Agriculture

Permanent URI for this collection

http://196.216.167.205/handle/10628/945

Browse

Browsing Agriculture by Author "Van Schalkwyk, H. D."

Now showing 1 - 3 of 3
  • Thumbnail Image
    Item
    The impact of trade liberalisation on South African agricultural productivity.
    (Academic Journals, 2010) Teweldemedhin, Mogos Y.; Van Schalkwyk, H. D.
    This study attempts to examine the empirical relationship between trade and Total Factor Producitvity (TFP) in the agricultural sector using both cross -sectional (across nine agricultural commodities) and time -series analysis. The Error Correction Model of Ordinary Least Square (OLS) results from the cross-sectional analysis confirm that export shares and capital formation were significant and postivly related; whereas, import shares and real exchange rate were found to be negatively related. However, the net effect of export and import shares was positive implies that trade liberalisation causes productivity gains, The findings from the time -series analysis followed in the same direction as the cross -sectional results, indicating a robust relationship between a TFP, degree of openness, and capital formation. Debt was found to be inversely related, this implies that agricultural industries/ farmers lack debt management skills.
  • Thumbnail Image
    Item
    The international trade prospective of agriculture sector in Southern African.
    (Academic Journals, 2010) Teweldemedhin, Mogos Y.; Van Schalkwyk, H. D.
    The objective of this paper is to analyse the international trade performance of the South African agricultural industry in aggregate and by product group categories. A useful tool in this regard is the Gini and intra-industrial trade coefficient (IIT), which is used to examine the international trade balance of South Africa. Moreover, Ordinary Least Squares (OLS) is also used to identify factors that may be necessary to achieve high IIT. The IIT coefficient, after 1994, achieved more than 85 percent, which is a record level even for industrialised countries. This high IIT performance reveals trade liberalisation between the Southern Africa Customs Union (SACU) and the European Union (EU), opening South Africa’s market to the world. It also reveals that South Africa is able to increase its specialisation and flexibility to gain market access, and has shown a greater ability to compete in a changing trade environment. The results of the econometric analysis of IIT determinants give a greater magnitude to the coefficients export to Gross Domestic Product (GDP) and export -to -import ratios. These results imply that if South Africa’s industries take measures to increase trade liberalisation, diversity, and the level of industrial specialisation, the IIT level would be higher, and significant economic gain might be achieved by minimising costs.
  • Thumbnail Image
    Item
    Regional trade agreements and its impact on trade flows for South African agricultural products.
    (Academic Journals, 2010) Teweldemedhin, Mogos Y.; Van Schalkwyk, H. D.
    The aim of this study was to measure the impact of liberalisation on the South African agricultural economy, particularly the impact on trade flow of the exchange rate, trade liberalisation and distance of trading partners using the gravity model. The model found that all variables were significant at one percent and carried the expected sign. Only the EU dummy variable had an inverse relationship, implying that the EU trade agreement has a negative impact on the export capacity of the South African farmers. This result has important policy implications for the South African agricultural sector in selecting and strengthens the regional block agreement. Given the importance of distance to markets, South Africa should emphasise efforts to reduce transaction costs. It is also important to protect and advocate productivity growth within the era of globalisation challenges Secondly, from an export promotion standpoint, distance in the model result showed that per capita income in importing countries is elastic and significant when it comes to determining exports. Therefore, it is important for South Africa to revise all the existing trade links and extend further to countries or regions with a high per capita income in order to realise export potential.