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South Africa-Australia Trade: Evidence and Implication for Growth, Trade and Economic Relations Policy

Ahmed, Abdullahi and Tran, Van Hoa (2008) South Africa-Australia Trade: Evidence and Implication for Growth, Trade and Economic Relations Policy. Asia Pacific Journal of Economics and Business, 12 (2). pp. 64-84. ISSN 1326-8481

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Abstract

Since independence, South Africa has engaged in various bilateral and regional free trade agreements (FTAs) in order to enhance exports diversification and stimulate aggregate growth of trade and productivity. This paper empirically investigates potential economic gains of South Africa (SA)- Australia FTA negotiations for policy use. It highlights the composition of trade, competitive advantage and strategic choice of the SA-Australia trade partnership and explores its full potential, using the newly developed endogenous gravity theory to study SA-Australia trade and its causal link with growth. The SA-Australia trade is shown to play a significant role in improving South-Africa’s growth while FDI and trade services also appear to be important sources of South Africa’s economic performance.

Item Type: Article
Uncontrolled Keywords: ResPubID17915. free trade, bilateral trade, free trade agreements, FTA, economic growth, economic policy, economic relations policy, trade partnerships, endogenous gravity theory, South Africa, South African, Australia, Australian
Subjects: FOR Classification > 1605 Policy and Administration
FOR Classification > 1402 Applied Economics
Faculty/School/Research Centre/Department > Centre for Strategic Economic Studies (CSES)
FOR Classification > 1401 Economic Theory
SEO Classification > 9103 International Trade
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Depositing User: VUIR
Date Deposited: 24 Aug 2011 06:58
Last Modified: 24 Aug 2011 06:58
URI: http://vuir.vu.edu.au/id/eprint/4115
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