Cyril Mbatha - Academia.edu (original) (raw)
Papers by Cyril Mbatha
A good indicator of successful farm redistribution cases has to be the continuation of viable pro... more A good indicator of successful farm redistribution cases has to be the continuation of viable productivity rates in their post transfer periods. Continued productivity benefits all the stakeholders that are involved in the process. Unfortunately negative productivity levels have been reported in numerous South African land redistribution transfers in recent years. A game theoretic perspective is adopted to argue that cooperation among key stakeholders, which could be enforced through long term contracts between a land buyer, sellers and new owners, would lead to higher productivity levels and other benefits. Additional benefits would, for example, include market related prices paid by a buyer. Sugarcane farm transfer cases from two municipality districts in KwaZulu Natal province are used to show that the productivity rates in post transfer periods of cooperative land sales were more than 10% higher than the rates observed before such transfers. At the opposite end of the scale, the...
South African Journal of Economic and Management Sciences, 2017
Background: With reports of widespread failures in South Africa’s land reform programmes, the lev... more Background: With reports of widespread failures in South Africa’s land reform programmes, the levels of policy uncertainty in the political rhetoric that influences land reform have been increasing. Since 1994 policy targets to transfer land to black farmers have not been met. Of the 2005 target to transfer about 25 million ha of commercial farmland to black farmers by 2014, less than 5 million ha. have been transferred for commercial use. Some studies report failure rates in resettlement projects of up to 90%. To account for the failures, revisions of policies and amendments to legislations have been proposed within a political environment that is becoming increasingly intolerant to slow progress in land transfers and to resettlement failures.Aim: Against this environment, this paper presents a typology for understanding and evaluating important elements of the land reform project in order to influence progress in the process.Setting: The study adopts a historical review of land re...
Failures in land reform projects in South Africa are linked to many factors including lack of ski... more Failures in land reform projects in South Africa are linked to many factors including lack of skills, markets, etc. Hence, there has been growing interest to implement joint-ventures between established and new farmers. It is argued that the ventures would not only allow new farmers access to useful capital and skills but also to existing business networks of partners. Nevertheless, some projects continue to fail including some in joint-ventures, mainly due to management conflicts. This study argues that conflicts stem largely from limited information flows which raise transactional costs. An illustration of how diversifying production and marketing strategies in 2018 by smallholders in the Kilifi county, a coastal and tourist destination region of Kenya, limit these costs and lead to high income returns to farmers is presented. Lessons are drawn for general South Africa smallholders in similar tourist areas. Mixed research methods were used to gather data, first from semi-structure...
Journal of Human Ecology, 2016
Smallholder farmers in South Africa are regarded as resource constrained and dogged by a wide ran... more Smallholder farmers in South Africa are regarded as resource constrained and dogged by a wide range of challenges including weak or absence of vibrant support institutions at local level. However, smallholder farmers still fulfil numerous functions in the agricultural economy, which include food security and income generation. The main objective of the study was to explore the role of both formal and informal arrangements as forms of institutional innovations at smallholder farm level. It was found that, due to weak formal institutions, farmers in KwaZulu-Natal resort to self-regulated institutions to ensure timely access to farming services. Informal groupings are common among irrigators, which have become important means of accessing inputs such as seedlings, irrigation plots and machinery for land preparation as well as output markets. Farmers were selective and participated in some group activities and not in others; hence training farmers should focus on team building activities to ensure consistency and derive maximum benefits from collective action.
South African Journal of Economic and Management Sciences, 2014
We began with the premise that South African recent migrants from rural to urban areas experience... more We began with the premise that South African recent migrants from rural to urban areas experience relatively lower rates of participation in formal labour markets compared to local residents in urban communities, and that these migrants are overrepresented in the informal labour market and in the unemployment sector. This means that rural to urban migrants are less likely than locals to be found in formal employment and more likely to be found in informal employment and among the unemployed. Using perspectives from Development Economics we explore the South African National Income Dynamics Study (NIDS) panel datasets of 2008 and 2010, which only provide a perspective on what has happened between 2008 and 2010. We find that while migrants in general experience positive outcomes in informal labour markets, they also experience positive outcomes in formal markets, which is contrary to expectations. We also find that there are strong links between other indicators of performance in the ...
