This aim of this thesis is to analyse the demand for labour from trade with a selection of South Africa’s trading partners. It is expected that labour demand will be greater in trade with developed blocs. Trade between developing blocs, however, is thought to be more skilled labour intensive and such trade should have greater linkages. This ought to feed through into greater labour demand so that South-South trade may be more ‘labour creating’ than expected. As it is more skill intensive, it may also be more dynamic, which has implications for future growth and development. Factor content methodology is used to assess labour demand. Calculations consider linkages to other sectors (which will increase labour demand) and the use of scarce resources (which has an opportunity cost to labour). The findings support the claim that trade with developing blocs is more professional labour intensive. Evidence that it may be more dynamic and have greater linkages to labour is borne out in exports to SADC. Greater labour demand through linkages, however, is not evident in net trade to SADC. Neither are they of significance in trade with any of the other developing blocs so labour effects due to linkages appear to be negligible. The advantages of South-South trade may rather lie in the dynamic benefits that trade in higher technology goods provides. When scarce resources such as capital and professional labour are taken into account, it is found that labour demand is negative in net trade to all blocs. However, even without the problem of scarce resources, most blocs have a negative demand for labour in net trade. The indication is that with the present trade patterns, South Africa cannot expect trade to increase labour demand. Policy which could improve this situation would be to increase labour force skills, improve the flexibility of the labour market and develop sectors which are both more advanced as well as labour intensive. Despite the negative impact of trade on labour in general, it is found that trade does differ by direction and that for each labour type there are certain blocs where labour demand is positive. This is also the case in net trade for particular sectors. Such information could be used as part of a targeted trade policy to assist in the marketing of particular sectors in trade and also for increasing labour demand for certain labour groups.

Thesis (MBA)--Stellenbosch University, 2000. / The Trade, Development and Co-operation Agreement (TDCA) will create competitive challenges, threats and opportunities, driving out less efficient performers while bolstering more efficient enterprises and industries. This is in line with the general principles of the World Trade Organisation (WTO) which promotes the reduction of trade barriers in order to liberate trade on a global basis. This dynamic process of adjustments will continue throughout the implementation of the European Union - South Africa Free Trade Agreement ( EU-SA FTA) which is the main component of the TDCA. The European Union (EU) has historically been Southern Africa's most important trading partner. The main reason why South Africa entered into a Free Trade Agreement (FTA) with the EU was to enhance exports to South Africa's largest export market, attract higher levels of investment from the EU, and gradually expose the South African industry to competition to ensure that it is restructured to become globally competitive. Since 1910 South Africa has been part of the Southern African Customs Union (SACU), which also comprises Botswana, Lesotho, Namibia and Swaziland (BlNS). The EU-SA FTA will accordingly impact on trade relations between South Africa, the EU and the BLNS countries. Not only will SACU face increased competition from cheaper EU imports, but BLNS countries will also face reduced income from the common revenue pool. South Africa will have to remove a higher level of tariffs from a greater volume of imports than is the case for the EU. For the BLNS, the relative adjustment effort is even greater. The BLNS will have to adjust to the elimination of tariffs on 30% of goods currently imported from the EU, while the TDCA will bring about no improvement in their current terms of access to the EU market. The BLNS products currently exported to the EU which are most likely to be affected by the EU-SA FTA are: clothing (Lesotho), preserved fish and flowers (Namibia), and grapefruit, processed pineapples, corned fruit and grapes (Swaziland). These products are under threat from South African products which can, as a result of the FTA, be exported to the EU at reduced tariffs. BLNS products which could be affected as a result of cheaper EU imports are: grain (Botswana, Namibia and Lesotho), chicken production (Swaziland), sugar (Swaziland), beef (Namibia and Botswana), and the small wheat-farming sector in Namibia and Botswana. The EU-SA FTA is further likely to have a substantial impact on South Africa's exports to the EU. The total increase in exports as a result of the FTA is estimated between 1.3% and 1.4% of the 1996 value of South Africa's exports to the EU. The main drive will come from industrial products which are less protected than agricultural products. The South African government, further, concluded that the negative effects of the direct costs to SACU would be outweighed, in the long term, by the dynamic and geopolitical benefits of an FTA with the EU. The signal that the South African government has given with signing the TDCA with the EU indicates that the Southern African economy should restructure itself to become internationally competitive. This is the only way to survive in a global trade arena which is under WTO principles becoming increasïngly more liberated.

