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

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

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 a...

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Bibliographic Details
Main Author: Lerato Nkosi
Format: Article
Language:English
Published: Social Sciences Research Society 2020-06-01
Series:International Journal of Economics and Finance Studies
Subjects:
state owned enterprises
eskom
government debt
var
Online Access:https://dergipark.org.tr/tr/pub/ijefs/issue/51660/670625?publisher=sobiad
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spelling doaj-8f0ce2b17a134bb2bc2b7d97cd1c47712020-11-25T02:53:07ZengSocial Sciences Research SocietyInternational Journal of Economics and Finance Studies1309-80552020-06-0112111913410.34109/ijefs.20201210898THE RELATIONSHIP BETWEEN GOVERNMENT DEBT AND STATE-OWNED ENTERPRISES: AN EMPIRICAL ANALYSIS OF ESKOMLerato NkosiThis 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.https://dergipark.org.tr/tr/pub/ijefs/issue/51660/670625?publisher=sobiadstate owned enterpriseseskomgovernment debtvar
collection DOAJ
language English
format Article
sources DOAJ
author Lerato Nkosi
spellingShingle Lerato Nkosi
THE RELATIONSHIP BETWEEN GOVERNMENT DEBT AND STATE-OWNED ENTERPRISES: AN EMPIRICAL ANALYSIS OF ESKOM
International Journal of Economics and Finance Studies
state owned enterprises
eskom
government debt
var
author_facet Lerato Nkosi
author_sort Lerato Nkosi
title THE RELATIONSHIP BETWEEN GOVERNMENT DEBT AND STATE-OWNED ENTERPRISES: AN EMPIRICAL ANALYSIS OF ESKOM
title_short THE RELATIONSHIP BETWEEN GOVERNMENT DEBT AND STATE-OWNED ENTERPRISES: AN EMPIRICAL ANALYSIS OF ESKOM
title_full THE RELATIONSHIP BETWEEN GOVERNMENT DEBT AND STATE-OWNED ENTERPRISES: AN EMPIRICAL ANALYSIS OF ESKOM
title_fullStr THE RELATIONSHIP BETWEEN GOVERNMENT DEBT AND STATE-OWNED ENTERPRISES: AN EMPIRICAL ANALYSIS OF ESKOM
title_full_unstemmed THE RELATIONSHIP BETWEEN GOVERNMENT DEBT AND STATE-OWNED ENTERPRISES: AN EMPIRICAL ANALYSIS OF ESKOM
title_sort relationship between government debt and state-owned enterprises: an empirical analysis of eskom
publisher Social Sciences Research Society
series International Journal of Economics and Finance Studies
issn 1309-8055
publishDate 2020-06-01
description 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.
topic state owned enterprises
eskom
government debt
var
url https://dergipark.org.tr/tr/pub/ijefs/issue/51660/670625?publisher=sobiad
work_keys_str_mv AT leratonkosi therelationshipbetweengovernmentdebtandstateownedenterprisesanempiricalanalysisofeskom
AT leratonkosi relationshipbetweengovernmentdebtandstateownedenterprisesanempiricalanalysisofeskom
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