Ewert Kleynhans | North-West University (original) (raw)

Papers by Ewert Kleynhans

Sy navorsing fokus op direkte buitelandse investering in Afrikalande. In 1993 verwerf hy die BCom... more Sy navorsing fokus op direkte buitelandse investering in Afrikalande. In 1993 verwerf hy die BCom-graad aan die Universiteit van Pretoria en word die jaar daarna aangestel as dosent in Statistiek by dieselfde universiteit, waartydens hy ook die honneursgraad in Ekonometrie voltooi. In 1997 voltooi hy sy meestersgraad in Ekonometrie, en is daarna aan verskeie finansiële instellings in Londen, Mauritius, Kaap Verde, Swaziland en Johannesburg as konsultant verbonde. In 2007 behaal hy sy doktorsgraad (PhD) aan die Noordwes-Universiteit met ŉ proefskrif getiteld: "Handelspatrone en direkte buitelandse investering in die Suider-Afrikaanse Ontwikkelingsgemeenskap". Gedurende 2010 behaal hy die Gevorderde Diploma in Internasionale Handel van die Internasionale Handelsinstituut van Suid-Afrika (ITRISA) en in 2012 ŉ honneursgraad in

This study investigates the effect that trade liberalisation had on the export of manufactured go... more This study investigates the effect that trade liberalisation had on the export of manufactured goods in Cameroon. The study estimated the effects this liberalisation had on the determinants of exports of manufactured commodities and its influence on the country's economy, using an augmented gravity model. The model revealed that the effect of exchange rate appreciation on the export of manufactured goods was less than it was before trade liberalisation, though still positive. After liberalisation, manufactured exports reacted positively following increased imports of intermediate goods and a lowering of tariffs; but it was restricted by higher production capacity. Further investigation indicates that the exports of manufactured goods were stimulated by the liberalisation of trade, although manufacturing growth was still dampened. The effect of the local economy's size became more important, while the influence from foreign GDP declined. Membership of regional trade agreements became negative, which was unexpected. Distance became more important, and the effect of tariffs declined; though still negative. It was found that international trade liberalisation by Cameroon mostly benefited its manufacturing sector, improving its ability to export and to create jobs.

South African Journal of Science and Technology, Aug 29, 2014

The supply of electricity by Eskom: The impact of load shedding and higher prices on the South Af... more The supply of electricity by Eskom: The impact of load shedding and higher prices on the South African economy. This study investigates alternative ways to manage the electricity supply by the South African energy provider, Eskom, with specific focus on the choice between higher tariffs and load shedding. Both choices will harm the country's economy, and optimal managerial choices are, therefore, essential. The empirical research applies Computable General Equilibrium models (CGE). Scenarios on both price increases in electricity and supply reductions in supply were planned to determine what their effect would be on the country's economy as a whole, on specific industrial sectors and the effect on households. Estimates suggest that the supply of electricity in the country should increase by at least 10% to sustain the grid and thus avoid power cuts. The price increase approved by the national regulator, however, will be too little to increase supply and neither will it compel consumers to use less. This price increase will reduce electrical consumption by only 3.3%. On the other hand, if a 10% decrease in the output of electricity is permitted through load shedding, for example, the negative effects could be even more severe. This would be especially true of sectors that are electricity intensive, such as mining and manufacturing. When comparing these two scenarios, increases in the consumer price of electricity would be more preferable than electricity reduction through power cuts. http://www.satnt.ac.za

Journal of Economic and Financial Sciences, Dec 18, 2017

Despite Africa's strong foreign direct investment (FDI) performance since 2000, the majority of F... more Despite Africa's strong foreign direct investment (FDI) performance since 2000, the majority of FDI inflows have been directed to a few selected countries. As investors face many risks when investing in developing countries, it is argued that risk perception plays a vital role in the FDI inflows into Africa. This article focuses on the relationship between risk and FDI. A structural equation model is used to analyse this relationship with a dataset of ten risk categories and FDI data from 42 African countries. The study focuses on four sectors, namely metals, automotive, communications and real estate. Overall, results indicate that government effectiveness and legal and regulatory risks produce the biggest concern for investors. The conclusion is that each sector's risk pattern regarding FDI differs. The most important empirical results indicated that African countries should focus more on government effectiveness, stability and transparency to attract the levels of FDI required to stimulate economic growth.