Thesis (MA)--University of Stellenbosch, 2001. / ENGLISH ABSTRACT: This thesis examines the democratisation of South Africa's foreign trade policy, by evaluating the negotiations surrounding the establishment of a free trade area between South Africa and the European Union (EU). Democracy here is defined as a form of government that rests on three components namely, public participation in and public debate over policy formulation and a governing elite that is responsive to the needs of the majority of the population. The thesis firstly outlines the process of negotiation itself, looking at the developments that shaped the years of talks. It examines the nature of the final agreement, called the Trade, Development and Co-operation Agreement (TDCA). It focuses on the Co-operation Agreements that were concluded, South Africa's partial accession to the Lomé Convention and the details of the free trade agreement. It finds that although the negotiations took very long to complete and the EU proved to be a tough negotiator, there are a number of opportunities for South Africans in the TDCA. In the second section the internal process in developing a South African negotiating mandate is examined. This is done to conclude whether or not South Africa's foreign trade policy is being formulated in a democratic manner. However, first of all the question why the democratisation of foreign trade policy formulation is important is addressed. Two possible theories are advanced. Firstly, globalisation has forced countries to lure foreign direct investment (FDI) as a matter of urgency. Seeing as FDI is mostly tied up with western nations that prefer democracies, states are opting to democratise. The focus is to a large extent on satisfying international actors. Or alternatively, the very survival of the nascent democracy today depends on the consultative nature of domestic economic and international economic policy formulation. This is not a question of choice with an external focus, but rather a matter of urgency with purely an internal focus. Four actors in foreign policy formulation, namely parliament, government, the bureaucracy and civil society, are examined in order to understand whether they had access to the process and whether these institutions themselves have been democratised since 1994. The thesis finds that the process was to a large extent democratic in nature. However, the thesis also finds that no matter how democratic policy formulation is in South Africa, the options for policy are limited by a number of international elements. These include globalisation, regional trading blocs like the European Union, and international organisations like the World Trade Organisation. / AFRIKAANSE OPSOMMING: Die tesis evalueer die demokratisering van Suid-Afrika se buitelandse handelsbeleid deur die onderhandelingsproses tussen die Europese Unie (EU) en Suid-Afrika rakende die sluiting van 'n vryhandelsooreenkoms te ontleed. Demokrasie word in die tesis definieer as 'n tipe regering wat rus op drie komponente, naamlik deelname in en debat oor beleidsformulering en 'n regerende elite wat die behoeftes van die meerderheid van die burgers in ag neem in beleidsformulering. Eerstens omskryf die tesis die gebeure wat die onderhandelingsproses beïnvloed het. Die finale ooreenkoms word oorweeg teen die agtergrond van die samewerkingsooreenkomste wat tussen die partye gesluit is, Suid-Afrika se gedeeltelike deelname aan die Lomé Konfensie en die vryhandelsooreenkoms. Die gevolgtrekking word bereik dat ten spyte van die feit dat die onderhandelings oor 'n hele aantal jare gestek het, en alhoewel die EU 'n uitgeslape onderhandelaar was, die orreenkoms talle geleenthede vir Suid-Afrikaners skep. In die tweede instansie word die interne proses wat tot Suid-Afrika se onderhandelingsmandaat gelei het, ondersoek. Dit is gedoen om vas te stel of die beleid op 'n demokratiese manier geformuleer is. Daar word egter eers bepaal waarom die demokratisering van buitelandse handelsbeleid belangrik is. Twee moontlike teorie word geformuleer. Die eerste stel dit dat globalisering lande forseer om direkte buitelandse beleggings aan te lok. Siende dat buitelandse beleggings van westerlike state afkomstig is, wat verkies om met demokratiese state sake te doen, word ontwikkelende lande as te ware geforseer om veral hulle buitelandse beleidsformulering te demokratiseer. In die alternatief kan dit betoog word dat die voortbestaan van die demokrasie self afhang van 'n ekonomiese beleidsformulering wat beide binnelandse en internasionale prosesse insluit. Dit is nie 'n kwessie van keuse met 'n eksterne fokus nie, maar 'n noodsaaklikheid met 'n interne fokus. Vier groeperinge wat buitelandse beleidsformulering beïnvloed word ondersoek, naamlik die Parlament, the regering, die burokrasie en die burgerlike samelewing, om vas te stelof hierdie instansies toegang tot die proses gehad het en of hierdie instansies self sedert 1994 gedemokratiseer is. Die tesis kom tot die gevolgtrekking dat al is die formulering van buitelandse beleid hoé demokraties, word die moontlikehede vir beleidsformulering beperk deur globalisering, streeksorganisasies soos die EU, en internasionale organisasies soos the Wêreld Handelsorganisasie. Vir Chris, Gitti, Thomas en my ouers, sonder wie hierdie nooit klaar sou gekom het nie. Baie dankie ook aan Prof Philip Nel vir sy hulp, leiding en ondersteuning.

