean technologies should be provided for energy efficiency machinery, and more research into such activities should be pursued by all relevant stakeholders. [ABSTRACT FROM AUTHOR]

From a theoretical point of view, a more diversified economy across all major sectors has more potential to grow and is more resilient to survive external shocks than more sectoral concentrated economies. The economy's diversification is a process; in most cases, structural change is required through policy implementation. The primary aim of this study was to analyze the relationships between the level of diversity (Tress Index) across sectors of the economy, GDP per capita (a proxy for economic development), domestic investment, employment and exports. The Gauteng province was selected as the study region because this region is a leading economic region in South Africa and the African continent. A quantitative methodology used time series secondary data from 1993 to 2021, with the diversification index selected as the dependent variable. Interesting results were achieved, leading to a new theory in development economics. When a region experiences an economic down-swing, sectoral concentration occurs, while diversification across sectors occurs in an economic growth environment. A positive relationship has been identified between economic diversification and the predictive variables, including economic development, domestic investment, employment and export. A policy of increased diversification across all economic sectors is a viable economic development strategy developing countries should implement within an environment for growth and investment. [ABSTRACT FROM AUTHOR]

This paper analyses the relationship between household debt and income inequality in South Africa for the period 1980–2021. We use two measures of inequality and estimate a vector error correction model (VECM) which includes household debt, inequality, and other macroeconomic variables. To test the robustness of our results, single equation models are used, which estimate household debt as a function of inequality and macroeconomic factors. We employ two measures of inequality, namely Gini coefficient and ratio of top and bottom income earners' proportion of income. Furthermore, we use both household debt as a percentage of disposable income and household debt service costs as dependent variables in single equation regressions. The study finds a negative and significant relationship between household debt and income inequality in the long run, which contradicts the Rajan hypothesis in the South African case. Rather, we find that inequality in South Africa creates a bias in debt allocation towards high-income earners, whose incomes can easily absorb the extra debt (reduced ratio of debt to disposable income). There are therefore no socio-equity considerations in South African credit markets. We find growth in gross domestic product (GDP) per capita also has a moderating effect on the relationship between household debt and income inequality. High GDP per capita growth in the presence of high inequality reduces the impact of inequality on household debt and vice-versa. All other control variables take expected signs. These results are robust to changes in the inequality or household debt measures. [ABSTRACT FROM AUTHOR]

Purpose: This paper analyses the direct relationship between budget deficits and economic growth, the channels through which budget deficits inhibit growth and finally, the Granger causality between budget deficit and economic growth in South Africa over the period 1975 to 2020. Design/methodology/approach: In a bid to control for endogeneity that is common in economic growth regressions, the author employed the dynamic ordinary least squares (DOLS) approach. Findings: Towards analysing the direct relationship between budget deficit and economic growth, results show that a 10-percentage rise in the budget deficit slows economic growth by 0.2 percentage points. Results show that the growth inhibiting consequences of the budget deficit in South Africa are principally driven by negatively affecting private and public physical capital accumulation growth, as well as a drop in gross national savings. However, results show no evidence of a deficit reduction effect through long term-real interest rate. The findings reveal a one-way Granger causality running from budget deficits to economic growth. Practical implications: Based on the findings in this article, expanding the fiscal deficit to support growth is not a viable policy option for the South African economy. Originality/value: The originality of this paper lies in establishing the Granger causality between budget deficit and economic growth, thus adding to the scant literature, as well as establishing the channels through which budget deficit retards economic growth for the South African economy. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to examine and analyze how the Fourth Industrial Revolution (4IR) contributes to economic growth and development in South Africa. It argues that the 4IR is a pathway to achieve economic growth and development. Although much emphasis from the literature indicates the negative impact of the 4IR on human development, this paper brings to light that the 4IR is an engine to the headway of economic development. To get the expected results, desktop research is used, covering South Africa as an area of focus. Hence, it adopted a literature-based methodology that relies on the use of existing literature to critique the role of the 4IR in enhancing economic development. It reveals that the 4IR is detrimental to human development, however, it can be used as a catalyst for economic growth and development. It thus recommends that the 4IR must be fully embraced by both government and private sector for the betterment of economic development and business growth amongst others. [ABSTRACT FROM AUTHOR]

The current study examines sustainable electricity consumption for economic growth in a small open and tourist economy. The energy-tourism nexus is evaluated for the relationship between sustainable electricity consumption and the international tourist arrival for the South African economy. The present study leverages on annual frequency data for South Africa from 1995 to 2019 for empirical analysis using the ARDL technique. Accordingly, empirical findings indicate a significant direct connection between the sustainable electricity consumption and the international tourism arrival; the study affirms that tourism-induced energy hypothesis is valid in South Africa. However, from a policy standpoint, alternative energy efficiency mechanisms such as renewable energy systems and emancipation of current energy management capabilities are recommended in South Africa. This is necessary for sustainable eco-friendly tourism that engenders clean energy consumption for the study area. More insights into policy caveats are presented in the concluding section. [ABSTRACT FROM AUTHOR]

The article focuses on the hidden costs of load shedding in South Africa. Topics include the economic impact of load shedding on short-term and long-term growth, the strain on social cohesion, and the quantification of costs related to discretionary electricity use, such as water heating, electric vehicles, and poorly insulated dwellings.