Acta commercii, Mar 9, 2016

This article evaluates a possible global nuclear renaissance in the provision of electrical energ... more This article evaluates a possible global nuclear renaissance in the provision of electrical energy. Problem investigated: Several countries, such as South Africa, are experiencing problems in the provision of electricity and the maintenance of the infrastructure to answer growing demand. This article investigates an alternative, which was popular in the 1970s and provides clean energy. Methodology: The study firstly evaluates the main arguments set by anti-nuclear activists critically. It concerns negative public sentiment, human life and environmental endangerment, alternative energy, cost effectiveness and waste disposal concerns. The study focuses on the cost of nuclear power, as the benefits of electricity are assumed homogeneous. The second part of the article reports on an empirical cost-benefit analysis conducted by the authors to estimate the value and likeliness of a nuclear renaissance. Findings and implications: The empirical analysis indicated that nuclear energy is mostly cost-efficient. The research shows that there might be a slight increase in the use of nuclear power-producing technologies in future. Originality and value of the research: This study makes a positive contribution to the electrical power and nuclear energy debate. It assesses the possibility of a nuclear renaissance objectively. The environment, global energy shortage and different cost structures of various modes of energy production were considered. Conclusion: The study concluded that a nuclear renaissance is possible, but that despite the advantages to costs and the environment, this would not yet be statistically significant enough to cause a nuclear renaissance.

Journal of Applied Business Research, Sep 1, 2021

This study identifies the export promotion instruments that are applied by public export promotio... more This study identifies the export promotion instruments that are applied by public export promotion organisations situated within the East African Community (EAC) countries to stimulate exports and encourage economic growth. The East African region is the fastest developing region in Africa. EAC member countries are, therefore, used as a case study. How export promotion instruments are bundled by export promotion organisations depends on the socioeconomic, political and trade environment of a country as well as the structure of the country's export promotion agencies. By utilising primary and secondary data, public export promotion organisations of Burundi, Kenya, Rwanda, Tanzania and Uganda were studied. These general and country-specific instruments were identified through onsite interviews in the respective countries under investigation. The results suggest that the most important export promotion instruments applied include advertising, promotional events, advocacy and legal assistance. It also includes capacity building concerning packaging, pricing and quality requirements within foreign markets as well as assistance concerning planning and preparation for export market engagement. Foreign trade missions, trade fairs, expos, and additional services offered by trade offices and representatives abroad are also general export promotion instruments, as is the provision of information and export financing. Country-specific export promotion instruments identified during onsite interviews in the various countries include unique promotional events and product branding, use of cell phone WhatsApp groups and embassies as a channel for information, trade assistance and trade clinics. Our contribution to the field is that this study is foundational and represents the first comprehensive effort to write up these activities of the EPO's to establish viable research in the EPOs in the East Africa Region.

South African Journal of International Affairs, Jan 2, 2015

The Wal-Mart/Massmart merger has caused concern about its possible influence on the South African... more The Wal-Mart/Massmart merger has caused concern about its possible influence on the South African economy, employment and the autonomy of the state. This study analyses strategic considerations for states that allow foreign corporations to engage in their domestic markets. Globalisation and transnational harmonisation have led to an impetus for corporations to extend their activities across national borders and foreign markets. Based on the theory of sovereignty, this is evaluated against a trilateral background of home country, host country and corporation. The outcome that emerges is that in some cases states have lost a significant share of sovereignty to multinational authorities. With the Wal-Mart/Massmart merger, role-players such as the government, competition commission and trade unions got involved early on and ensured maximum advantage to the country and its citizens. The final conclusion is that such partnerships between host, home governments and transnational corporations can minimise the loss of national sovereignty, but this can only be achieved against a backdrop of economic, societal and political stability and co-operation.

