Risk

Risk Preferences and the Poverty Trap: A Look at Technology Uptake amongst Smallholder Farmers in the Matzikama Municipality

A number of studies suggest the risk preference of low income individuals can result in behaviour that create conditions of sub optimal investment and thus persistent poverty. In this paper, we carry out a study with small-scale farmers in the Matzikama Municipality of the Western Cape, South Africa. We investigate how risk preference affect technology investment amongst small-scale farmers in developing countries.

Simulation Analysis of Alternative Strategies for Public Debt Issuance in Zimbabwe: Is there a Trade-off?

This paper discusses the simulation analysis of alternative public debt strategies for public debt issuance in Zimbabwe. The analysis is undertaken with a view to find a strategy that minimises the cost and risk of public debt under alternative scenarios of interest and exchange rate developments. The analysis is based on the premise that increases in debt service charges, due to risky allocation of public debt can substantially change public debt dynamics.

Profiling Sectoral Risks of Foreign Direct Investment in Africa

Despite Africa’s exceptional FDI performance during the past decade, the majority of FDI inflows have been directed to a few selected countries. As investors face many risks when investing in developing countries, it is argued that risk perception plays a vital role in the FDI inflows into Africa. This article focuses on the relationship between risk and FDI. A structural equation model is used to analyse this relationship with a dataset of ten risk categories and FDI data from 42 African countries.

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