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Regionalism, Trade And Growth: The Case Of The Eu-South Africa Free Trade Arrangement

  • Soamiely Andriamananjara

    (U.S. International Trade Commission)

  • Russell Hillberry

    (U.S. International Trade Commission)

In a sequential Computable General Equilibrium analysis, we investigate the likely effects of the EU-South Africa Free Trade agreement (FTA), with a special emphasis on South Africa’s growth prospects. We find that the FTA increases South African output and welfare. We note, however, that the gains are very modest when viewed in the context of the time period over which full adjustment to the treaty provisions is expected to occur. Only 2 percent of the economic growth expected over the next 18 years in South Africa can be linked to additional trade associated with the FTA. The long phase-in period and the partial benefits of regionalism limit the importance of trade as an engine of growth.

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File URL: http://econwpa.repec.org/eps/it/papers/0108/0108001.pdf
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Paper provided by EconWPA in its series International Trade with number 0108001.

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Length: 18 pages
Date of creation: 01 Aug 2001
Date of revision:
Handle: RePEc:wpa:wuwpit:0108001
Note: Type of Document - PDF; prepared on PC; to print on HP/PostScript/Franciscan monk; pages: 18
Contact details of provider: Web page: http://econwpa.repec.org

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  1. Arvind Subramanian & Gunnar Jonsson, 2000. "Dynamic Gains From Trade; Evidence From South Africa," IMF Working Papers 00/45, International Monetary Fund.
  2. Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: A Skeptic's Guide to Cross-National Evidence," NBER Working Papers 7081, National Bureau of Economic Research, Inc.
  3. repec:umd:umdeco:rodriguez9901 is not listed on IDEAS
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