The income inequality-economic growth linkage is a topical issue in economics and policy discussions. Both theoretical and empirical results on the impact of income inequality on economic growth have been controversial. One of the criticisms of the existing studies relates to using cross-sectional data and linear estimation techniques for empirical analysis. Capitalising on the limitations in the existing literature, this article employs the novel Quantile-on-Quantile Regression (QQR) approach to examine the relationship between income inequality and economic growth in BRICS. Applying the novel QQR technique helps to model how income inequality distributions affect the distributions of economic growth. The quantile cointegration tests reveal cointegration between income inequality and economic growth. The QQR results indicate that income inequality has a stronger negative effect on the lower and middle tails of economic growth in Brazil while having a stronger positive impact on economic growth in Russia, China and South Africa. For India, income inequality has a stronger negative effect on the lower tail of economic growth and a stronger positive impact on the middle and higher tails of economic growth. These results are consistent with quantile regression results. Further analysis from the Granger causality-in-quantiles shows that at various quantiles, a bidirectional causal relationship between income inequality and economic growth exists in China, while a unidirectional causality runs from income inequality to economic growth in Brazil and India. No causal relationship was found between income inequality and economic growth in Russia and South Africa. The policy implications are discussed. [ABSTRACT FROM AUTHOR]

This study aimed to investigate how exports affect the overall growth of the economy in South Africa. Quarterly time series data from StatsSA and the South African Reserve Bank covering 2000 to 2020 were used. The study utilized numerous econometric approaches, such as the unit root test, Johansen's cointegration procedure, the Vector Error Correction Model (VECM), and the Granger causality model, to gain a clear perception of the relationship between exports and the rate of South Africa's economic growth. The Johansen cointegration test was conducted, confirming the presence of a longterm equilibrium relationship between the data series. The results of the unit root test indicated that both variables became stationary at the first difference, as evidenced by both passing the Augmented Dickey-Fuller (ADF) test. The correlation between exports and growth of the economy is positive in the short term and in the long term. The outcomes of the Granger causality tests indicated that GDP Granger-causes exports, signifying that economic growth in South Africa has an effect on exports. Additionally, the VECM outcomes demonstrated that there exists both a short-term and long-term relationship between economic growth and exports in South Africa. [ABSTRACT FROM AUTHOR]

This paper examines the nexus amid renewable energy, non-renewable energy consumption, CO2 emissions and economic growth in South Africa. VECM and Granger causality approach were employed in the paper. Empirical result suggested that carbon emissions granger cause GDPC uni-directionally. Essentially, From the various empirical estimation, it is discovered that CO2 has a positive impact on GDPC in the study. This shows that disregarding the ecological contamination cause by CO2 that animate the GDPC, which make it challenging for severe measure by government to control fossil fuel byproduct cause by non-environmentally friendly power in the framework. REN shows causality with GDPC in one direction, and that implies REN accessibility move with growth in GDPC. Since the review assessment results likewise exhibit that CO2 has a causality with economic growth in SA. The public authority needs to intiate severe guideline with respect to weighty fossil fuel byproduct innovation this would empower the turn of events and execution of more powerful and low-carbon innovation across all enterprises, eventually advancing economic growth in SA. [ABSTRACT FROM AUTHOR]

This paper aims to address the relatively limited attention given to the examination of exchange rate misalignment uncertainty in the specific context of South Africa. By specifically focusing on exchange rate misalignment uncertainty, this study fills a crucial gap in the literature and gains a deeper understanding of the factors influencing economic growth in South Africa. While previous literature has provided valuable insights into the relationship between exchange rate uncertainty and economic growth, there is a dearth of studies focusing on the particular issue of exchange rate misalignment uncertainty in South Africa. Therefore, the objective of this research is to investigate the effects of exchange rate misalignment uncertainty on short-term and long-term economic growth in South Africa. To achieve this objective, we employ the generalized autoregressive conditional heteroskedasticity (GARCH) and vector error correction (VEC) models. The analysis utilizes quarterly data spanning from the first quarter of 1960 to the third quarter of 2022. The findings of this study reveal a negative association between exchange rate uncertainty and short-term economic growth, while the long-term effects yield mixed results. Moreover, we observe that higher exchange rate misalignment is linked to positive implications for economic growth. These findings emphasize the significance of managing exchange rate volatility and reducing uncertainty to ensure economic stability and foster long-term growth. Considering these findings, policymakers should prioritize implementing strategies that promote a stable exchange rate and cultivate a favorable business environment. [ABSTRACT FROM AUTHOR]

