THE RELATIONSHIP BETWEEN GOVERNMENT DEBT AND STATE-OWNED ENTERPRISES: AN EMPIRICAL ANALYSIS OF ESKOM

Lerato NKOSİ

doi:https://doi.org/10.34109/ijefs.202012108

Article Details

THE RELATIONSHIP BETWEEN GOVERNMENT DEBT AND STATE-OWNED ENTERPRISES: AN EMPIRICAL ANALYSIS OF ESKOM

Authors:

Lerato NKOSİ

Publisher:

Sosyal Bilimler Araştırmaları Derneği

Main Topics:

Management

Journal:

International Journal of Economics and Finance Studies 2020 Vol.12 Issue 1, pp.119-134

Document Type:

Article

Publication Date:

6/2020

Document Language:

English

Document ID (Org No.):

2000810733

Frequency:

Bi-Annual

eISSN:

1309-8055

DOI:

https://doi.org/10.34109/ijefs.202012108

Abstract:

 

This study empirically investigates the relationship between government debt and Eskom debt using Eskom’s financial statements and government debt data from 1985 – 2017. The paper uses a Vector Autoregression (VAR) model. Variance decomposition analysis shows large forecast error variances amongst all variables. The study finds that Eskom’s increase in revenue is largely attributed to tariff increases and access to various funds rather than increases in sales. The study also shows that Eskom will continue to be illiquid and insolvent, thus fiscal consolidation or privatization are suggested as fiscal strategies.

Article Details

THE RELATIONSHIP BETWEEN GOVERNMENT DEBT AND STATE-OWNED ENTERPRISES: AN EMPIRICAL ANALYSIS OF ESKOM

Authors: Lerato NKOSİ

Publisher: Sosyal Bilimler Araştırmaları Derneği

Main Topics: Management

Journal: International Journal of Economics and Finance Studies 2020 Vol.12 Issue 1, pp.119-134

Document Type: Article

Publication Date: 6/2020

Document Language: English

Document ID (Org No.): 2000810733

Frequency: Bi-Annual

eISSN: 1309-8055

DOI: https://doi.org/10.34109/ijefs.202012108

Issues

Authors:

Lerato NKOSİ

Publisher:

Sosyal Bilimler Araştırmaları Derneği

Main Topics:

Management

Journal:

International Journal of Economics and Finance Studies 2020 Vol.12 Issue 1, pp.119-134

Document Type:

Article

Publication Date:

6/2020

Document Language:

English

Document ID (Org No.):

2000810733

Frequency:

Bi-Annual

eISSN:

1309-8055

DOI:

https://doi.org/10.34109/ijefs.202012108