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...
Category - Zandri DICKASON-KOEKEMOER
North-West University, South Africa, ORCID: 0000-0002-3157-7772
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.
