Various studies conclude that accelerated economic growth and development are necessary in South Africa to make a significant contribution towards reducing high levels of unemployment, inequality and poverty. Moreover, in theories of economic growth the export sector is frequently accorded a special role in encouraging faster economic growth, which is often supported by empirical evidence. Nonetheless, a question that remains unresolved is whether higher export growth leads to higher economic growth in South Africa and what particular role exports may play within the overall economic growth process of the country. This study applies Johansen’s cointegration procedure, impulse response functions, variance decomposition analysis and Granger causality tests to shed light on the channels through which export growth may impact South Africa’s economic growth rate. Quarterly time series data ranging from 1975q1 to 2012q4 is employed in the study’s empirical tests. The empirical results lend support to the idea that the role of exports in the economic growth process fundamentally lies in their ability to encourage investment and capital formation. While export growth supports higher economic growth in the short-run, it does not have the same effect in the long-run. Nonetheless, with export growth supporting faster capital formation in South Africa, and capital formation, in turn, significantly increasing economic growth in the long-run, the impetus to growth stemming from exports has been found to lie in the channel to capital formation. On the basis of the empirical results, not only are exports a critical requirement of higher investment, but they are also anticipated to play a prominent role in lifting the balance of payments constraint that would make investment-led growth possible in the first place. Overall, a strategy of export-led growth that does not explicitly emphasise the export-capital-growth connection is likely to fall short of reflecting the dynamics contained within the exports-growth relationship in South Africa.

This study examined the role of export diversification on economic growth in South Africa. The study used annual time series data for the period covering 1980 to 2010 and employed a Vector Error Correction Model to determine the effects of export diversification and possible factors that affect it on economic growth. Possible factors that affect export diversification considered as independent variables in this study include gross capital formation, human capital, real effective exchange rate and trade openness. Results of the study reveal that export diversification and trade openness are positively related to economic growth while real effective exchange rate, capital formation and human capital have negative long run relationships with economic growth. The study recommended the continual implementation of trade liberalisation by the South African government. The South African government is also encouraged to promote the production of a diversified export basket through subsidisation, promotion of innovation and production of new products.

This study examines the fundamental determinants of bilateral trade flows between South Africa and BRIC countries. This is done by exploring the magnitude of exports among these countries. The Gravity model approach is used as the preferred theoretical framework in explaining and evaluating successfully the bilateral trade flows between South Africa and BRIC countries The empirical part of this study uses panel data methodology covering the time period 2000-2012 and incorporates the five BRICS economies in the sample. The results of the regressions are subject to panel diagnostic test procedures. The study reveals that, on the one hand, there are positive and significant relationships between South African export flows with the BRICs and distance, language dummy, the BRICs’ GDP, the BRICs’ openness and population in South Africa. On the other hand, GDP in South Africa, real exchange rate and time dummy are found to be negatively related to export flows. / Economics / M. Com. (Economics)

This study examines the fundamental determinants of bilateral trade flows between South Africa and BRIC countries. This is done by exploring the magnitude of exports among these countries. The Gravity model approach is used as the preferred theoretical framework in explaining and evaluating successfully the bilateral trade flows between South Africa and BRIC countries The empirical part of this study uses panel data methodology covering the time period 2000-2012 and incorporates the five BRICS economies in the sample. The results of the regressions are subject to panel diagnostic test procedures. The study reveals that, on the one hand, there are positive and significant relationships between South African export flows with the BRICs and distance, language dummy, the BRICs’ GDP, the BRICs’ openness and population in South Africa. On the other hand, GDP in South Africa, real exchange rate and time dummy are found to be negatively related to export flows. / Economics / M. Com. (Economics)

Small Businesses (SBs) in the city of Tshwane increasingly engage in export activities due to higher growth rates. The South African government recognises the significance of SBs, resulting in support programmes to increase involvement in export markets. However, SBs still face export challenges from internal and external sources. This study explored export involvement processes of SBs in the City of Tshwane. 20 participants took part in a qualitative data collection method using observation and semi-structured interviews. Atlas.ti software was used to analyse the data. Findings suggest that SBs are confronted with varying constraints affecting commitment in export involvement processes. Low levels of awareness and participation in export programmes make it difficult to determine their contribution to the export involvement of SBs. Recommendations are for an evaluation of government export programmes accompanied by export education and training programmes to ensure that SBs achieve desirable outcome of export involvement in various export markets. / Business Management / M. Com. (Business Management)