Analysis of South Korea’s Direct Investment in China

I.General Situation of South Korea’sDirect Investment in ChinaSouth Korea’s investment in China has increased dramatically since1992,when the twocountries formallyestablished diplomatic relations.According to China’s statistics,in1992,South Korea’s direct investment in China was only US$119million.By2002,it reachedUS$2.721billion–a26.78percent annual growth on average.This was much higher thantheaverageannual growth ofinvestmentby other countries in China,which stood at10.87 pe…     

Use of Tractors in South Sulawesi: A Case Study Approach∗

Mathematical programming models of six farm-households in South Sulawesi were developed to investigate sample farmers' choices between tractors and draught cattle for the preparation of rice land. Selected aspects of the research are summarised here. Previous work on the impact of tractor use on crop yields and labour supply are first outlined. The study area, kabupaten Luwu, is then described. The basic structure of the programming models is presented, followed by a discussion of the most significant results of the modelling exercise. Implications regarding the importance of farmers' beliefs about the yield effects of tractor use are then discussed.

     

Public works programme in South Africa: Coming to terms with reality∗

This paper discusses the merits and demerits of public works programmes in general as well as in the specific context of South Africa. Insofar as the latter is concerned the paper recommends basic guidelines that may be regarded as prerequisites for the implementation of such a programme in this country. With regard to the proposed guidelines, the South African Government's 1985 unemployment relief package is examined critically.

In conclusion, the paper favours the introduction of a well‐conceived and adequately scaled programme of public works as a powerful means of combating unemployment and alleviating widespread poverty in the country.     

Is an Optimum Currency Area Feasible in East and South East Asia?

Abstract

In the backdrop of the recent economic crisis in the European Union, this study attempts to assess the degree of regional integration and the suitability of a monetary union in the East and South-East Asian (ESEA) region. For this purpose, we analyse the issue in a variety of ways. First, a long-run linkage of real output of the countries is tested using the cointegration analysis. Results suggest that real output of most of the countries in the region is cointegrated and move together in the long-run. To analyse the issue in detail, we focus on the impact of three different shocks, namely global, regional and country-specific, on real output of the countries. Results of impulse response and variance decomposition analysis reveal that regional shocks do not dominate in the sample countries, which is an indication of unfavourable condition to form an optimal currency area (OCA) in the region. These results are further confirmed by the outcome of computation of the modified Bayoumi and Eichengreen's Indices. Finally, we employ the concept of Generalized Purchasing Power Parity (G-PPP), which however reveals that the bilateral real exchange rate of ESEA countries move together in the long-run and share a common stochastic trend, which in turn provides some empirical support for an OCA in the region.     

Who cares for children? A quantitative study of childcare in South Africa

In this study we investigate the gender division of labour in the physical and financial care of children in South Africa, in the context of large race differences in rates of union formation and parent–child co-residence. Using national micro-data, we show that across a variety of household forms, women are the primary caregivers of children even when they are not a child’s biological mother. Women are also more likely to provide physical care than men are to provide financial support for children’s schooling. However, this gender imbalance is far larger in the case of African children, the majority of whom do not live with their father. For most African children, both their physical and financial care is provided by women who are typically the child’s biological mother, but also the child’s grandmother or another female relative.     

How does a Change in the Excise Tax on Beer Impact Beer Retail Prices in South Africa?

This article uses price data, collected by Statistics South Africa, to estimate the effect of a change in the excise tax on the retail price of beer. We find strong evidence that the excise tax on beer is overshifted to consumers. The pass‐through coefficient is estimated at 4.83 (95% CI: 4.02; 5.64) for lager, and at 4.77 (95% CI: 4.04; 5.50) for all beer (which includes dark beer). This implies that for every R1/unit increase in the excise tax, the retail price increases by about R4.80/unit. Of the 23 brand‐packaging combinations considered, the pass‐through coefficients vary between 2.39 and 10.05 (median = 5.30). The majority of the price change in response to a tax change occurs immediately, and prices have fully adjusted two months after the excise tax increase becomes effective. Pass‐through differs substantially across packaging types. The pass‐through coefficient on 750 ml bottles is substantially lower than that of 330 ml (or 340 ml) cans and 6 × 330 ml (or 6 × 340 ml) “six‐packs.” The overshifting of the excise tax has positive implications for public health policy, since they increase the effectiveness of alcohol taxes as a tool to reduce the (excessive) consumption of beer.     