Using a macro-economic lens, this report provides a high-level historical overview of key shifts ... more Using a macro-economic lens, this report provides a high-level historical overview of key shifts in artisanal skilling and employment, to show how it has evolved to its current state. To address current challenges, we should be informed by an institutional understanding of artisanal history, and of the prevailing economic parameters in key periods, which shape constraints and opportunities for policy-making. About the LMIP The Labour Market Intelligence Partnership (LMIP) is a collaboration between the Department of Higher Education and Training, and a Human Sciences Research Council-led national research consortium. It aims to provide research to support the development of a credible institutional mechanism for skills plannning in South Africa. For further information and resources on skills planning and the South African post-school sector and labour market, visit
DESCRIPTION Fear of markets and ill-defined property rights in South Africa's land reform pro... more DESCRIPTION Fear of markets and ill-defined property rights in South Africa's land reform projects
There is a substantial body of literature dealing with the improper use of statistical significan... more There is a substantial body of literature dealing with the improper use of statistical significance within economic analysis. Amongst the problems that have been identified are fundamental misunderstandings about the influence of sample design and size on statistical significance, an excessive focus on statistical significance to the exclusion of economic and policy significance and a harmful conflation of different types of significance within conclusions. A meta-analysis of 51 (out of 102) agricultural economics papers reviewed and accepted for an African conference in 2010 finds improper usage of statistical significance that is comparable in nature and extent to that found in a previous meta-analysis focussing on published articles from the American Economic Review. For instance, well over 50% of the papers employed ‘sign econometrics’ and ‘asterisk econometrics’. Overall, the findings underline the need for greater rigour in the production and selection of papers that employ re...
The Open Geography Journal, 2011
The Kat River Valley, in the Eastern Cape of South Africa, provided a case study against which pr... more The Kat River Valley, in the Eastern Cape of South Africa, provided a case study against which propositions of determinants of economic development were tested. Physical location was found to matter in determining the level of development and economic leverage which Middle Kat farmers had compared to those downstream in accordance with Bromley's (1982) proposition. Physical location, however, was not a determining factor for farmers in the Upper Kat River who were the least developed. As predicted by Ostrom (1990), high transaction costs stemming from information asymmetries, selfish interests coupled with poor leadership, an unequal distribution of power and the flouting of formal agreements ensured the demise of a once successful Hacop project in the Upper Kat. Finally, Hirschman's (1960) much earlier line of argument was supported in that the nature of proposed development programmes and the compatibility with community values or 'self images' contributed to the lack of success of an externally initiated development effort. The findings and conclusion serve an important lesson to economic researchers and decision makers not to duplicate policies for implementation in all geographical and social contexts on the basis of their success elsewhere.
Economic development remains elusive for many world economies, but especially those of African co... more Economic development remains elusive for many world economies, but especially those of African countries. The current global inequalities in terms of GNP per capita and human living standards between developed and developing nations have ensured that the challenges of food insecurities are only some of the many negative experiences of underdevelopment in the African continent. Hence, delivery pressures are increasing on policy makers and researchers to provide tangible and timely economic solutions to the resilient state of underdevelopment. In the policy fights against the challenges posed by a lack of development in South Africa, the agricultural sector has in the past and continues in the present to play a central role. Such is the case because the majority of citizens rely on agricultural production activities for their livelihoods. For instance, even though the sector only contributed four percent towards the national Gross Domestic Product in 2006, in the Eastern Cape Province, more than seventy percent of the total population resided in rural areas. Moreover, in 2004 more than sixty percent of the national formal and informal employment levels were found in the sector. These economic indicators do not only reinforce the assertions that high levels of geographical and sectoral inequalities exist in the country's economy, but they also illustrate the importance of the agricultural sector in public policy attempts, which are aimed at achieving food security alongside long-term developmental objectives. Some economists, especially the proponents of institutionalism, have argued that most of the recommendations to public policy interventions from mainstream economic research endeavours are not adequately helpful. The recommendations generally lack
Journal of Cultural Economics, 2008
