https://ir.unisa.ac.za/handle/10500/18727 2026-05-14T09:49:13Z https://ir.unisa.ac.za/handle/10500/31547 Does value-added tax revenue inspire growth? Evidence from Southern Africa Robinson, Z The purpose of this article is to take the lead and investigate value-added tax (VAT) revenue and economic growth in Southern Africa, especially referring to the Southern African Development Community (SADC). The objective of the study on which this article reports was to look at the relationship between VAT revenue and economic growth. The hypothesis was whether VAT revenue had an impact on economic growth or alternatively whether VAT revenue had no impact on economic growth. The effect of VAT on economic growth in different countries is unclear, and this has become an important empirical question. Our two-stage least squares model indicated that VAT revenue has a positive impact on economic growth. The same goes for the generalised method of moments (GMM) model. The corruption perception index also leads to a positive outcome on economic growth. The current study attempted to contribute to the surprisingly small body of academic economics research examining value-added tax in Southern African countries. Policymakers and revenue authorities should thus take note that room for higher VAT rates exists although these are already quite high in SADC. VAT is regarded as a regressive tax commonly burdening the poor. Alternatively, higher VAT rates and revenues on luxury goods commonly purchased by the wealthy might be an alternative option for further investigation in the future. Efficient and corruption-free service delivery in SADC can contribute to future VAT revenues supporting economic development in the region. 2024-06-01T00:00:00Z https://ir.unisa.ac.za/handle/10500/31546 Urbanisation, energy consumption and economic growth in South Africa Musakwa, M.T The causal relationship between urbanisation, energy consumption, and economic growth was examined for South Africa using annual data from 1990 -2021. The growing need for economies to bounce back after the COVID-19 pandemic and catch up with national economic plans and the Sustainable Development Goals (SDGs) motivated a relook at the important factors that influence economic growth. This study used two measures of energy consumption, namely electricity consumption and total energy consumption. Employing autoregressive distributed lag (ARDL) to cointegration and error correction model (ECM)- based Granger-causality test, the study found unidirectional causal flow from energy consumption to urbanisation in the short run regardless of the energy consumption measure used, and the same causal flow in the long run when total energy consumption was used. The study found a unidirectional causality from urbanisation to economic growth. A bidirectional causality between economic growth and electricity, while no causality was confirmed when total energy consumption was used. The findings from this study confirm the importance of energy consumption and urbanisation in driving economic growth. Policy recommendations are discussed. 2024-01-01T00:00:00Z https://ir.unisa.ac.za/handle/10500/31545 ICT, income inequality and economic growth nexus in South Africa Musakwa, M.T 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. 2024-03-01T00:00:00Z https://ir.unisa.ac.za/handle/10500/31544 Electricity access and poverty reduction dynamics in Botswana: an ARDL approach Musakwa, M.T Purpose: In this study, the impact of access to electricity on poverty reduction is examined using annual data from 1990 to 2021 for Botswana. The study was motivated by the need to establish if access to electricity could be a panacea on poverty reduction in Botswana. Given that the United National Sustainable Development Goal deadline is fast approaching, and Botswana being one of the signatories, is expected to end poverty in all its forms – Goal 1. Establishing the role that electrification plays in poverty alleviation helps in refocusing Botswana’s poverty alleviation strategies on factors that have high impact on poverty. The main objective of this study, therefore, is to investigate the relationship between poverty alleviation and access to electricity in Botswana. Approach: The study uses the autoregressive distributed lag (ARDL) approach to investigate the nature of the relations. Two poverty proxies were used in this study namely, household consumption expenditure and life expectancy. Findings: The study found access to electricity to reduce poverty in the long run and in the short run, regardless of the poverty measure used. Thus, access to electricity plays an important role in poverty alleviation and Botswana is recommended to continue with the rural and urban electrification initiatives. Originality: The study explores the impact of access to electricity on poverty reduction in Botswana, a departure from current studies that examined the same relationship using energy consumption in general. This is on the back of increasing dependence of economic activities on electricity as a major source of energy. 2024-03-01T00:00:00Z