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

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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

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
URI https://vuir.vu.edu.au/id/eprint/4115
Subjects Historical > FOR Classification > 1605 Policy and Administration
Historical > FOR Classification > 1402 Applied Economics
Historical > Faculty/School/Research Centre/Department > Centre for Strategic Economic Studies (CSES)
Historical > FOR Classification > 1401 Economic Theory
Historical > SEO Classification > 9103 International Trade
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
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