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Mapping the effects of international trade on economic growth of South Africa: Econometric review

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  • Ndivhuho Eunice RATOMBO
  • Itumeleng Pleasure MONGALE

Abstract

Purpose: The purpose of this study is to investigate the effects of international trade on the economic growth of South Africa.Method: The study employed the autoregressive distributed lag (ARDL) approach for 50 years, from 1973 to 2022 and annual time series data from the World Bank database.Results: The study results revealed that South Africa economic growth is subsequent to the purchasing power parity theory and Heckscher-Ohlin theory, by highlighting that international trade is used to drive a higher inflation and to increase the level of exchange rate. There is evidence that South Africa has adopted measures that causes loss of value on the currency and economic growth in general.Originality: The novelty of this study lies in the fact that the South African government must be considerate and sensible when creating international trading strategies by aligning the relevant real interest rate that will assist to monitor international trade channels and policies to enhance and sustain future economic growth. This study contributed to the understanding of the effects of international trade on economic growth debate particularly, by prompting the level of trade to drive South African economic growth to reach the desired level. Keywords: economic growth, international trade, developing countries, ARDL approach, South Africa

Suggested Citation

  • Ndivhuho Eunice RATOMBO & Itumeleng Pleasure MONGALE, 2025. "Mapping the effects of international trade on economic growth of South Africa: Econometric review," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 0, September.
    • Handle: RePEc:jaf:journl:v::y:2025:i::n:755
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    References listed on IDEAS

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    1. Manwa, Farai & Wijeweera, Albert & Kortt, Michael A., 2019. "Trade and growth in SACU countries: A panel data analysis," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 107-118.
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    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • N8 - Economic History - - Micro-Business History
    • G3 - Financial Economics - - Corporate Finance and Governance

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