The Effects of Exports in SACU Countries: An Empirical Analysis Using Panel Data

The principal objective of the study was to assess the direct effect of exports on economic growth for five selected countries in Southern Africa. Previous studies that detail the effect of exports on economic growth for the five selected countries are virtually not in existence in both empirical and theoretical literature that the study reviewed, and hence research opportunities do emerge for further examination. The study applies panel data econometric techniques to analyse the effects of exports on economic growth for the five selected countries covering the period 1980 to 2016. The study finds that exports positively and significantly affect gross domestic product per capita in the five countries assessed. The results also indicate that heterogeneity effects are significant, while the time effects are not significant in explaining the relationship between exports and economic growth in selected countries. This implies that country differences such as institutional, political and economic policy systems, amongst others, not included in the models are significant in explaining gross domestic product per capita in the five countries. The study is a source of information to scholars. The study provides some explanations to the links between exports and economic growth.