Open AccessAnalyzing the Linkage between Agricultural Exports and Agriculture’s Share of Gross Domestic Products in South Africa
Author(s) -
Mushoni Bulagi,
Jan Johannes Hlongwane,
Abenet Belete
Publication year - 2016
Publication title -
journal of agricultural studies
Language(s) - English
Resource type - Journals
ISSN - 2166-0379
DOI - 10.5296/jas.v4i1.8918
Subject(s) - agriculture , gross domestic product , agricultural economics , economics , linkage (software) , positive relationship , investment (military) , capital formation , positive correlation , orange (colour) , geography , economic growth , human capital , financial capital , horticulture , biology , political science , psychology , social psychology , biochemistry , medicine , archaeology , politics , law , gene
The paper analyses the link between avocado, apple, mango and orange exports and agriculture’s share of Gross Domestic Product in South Africa. The study used secondary time series data that covered a sample size of 20 years (1994 - 2014) of avocado, apple, mango and orange exports in South Africa. Two Stages Least Square models were used for data analysis. Empirical results for agricultural exports equation revealed that agricultural economic growth in South Africa was significant with a positive coefficient. Also a negative relationship between the Net Factor Income (NFI) and the agricultural exports in South Africa was noticed. Real Capital Investments had a significant positive coefficient. Consequently, results from agricultural economic growth equation revealed that agricultural exports were significant with a positive correlation. A relationship between NFI and agricultural GDP was also witnessed. Like other variables, Real Capital Investment was significant but negatively correlated.