This study examines the relationship between income inequality and economic growth in South Africa for the period 1989 to 2018. The study is motivated by the high disparity in income inequality and stagnant economic growth that South Africa is experiencing. Using the autoregressive distributed lag (ARDL) bounds testing technique, we established a long-run relationship between economic growth and income inequality. The results revealed that income inequality has a negative impact on economic growth in the long run, and no effect in the short run. These results are robust with an estimation of the ARDL procedure that considers structural breaks. Therefore, policymakers should employ strategies that entail a double effect of growth in national income and consider the distribution of income in the long run. These policies include human capital accumulation, easily accessible education, and reduction in labour market dualism. [ABSTRACT FROM AUTHOR]

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Since the global financial crisis, South African fiscal authorities have acquired debt at a faster rate compared to other economies, which, according to recent growth theory, implies that the economy has a lower debt tolerance or threshold level than previously thought. Our study presents country-specific debt threshold estimates for the South African economy based on reduced form regressions derived from an endogenous growth model of public debt that incorporates public investment as a channel through which debt can influence economic growth. We estimate the reduced form regressions using the threshold nonlinear autoregressive distributive lag (t-nardl) cointegration model which we apply to quarterly time series spanning from 1960:q1 to 2020:q4. We identify debt thresholds of 47 percent which are much lower than those predicted by previous panel-based studies. Similarly, the corresponding public investment threshold estimate of 2.8 percent is lower than that prescribed by previous literature. However, our study shows that both public debt and public investment are too high to be growth enhancing and we provide policy recommendations based on these findings. [ABSTRACT FROM AUTHOR]

South Africa, like most developing nations, is confronted with choosing between the need to advance their economy and the need to protect the environment. The United Nations Sustainable Development Goals (UN‐SDGs‐7, 11, 12 & 13) provide a strong foundation for this investigation. To this end, the current research investigates the combined impacts of economic policy uncertainty, fiscal decentralization, and green innovation on environmental sustainability for the instance of South Africa with yearly frequency data from 1960 to 2020. The current research leverages on dynamic ordinary least squares, fully modified ordinary least squares, and canonical cointegration regression. The Maki cointegration test shows how the variables being evaluated have an equilibrium connection across the time period under review. Empirical findings support the environmental Kuznets curve (EKC) framework. These findings imply that, in the first stages of economic expansion, ecological environment is being sacrificed for economic progress (scale stage). Based on the EKC hypothesis, long‐term quadratic economic growth reduces emissions by 0.162% whereas a 1% rise in economic growth increases emissions by 0.791%. Similar to this, long‐term economic globalization and economic policy uncertainty impair ecological sustainability, whereas long‐term fiscal decentralization and green innovation raise it in South Africa. These results have broad environmental repercussions. The present investigation supported environmental stick measures and investment in initiatives on a fundamental change from fossil‐fuel energy consumption base to renewables. The final portion highlights further insights. [ABSTRACT FROM AUTHOR]

In accordance with the Intergovernmental Panel on Climate Change (IPCC), Kyoto protocol and the United Nations Sustainable development goals (UNSDGs) on climate action (SDG-13), there has been a need across economies for transition from fossil-fuel-based energy sources such as coal energy consumption to cleaner energy options i.e., a transition to a low-carbon economy. To this end, the present study explores the asymmetric relationship between coal energy consumption, economic growth, rising urban population and emission level in South Africa. The present study span is conducted on an annual frequency basis from 1965-2018. This study applies the novel Non-linear Autoregressive distributed lag methodology (NARDL) for the highlighted variables. Empirical results validate the asymmetric relationship between the variables under review over the study period. The NARDL regression further shows positive shock by GDP increases CO2 emission level while negative impact affects otherwise in the long run. On the other hand, coal consumption positive shock exhibits a detrimental impact on environmental quality in South Africa. This is insightful for policymakers. The urban population shows non-significant effect on emission levels over the sampled period. The knowledge of both positive and negative shock effects of GDP, coal energy consumption and urban growth is vital for policy construction in terms of both economic and environmental sustainability. Thus, policy prescription ranges from energy transition to alternative and cleaner energy sources like renewables and responsible energy consumption (SDG-12) should be pursued in South Africa. More far-reaching environmental policies are highlighted in the concluding section. [ABSTRACT FROM AUTHOR]

Since achieving high economic growth in South Africa persists as one of the ultimate serious development issues, it is critical to examine factors that influence South African economic growth. Using Autoregressive Distributed Lag (ARDL), the study was conducted to analyse the variables influencing South African economic growth from 1990 to 2021. The study discovers that technological progress, labour, power supply, and capital formation are all associated significantly with South African economic growth. According to the research, in the long run, labour and technological progress coefficients are positively correlated with economic growth, whereas power supply and human capital are negatively correlated. These findings have significant policy implications. According to the study's findings, it is advised that appropriate policies be created to support the industries that help South Africa's economy flourish. Strategies to be endorsed should include those that captivate such as improving the quality of education to increase human capital and greater investment mostly in the infrastructure of the electricity supply industry are crucial for resolving the issue of electricity supply since doing so would force South Africa to experience long-term economic growth. [ABSTRACT FROM AUTHOR]

