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|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 254 20 6752866
Web page: http://www.aaae-africa.orgEmail:
More information through EDIRC
Web page: http://www.aeasa.org.za/Email:
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Francisco Rodriguez & Dani Rodrik, 1999.
"Trade Policy and Economic Growth: a Skeptic's Guide to the Cross-National Evidence,"
9912, Economic Research Forum, revised Apr 1999.
- Francisco Rodriguez & Dani Rodrik, 2001. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 261-338 National Bureau of Economic Research, Inc.
- Rodríguez, Francisco & Rodrik, Dani, 1999. "Trade Policy and Economic Growth: A Sceptic's Guide to the Cross-National Evidence," CEPR Discussion Papers 2143, C.E.P.R. Discussion Papers.
- Athanasios Vamvakidis, 1999. "Regional Trade Agreements or Broad Liberalization: Which Path Leads to Faster Growth?," IMF Staff Papers, Palgrave Macmillan, vol. 46(1), pages 3.
- By Gunnar Jonsson & Arvind Subramanian, 2001.
"Dynamic Gains from Trade: Evidence from South Africa,"
IMF Staff Papers,
Palgrave Macmillan, vol. 48(1), pages 8.
- Arvind Subramanian & Gunnar Jonsson, 2000. "Dynamic Gains From Trade; Evidence From South Africa," IMF Working Papers 00/45, International Monetary Fund.
- 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).
- 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.
- Bakucs, Lajos Zoltan & Ferto, Imre, 2005. "Monetary Impacts and Overshooting of Agricultural Prices in a Transition Economy," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24711, European Association of Agricultural Economists.
- Ramirez, Miguel D., 1998. "Does public investment enhance labor productivity growth in Chile? A cointegration analysis," The North American Journal of Economics and Finance, Elsevier, vol. 9(1), pages 45-65.
- 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.
- 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.
- Dani Rodrik, 1998. "Trade Policy and Economic Performance in Sub-Saharan Africa," NBER Working Papers 6562, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:ags:aaae10:95963. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.