Tax(i)ing the Poor? Commuting Costs in South African Cities

In this paper, I describe the monetary and time costs of commuting to work in South African cities, and how these have changed in the post‐Apartheid era. I interpret these results in light of a paper by Brueckner, who used a simple urban model to suggest that location and commuting patterns by race could change as a result of the repeal of Apartheid era legislation such as the Group Areas Act that made it impossible for black South Africans to live near the centre of cities. A key finding is that monetary and time costs of commuting in South African cities are high and have increased in the post‐Apartheid period. Journey times are much higher than the OECD country average and a sample of developing country cities. Part of the explanation for increasing average commute times is population growth in South African cities, which has been substantial. Both the population and number of commuters doubled between 1993 and 2013 in the six metropolitan municipalities (metros) analysed in this paper. Since commuting costs a substantial amount and generates negative externalities through congestion I also explore the financing of public transport.     

Structural change in the economy and energy needs: A South African perspective∗

The paper reviews economic structural changes and the resultant effect on the demand for energy. Seen globally, structural change is determined primarily by:

• shifts In the sectoral contributions

• technological development

• increase in the urban population

• redistribution of income.

The South African situation is analysed with respect to the following factors:

• changes In sectoral energy use as a result of the development of the economy away from an agrarian economy towards a more industrialised economy

• urbanisation and the changing energy consumption patterns especially with regard to increased food and water, housing, domestic energy, transport and waste disposal needs

• redistribution of income and projected future demand for energy.

The importance of structural change in planning for future energy needs is emphasised.     

Exclusive Growth? Rapidly Increasing Top Incomes Amid Low National Growth in South Africa

Despite South Africa’s need for inclusive economic growth, we find that the top income percentiles continue to diverge from the rest of the income distribution. We compare household survey data and tax data (which, unlike household survey data, includes accurate data for the very rich) to investigate the patterns of income growth over the period 2003 to 2018. We find that the gap between the stagnant middle and the top end of the income distribution widened, particularly over the post-recession period. We also show that the divergence was partly driven by high returns to capital for those with top incomes.     

Public Revenue‐Expenditure Nexus in South Africa: Are there Asymmetries?

This paper re‐examines the government revenue and expenditure relationship in South Africa using Enders and Siklos' Threshold adjustment and Granger causality tests. The paper allows for structural breaks in the unit root and cointegration tests. The results indicate the absence of any asymmetries in both the threshold autoregression and momentum threshold autoregression specifications of adjustments in the South African's budgeting process. The estimated symmetric error‐correction models provide support for the fiscal synchronization hypothesis of government revenues and expenditures for long‐run and short‐run dynamic equilibrium. These findings indicate that the South African fiscal authorities should try to maintain or even improve the control of their fiscal policy instruments to sustain the prudent budgetary process.     

Beyond community participation? Alternative routes to civil engagement and development in South Africa

Although community participation still enjoys a high level of support across various sectors in South Africa, its practice is fraught with conceptual and practical difficulties. This paper starts out by examining some of the problems and limitations associated with community participation, including the heterogeneity and fragmentation of many poor communities, the lack of social and material resources and community members' expectations of receiving a return from their involvement in development projects. Participatory rural appraisal (PRA) or participatory learning and action (PLA) is used as an example to illustrate some of the conceptual and theoretical limitations that characterise most approaches to participatory development. In particular it is argued that approaches such as PRA/PLA lack the theoretical basis for effectively getting to grips with the problems of participatory development. What is needed is a conceptual framework not only to understand the responses of communities, but also to locate such communities within their socio-economic contexts. The second part of the paper therefore examines three developments in social science theory that may be able to contribute to the development of a richer conceptual framework for popular participation. These are the concept of social capital, the asset-based approach to development, and the debate around the role of the state in development.     

‘Growing’ social protection in developing countries: Lessons from Brazil and South Africa

The rapid expansion of social protection in the South provides a rich diversity of experiences and lessons on how best to reduce poverty and ultimately eradicate it. Knowledge on how best to ‘grow’ social assistance, understood as long-term institutions responsible for reducing and preventing poverty, is at a premium. This article examines the expansion of social assistance in Brazil and South Africa, two of the middle income countries widely perceived to have advanced furthest in ‘growing’ social protection. It examines three aspects: the primacy of politics in explaining the expansion of social protection and assistance, the tensions between path-dependence and innovation in terms of institutions and practices, and the poverty and inequality outcomes of social assistance expansion. The article concludes by drawing the main lessons for other developing countries.     