There has been a plethora of debate on the link between fiscal decentralization and a drop in carbon dioxide (CO2) emissions, even though the evidence supporting this assertion is relatively sparse. Although the precise nature of this relationship is still up for discussion, economic hypothesis postulates that fiscal decentralization has an impact on environmental sustainability. Some researchers claim that fiscal decentralization could potentially result in a race to the top, while some believe it would lead to a race to the bottom. This analysis intends to shed light on the precise processes by which this connection may work in South Africa between 1960 and 2020 in light of current discussions in environmental and development economics. In contrary to previous studies, this paper employs a cutting-edge dynamic autoregressive distributed lag simulations methodology to evaluate the positive and negative variations in fiscal decentralization on CO2 emissions. Our findings demonstrate the prevalence of the race to the top strategy by illustrating how fiscal decentralization has a bearing on CO2 emissions reduction in the short and long terms. In accordance with the findings, greater fiscal decentralization should be implemented through the transfer of more powers to regional authorities, especially in the realm of environmental legislation considerations, in a bid to preserve South Africa's environmental integrity. By establishing a lower tier of government and defining roles at the federal and provincial divisions, South Africa could adopt strategies to improve green environment in an effort to fulfill the energy-saving tasks of fiscal expenditures. [ABSTRACT FROM AUTHOR]

We develop a dynamic computable general equilibrium (CGE) model to assess the macroeconomic impacts of water scarcity and water (in)security in South Africa. The CGE model which includes a detailed representation of water resources (surface water, groundwater, wastewater, and seawater) has been calibrated with an updated social accounting matrix enabling to conduct policy simulations up to 2030. With the 17% expected increase of water scarcity (population growth, climate change, and poor management of water resources), the CGE model predicts a decrease of South African GDP by −0.44% in 2030. The long-term impact of water scarcity varies from one sector to another, the most negatively impacted sectors being those related to water. Due to water scarcity, unemployment will increase in the short term by 0.76%. In the long term (2030), unemployment is however expected to recover its baseline level. The increase in water scarcity is also predicted to have a negative impact on household welfare, household consumption being reduced by −0.47% in 2030. A particular concern for policy-makers might be that low-income households are expected to be more impacted by water scarcity than high-income households. Some policies may mitigate the negative impacts of water scarcity, the most promising ones being to promote water saving and to decrease non-revenue water. [ABSTRACT FROM AUTHOR]

This paper investigates the effects of macroeconomic uncertainty on economic growth in the presence of fiscal consolidation in South Africa. Markov-switching dynamic regression (MSDR) and time-varying parameter vector autoregression (TVP-VAR) were performed using time series data from 1994 to 2022. Less attention has been given directly to the investigation of macroeconomic uncertainty in different regimes of economic growth in South Africa. Three states are found for economic growth, with mean growth rates of negative 6.29% and positive 3.90% and 1.47%, respectively. Macroeconomic uncertainty was found to have a negative impact of 6.72%, 4.38%, and 3.08% in states 1 to 3, respectively. Fiscal consolidation provided an accommodative policy, as it reduced the negative impact of macroeconomic uncertainty by 3.17%, 1.80%, and 0.92% in states 1 to 3, respectively. However, fiscal consolidation does not completely reduce the negative impact of macroeconomic uncertainty. The transition probabilities of economic growth moving and returning to the same states are 29.46%, 34.07%, and 58.02%, in each state, respectively. The time-varying impulse response functions showed that the shock of macroeconomic uncertainty harms economic growth. Nevertheless, the multiplier effect is not large; however, the economy operates below equilibrium and does not restore equilibrium after the effect of macroeconomic uncertainty. This reflects that it takes time for macroeconomic uncertainty to filter out of the South African economy. It is recommended that fiscal consolidation be considered as an accommodative fiscal policy to reduce macroeconomic uncertainty but not as a main policy for economic growth. [ABSTRACT FROM AUTHOR]

The human capital school of thought considers education in primary and secondary education as the foundation for the development of human capital that promotes economic growth. Persuaded by an empiricist paradigm this study used an Autoregressive Distributed Lag (ARDL) bounds testing analysis was conducted to examine the short and long run relationship between education and economic growth in South Africa. Economic growth, primary and secondary education data from 2002 to 2018 was used. The diagnostic tests revealed that variables are integrated at order level 1. The cointegration of the examined variables is confirmed by an ARDL bound test. Error Correction Model test found that, primary school, government expenditure on primary education has a significant relationship with economic growth in the short term but has no contribution in the long term. Drawing on the insignificant contribution of both primary and secondary education in the long it can be concluded that these education phases appear not to matter for economic growth in South Africa. This study thus recommends that primary and secondary school education should be restructured to align the curriculum with potentially productive sectors to improve its potential contribution to economic growth. [ABSTRACT FROM AUTHOR]

