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THE IMPLICATIONS OF OECD GROWTH FOR SOUTH AFRICAN EXPORTS
Author(s) -
Rangasamy L.,
Brick K.
Publication year - 2007
Publication title -
south african journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.502
H-Index - 31
eISSN - 1813-6982
pISSN - 0038-2280
DOI - 10.1111/j.1813-6982.2007.00151.x
Subject(s) - effective exchange rate , exchange rate , error correction model , export performance , international economics , economics , destinations , international trade , monetary economics , cointegration , econometrics , geography , tourism , archaeology
This paper examines the role of OECD growth on South African exports using a vector error correction model. In the long run both OECD growth and the real effective exchange rate were found to influence South Africa's export performance, while in the short run, the real effective exchange rate was found to be an important driver of export growth. The policy implications that emerge from the study underscore the importance of fully exploiting current trading relationships, diversifying South African export destinations and enhancing competitiveness.