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The Agricultural Industry And Economic Growth In South Africa – An Empirical Analysis

Author

Listed:
  • M.Y. TEWELDEMEDHIN

    (Department of Agricultural Economics, University of the Free State, South Africa)

  • H.D. VAN SCHALKWYK

    (Department of Agricultural Economics, University of the Free State, South Africa)

  • Rena RAVINDER

    (Department of Economics, Polytechnic of Namibia (Namibia’s University of Science and Technology))

Abstract

This study measures the source of short-term agricultural economic growth in South Africa, using the Exact Maximum Likelihood (EML) method by categorizing the variables into five main categories: cyclical reversion, structural policies and institutions, stabilization policies, cyclical volatility and external conditions. The statistically significant finding of structural policies and institutional category variables imply that the sector growth was achieved with improved education, financial depth, and trade openness. However, the negative relationship of financial depth (RDGDP) indicates the sector is suffering from a debt crisis. Therefore, farmers need to follow an effective debt management system. The cyclical reversion was found to be statistically significant and related negatively. This shows that there is an important connection between the business cycle and agricultural economic growth.

Suggested Citation

  • M.Y. TEWELDEMEDHIN & H.D. VAN SCHALKWYK & Rena RAVINDER, 2009. "The Agricultural Industry And Economic Growth In South Africa – An Empirical Analysis," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 4, pages 43-56, November.
    • Handle: RePEc:aic:revebs:y:2009:i:4:teweldemedhinm
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    agricultural sector; South Africa; Debt crisis; economic growth; cyclical reversion;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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