This study investigates the time–frequency nexus of carbon dioxide (CO2) emissions with economic growth, nonrenewable (i.e., coal, natural gas, and oil), and renewable (i.e., hydro and geothermal) energy consumption. In this context, BRICS countries (namely, Brazil, Russian Federation, India, China, and South Africa), which are leading emerging countries, are included, and quarterly data from 1990/Q1 to 2019/Q4 is used. The study employs the wavelet coherence (WC) approach to explore the co-movement between the variables at different frequencies. The empirical results show that (i) there is a strong and positive co-movement between CO2 emission and economic growth; however, it is weak for Russia and South Africa in the medium and long-term; (ii) coal energy consumption is strongly and positively co-moved with CO2 emission for all BRICS countries; (iii) natural gas energy consumption is strongly and positively co-moved with CO2 emissions in Brazil, India, and China; however, it is weakly and positively co-moved in Russia and South Africa; (iv) oil energy consumption is strongly and positively co-moved with CO2 emissions in Brazil, India, and China; however, it changes a bit for Russia and South Africa; (v) hydro energy consumption is weakly and positively co-moved with CO2 emissions in general, whereas country-based results vary; (vi) geothermal energy consumption is also similar to hydro energy consumption. Thus, the WC results highlight the strong co-movement of economic growth and nonrenewable energy consumption with CO2 emissions, whereas renewable energy consumption has a relatively lower co-movement. Based on the results, policy implications are also discussed for BRICS countries. [ABSTRACT FROM AUTHOR]

Local Action Groups (LAGs) are a promising development approach that has gained prominence across the world. They are underpinned by participation of all local actors (community-led rural development) as the main precondition for generating and sustaining economic development in rural regions. Despite this potential, there has been a dearth of scientific studies that have investigated the potential role of LAGs as a rural transformation approach in the Eastern Cape Province of South Africa. Therefore, the current paper sought to identify existing local action groups and explore their role and potential to promote rural development. A concurrent mixed-methods approach was adopted to attain the study objective. Four hundred households were purposively drawn from two rural local municipalities, Amahlathi and Nyandeni, in the Eastern Cape Province. Survey questionnaires and semi-structured interview guides were used to collect data. Results showed that existing LAGs were mainly burial societies, cooperatives, farmers associations, women's organisations, and financial saving schemes. The main roles of these LAGs were to enhance food security, boost income generation, and foster social cohesion. However, despite their contribution, LAGs have not reached their full potential as a conduit for rural development owing to the limited involvement of relevant rural development stakeholders. Therefore, adequate targeted support is required from both the public and private sectors to unlock the potential of LAGs as a catalyst for rural development. [ABSTRACT FROM AUTHOR]

The Nelson Mandela Bay Metropolitan Municipality is situated on the Eastern Coastline of South Africa. The metropolitan itself has the potential for major local and regional economic growth but has experienced significantly low growth over the past few years. Internal constraints that the province faces include high production costs, limited economic development and support, deteriorating infrastructure and limited financial resources. To assess the local economy of the Nelson Mandela Bay Metropolitan Municipality, the methodological techniques used include the location quotient and shift-share analysis. The empirical analysis showed that the municipality is highly specialised in industries such as agriculture, forestry and fishing, and transport equipment. The evaluation of the top five industries revealed that business services, wholesale and retail trade, transport and storage, catering and accommodation, and social and personal services have the highest growth potential and may contribute to future development initiatives. Efforts to stimulate industrial growth include the promotion of tourism, increasing the market share of wholesale and retail trade, establishing an integrated approach to the services industry, and finally, expanding the market share of the transport and storage industry. [ABSTRACT FROM AUTHOR]

International trade has created more economic growth opportunities in the agriculture sector. The agricultural sector remains key to the South African economy, with a vibrant international market becoming available as the country's agriculture exports grow. However, the impacts of human-caused global warming have intensified as a result of increased greenhouse gas emissions, notably carbon dioxide (CO2), which negatively affects agricultural productivity and the economy. Considering the future energy resource demands for agricultural productivity due to the expected population growth and the emphasis on environmental remedial actions, the following question presents itself: what impact will a clean energy supply have on the agricultural economy and the environment, notwithstanding that agriculture, as a sector, also has a huge potential to contribute to renewable energy production? This study examines the effect of the nexus of South Africa's renewable energy supply, CO2 emissions and trade openness on agricultural economic growth from 1990 to 2021. The nexus provides crucial insights into policies targeted at promoting renewable energy in the agricultural sector by isolating key areas of priority. An autoregressive distributed lag (ARDL) bounds test, fully modified ordinary least square (FMOLS) test, a dynamic ordinary least square (DOLS) test and a canonical cointegrating regression (CCR) econometric analysis were used to estimate the nexus. The results showed that growth in the agricultural sector leads to deterioration in the environment, while international trade benefits the sector. The scale of renewable energy supply slowed down the agricultural economy. The study makes a new contribution in providing empirical evidence for the links between renewable energy supply and agricultural GDP, which can drive policy on renewable energy use in the agricultural sector in South Africa. The paper recommends intentional renewable energy production research and development (R&D) finance focusing on renewable energy human development planning and investments in vocational programmes in higher learning institutes, agricultural renewable energy policy and the creation of green incentive schemes for feedstock producers, especially in rural areas in the agricultural sector. [ABSTRACT FROM AUTHOR]