The chapters of this book came from 17 papers discussed at the Millikin conference on Rhetoric & ... more The chapters of this book came from 17 papers discussed at the Millikin conference on Rhetoric & Economics in 2005. Twenty-five participants from a background mix of economics and language arts attended the conference where all papers were presented and discussed in plenary sessions. Attempting to expand on the works of McCloskey (1985) and others (e.g. Klamer 1988), the chapters cover and discuss a wide body of evidence supporting the overwhelming prevalence of rhetorical performances 1 in academic debates in the discipline of economics as well as in business and government sector activities. McCloskey's (1985) book The Rhetoric of Economics challenged the widely held notion that economists in academic departments are engaged in scientific and nonnormative scholarly enquiry. She proposed instead that academic economists are engaged in persuasive conversations, using language tools and post-modernist arguments similar to those found in literary works, history, philosophy and other similar disciplines. Almost 20 years later, the Millikin conference would be held to further discuss similar arguments with emphasis being placed on the use of rhetoric in wider economic sectors outside academic circles. Hence, it should not be a surprise that all the conference papers, which together form this book, make reference to some or other arguments made by McCloskey (1985). McCloskey has herself contributed a compelling foreword to the volume, which is fittingly entitled ''How to Buy, Sell, Make, Manage, Produce, Transact, Consume, with Words''. With contributions originating from various fields beyond economics, one of the book's aims is to ''evidence a transdisciplinary aspect in the … placement of the
Agrekon, 2011
ABSTRACT The European Union (EU) has remained South Africa's biggest trading partner, wit... more ABSTRACT The European Union (EU) has remained South Africa's biggest trading partner, with total exports destined for the Union constituting about 30 per cent of South Africa's total exports in the last ten years. However, owing to recent developments, new market opportunities, especially in the developing world, have emerged, with countries like China capturing some of South Africa's total exports. Analysts like Sandrey and Jensen (2007) have argued that such developments signal a significant change in the relevance of the EU as South Africa's main trading partner. This paper, however, argues that, even with the rise of emerging markets, South Africa still needs to take the EU seriously and remain strategic in its relationship with the Union.
Agrekon, 2008
The signing of the Economic Partnership Agreements (EPAs) between the European Union (EU) and the... more The signing of the Economic Partnership Agreements (EPAs) between the European Union (EU) and the African Caribbean Pacific (ACP) nations dominated the multilateral trade agenda in late 2007 and early 2008. While the Caribbean nations signed the full EPAs, some of the African countries only singed interim agreements with the EU and a number of West African countries chose not to sign any EPA. Using the case of Botswana's export markets, especially in agriculture, it is argued that the interim Southern African Development Community (SADC) EPA, which was signed by Botswana and her neighbours, with the exception of South Africa, may have been economically sensible in protecting Botswana's rural poor, at least in the short run. By tracing trade flows from the border to specifically poor sectors of the country, the importance of the beef exports sector to the poor and rural communities was found. The potential effects on the most significant exports of tariff bands associated with preferential agreements with the EU were found to be most beneficial in comparison to the Most Favoured Nation (MFN) and the South Africa-EU Trade Development and Cooperation Agreement (TDCA) tariff bands. But it is also argued that the EPA will most likely have far reaching long run costs on regional economic development and institutional integration, within the SADC and Southern African Customs Union (SACU).
Agrekon, 2008
The Physical Externality Model is used to illustrate the potential limitations of blindly adoptin... more The Physical Externality Model is used to illustrate the potential limitations of blindly adopting formal models for economic investigation and explanation in varied geographical contexts. As argued by institutional economists for the last hundred years the practice limits the value and relevance of most general economic inquiry. This model postulates that the geographical location of farmers along a given watercourse, in which water is diverted individually, leads to structural inefficiencies that negatively affect the whole farming community. These effects are felt more severely at downstream sites and lead to a status quo where upstream farmers possess relative economic and political advantages over their counterparts elsewhere. In the study of the Kat River basin these predictions appear to be true only in as far as they relate to legal and political allocations and use of water resources. In terms of lawful uses of land resources aimed at expanding citrus production, the model's predictions are not met. The status quo is however fully explained by the implications of having adopted formal water scheduling rights by upstream farmers as well as other geographical factors. Hence, the case for investigating the effects of important institutions within general economic research is strengthened.