Tydskrif vir geesteswetenskappe, Jun 1, 2014

Die halfeeu-viering van die Organisasie vir Afrika-Eenheid (OAE) en die eerste dekade van die Afr... more Die halfeeu-viering van die Organisasie vir Afrika-Eenheid (OAE) en die eerste dekade van die Afrika-Unie (AU) is gedurende 2013 gevier. Hierdie studie evalueer die sukses van die AU as internasionale organisasie (IO). Eerstens is die teorie van IO's bestudeer, wat daarna as agtergrond dien deur middel waarvan die Afrika-Unie geassesseer kan word. Die rol en optrede van die AU in besondere gebeure, soos in Zimbabwe, Somaliland, die Arabiese lente, die DRK en Darfoer, is teen hierdie teoretiese agtergrond beoordeel. Daar is bevind dat die AU gedurende sy eerste dekade 'n groot mate van sukses op sekere gebiede bereik het, maar dat dit ook in baie gevalle nog gebrekkig gebly het. Die AU het 'n al groter wordende rol om te speel in die internasionale arena as supranasionale regering, en as bemiddelaar van streeksintegrasie en samewerking. Hulle was suksesvol om 'n kollektiewe internasionale ekonomiese eenheid te vorm, maar het meestal misluk om konflikte te beredder en 'n kultuur van demokrasie te vestig. Die slotsom is dat alhoewel die AU gemengde resultate behaal het, daar 'n groeiende sukseskoers bestaan en dat die AU dus nie sonder meer as 'n algehele mislukking bestempel kan word nie. An evaluation of the African Union as an international organisation The half centenary of the Organisation of African Unity (OAU) and the first decade of the African Union (AU) were celebrated during 2013. The OAU was established on 25 May 1963 in Addis Ababa, with the aim to promote unity among African countries and to improve the fate of their peoples. On 9 July 2002, it was transformed into the African Union in Durban. The main objectives of the latter are the economic and political integration of the African continent. This study aims to evaluate the successes and failures of the African Union as an international organisation (IO). Africa is one of the poorest and least developed regions in the world. This debate is therefore of critical importance to the people of the Southern African region (World Bank 2013). This evaluation provides a broad overview and focus on the major challenges that the AU is facing. In this study, the AU is assessed using the theoretical criteria set by the theory of international organisations. The results revealed that the AU is only partially successful and that internal divisions remain a barrier.

Acta commercii, Jul 17, 2018

The dawn of modern technology and communication devices has enabled production processes to be di... more The dawn of modern technology and communication devices has enabled production processes to be divided and each section developed at a location with the most expertise and the lowest costs, enhancing profits and the creation of employment opportunities (Kleynhans & Drewes 2008b:143). In Africa, with its high poverty levels, this is most important. Investment flows are no longer just the increasing of capital goods but a strategic decision, which necessitates much information and planning (Allard, Chen & Kitsios 2015). This article evaluates the nature and dimensions of the different sub-sectors that receive investment in South Africa, as well as the pattern of investment from South Africa into Africa. Orientation: African countries offer many investment opportunities and also urgently need global investment finance. Along the value chains of the agro-industrial sector there are many global challenges for African countries to attract foreign direct investment. This article investigates the investment flows in agro-industries and products to and from South Africa. Research purpose: This study evaluates the nature and dimensions of the agro-industrial sector that receive investment inflows in South Africa, as well as investigating South African investment patterns into Africa. Motivation for the study: Of particular interest is the relationship between foreign direct investment (FDI) flows, their integration into global value chains and sustainable investment options. Research design, approach and method: Qualitative data and visual techniques using available data for the period 2003-2014 disambiguate the linkages in FDI patterns with regard to regions, industries and specific companies. Flows between regions and the specific companies are identified and studied. Main findings: The results indicate that the United States, the United Kingdom and the Netherlands are the largest investors in South Africa, with a strong focus on agricultural input production and subsequent agro-processing industries. South African investment into Africa follows a similar, albeit narrower and more focused, pattern. The study concludes that foreign multinational enterprises are actively involved in global value chain expansion and South African firms are following suit. Practical/managerial implications: The lack of FDI in actual agricultural crop production in Africa offers future investment opportunities. Contribution/value-add: This study creates a better understanding of how FDI in agriculture is linked to the development of regional value chains in the Southern African region. The methodology applies a novel approach to an important field of study, of which little knowledge exists, and may contribute to the creation of wealth in the countries of the region and the welfare of its population. The global value chain dimension of foreign direct investment flows in the agro-industrial sector of