Thesis (MScAgric)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: European-South African trade relations concerrnng wine and spirits are characterized by various opportunities and, at the same time, a range of conflicts. The latter notably relates to the dispute over geographical indications and designations of origin. Considering this confusing amalgamation of discord and harmony, it is the purpose of this study, entitled "International Trade in Wine and Geographical Indications - Common Interests between the EU and South Africa", to understand the rationale for trade in wine from both sides of the coin. Moreover, this research assesses possible multilateral and bilateral solutions for dealing with trade frictions between the EU and South Africa and identifies common interests with a view to establish a lasting foundation for blossoming trade in wine and sustained growth. The underlying methodology is a qualitative interpretative approach and bases on insights into modern marketing and international management theory. On this basis the "objective" interests of the EU and South Africa in trade in wine are analysed in order to assess the coming into existence of the Trade, Development and Cooperation Agreement as well as the Wine and Spirits Agreement. Pivot of these trade negotiations is the dispute on geographical indications, which is scrutinized by looking into relevant chapters of the WTO and its TR.IPS Agreement. With regards to the Wine and Spirits Agreement it is salient to ask whether it is economically and politically reasonable for South Africa to accept a financial package from the EU to secure the 'voluntary' phasing out of a number of trademarks and geographical indications. The study concludes with an outlook regarding the globalisation of the world's wine market, potential future investment flows between the EU and South Africa and the need for an effective marketing strategy in order to become or remain global player in an increasing competitiveness caused by globalisation. / AFRIKAANSE OPSOMMING: Europese en Suid-Afrikaanse handelsverhoudinge in wyn en spiritualieë word gekenmerk deur verskeie geleenthede en terselfdertyd 'n reeks konflikte. Laasgenoemde hou merkbaar verband met die twis oor geografiese indikatore en aanwysings van oorsprong. Gegewe hierdie verwarrende tweedrag en harmonie, is die doel van hierdie studie, getiteld "Internasionale Handel in Wyn en Geografiese Aanwysings - Gemeenskaplike belange tussen die EU en Suid-Afrika", om die 'rationale' agter die wynhandel van twee kante te beskou. Verder ondersoek hierdie navorsing moontlike multi- en bilaterale oplossings vir die handelswrywing tussen die EU en Suid-Afrika en identifiseer gemeenskaplike belange met die doelom 'n fondament te bou vir volhoubare groei in die wynhandel. Die onderliggende metodologie is 'n kwalitatiewe verklarende benadering, gebaseer op insigte uit moderne bemarkings- en bestuursteorie. Op hierdie vlak word die 'objektiewe' belange van die EU en Suid-Afrika in die wynhandel ontleed om gevolgtrekkings oor die Handels-, Ontwikkelings- en Samewerkingsooreenkoms en die Wyn- en Spiritualieë- Ooreenkoms te maak. Onderliggend aan hierdie onderhandelinge is die twis oor geografiese aanwysings, wat noukeurig ondersoek is deur relevante hoofstukke van die WHO Ooreenkoms en sy TRIPS-komponent te raadpleeg. Met verwysing na die Wyn- en Spiritualieë- Ooreenkoms is dit voor die hand liggend om te vra of dit ekonomies en polities verstandig vir Suid-Afrika is om 'n finansiële pakket van die EU te aanvaar in ruil vir die vrywillige uitfasering van 'n aantal handelsmerke en geografiese aanwysings. Die studie sluit af met '11" blik op globalisering van die wêreld se wynmarkte, die potensiële toekomstige vloei van beleggings tussen die EU en Suid-Afrika, en die behoefte aan 'n effektiewe bemarkingsstrategie om 'n globale speler te word.