Agrekon, 2013
ABSTRACT There is a body of literature dealing with the improper use of statistical significance ... more ABSTRACT There is a body of literature dealing with the improper use of statistical significance within economic analysis. Amongthe problematic usages that have been identified are fundamental misunderstandings about the influence of sample design and size on statistical significance, an excessive focus on statistical significance to the exclusion of economic and policy significance, and a harmful conflation of these two very different types of significance. An analysis of 51 agricultural economics papers reviewed and presented at an African conference in 2010 finds improper usage of statistical significance that is comparable or worse in nature and extent to that found in a previous meta analysis focusing on published articles in the American Economic Review in the 1980s and 1990s: well over half of the papers employed what is termed “sign” and “asterisks” econometrics. Overall, the findings underline the need for clearly stated and consistent analytical methods in producing papers as well as for careful review and selection of papers that employ regression analysis.
Agrekon, 2012
ABSTRACT A good indicator of successful land redistribution cases has to be the continuation of v... more ABSTRACT A good indicator of successful land redistribution cases has to be the continuation of viable productivity rates in their post-transfer periods. Continued productivity benefits all the stakeholders that are involved in the process. Unfortunately, negative productivity levels have been reported in numerous South African land redistribution transfers in recent years. A game theoretic perspective is adopted to illustrate and argue that cooperation among key stakeholders, which could be enforced through long-term contracts between land buyers, sellers and new owners, may lead to maintenance and higher productivity levels and other benefits within the country's land redistribution process.
Agrekon, 2010
ABSTRACT The desire to transfer 30 per cent of commercial farmland into the hands of black South ... more ABSTRACT The desire to transfer 30 per cent of commercial farmland into the hands of black South Africans has progressed slower than anticipated. Politicians and government officials have blamed the market approach to the purchase of land for the challenges and failures in the process. An analysis of the transfer of sugarcane land in two districts in KwaZulu-Natal over the period 2000 to 2006 permitted a comparison of the prices paid to commercial farmers both in private transactions and in the case of sales to government. Data did not support the contention that the slow rate of transfer was due to a manipulation of land prices by landowners in an attempt to stall the process. It was concluded that the state lost most of its bargaining power in the land reform market due to the drawn out nature of the land valuation processes.
A good indicator of successful farm redistribution cases has to be the continuation of viable pro... more A good indicator of successful farm redistribution cases has to be the continuation of viable productivity rates in their post transfer periods. Continued productivity benefits all the stakeholders that are involved in the process. Unfortunately negative productivity levels have been reported in numerous South African land redistribution transfers in recent years. A game theoretic perspective is adopted to argue that cooperation among key stakeholders, which could be enforced through long term contracts between a land buyer, sellers and new owners, would lead to higher productivity levels and other benefits. Additional benefits would, for example, include market related prices paid by a buyer. Sugarcane farm transfer cases from two municipality districts in KwaZulu Natal province are used to show that the productivity rates in post transfer periods of cooperative land sales were more than 10% higher than the rates observed before such transfers. At the opposite end of the scale, the...
South African Journal of Economic and Management Sciences, 2017
Background: With reports of widespread failures in South Africa’s land reform programmes, the lev... more Background: With reports of widespread failures in South Africa’s land reform programmes, the levels of policy uncertainty in the political rhetoric that influences land reform have been increasing. Since 1994 policy targets to transfer land to black farmers have not been met. Of the 2005 target to transfer about 25 million ha of commercial farmland to black farmers by 2014, less than 5 million ha. have been transferred for commercial use. Some studies report failure rates in resettlement projects of up to 90%. To account for the failures, revisions of policies and amendments to legislations have been proposed within a political environment that is becoming increasingly intolerant to slow progress in land transfers and to resettlement failures.Aim: Against this environment, this paper presents a typology for understanding and evaluating important elements of the land reform project in order to influence progress in the process.Setting: The study adopts a historical review of land re...