Tydskrif vir Geesteswetenskappe, 2017

Die krisis in die Suid-Afrikaanse staalvervaardigingsbedryf word in hierdie artikel ondersoek. Na... more Die krisis in die Suid-Afrikaanse staalvervaardigingsbedryf word in hierdie artikel ondersoek. Na die wêreldwye ekonomiese krisis van 2008 vind die meeste lande dit steeds moeilik om hul ekonomieë te herstel. Sjina het dit egter wel moontlik gevind om volhoubare ekonomiese groei te bereik en gedurende 2010 ŉ groeikoers van byna twaalf persent behaal. Dit het Sjina in staat gestel om hul staalproduksie te verhoog en ŉ surplus van Sjinese staal op wêreldmarkte aan te bied. Sjina kon gevolglik hul staal teen baie lae pryse na Suid-Afrika en ander lande uitvoer. Sedertdien het die Sjinese ekonomie egter tot ŉ laagtepunt van sewe persent in 2015 gedaal en is Sjina geforseer om sy uitvoere na internasionale markte verder uit te brei en markte vir sy staalnywerheid te vind. Dié artikel ondersoek die rol van Sjinese mededinging, markomstandighede en wat gedoen is om die Suid-Afrikaanse staalbedryf te probeer red. Ekonometrieseregressie-analises het aangetoon dat Sjinese mededinging wel ŉ be...

South African Journal of Economic and management Sciences

Investments by MNCs are important as it supports economic growth in both host and parent countrie... more Investments by MNCs are important as it supports economic growth in both host and parent countries. In an effort to maximise profits, MNCs are involved in various branches, which may Background: Transfer pricing manipulation diminishes revenue generation by the host countries. The results of the investigations in the literature show divergence to the extent of the impact of transfer pricing on economic growth in both the low-and high-tax countries, especially as this type of investigation is still scanty in the literature. Aim: The study examines the effect of transfer pricing manipulation on economic growth in Nigeria. Setting: Multinational companies in Nigeria. Methods: The auto-regressive distributed lag (ARDL) approach was applied to data from Nigeria between 1986 and 2019. Results: The findings reveal an insignificant relationship between economic growth and explanatory variables such as transfer pricing manipulation, unemployment rate, government revenue and trade openness. The result also shows a significant negative relationship between the exchange rate and economic growth. Conclusion: The study recommends that the government should implement proper monitoring of multinational companies to check their day-today transaction activities. This may help the government to generate more revenue, and serves as an avenue to create more employment opportunities. Contribution: In this study an important aspect is indicated in that multinational companies often misuse revenue to gain undeserved profits, rendering unnecessary costs to market and rendering other companies less competitive, as well as exploiting buyers and consumers. This is an important loophole that law-and policymakers as well as governments should pay attention to and act against.

