Cumulative Benefits from Trade Liberalization for the South African Economy
South Africa's trade barriers are still relatively high compared to other emerging market economies, and its industrial policy still preferentially treats certain industries. Based on a static GTAP model, we estimate the economic impact of further trade liberalization on the South African economy. We particularly take into account core NTB's on tradable commodities and the costs imposed by cross-border trade facilitation, which is particularly inefficient in South Africa. Our results indicate that a full liberalization package, including a reduction of core NTB's as well as a substantial increase in the efficiency of cross-border trade facilitation to the levels of Singapore, would cause the South African GDP to rise by up to 4.51 per cent. This implies an increase in aggregate welfare of up to 21 billion US Dollars. This sum is the equivalent of what should be given to the South African economy in order to leave citizens as well of as after the implementation of a full liberalization package, given South African policy-makers abstain from further trade liberalization policies.
|Date of creation:||19 Sep 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Carl-Zeiss-Strasse 3, 07743 JENA|
Phone: +049 3641/ 9 43000
Fax: +049 3641/ 9 43000
Web page: http://www.jenecon.de
More information through EDIRC
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.:
- Fugazza, Marco & Maur, Jean-Christophe, 2008. "Non-tariff barriers in CGE models: How useful for policy?," Journal of Policy Modeling, Elsevier, vol. 30(3), pages 475-490.
- Jean Fouré & Agnès Bénassy-Quéré & Lionel Fontagné, 2012.
"The Great Shift : Macroeconomic projections For the World Economy at the 2050 Horizon,"
PSE - G-MOND WORKING PAPERS
- Jean Fouré & Agnès Bénassy-Quéré & Lionel Fontagné, 2012. "The Great Shift: Macroeconomic projections for the world economy at the 2050 horizon," Working Papers 2012-03, CEPII research center.
- Shandre Mugan Thangavelu & Gulasekaran Rajaguru, 2004. "Is there an export or import-led productivity growth in rapidly developing Asian countries? a multivariate VAR analysis," Applied Economics, Taylor & Francis Journals, vol. 36(10), pages 1083-1093.
- Brander, James A., 1995.
"Strategic trade policy,"
Handbook of International Economics,
in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 27, pages 1395-1455
- Philip D. Adams & J. Mark Horridge, 2004. "The Effects of a Free Trade Agreement Between the USA and the South African Customs Union (SACU)," Centre of Policy Studies/IMPACT Centre Working Papers g-147, Victoria University, Centre of Policy Studies/IMPACT Centre.
- Simeon Djankov & Caroline Freund & Cong S. Pham, 2010.
"Trading on Time,"
The Review of Economics and Statistics,
MIT Press, vol. 92(1), pages 166-173, February.
- Beghin, John C., 2006.
Staff General Research Papers Archive
12703, Iowa State University, Department of Economics.
- John C. Beghin, 2006. "Nontariff Barriers," Center for Agricultural and Rural Development (CARD) Publications 06-wp438, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- John C. Beghin, 2006. "Nontariff Barriers," Food and Agricultural Policy Research Institute (FAPRI) Publications 06-wp438, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009.
"Estimating Trade Restrictiveness Indices,"
Royal Economic Society, vol. 119(534), pages 172-199, 01.
- Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating trade restrictiveness indices," Policy Research Working Paper Series 3840, The World Bank.
- Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating Trade Restrictiveness Indices," CEPR Discussion Papers 5576, C.E.P.R. Discussion Papers.
- Fredebeul-Krein, Markus & Freytag, Andreas, 1997. "Telecommunications and WTO discipline. An assessment of the WTO agreement on telecommunication services," Telecommunications Policy, Elsevier, vol. 21(6), pages 477-491, July.
- Andriamananjara, Soamiely & Ferrantino, Michael J. & Tsigas, Marinos E., 2003. "Alternative Approaches in Estimating the Economic Effects of Non-Tariff Measures: Results from Newly Quantified Measures," Working Papers 15872, United States International Trade Commission, Office of Economics.
When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2013-036. 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: (Markus Pasche)
If references are entirely missing, you can add them using this form.