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The trade effects of technical barriers on South Africa's orange exports

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  • Tinashe Kapuya

Abstract

The paper employs a gravity model to measure the trade effects of technical barriers in South Africa's major markets for oranges. The gravity model estimation is backed by a price-wedge framework that identifies technical barriers (equivalent to tariffs) that could be restricting South Africa's orange exports. The simulation of the gravity equation shows that removing technical barriers will have a 0.1% increase in South Africa's orange exports to the EU, suggesting that the growth potential of the EU market is somewhat limited by some additional factors such as low demand growth, and South Africa's diversion to higher-return markets. Nonetheless, reducing technical barriers still has a fairly significant impact on South Africa's other major markets, particularly China, the United States, Canada and Russia. This is an important result, not only because the analysis generally affirms the tightening of technical barriers in key markets, but also because the analysis unpacks the cross sectional idiosyncrasies of technical barriers across major export markets.

Suggested Citation

  • Tinashe Kapuya, 2015. "The trade effects of technical barriers on South Africa's orange exports," Agrekon, Taylor & Francis Journals, vol. 54(1), pages 1-27, March.
    • Handle: RePEc:taf:ragrxx:v:54:y:2015:i:1:p:1-27
    DOI: 10.1080/03031853.2015.1019523
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    References listed on IDEAS

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    1. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-481, August.
    2. Gebrehiwet, Yemane & Ngqangweni, Simphiwe & Kirsten, Johann F., 2007. "Quantifying the Trade Effect of Sanitary and Phytosanitary Regulations of OECD Countries on South African Food Exports," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), pages 1-17, March.
    3. Simon J. Evenett & William K. Hutchinson, 2002. "The Gravity Equation in International Economics: Theory and Evidence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 489-490, November.
    4. Egger, Peter, 2000. "A note on the proper econometric specification of the gravity equation," Economics Letters, Elsevier, vol. 66(1), pages 25-31, January.
    5. Tinashe Kapuya & Evans K. Chinembiri & Mmatlou W. Kalaba, 2014. "Identifying strategic markets for South Africa's citrus exports," Agrekon, Taylor & Francis Journals, vol. 53(1), pages 124-158, March.
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    Cited by:

    1. Mshengu, Scelo & Kalaba, Mmatlou, 2021. "Potential Effects of the United Kingdom's Departure from the European Union on South African Citrus Exports: A Case of Non-Tariff Measures," 2021 Conference, August 17-31, 2021, Virtual 315245, International Association of Agricultural Economists.

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