From land rights to environmental entitlements: Community discontent in the ‘successful’ Dwesa-Cwebe land claim in South Africa

This paper discusses the inability of successful land claimants to enjoy livelihood benefits from their newly acquired land rights. Based on long-term field observation, interviews and analysis of secondary material, the paper uses a case study of the Dwesa-Cwebe Nature Reserve in the Eastern Cape Province of South Africa to explore why it is that an agreement, as part of the land claim settlement, to allow local villagers regulated access to natural resources is not being implemented. The paper draws from the environmental entitlements framework to argue that full land rights that could allow livelihood benefits to be enjoyed are restricted by ineffective and conflicting institutional arrangements, such as the Land Trust, the Communal Property Association and traditional authorities. The paper calls for the empowerment of institutions to deliberately benefit local livelihoods.     

A historical irony in the making? State,private sector and land reform in the South African wine industry

This article traces the development of the land distribution policy of the Department of Land Affairs (DLA) of South Africa. Despite the DLA ‘s political commitment to land reform by way of restitution, redistribution and tenure reform, to date no small‐scale wine farmers have been settled in South Africa by virtue of this policy. Three case studies describe how agricultural labourers have successfully gained access to this lucrative sector through private sector intervention. It is also argued that the small farm versus large farm debate masks the real opportunities for land reform in the wine industry.     

Public assets and services delivery in South Africa: Is it really a success?

Poverty alleviation remains a pressing concern for South African policy-makers. Implementing effective anti-poverty policies requires a clear understanding of the nature and extent of poverty. The extant literature on South African poverty dynamics shows a decline in the headcount ratio over the first decade of the twenty-first century. However, the prior research largely adopts a narrow money-metric approach, or uses multi-dimensional indices that include welfare indicators based on private assets (e.g. television sets) or those that are provided publicly (e.g. access to water). This paper uses multiple correspondence analysis to measure non-income poverty trends for the period 2005–12. The novelty in this undertaking lies in an attempt to include a measure of the perceived quality of public assets and services to complement the standard indices. This provides some measure of ‘success’ of public service delivery, accounting for both changes in access and quality.     

Do Private Tutoring Expenditures Raise Academic Performance? Evidence from Middle School Students in South Korea

To shed light on the effectiveness of educational inputs for student outcomes, this paper examines the effect of private tutoring expenditures on the academic performance of middle school students in South Korea. To address endogeneity, the paper uses instrumental variables, first‐difference, propensity‐score matching and nonparametric bounding methods. We apply these methods to a panel dataset from South Korea, the Korea Education Longitudinal Study. The results show that the true effect of private tutoring remains, at most, modest. Instrumental variables (first‐difference) estimates suggest that a 10‐percent increase in expenditure raises a test score by 0.03 standard deviations or 1.1 percent (0.002 standard deviations or 0.08 percent). Matching estimates imply that the same amount of increase in expenditure leads to a 0.33 to 0.72 percent higher average test score. The tightest bounds of the effect of tutoring reveal that a 10‐percent increase in expenditure improves the test score by a low of 0 to a high of 2.01 percent, while statistical tests fail to rule out zero effects. The modest effects of private tutoring found in the present study are comparable to the effects of public school expenditures on test scores and earnings estimated in previous studies.     

Are ‘Albergo Diffuso’ and community-based tourism the answers to community development in South Africa?

Conventional mass tourism shortcomings have facilitated the origin of alternative forms of tourism such as community-based tourism (CBT). Lately, another form of tourism known as ‘Albergo Diffuso’ (AD) has also been mentioned as a possible strategy to revive depressed specific local contexts, such as townships, villages and small towns. This article’s aim is twofold: first to contextualise the concept of AD in the South African milieu and secondly to investigate the possible relationship and role that CBT and AD could have. In this context, specific characteristics and similarities between CBT and AD are explored. The article’s main contribution concerns the exploration of the AD concept as an alternative form of tourism related to local community development. This is the first time that this concept has been presented in a South African context.     

Utilisation of indigenous workers and its relevance to human service organisations and development projects in South Africa∗

The article discusses major issues related to the employment of indigenous workers in human service organisations and development projects.

Main motives for introducing this new type of worker and the essential tasks they perform as well as their unique attributes are presented.

The discussion concludes by advocating the expansion of the efforts in the South African context.