This study investigates the impact of governance index and gross fixed capital formation on the economic growth of Brazil, Russia, India, China and South Africa (BRICS) using annual data from 2002 to 2019. This study employs Fixed Effect Model, Driscoll and Kraay standard error with fixed effect, Fully Modified Ordinary Least Square, Dynamic Ordinary Least Square (DOLS) and Panel Dumitrescu Hurlin Causality test. The study has divided the variables into two models where model I includes the impact of governance index (jointly) on economic growth while model II examines the impact of governance index on economic growth individually. The findings demonstrate that the governance index, gross fixed capital formation, population, control of corruption, and governance effectiveness have a positive and significant impact on economic growth, whereas regulatory quality showed a significant and negative impact on economic growth. Furthermore, regarding the Panel test, we notice the presence of unidirectional causality among the constituent variables. Therefore, this study suggests that the government should encourage economic development in the BRICS countries and move away from outdated ideas and poor institutional quality in favor of a new comprehensive reform to achieve excellent governance, population growth control, labor law changes, and corruption control. [ABSTRACT FROM AUTHOR]

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This paper investigates the impact of the money supply in different states of inflation and economic growth in South Africa from 1990 to 2021. The term "states" defines periods of low and high rates of economic variables of interest. Markov-switching dynamic regression (MSDRM) and time-varying parameter structural vector autoregression (TVP-VAR) are used in this paper. The contribution of this paper is not only based on the long run but also on the examination of the impact of the money supply in different states of inflation and economic growth. Moreover, the use of shock accounts for time-varying elasticity. It is found that there is a 0.70% decrease in the gross domestic product for a 1% increase in money supply in state 1, while in state 2, the money supply was insignificant. The money supply had a negative and a positive impact on inflation in states 1 and 2, with rates of 0.05% and 0.35% in the respective states. The money supply had a high multiplier effect on gross domestic product and inflation. More than 5 years were spent in each state for both gross domestic product and inflation, while the transition probability of moving and returning to each state is significant. The trade-off of using the money supply for economic growth and inflation is evident in South Africa. It is recommended that the state of the economy be considered when using the money supply in an effort to stimulate economic growth or stabilise inflation. [ABSTRACT FROM AUTHOR]

The argument over fiscal decentralization and carbon dioxide emission (CO2) reduction has received much attention. However, evidence to back this claim is limited. Economic theory predicts that fiscal decentralization affects environmental quality, but the specifics of this relationship are still up for debate. Some scholars noted that fiscal decentralization might lead to a race to the top, whereas others contended that it would result in a race to the bottom. In light of the current debates in environmental and development economics, this study aims to provide insight into how this relationship may function in South Africa from 1960 to 2020. In contrast to the existing research, the present study uses a novel dynamic autoregressive distributed lag simulation approach to assess the positive and negative changes in fiscal decentralization, scale effect, technique effect, technological innovation, foreign direct investment, energy consumption, industrial growth, and trade openness on CO2 emissions. The following are the main findings: (i) Fiscal decentralization had a CO2 emission reduction impact in the short and long run, highlighting the presence of the race to the top approach. (ii) Economic growth (as represented by the scale effect) eroded ecological integrity. However, its square (as expressed by technique effect) aided in strengthening ecological protection, validating the environmental Kuznets curve hypothesis. (iii) CO2 emissions were driven by energy utilization, trade openness, industrial value-added, and foreign direct investment, whereas technological innovation boosted ecological integrity. Findings suggest that further fiscal decentralization should be undertaken through further devolution of power to local entities, particularly regarding environmental policy issues, to maintain South Africa's ecological sustainability. South Africa should also establish policies to improve environmental sustainability by strengthening a lower layer of government and clarifying responsibilities at the national and local levels to fulfill the energy-saving functions of fiscal expenditures. [ABSTRACT FROM AUTHOR]

The extant literature has produced mixed evidence on the relationship between financial development and ecological sustainability. This work addresses this conundrum by investigating financial development's direct and indirect consequences on ecological quality utilizing the environmental Kuznets curve (EKC) methodological approach. Our empirical analysis is based on the novel dynamic autoregressive distributed lag simulations approach for South Africa between 1960 and 2020. The results, which used five distinct financial development measures, demonstrate that financial development boosts ecological integrity and environmental sustainability over the long and short terms. In the instance of South Africa, we additionally confirm the validity of the EKC theory. More importantly, the outcomes of the indirect channels demonstrate that financial development increases energy usage's role in causing pollution while attenuating the detrimental impacts of economic growth, trade openness, and foreign direct investment on ecological quality. Moreover, the presence of an inadequate financial system is a requirement for the basis of the pollution haven hypothesis (PHH), which we examine using trade openness and foreign direct investment variables. PHH for both of these variables disappears when financial development crosses specified thresholds. Finally, industrial value addition destroys ecological quality while technological innovation enhances it. This research provides some crucial policy recommendations and fresh perspectives for South Africa as it develops national initiatives to support ecological sustainability and reach its net zero emissions goal. [ABSTRACT FROM AUTHOR]

