Regional Business Confidence as Early Indicator of Regional Economic Growth
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...
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| Format: | Article |
| Language: | English |
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University of Primorska
2021-03-01
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| Series: | Managing Global Transitions |
| Subjects: | |
| Online Access: | http://212.235.226.96:80/index.php/fm/article/view/4 |
| _version_ | 1818546711403954176 |
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| author | Ewert Kleynhans Clive Coetzee |
| author_facet | Ewert Kleynhans Clive Coetzee |
| author_sort | Ewert Kleynhans |
| collection | DOAJ |
| description |
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 the direction that further studies may follow, especially concerning the scope of the period and cross-sections. The research, therefore, addresses a fundamental gap in the data asymmetry in South Africa, while also setting a benchmark for other researchers to follow.
https://doi.org/10.26493/1854-6935.19.27-48
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| first_indexed | 2024-12-12T07:56:54Z |
| format | Article |
| id | doaj.art-7b676949c3ad47249cbf75fccda7fdbb |
| institution | Directory Open Access Journal |
| issn | 1854-6935 |
| language | English |
| last_indexed | 2024-12-12T07:56:54Z |
| publishDate | 2021-03-01 |
| publisher | University of Primorska |
| record_format | Article |
| series | Managing Global Transitions |
| spelling | doaj.art-7b676949c3ad47249cbf75fccda7fdbb2022-12-22T00:32:17ZengUniversity of PrimorskaManaging Global Transitions1854-69352021-03-01191Regional Business Confidence as Early Indicator of Regional Economic GrowthEwert Kleynhans0Clive Coetzee1North-West University, South AfricaNorth-West University, South Africa 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 the direction that further studies may follow, especially concerning the scope of the period and cross-sections. The research, therefore, addresses a fundamental gap in the data asymmetry in South Africa, while also setting a benchmark for other researchers to follow. https://doi.org/10.26493/1854-6935.19.27-48 http://212.235.226.96:80/index.php/fm/article/view/4business confidencegross regional producteconomic growthpanel data econometricsfixed effectsrandom effects |
| spellingShingle | Ewert Kleynhans Clive Coetzee Regional Business Confidence as Early Indicator of Regional Economic Growth Managing Global Transitions business confidence gross regional product economic growth panel data econometrics fixed effects random effects |
| title | Regional Business Confidence as Early Indicator of Regional Economic Growth |
| title_full | Regional Business Confidence as Early Indicator of Regional Economic Growth |
| title_fullStr | Regional Business Confidence as Early Indicator of Regional Economic Growth |
| title_full_unstemmed | Regional Business Confidence as Early Indicator of Regional Economic Growth |
| title_short | Regional Business Confidence as Early Indicator of Regional Economic Growth |
| title_sort | regional business confidence as early indicator of regional economic growth |
| topic | business confidence gross regional product economic growth panel data econometrics fixed effects random effects |
| url | http://212.235.226.96:80/index.php/fm/article/view/4 |
| work_keys_str_mv | AT ewertkleynhans regionalbusinessconfidenceasearlyindicatorofregionaleconomicgrowth AT clivecoetzee regionalbusinessconfidenceasearlyindicatorofregionaleconomicgrowth |