IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v12y2023i8p274-288.html
   My bibliography  Save this article

Exports and economic growth: relationships and threshold analysis for the Southern Africa customs union

Author

Listed:
  • Oscar Chiwira

    (BA ISAGO University, Gaborone, Botswana)

  • Lovemore Muchingami

    (BA ISAGO University, Gaborone, Botswana)

  • Lawrence Jambani

    (BA ISAGO University, Gaborone, Botswana)

Abstract

This study examines the short-run and long-run relationships between exports and economic growth in the Sothern Africa Customs Union (SACU), as well as the corresponding threshold level. The study used panel data covering the period 1980 to 2021 and employed the Autoregressive Distributed Lag (ARDL) Bounds to test for co-integration relationships, and the Generalized Least Squares (GLS) to determine the respective threshold level. Exports positively support economic growth both in the short-run and in the long-run in SACU. There is long-run bidirectional causality between exports and economic growth. The minimum threshold for exports is 59%. That is, exports only start contributing significantly to economic growth when they are above 59% of the Gross Domestic Product (GDP). SACU should put in place economic policies and regulations that are skewed towards the improvement of the competitiveness of its local products on the global market and also strategically consider export-oriented industrialization strategies. Efforts should also be channeled towards the implementation of bilateral and multilateral trade agreements and harnessing the synergic benefits through the adoption of deliberate value chain mechanisms and initiatives. Key Words:Economic growth; Exports; co-integration; ARDL; SACU

Suggested Citation

  • Oscar Chiwira & Lovemore Muchingami & Lawrence Jambani, 2023. "Exports and economic growth: relationships and threshold analysis for the Southern Africa customs union," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 12(8), pages 274-288, November.
    • Handle: RePEc:rbs:ijbrss:v:12:y:2023:i:8:p:274-288
    DOI: 10.20525/ijrbs.v12i8.2912
    as

    Download full text from publisher

    File URL: https://ssbfnet.com/ojs/index.php/ijrbs/article/view/2912/2067
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v12i8.2912
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v12i8.2912?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:12:y:2023:i:8:p:274-288. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.