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Evaluating South Africa’s export performance drivers: Are we exporting to our political or economic friends?

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  • Potelwa, Xolisiwe Y.
  • Nyhodo, Bonani
  • Ntombela, Sifiso M.

Abstract

South African trade has been showing a growth increase in recent years, from R221 billion in 2001 to over R906 billion in 2014, which is equivalent to an annual average rate of 13%. The agricultural sector’s exports have increased even more rapidly, recording an annual growth rate of 14% between 2001 and 2014. The European Union (EU) has been South Africa’s traditional export market since the signing of the Trade Development Co-operation Agreement (TDCA) between South Africa and the EU. In recent years, the South African export share has been moving towards the African and Asian markets. The growth towards these markets has been driven by income growth, population growth, the formal retail evolution, and the establishment of new political ties in the East. This paper concludes that South African exports are mainly driven by economic factors, although political relations also complement the export growth.

Suggested Citation

  • Potelwa, Xolisiwe Y. & Nyhodo, Bonani & Ntombela, Sifiso M., 2016. "Evaluating South Africa’s export performance drivers: Are we exporting to our political or economic friends?," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249318, African Association of Agricultural Economists (AAAE).
  • Handle: RePEc:ags:aaae16:249318
    DOI: 10.22004/ag.econ.249318
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    References listed on IDEAS

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    1. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    2. Augustin Fosu & Andrew Mold, 2008. "Gains from Trade: Implications for Labour Market Adjustment and Poverty Reduction in Africa," African Development Review, African Development Bank, vol. 20(1), pages 20-47.
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    International Relations/Trade; Political Economy;

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