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Convergence Dynamics between South Africa and Her Main Trading Partners

Author

Listed:
  • Ntombiyesibini Matonana

    (Nelson Mandela University, South Africa)

  • Andrew Phiri

    (Nelson Mandela University, South Africa)

Abstract

The convergence of per capita GDP growth rates of less developed countries towards those of more industrialized economies is a central debate amongst growth economists. This study contributes to the literature by examining whether South Africa, as arguably Africa's most developed economy, converges towards the growth of her main trading partners (i.e. Belgium, Botswana, China, Germany, India, Japan, Mozambique, Namibia, Netherlands, South Korea, United Arab Emirates (UAE), United Kingdom (UK), United States (US), Zambia and Zimbabwe). To this end, we examine the integration properties of per capita GDP differences between South Africa and each of her trading partners and we particularly employ unit root testing procedures which are robust to ESTAR-type nonlinearities and unobserved smooth structural breaks. Our empirical evidence points to convergence between South Africa and Belgium, Botswana, China, Germany, India, Japan, Mozambique, Namibia, Netherlands, South Korea, the UAE, the UK and the US but not with Zambia and Zimbabwe.

Suggested Citation

  • Ntombiyesibini Matonana & Andrew Phiri, 2020. "Convergence Dynamics between South Africa and Her Main Trading Partners," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 18(1 (Spring), pages 25-44.
    • Handle: RePEc:mgt:youmgt:v:18:y:2020:i:1:p:25-44
    DOI: 10.26493/1854-6935.18.25-44
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    convergence; Flexible Fourier Form (FFF) unit root tests; unobserved structural breaks; asymmetries; South Africa;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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