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An investigation of the contribution of processed and unprocessed agricultural exports to economic growth in South Africa

Author

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  • Courage Mlambo
  • Peter Mukarumbwa
  • Ebenezer Megbowon

Abstract

The paper attempts to empirically test the contribution of unprocessed and processed agriculture of exports to economic growth in South Africa. The study used time series data which spanned from 1986 to 2012. A Johansen cointegration approach was used to test for cointegration after the unit root tests had shown that all variables were non-stationary at levels. Cointegration results showed that there was one cointegrating equation. Subsequently, a VECM was used as the estimation technique. The study found that processed agricultural exports have a positive relationship with economic growth whereas unprocessed agricultural exports have a negative relationship with economic growth. This shows that manufactured agricultural exports contribute significantly to economic growth. The study recommends that the South African government should promote and stimulate investment in the processed agricultural commodities sector. There should be more production and expansion in the manufacture agricultural commodities sector. Processed manufactured goods usually are sold at a much higher price and this may generate more income for South African firms.

Suggested Citation

  • Courage Mlambo & Peter Mukarumbwa & Ebenezer Megbowon, 2019. "An investigation of the contribution of processed and unprocessed agricultural exports to economic growth in South Africa," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1694234-169, January.
    • Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1694234
    DOI: 10.1080/23322039.2019.1694234
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    Citations

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    Cited by:

    1. David Adeabah & Simplice A. Asongu, 2021. "Agricultural Export, Growth and the Poor in Africa: A Meta Analysis," Working Papers 21/082, European Xtramile Centre of African Studies (EXCAS).
    2. Amir Iqbal & Xuan Tang & Samma Faiz Rasool, 2023. "Investigating the nexus between CO2 emissions, renewable energy consumption, FDI, exports and economic growth: evidence from BRICS countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(3), pages 2234-2263, March.
    3. Faith Samkange & Haywantee Ramkissoon & Juliet Chipumuro & Henry Wanyama & Gaurav Chawla, 2021. "Innovative and Sustainable Food Production and Food Consumption Entrepreneurship: A Conceptual Recipe for Delivering Development Success in South Africa," Sustainability, MDPI, vol. 13(19), pages 1-20, October.
    4. Yonas T. Bahta & Salomo Mbai, 2023. "Competitiveness of Namibia’s Agri-Food Commodities: Implications for Food Security," Resources, MDPI, vol. 12(3), pages 1-21, March.

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