South Africa is a country that is open to trade, and this makes the study significant as economic institutions work better in such countries. The underperformance of South Africa's economy stems from the difficulties in achieving institutional change where state-owned companies such as Sasol benefit the most in the oil, gas and chemical industries. This is because SoEs are the main suppliers of natural gas sourced from Mozambique. This implies that Sasol's customers are the price takers, meaning that whatever the price of gas set by Sasol, it will be difficult for Sasol's customers to oppose it since there is no competition within the market. Entrepreneurs in developing countries with poor economic institutions struggle to grow their businesses due to property insecurity, barriers to market entry, and biased contract offering. The study employed the ARDL to determine the long-run relationship between economic institutions and economic growth, whilst the pairwise Granger causality test was used to determine the direction of the established cointegration. The study used annual time series data for the variables included in the model sourced from World Development Indicators (WDI), the global economy, and Transparency International for the period 1995 to 2020. The estimated ARDL model included the following variables; Gross Domestic Product Per Capita (GDPPC), Property Rights Index (PRI), Corruption Perception Index (CPI), Government Expenditure Per Capita (GOVEXPP), and Trade openness (TO). The study's findings indicate that PRI as a proxy of economic institutions promotes economic growth in South Africa. The results further show that all other variables also promote growth except CPI. The pairwise Granger Causality test indicates that there is a direct causality between economic institutions and economic growth. The economic policy implication in this regard is that South Africa's government should invest the majority of its public expenditure on human capital to improve the skills of unemployed youth, potentially increasing their employability. Consequently, better economic institutions could be implemented or created. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of long-run government expenditure and economic growth in different states in South Africa. Economic growth has been below the policy target of 5% stipulated in the National Development Plan Vision 2030, while government expenditure growth has been volatile but increasing at a decreasing rate. The paper uses the Vector-error correction (VEC) and Markov-switching dynamic regression with the data from 1994 to 2021. The significance of the paper is that it assesses the short and long-run impacts of government expenditure on different states of economic growth in South Africa. It is found that more government expenditure in South Africa hasn't resulted in the nation's economy growing, which is at odds with the Keynesian viewpoint. In both lower economic states, government expenditure reduces economic growth by 0.009% and 0.30%. The economy is expected to stay for 1 year in state 1, while it is expected to stay for 13 years in state 2. Government expenditure shocks were found to be detrimental to economic growth. It is recommended that fiscal authorities increase government expenditure in the short run rather than in the long run and monitor government expenditure. [ABSTRACT FROM AUTHOR]

The objective of this study is to investigate the relationship between "fiscal decentralization and economic growth in South African. The study used an annual panel data for the period 2010-2019 across nine provinces. The study employed fixed effects model to investigate this relationship. To observe the order of integration of the variables, the study employed Levin, Lin, and Chu unit root test and Im, Pesaran, and Shin unit root test. The study found a positive relationship between economic growth and provincial government expenditure and provincial government revenue, fixed capital formation and capital stock in South Africa. Granger causality test further showed that there is a long run unidirectional causality running from provincial government expenditure to gross domestic product. The findings imply that South African government should fully adopt a fiscal decentralization policy to ensure an efficient provision of public goods and services to all the South African citizens. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to investigate the effect of foreign direct divestments (FDD) on economic growth and development in South Africa for the period 1991–2019. Design/methodology/approach: The non-linear autoregressive distributed lag technique is used for the empirical analysis. Two regression models are specified, one for economic growth and the other for development which is proxied by poverty. Findings: The empirical results suggest that foreign divestments are detrimental to both economic growth and development. Furthermore, the results suggest that the negative effects of foreign divestments outweigh the positive effects of FDI inflows. Practical implications: South African policymakers should thus use policies that promote the retention of FDI inflows together with those that attract inflows. Furthermore, policies that promote economic freedom such as transparency and reduction in the time frame for granting government permits for business operations are also of paramount importance. Originality/value: Most of the available literature on FDD focuses on the firm perspective. Available studies on the effect of FDD on economic growth do not investigate the effect of divestment on economic development. Economic growth is a necessary but not a sufficient condition for the achievement of socioeconomic development. [ABSTRACT FROM AUTHOR]

The main aim of this study was to investigate the impact of foreign portfolio investment on economic growth in Africa. The motivation to explore the effects of portfolio investment and growth stemmed from the fact that Africa has recorded large capital inflows since the global financial crisis. These capital flows can have positive or negative consequences. The effects of foreign portfolio investment on the African economy is an area of interest because very little has been done on the subject area. The study used quarterly panel from 1995 to 2014. The study used only five African countries; South Africa, Botswana, Kenya, Mauritius and Nigeria. These countries were chosen because they are in the top five of the African financial markets index. A GMM model was adopted to test the effects of portfolio flows on economic growth in the selected African states. Results showed that there is a weak relationship between portfolio investment and economic growth and that there is a positive relationship between INT and GDP. Results also show a positive relationship between EXCH and GDP in the long run. A depreciation in the rand exchange rate is seen to be depressing economic growth. The study recommended that the Central Banks in African countries develop better strategies to enhance capital flows' benefits. This can be done by establishing and improving financial institutions which are still developing. [ABSTRACT FROM AUTHOR]