Journal of Applied Business Research (JABR)

Managing Global Transitions

This article employs the dynamic panel two-step system generalised method of moments (GMM) approa... more This article employs the dynamic panel two-step system generalised method of moments (GMM) approach to investigate the effects of information and communication technology (ICT) on trade and economic growth at a multisectoral level in 38 African countries from 1990 to 2019. The study reveals a significant and positive relationship between ICT and the export of agricultural raw materials and services. ICT shows a negative relationship with import in the agricultural sector, and a positive and significant relationship within the manufacturing sector. Additionally, there is no evidence of statistically significant relationships between ICT and service import. In relating ICT to growth, at the sectoral level, significant positive effects on growth were found with a varying magnitude in all sectors. The national ICT recommendation is that governments in African countries should increase investment in the ICT sector of the economy, which will have a remarkable effect on international trade...

Journal of Economic and Financial Sciences, 2016

This article investigates the competitiveness of the South African wheat industry and compares it... more This article investigates the competitiveness of the South African wheat industry and compares it to its major trade partners. Since 1997, the wheat-to-bread value chain has been characterised by concentration of ownership and regulation. This led to concerns that the local wheat market is losing international competitiveness. The competitive status of the wheat industry, and its sub-sectors, is determined through the estimation of the relative trade advantage (RTA). The results revealed declining competitiveness of local wheat producers. Compared to the major global wheat producers, such as Argentina, Australia, Brazil, Canada, Germany and the USA, South Africa’s unprocessed wheat industry is uncompetitive. At the same time, South Africa has a competitive advantage in semi-processed wheat, especially wheat flour. The institutional environment enables the importation of raw wheat at lower prices and exports processed wheat flour competitively to the rest of Africa.

Managing global transitions, 2021

Official sub-national GDP figures in South Africa are usually published with long delays or not a... more Official sub-national GDP figures in South Africa are usually published with long delays or not at all, i.e. relevant, reliable, and real-time economic data on a provincial and local (municipal) level are often non-existent, causing a significant data asymmetry at the sub-national level. The search for an ‘optimal’ sub-national proxy for regional economic growth focuses on the possible use of regional business confidence. This article, therefore, investigates the use of regional business confidence indices (RBCI) as an early indicator or proxy of the regional economic growth rate (RGDP). To this end, the study employed panel cointegration methodology and techniques to interrogate the possible association between regional business confidence and regional economic growth, focusing on three specific regions of KwaZulu-Natal, South Africa. The results suggest that the utilisation of regional business confidence indicators indeed has merit. Constraints experienced in the study indicate t...

An evaluation of the African Union as an international organisation The half centenary of the Org... more An evaluation of the African Union as an international organisation The half centenary of the Organisation of African Unity (OAU) and the first decade of the African Union (AU) were celebrated during 2013. The OAU was established on 25 May 1963 in Addis Ababa, with the aim to promote unity among African countries and to improve the fate of their peoples. On 9 July 2002, it was transformed into the African Union in Durban. The main objectives of the latter are the economic and political integration of the African continent. This study aims to evaluate the successes and failures of the African Union as an international organisation (IO). Africa is one of the poorest and least developed regions in the world. This debate is therefore of critical importance to the people of the Southern African region (World Bank 2013). This evaluation provides a broad overview and focus on the major challenges that the AU is facing. In this study, the AU is assessed using the theoretical criteria set by...

Journal of Economic and Financial Sciences, 2017

Despite Africa’s strong foreign direct investment (FDI) performance since 2000, the majority of F... more Despite Africa’s strong foreign direct investment (FDI) performance since 2000, the majority of FDI inflows have been directed to a few selected countries. As investors face many risks when investing in developing countries, it is argued that risk perception plays a vital role in the FDI inflows into Africa. This article focuses on the relationship between risk and FDI. A structural equation model is used to analyse this relationship with a dataset of ten risk categories and FDI data from 42 African countries. The study focuses on four sectors, namely metals, automotive, communications and real estate. Overall, results indicate that government effectiveness and legal and regulatory risks produce the biggest concern for investors. The conclusion is that each sector’s risk pattern regarding FDI differs. The most important empirical results indicated that African countries should focus more on government effectiveness, stability and transparency to attract the levels of FDI required to...