Failures in land reform projects in South Africa are linked to many factors including lack of ski... more Failures in land reform projects in South Africa are linked to many factors including lack of skills, markets, etc. Hence, there has been growing interest to implement joint-ventures between established and new farmers. It is argued that the ventures would not only allow new farmers access to useful capital and skills but also to existing business networks of partners. Nevertheless, some projects continue to fail including some in joint-ventures, mainly due to management conflicts. This study argues that conflicts stem largely from limited information flows which raise transactional costs. An illustration of how diversifying production and marketing strategies in 2018 by smallholders in the Kilifi county, a coastal and tourist destination region of Kenya, limit these costs and lead to high income returns to farmers is presented. Lessons are drawn for general South Africa smallholders in similar tourist areas. Mixed research methods were used to gather data, first from semi-structure...
Journal of Human Ecology, 2016
Smallholder farmers in South Africa are regarded as resource constrained and dogged by a wide ran... more Smallholder farmers in South Africa are regarded as resource constrained and dogged by a wide range of challenges including weak or absence of vibrant support institutions at local level. However, smallholder farmers still fulfil numerous functions in the agricultural economy, which include food security and income generation. The main objective of the study was to explore the role of both formal and informal arrangements as forms of institutional innovations at smallholder farm level. It was found that, due to weak formal institutions, farmers in KwaZulu-Natal resort to self-regulated institutions to ensure timely access to farming services. Informal groupings are common among irrigators, which have become important means of accessing inputs such as seedlings, irrigation plots and machinery for land preparation as well as output markets. Farmers were selective and participated in some group activities and not in others; hence training farmers should focus on team building activities to ensure consistency and derive maximum benefits from collective action.
South African Journal of Economic and Management Sciences, 2014
We began with the premise that South African recent migrants from rural to urban areas experience... more We began with the premise that South African recent migrants from rural to urban areas experience relatively lower rates of participation in formal labour markets compared to local residents in urban communities, and that these migrants are overrepresented in the informal labour market and in the unemployment sector. This means that rural to urban migrants are less likely than locals to be found in formal employment and more likely to be found in informal employment and among the unemployed. Using perspectives from Development Economics we explore the South African National Income Dynamics Study (NIDS) panel datasets of 2008 and 2010, which only provide a perspective on what has happened between 2008 and 2010. We find that while migrants in general experience positive outcomes in informal labour markets, they also experience positive outcomes in formal markets, which is contrary to expectations. We also find that there are strong links between other indicators of performance in the ...
Using a macro-economic lens, this report provides a high-level historical overview of key shifts ... more Using a macro-economic lens, this report provides a high-level historical overview of key shifts in artisanal skilling and employment, to show how it has evolved to its current state. To address current challenges, we should be informed by an institutional understanding of artisanal history, and of the prevailing economic parameters in key periods, which shape constraints and opportunities for policy-making. About the LMIP The Labour Market Intelligence Partnership (LMIP) is a collaboration between the Department of Higher Education and Training, and a Human Sciences Research Council-led national research consortium. It aims to provide research to support the development of a credible institutional mechanism for skills plannning in South Africa. For further information and resources on skills planning and the South African post-school sector and labour market, visit
DESCRIPTION Fear of markets and ill-defined property rights in South Africa's land reform pro... more DESCRIPTION Fear of markets and ill-defined property rights in South Africa's land reform projects
There is a substantial body of literature dealing with the improper use of statistical significan... more There is a substantial body of literature dealing with the improper use of statistical significance within economic analysis. Amongst the problems that have been identified are fundamental misunderstandings about the influence of sample design and size on statistical significance, an excessive focus on statistical significance to the exclusion of economic and policy significance and a harmful conflation of different types of significance within conclusions. A meta-analysis of 51 (out of 102) agricultural economics papers reviewed and accepted for an African conference in 2010 finds improper usage of statistical significance that is comparable in nature and extent to that found in a previous meta-analysis focussing on published articles from the American Economic Review. For instance, well over 50% of the papers employed ‘sign econometrics’ and ‘asterisk econometrics’. Overall, the findings underline the need for greater rigour in the production and selection of papers that employ re...