Education is generally considered to be the core source of individuals’ better life and countries' economic and social development. Consequently, attending university and getting high qualifications are perceived as tools that generate and enhance economic growth. The current study aimed to analyse the effect of various educational levels on South African economic growth. The study employed quarterly data from 1995Q1 to 2021Q4. The autoregressive distributed lag (ARDL) model was employed to assess both long-run and short-run relationships among variables. The long-run results revealed that people who completed their grade 12 (with matric certificate) and bachelor's degrees contribute positively to South African economic growth. However, honours and higher degrees (master's and PhD) were found to have an inverse relationship with economic growth in South Africa. On the other hand, the short-run relationship indicated that all education levels contribute to economic growth in the short term. Based on these findings, the author suggests that the South African higher education curriculum should be revised as the negative effect of high education towards economic growth should be resulting in growing unemployment and graduates waiting to be employed rather than creating jobs themselves. Additionally, increasing job creation for graduates with higher qualifications would reduce the number of graduates that leave the country looking for employment abroad. [ABSTRACT FROM AUTHOR]

In this paper, the impact of renewable energy consumption on economic growth in South Africa has been examined during the period from 1990 to 2019. The study aims to establish whether or not renewable energy consumption matters in the economic growth process of South Africa. Empirical evidence to date on the renewable energy consumption and economic growth nexus is not only scanty but also inconclusive, calling for a study of this nature. Using the ARDL-bounds testing approach, the study failed to find any significant impact of renewable energy consumption on economic growth in South Africa, irrespective of whether the regression analysis is conducted in the short run or in the long run. The findings of this study, therefore, lend more support to the neutrality hypothesis, where renewable energy consumption has no significant impact on economic growth. Based on these empirical results, we can conclude that energy conservation can be pursued in South Africa without jeopardizing the economic growth efforts of the country. [ABSTRACT FROM AUTHOR]

South Africa, one of the emerging markets and fast-developing economies in Sub-Saharan Africa recognised for varying world's natural assets on the international market, has recorded significant economic growth in the previous several years. However, aside from the ecological repercussions of energy generation, how economic uncertainties moderate the effects of energy intensity, renewable and non-renewable energy usage, and economic complexity on the environment has largely gone unnoticed. As a result, this paper addresses an important empirical vacuum by exploring the moderating influence of economic policy uncertainty in the environmental Kuznets curve for South Africa from 1960 to 2020. Results from the novel dynamic autoregressive distributed lag simulations framework reveal the following key findings: (i) economic policy uncertainty accelerates environmental degradation in both the short and long run; (ii) economic growth (as measured by the scale effect) increases environmental degradation, whereas the square of economic growth (as measured by the technique effect) slows it down, confirming the presence of the environmental Kuznets curve (EKC) hypothesis; (iii) environmental quality is deteriorated by energy intensity, economic complexity, non-renewable energy usage, and trade openness; (iv) the use of renewable energy and technological innovation increase environmental quality; (v) whereas the moderating effects of economic policy uncertainty on the environmental impacts of energy intensity, renewable and non-renewable energy consumption result in an increase in environmental destruction, its moderating effect on environmental implication of economic complexity plays an important role in improving environmental quality. These findings permit us to draw important policy recommendations for South Africa for improving environmental quality. [ABSTRACT FROM AUTHOR]

This paper dealt with the regulatory and policy variables influencing Foreign Direct Investment (FDI) in South Africa. Since the advent of democracy 26 years ago, South Africa had its own share of benefits from democratic rule. This was the period of great success, and three free and fair elections were held without violence and intimidation. The South African government started using the "inflation targeting monetary policy framework" to have an environment where inflation will stabilise. Although in literature it is stated that many governments have adopted this policy in order to lure investors in through their attractive risk‐free returns in their investment portfolios. The paper used unobtrusive techniques to analyse secondary data. The South African investment climate remains faced with challenges, which curtail the full attainment of conditions conducive for quality FDI. When regulations are made less cumbersome, it becomes simpler for investment to flow into the country, and international and local entrepreneurs prosper as the ease of doing business improves. South Africa does not have a complex regulatory framework, but its challenges stem from a lack of regulatory transparency, which impeded investment. TISA the agency, which DTI created to reduce obstacles encountered in FDI offers foreign investors clarification on the regulatory and legal environment. Many countries have also cancelled their BITs with South Africa, including Ecuador, Bolivia, and Venezuela. South Africa's business environment and its investment climate are largely dependent on the events that occur in the political arena and the economic environment. [ABSTRACT FROM AUTHOR]