Faculty of Economic and Management Sciences
School of Economic Sciences
Department of Economics
Selected Highlights from Research Findings
The 52nd edition of Focus on Key Economic Issues, the house journal of the Department, was once again an achievement. This Focus investigates the South African exchange rate policy dilemmas over the past number of decades namely, the volatility of the rand and the continuous depreciation thereof against the currencies of its trading partners. It analyses policies and events that contributed to the fall in the value of the rand with some lessons to be learnt by policy makers.
Contact person: Prof CB du Toit.
Further research aimed at different development projects to provide a provincial poverty eradication strategy for the Limpopo Province described the content and process of 28 different poverty reduction programs currently in operation in the Province; 12 different departments manage these programs, which amount to an annual budget allocation of more than R3,3 billion. There appears to insufficient coordination within and among departments and among the different levels of goverment with regards to these programs.
The main recommendations that flowed from the critical analysis of these findings include the creation of appropiate institutional structures to manage the programs; the establishment of an extensive information system on poverty; and the setting of specific targets for poverty eradication per district/municipality that should form the basis of the monitoring and evaluation process. The economic development plan that was designed contributed in filling the dire need for economic development support in South Africa. Currently the focus is mainly on the problems with job creation and the possible role of SMMEs in this regard.
Contact person: Prof FG Steyn.
For many years the Department has invested in a sophisticated econometric model that is used for economic forecasting and policy analysis. Apart from the fact that the outputs of this model are used by the UN Project Link in its World Economic Model, the econometric model also supports research in all the other focus areas. The Department's expertise in macroeconomic modelling resulted in a grant from the United Nations to initiate and execute a macroeconomic modelling and economic policy analysis programme for 15 countries in southern, central and western Africa.
Die Departement het reeds 'n aantal jare belê in 'n gesofistikeerde ekonometriese model wat gebruik word vir ekonomiese voorspellings en beleidsanalise. Behalwe vir die feit dat die uitsette wat hierdie model oplewer deur die VN se Project Link in sy World Economic Model gebruik word, ondersteun die model ook die navorsing in al die ander fokusareas. Vanweë die Departement se kundigheid in makroekonomiese modellering het hulle 'n toekenning van die Verenigde Nasies ontvang om 'n makroekonomiese modellering- en ekonomiese beleidsanaliseprogram vir 15 lande in suidelike-, sentraal- en westelike-Afrika te loods.
Contact person: Prof CB du Toit.
The Tax Policy Unit of the National Treasury together with the South African Revenue Services approached the Department to assist with tax modelling and training. The first phase of this model comprised the determination of the tax gap and an estimation of the level of tax compliance. It was found that the tax gap in South Africa is in the vicinity of 30 percent. Tax literacy courses in the economics of taxation are being presented to the South African Revenue Services and National Treasury in an attempt to improve the skills of the relevant officials involved in tax collection and tax policy.
Contact person: Prof NJ Schoeman.
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