1. THE IMPACT OF TRADE LIBERALISATION ON AGRICULTURAL PRODUCTIVITY IN SOUTH AFRICA - AN EMPIRICAL STUDY.
- Author
-
Rena, Ravinder, Teweldemedhin, and Schalkwyk, Van
- Subjects
- *
INDUSTRIAL productivity , *TIME series analysis , *AGRICULTURAL industries , *FREE trade - Abstract
This study attempts to examine the empirical relationship between trade and total factor productivity (TFP) in the agricultural sector using both cross - sectional, (across nine agricultural commodities), and time-series analysis. The ordinary least square (OLS) results from the cross -sectional analysis confirm that export shares and capital formation were found to be positive and significant; whereas, import shares and real exchange rate were found to be related negatively. However, the net effect of export and import shares had a positive effect. This implies that trade liberalisation causes productivity gains. Moreover, the time -series analysis goes in the same direction as the cross - sectional results, showing that there is a robust relationship among TFP, degree of openness, and capital formation. Whereas, debt was found to be inversely related, this implies that agricultural industries / farmers lack debt management skills. [ABSTRACT FROM AUTHOR]
- Published
- 2009