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The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa
This study examines the interactions between derivatives trading, portfolio flows and economic growth in South Africa over the period 2000: Q1 to 2018: Q4. As derivatives are widely accepted as effective risk management solutions in developed nations, and can facilitate capital flows to emerging mar...
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| Format: | Thesis |
| Language: | English |
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Graduate School of Business (GSB)
2021
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| _version_ | 1867613276309815296 |
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| access_status_str | Open Access |
| author | Ndzululeka, Khanya |
| author2 | Gossel, Sean |
| author_browse | Gossel, Sean Ndzululeka, Khanya |
| author_facet | Gossel, Sean Ndzululeka, Khanya |
| author_sort | Ndzululeka, Khanya |
| collection | Thesis |
| description | This study examines the interactions between derivatives trading, portfolio flows and economic growth in South Africa over the period 2000: Q1 to 2018: Q4. As derivatives are widely accepted as effective risk management solutions in developed nations, and can facilitate capital flows to emerging markets, there is a need to investigate the empirical relationships between derivatives, portfolio inflows and economic growth. A vector error correction model was used in addition to conducting Granger causality, impulse response functions and variance decomposition tests to analyse the relationship between the factors of interest. The efficiency of the model was established using standard diagnostics, which confirmed the overall significance of the model. The VECM results find a positive short- and long-run relationship between portfolio flows, derivatives trading and economic growth in South Africa. The Granger causality tests, impulse response analysis and variance decompositions find a short-run relationship only between portfolio flows and derivatives trading. The implications are thus that derivatives trading can lead to an increase in portfolio flows. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/32949 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:33:33.643Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | Graduate School of Business (GSB) |
| publisherStr | Graduate School of Business (GSB) |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/32949 The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa Ndzululeka, Khanya Gossel, Sean Development Finance This study examines the interactions between derivatives trading, portfolio flows and economic growth in South Africa over the period 2000: Q1 to 2018: Q4. As derivatives are widely accepted as effective risk management solutions in developed nations, and can facilitate capital flows to emerging markets, there is a need to investigate the empirical relationships between derivatives, portfolio inflows and economic growth. A vector error correction model was used in addition to conducting Granger causality, impulse response functions and variance decomposition tests to analyse the relationship between the factors of interest. The efficiency of the model was established using standard diagnostics, which confirmed the overall significance of the model. The VECM results find a positive short- and long-run relationship between portfolio flows, derivatives trading and economic growth in South Africa. The Granger causality tests, impulse response analysis and variance decompositions find a short-run relationship only between portfolio flows and derivatives trading. The implications are thus that derivatives trading can lead to an increase in portfolio flows. 2021-02-24T05:42:47Z 2021-02-24T05:42:47Z 2020 2021-02-23T13:49:04Z Master Thesis Masters MCom http://hdl.handle.net/11427/32949 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce |
| spellingShingle | Development Finance Ndzululeka, Khanya The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa |
| thesis_degree_str | Master's |
| title | The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa |
| title_full | The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa |
| title_fullStr | The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa |
| title_full_unstemmed | The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa |
| title_short | The relationship between derivatives, portfolio flows and economic growth: Evidence from South Africa |
| title_sort | relationship between derivatives portfolio flows and economic growth evidence from south africa |
| topic | Development Finance |
| url | http://hdl.handle.net/11427/32949 |
| work_keys_str_mv | AT ndzululekakhanya therelationshipbetweenderivativesportfolioflowsandeconomicgrowthevidencefromsouthafrica AT ndzululekakhanya relationshipbetweenderivativesportfolioflowsandeconomicgrowthevidencefromsouthafrica |