Causality relationship between agricultural exports and agricultures share of gross domestic product in South Africa: A case of avocado, apple, mango and orange from 1994 to 2011
Author(s) -
Basavaraj B.M,
J Hlongwane J,
A Belete
Publication year - 2015
Publication title -
african journal of agricultural research
Language(s) - English
Resource type - Journals
ISSN - 1991-637X
DOI - 10.5897/ajar2014.8548
Subject(s) - granger causality , agriculture , economics , gross domestic product , agricultural economics , redress , international economics , macroeconomics , geography , archaeology , art , literature , econometrics
The study analysed causality between agricultural exports and its share of gross domestic product in South Africa from 1994 to 2011. Apple, avocado, mango and orange exports in tonnes were used to Granger analyse agricultural exports versa agricultural GDP contribution. The results of the Granger causality test showed a unidirectional causality between exports and GDP. Policies and programmes can help farmers with employees wage to enter the export markets which are ineffectual. Policies can be aimed at redress, such as the Employment Equity Act; which is size dependent on other sectors outside agriculture which discourage growth and export participation. Key words: Agricultural economic growth, agricultural exports, agricultural trade policies, export-led growth, Granger Causality test.
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