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Macroeconomic policy and trade integration in Southern Africa

Author

Listed:
  • Charles Harvey

    (University of Houston)

Abstract

The aim of this paper is to determine if macroeconomic policy convergence amongst member countries of the Southern African Development Community (SADC) is required for establishing and sustaining a free trade area (FTA). The paper also investigates whether a restraining mechanism is required in order to compel member countries to have compatible macroeconomic policies. The paper finds that macroeconomic policy convergence is not necessary for establishing an FTA, but is necessary for sustaining an FTA over time. The paper also finds that a credible collective agency of restraint against macroeconomic divergence must be created by SADC governments to ensure that SADC, as a free trade area is sustained.

Suggested Citation

  • Charles Harvey, 2000. "Macroeconomic policy and trade integration in Southern Africa," Working Papers 00039, University of Cape Town, Development Policy Research Unit.
    • Handle: RePEc:ctw:wpaper:00039
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    Download full text from publisher

    File URL: http://hdl.handle.net/11427/7231
    File Function: First version, 2000
    Download Restriction: no
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    More about this item

    Keywords

    South Africa: free trade area; macroeconomic policy;

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics

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