The Open Geography Journal, 2011
The Kat River Valley, in the Eastern Cape of South Africa, provided a case study against which pr... more The Kat River Valley, in the Eastern Cape of South Africa, provided a case study against which propositions of determinants of economic development were tested. Physical location was found to matter in determining the level of development and economic leverage which Middle Kat farmers had compared to those downstream in accordance with Bromley's (1982) proposition. Physical location, however, was not a determining factor for farmers in the Upper Kat River who were the least developed. As predicted by Ostrom (1990), high transaction costs stemming from information asymmetries, selfish interests coupled with poor leadership, an unequal distribution of power and the flouting of formal agreements ensured the demise of a once successful Hacop project in the Upper Kat. Finally, Hirschman's (1960) much earlier line of argument was supported in that the nature of proposed development programmes and the compatibility with community values or 'self images' contributed to the lack of success of an externally initiated development effort. The findings and conclusion serve an important lesson to economic researchers and decision makers not to duplicate policies for implementation in all geographical and social contexts on the basis of their success elsewhere.
Economic development remains elusive for many world economies, but especially those of African co... more Economic development remains elusive for many world economies, but especially those of African countries. The current global inequalities in terms of GNP per capita and human living standards between developed and developing nations have ensured that the challenges of food insecurities are only some of the many negative experiences of underdevelopment in the African continent. Hence, delivery pressures are increasing on policy makers and researchers to provide tangible and timely economic solutions to the resilient state of underdevelopment. In the policy fights against the challenges posed by a lack of development in South Africa, the agricultural sector has in the past and continues in the present to play a central role. Such is the case because the majority of citizens rely on agricultural production activities for their livelihoods. For instance, even though the sector only contributed four percent towards the national Gross Domestic Product in 2006, in the Eastern Cape Province, more than seventy percent of the total population resided in rural areas. Moreover, in 2004 more than sixty percent of the national formal and informal employment levels were found in the sector. These economic indicators do not only reinforce the assertions that high levels of geographical and sectoral inequalities exist in the country's economy, but they also illustrate the importance of the agricultural sector in public policy attempts, which are aimed at achieving food security alongside long-term developmental objectives. Some economists, especially the proponents of institutionalism, have argued that most of the recommendations to public policy interventions from mainstream economic research endeavours are not adequately helpful. The recommendations generally lack
Journal of Cultural Economics, 2008
The chapters of this book came from 17 papers discussed at the Millikin conference on Rhetoric & ... more The chapters of this book came from 17 papers discussed at the Millikin conference on Rhetoric & Economics in 2005. Twenty-five participants from a background mix of economics and language arts attended the conference where all papers were presented and discussed in plenary sessions. Attempting to expand on the works of McCloskey (1985) and others (e.g. Klamer 1988), the chapters cover and discuss a wide body of evidence supporting the overwhelming prevalence of rhetorical performances 1 in academic debates in the discipline of economics as well as in business and government sector activities. McCloskey's (1985) book The Rhetoric of Economics challenged the widely held notion that economists in academic departments are engaged in scientific and nonnormative scholarly enquiry. She proposed instead that academic economists are engaged in persuasive conversations, using language tools and post-modernist arguments similar to those found in literary works, history, philosophy and other similar disciplines. Almost 20 years later, the Millikin conference would be held to further discuss similar arguments with emphasis being placed on the use of rhetoric in wider economic sectors outside academic circles. Hence, it should not be a surprise that all the conference papers, which together form this book, make reference to some or other arguments made by McCloskey (1985). McCloskey has herself contributed a compelling foreword to the volume, which is fittingly entitled ''How to Buy, Sell, Make, Manage, Produce, Transact, Consume, with Words''. With contributions originating from various fields beyond economics, one of the book's aims is to ''evidence a transdisciplinary aspect in the … placement of the
Agrekon, 2011
ABSTRACT The European Union (EU) has remained South Africa's biggest trading partner, wit... more ABSTRACT The European Union (EU) has remained South Africa's biggest trading partner, with total exports destined for the Union constituting about 30 per cent of South Africa's total exports in the last ten years. However, owing to recent developments, new market opportunities, especially in the developing world, have emerged, with countries like China capturing some of South Africa's total exports. Analysts like Sandrey and Jensen (2007) have argued that such developments signal a significant change in the relevance of the EU as South Africa's main trading partner. This paper, however, argues that, even with the rise of emerging markets, South Africa still needs to take the EU seriously and remain strategic in its relationship with the Union.
