Volume 11 Issue 1

The determination of prices for goods and services in a specific economy is significantly influenced by commodity prices and the distribution of energy. Hence, this study aims to examine the impact of fuel prices and electricity supply on the inflation rate in South Africa. The empirical analysis focuses on a time series data covering the period from January 2009 to December 2021. The study utilizes the Johansen test for cointegration, Vector Error Correction Model (VECM), and Granger approaches to establish the relationship between the variables. The empirical findings indicate the existence of a long-term relationship among the variables, indicating that long-term changes in electricity supply and fuel prices have an influence on South Africa's inflation levels. Similarly, the short-term results suggest an inverse relationship between fuel prices, electricity supply, and the inflation rate. In order to reduce the inflation rate, it is recommended to decrease spending on imported fuel and enhance electricity supply through increased investment in renewable energy and research and development (R and D).

The common desire of civilizations to reach out and interact with each other naturally gave rise to the process of globalization. Globalization has proven to be a dynamic process, triggered by technological changes and the decline in barriers to the free flow of goods, services, capital, and people. However, after decades of increasing economic integration, globalization shows signs of slowing down. The recent years have seen rapid changes in the global economy, in the context of events that drew attention to the vulnerabilities of globalization. In the present paper, I want to emphasize the impact the most significant events of the last 15 years have had on globalization and answer a very controversial question: ‘Is globalization coming to an end?'

The issue of whether military expenditure interacts with economics forces to facilitate economic growth remains a reoccurrence debate since the Benoit Hypothesis (1978). This paper aims to show how Nigeria's economic growth, military spending and external debt interact under a unified framework. Because the considered variables are non-stationary and the modelled relationship cointegrated, the interconnectedness is reported based on the VECM. The findings show economic growth leads to a significant increase (decrease) in the current value of defense spending (debt). More so, increased debt creates pressure that may ignite the next period growth. The findings identify new challenges for policymakers to put growth pursuit and debts profile into consideration when developing the defense budget.

This study explores the relationship between trade balance, exchange rate performance, foreign direct investment and economic growth in the Southern African Development Community (SADC) using quarterly data from 1970 to 2022. The results demonstrate that trade balance and exchange rate performance have a positive and significant impact on economic growth. The findings from the Dumitrescu-Hurlin (DH) panel causality tests suggest a bidirectional causal relationship between trade balance and economic growth, as well as between exchange rate performance and economic growth. The study concludes that promoting sound policies to enhance exports, reduce import dependency, and create favorable macroeconomic conditions is essential for achieving sustainable economic growth. Moreover, the study recommends the implementation of policies that optimize the benefits and retention of foreign direct investment (FDI) gains.