The impact of trade liberalisation on South African agricultural productivity
This study attempts to examine the empirical relationship between trade and total factor productivity (TFP) in the agricultural sector using both cross -sectiona, (across nine agricultural commodities), and time -series analysis. The Error Correction Model of ordinary least square (OLS) results from the cross -sectional analysis confirm that export shares and capital formation were found to be positive and significant; whereas, import shares and real exchange rate were found to be related negatively. However, the net effect of export and import shares had a positive effect. This implies that trade liberalisation causes productivity gains. Moreover, the time -series analysis goes in the same direction as the cross -sectional results, showing that there is a robust relationship among TFP, degree of openness, and capital formation. Whereas, debt was found to be inversely related, this implies that agricultural industries / farmers lack debt management skills.
|Date of creation:||Sep 2010|
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Web page: http://www.aeasa.org.za/
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- By Gunnar Jonsson & Arvind Subramanian, 2001. "Dynamic Gains from Trade: Evidence from South Africa," IMF Staff Papers, Palgrave Macmillan, vol. 48(1), pages 1-8.
- De Loo Ivo & Soete Luc, 1999. "The Impact of Technology on Economic Growth: Some New Ideas and Empirical Considerations," Research Memorandum 017, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
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in: NBER Macroeconomics Annual 2000, Volume 15, pages 261-338
National Bureau of Economic Research, Inc.
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- Athanasios Vamvakidis, 1999. "Regional Trade Agreements or Broad Liberalization: Which Path Leads to Faster Growth?," IMF Staff Papers, Palgrave Macmillan, vol. 46(1), pages 1-3.
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- Dani Rodrik, 1998. "Trade Policy and Economic Performance in Sub-Saharan Africa," NBER Working Papers 6562, National Bureau of Economic Research, Inc.
- Srinivasan. T.N., 1997. "As the Century Turns: Analytics, Empirics and Politics of Development," Papers 783, Yale - Economic Growth Center.
- T. N. Srinivasan, 1997. "As the Century Turns: Analytics, Empirics and Politics of Development," Working Papers 783, Economic Growth Center, Yale University.
- Nigel James Miller & Christopher Tsoukis, 2001. "On the optimality of public capital for long-run economic growth: evidence from panel data," Applied Economics, Taylor & Francis Journals, vol. 33(9), pages 1117-1129.
- David T. Coe & Reza Moghadam, 1993. "Capital and Trade as Engines of Growth in France: An Application of Johansen's Cointegration Methodology," IMF Staff Papers, Palgrave Macmillan, vol. 40(3), pages 542-566, September.
- David T. Coe & Reza Moghadam, 1993. "Capital and Trade As Engines of Growth in France; An Application of Johansen's Cointegration Methodology," IMF Working Papers 93/11, International Monetary Fund.
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