Agrekon, 2008
The signing of the Economic Partnership Agreements (EPAs) between the European Union (EU) and the... more The signing of the Economic Partnership Agreements (EPAs) between the European Union (EU) and the African Caribbean Pacific (ACP) nations dominated the multilateral trade agenda in late 2007 and early 2008. While the Caribbean nations signed the full EPAs, some of the African countries only singed interim agreements with the EU and a number of West African countries chose not to sign any EPA. Using the case of Botswana's export markets, especially in agriculture, it is argued that the interim Southern African Development Community (SADC) EPA, which was signed by Botswana and her neighbours, with the exception of South Africa, may have been economically sensible in protecting Botswana's rural poor, at least in the short run. By tracing trade flows from the border to specifically poor sectors of the country, the importance of the beef exports sector to the poor and rural communities was found. The potential effects on the most significant exports of tariff bands associated with preferential agreements with the EU were found to be most beneficial in comparison to the Most Favoured Nation (MFN) and the South Africa-EU Trade Development and Cooperation Agreement (TDCA) tariff bands. But it is also argued that the EPA will most likely have far reaching long run costs on regional economic development and institutional integration, within the SADC and Southern African Customs Union (SACU).
Agrekon, 2008
The Physical Externality Model is used to illustrate the potential limitations of blindly adoptin... more The Physical Externality Model is used to illustrate the potential limitations of blindly adopting formal models for economic investigation and explanation in varied geographical contexts. As argued by institutional economists for the last hundred years the practice limits the value and relevance of most general economic inquiry. This model postulates that the geographical location of farmers along a given watercourse, in which water is diverted individually, leads to structural inefficiencies that negatively affect the whole farming community. These effects are felt more severely at downstream sites and lead to a status quo where upstream farmers possess relative economic and political advantages over their counterparts elsewhere. In the study of the Kat River basin these predictions appear to be true only in as far as they relate to legal and political allocations and use of water resources. In terms of lawful uses of land resources aimed at expanding citrus production, the model's predictions are not met. The status quo is however fully explained by the implications of having adopted formal water scheduling rights by upstream farmers as well as other geographical factors. Hence, the case for investigating the effects of important institutions within general economic research is strengthened.
Agrekon, 2013
ABSTRACT There is a body of literature dealing with the improper use of statistical significance ... more ABSTRACT There is a body of literature dealing with the improper use of statistical significance within economic analysis. Amongthe problematic usages that have been identified are fundamental misunderstandings about the influence of sample design and size on statistical significance, an excessive focus on statistical significance to the exclusion of economic and policy significance, and a harmful conflation of these two very different types of significance. An analysis of 51 agricultural economics papers reviewed and presented at an African conference in 2010 finds improper usage of statistical significance that is comparable or worse in nature and extent to that found in a previous meta analysis focusing on published articles in the American Economic Review in the 1980s and 1990s: well over half of the papers employed what is termed “sign” and “asterisks” econometrics. Overall, the findings underline the need for clearly stated and consistent analytical methods in producing papers as well as for careful review and selection of papers that employ regression analysis.
Agrekon, 2012
ABSTRACT A good indicator of successful land redistribution cases has to be the continuation of v... more ABSTRACT A good indicator of successful land redistribution cases has to be the continuation of viable productivity rates in their post-transfer periods. Continued productivity benefits all the stakeholders that are involved in the process. Unfortunately, negative productivity levels have been reported in numerous South African land redistribution transfers in recent years. A game theoretic perspective is adopted to illustrate and argue that cooperation among key stakeholders, which could be enforced through long-term contracts between land buyers, sellers and new owners, may lead to maintenance and higher productivity levels and other benefits within the country's land redistribution process.
Agrekon, 2010
ABSTRACT The desire to transfer 30 per cent of commercial farmland into the hands of black South ... more ABSTRACT The desire to transfer 30 per cent of commercial farmland into the hands of black South Africans has progressed slower than anticipated. Politicians and government officials have blamed the market approach to the purchase of land for the challenges and failures in the process. An analysis of the transfer of sugarcane land in two districts in KwaZulu-Natal over the period 2000 to 2006 permitted a comparison of the prices paid to commercial farmers both in private transactions and in the case of sales to government. Data did not support the contention that the slow rate of transfer was due to a manipulation of land prices by landowners in an attempt to stall the process. It was concluded that the state lost most of its bargaining power in the land reform market due to the drawn out nature of the land valuation processes.