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Econometric estimation of the relationship between the unemployment rate and economic growth in Limpopo Province, South Africa

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Thaba T. K., Belete A., Hlongwane J. J., Ledwaba L. J.
Journal of Agribusiness and Rural Development
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2020
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vol. 58
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issue 4
343-349
EN
The study aims to estimate empirically the relationship between economic growth and unemployment rate in Limpopo Province of South Africa. The analysis used quarterly data covering the period 2008-2018 which was obtained from Statistics South Africa. The study employed, difference model, dynamic model, and granger causality test for data analysis, in order to consider both, short term and long term possible relationship Based on the difference model estimation of the coefficient was done and the coefficient was found to be -0.22. From Granger causality test, causal relationship between these two variables doesn’t exist meaning that change in the growth rate of real GDP doesn’t cause change in the rate of unemployment and vice-versa. Inapplicable of the law indicates that a cyclical recovery will not be accompanied by reduction of unemployment. Furthermore, this might reflect the sizable structural and/or frictional component of unemployment in Limpopo Province. Lastly, the country's economic policies have not been suitable for fostering development that can reduce unemployment and this could be due to lack of appropriate composition of public sector and private sector.
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Gender analysis of access to formal credit by small-scale farmers in Greater Letaba Municipality, South Africa

100%
Mahasha P. P., Hlongwane J. J., Gidi L. S.
Journal of Agribusiness and Rural Development
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2022
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vol. 63
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issue 1
5-13
EN
This study investigated the gender analysis of access to formal credit by both male and female small-scale farmers in the Greater Letaba Municipality. The study precisely identified and described the socio-economic characteristics of female and male small-scale farmers, analysed and compared factors influencing access to formal credit by both female and male small-scale farmers and determined the perceptions of female small-scale farmers towards the credit system. In collecting the primary data, structured questionnaires were administered on 140 respondents (70 females and 70 males) using stratified random technique. The study employed descriptive statistics, principal component analysis and probit model to analyse collected data. The probit regression model discovered that farm size, land ownership, gender, age, collateral and extension services had a significant positive influence on small-scale farmers` formal credit access. Based on the study findings, a set of recommendations for achieving equitable formal credit access by female and male small-scale farmers was put forward.
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Economic efficiency analysis of small-scale tomato farmers in Greater Letaba Municipality

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Nakana T. M., Hlongwane J. J., Belete A.
Journal of Agribusiness and Rural Development
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2021
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vol. 62
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issue 4
429-434
EN
This paper analysed the economic efficiency of small-scale tomato farmers in the Greater Letaba municipality of South Africa’s Limpopo Province. Primary data were collected from 68 tomato farmers based on structured questionnaires and using convenience and purposive sampling procedures. The Cobb-Douglas production function was used to analyse the level of economic efficiency. The study utilised the output approach, where the output achieved by the farmers is compared to the maximum output attainable using the given inputs. The empirical results reveal that mean technical, allocative, and economic efficiency levels are at 0.95, 0.41 and 0.39, respectively. The study also found that land (farm size), seedlings, labour, pesticides and water have a positively significant relationship with the production of tomatoes in the study area. Therefore, it is recommended that the Department of Agriculture, Land Reform and Rural Development provide farmers with enough extension services by employing more extension personnel. Government programmes such as the Comprehensive Agricultural Support Programme should be intensified – through the pillar of training and capacity building – to reach the small-scale farmers in the municipality, whereby farmers should be provided with training on the recommended minimum and maximum application of inputs like pesticides, fertilisers, seedlings and water in tomato production.
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