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Exports and economic growth: The case of South Africa

โœ Scribed by Logan Rangasamy

Publisher
John Wiley and Sons
Year
2009
Tongue
English
Weight
121 KB
Volume
21
Category
Article
ISSN
0954-1748

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โœฆ Synopsis

Abstract

Economic policy has always accorded an important role to export production in the overall growth process in South Africa. Recent policy proposals once again reaffirm this commitment. This paper attempts to ascertain whether the emphasis on export production is justified. Using modern econometric techniques within a multivariate framework, the results show that there is uniโ€directional Grangerโ€causality running from exports to economic growth in South Africa. In addition, the gross domestic product (GDP) accounting identity underestimates the contribution of exports to economic growth. Thus, deliberate policy measures that stimulate export production will greatly enhance the growth prospects for the South African economy. The results in this paper also indicate that more attention should be given to the promotion of nonโ€primary exports. Copyright ยฉ 2008 John Wiley & Sons, Ltd.

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