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Measuring the agribusiness decision environment: Constructing an agribusiness confidence index for South Africa

Author

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  • Esterhuizen, Dirk
  • van Rooyen, C.J.

Abstract

South African agribusinesses are experiencing far reaching changes. Economists have developed indicators, generally known as indexes, to measure relative change in the industry. In this article the methodology to construct a business confidence index for agribusiness in South Africa is discussed. The objective of such an index is to determine the business confidence of agribusinesses as accurately as possible. Some 80 agribusinesses in South Africa are at present participating in the AGRIBUSINESS CONFIDENCE INDEX. For the first quarter of 2002 the index points to a 20% improvement in the business confidence of South African agribusinesses compared to the same period the year before, while in the second quarter the index was up 14% on the previous year. This increase in confidence goes hand in hand with some other positive trends in the agricultural sector of South Africa regarding competitiveness and investment.

Suggested Citation

  • Esterhuizen, Dirk & van Rooyen, C.J., 2003. "Measuring the agribusiness decision environment: Constructing an agribusiness confidence index for South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 42(4), pages 1-10, December.
  • Handle: RePEc:ags:agreko:9498
    DOI: 10.22004/ag.econ.9498
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    References listed on IDEAS

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    1. van Rooyen, C.J. & Esterhuizen, Dirk, 2001. ""Winners", "Losers" And "Turnarounds" In The South African Agro-Food And Fibre Industry," Working Papers 18030, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
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    Keywords

    Agribusiness;

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