Thesis (MBA)--University of Stellenbosch, 2000. / ENGLISH ABSTRACT: As the Trade Development and Co-operation Agreement (TDCA) creates competitive challenges and opportunities, labour and capital will seek the highest returns, dri ving out less efficient performances while bolstering more efficient enterprises and industries. This dynamic process of adjustments will continue throughout the implementation of this agreement. The South African government sees the agreement with the European Union as a step towards restructuring the country's economy and making it part of the rapidly changing world economy. This policy view of the South African government will result in those sectors of the economy that are not internationally competitive, receiving no support from government. Consequently these sectors will decrease in time. Of the three agricultural profiles studied, fresh fruit (deciduous fruit) will benefit the most from the TDCA. The most obvious effect the agreement will have on the sector is the saving on customs duties payable on exports to the EU. An estimate on 1997 trade figures revealed that in the short term the deciduous fruit industry will save approximately RI00 million. Over the implementation period of 10 years, the industry will save about Rl billion. After that, savings amounting to approximately R125 million per annum should be possible. The canned fruit sector is an export-driven industry that exports about 90 per cent of its products, 50 per cent of which is exported to the EU. The export tariffs to the EU are very high. As non-EU member, South Africa is the biggest provider of canned fruit to the EU. Some analyses revealed that the total savings in tariffs for the first year of implementation will be R25 million. The industry stands to save approximately R100 million over the implementation period. At the EU's request, South Africa agreed to negotiate a separate Wine and Spirits Agreement. The EU believes that South Africa's continued use of certain "geographical indications" or terms is in breach of Article 23 of the Trade-related Aspects of Intellectual Property Rights (TRIPs) agreement. The quotas granted by the EU on wine and sparkling wine cover 79 per cent of South African exports to the EU. South Africa granted the EU a 0.26 million litre quota for sparkling wine and a 1 million-litre quota for bottled wine. SA will phase out the use of the terms "port", "sherry", "grappa", ouzo", "korn" , "jagertee" and "pacharan" over agreed time periods. The issue will be taken to the WTO for a ruling in this regard. The EU has agreed to grant SA a duty-free tariff quota for wine but has suspended the tariff quota until the Wine and Spirits agreement has been signed. The EU will also provide financial assistance of 15 million ECU to help restructure the SA wine and spirits sector. The South African agricultural industry should take note of the constantly changing international marketing environment. The Free Trade Agreement (FTA) signed with the European Union opens up new markets and enhances existing ones that must be exploited. It is imperative that every role player should evaluate the level of competitiveness of his or her enterprise. Thus the message is very clear: Agricultural production with an international trading view is the only sustainable road to follow. / AFRIKAANSE OPSOMMING: Soos die Handel, Ontwikkelings en Samewerkingsooreenkoms kompeterende geleenthede en uitdagings skep, sal arbeid en kapitaal verskuif na die hoogste opbrengste beskikbaar. In hierdie proses sal daar wegbeweeg word van onvoldoende prestasies en sal effektiewe ondememings en industriee floreer. Hierdie dinarniese proses van herstruktuering sal voortduur regdeur die implementeringsperiode van hierdie handelsooreenkoms. Die Suid Afrikaanse regering beskou die ooreenkoms met die Europese Unie as 'n belangrike stap in die proses om die land se ekonomie te herstrukltureer en so deel te maak van die vinnig veranderende wereld ekonomie. Hierdie regerings beleid sal daartoe lei dat sektore wat nie intemasionaal mededingend is nie, geen ondersteuning vanaf die regering sal ontvang nie. Met tyd sal hierdie sektore verdwyn. Van die drie landbousektore wat bestudeer is, sal vars vrugte (sagte vrugte) die meeste voordeel trek uit die ooreenkoms. Die besparing van aksynsbelasting op die uitvoere na die Europese Unie is die mees kenmerkendste voordeel vir die sektor. 'n Beraming gebaseer op 1997 handels syfers toon 'n jaarlikse besparing van plus minus R100 miljoen. Deur die hele implementeringsperiode, sal die besparing plus minus Rl biljoen beloop. Na afloop van die implementeringsperiode, sal jaarlikse besparing van plus minus R125 miljoen moontlik wees. Die inmaak vrugte sektor is 'n uitvoer gedrewe industrie wat gemiddeld 90 persent van hul prod uk uitvoer. Van hierdie uitvoere is 50 persent bestem vir die Europese Unie. Die uitvoertariewe na die Europese Unie is baie hoog. As nie-lidland, is Suid Afrika die grootste verskaffer van geblikte vrugte aan die Europese Unie. Beramings voorsien dat die sektor 'n totale besparing vir die eerste jaar van implemetering van plus minus R25 miljoen kan beloop. Die industrie kan soveel as R100 rniljoen oor die implementeringsperiode bespaar. Op die Europese Unie se versoek, het Suid Afrika ingestem om 'n afsonderlike Wyn en Spiritualie ooreenkoms te onderhandel. Die Europese Unie beweer dat Suid Afrika se gebruik van sekere "geografiese aanduidings" of terme, In verbreking is van Artikel 23 van die Handelsverwante Aspekte van die Intellektuele Eiendomsregte Ooreenkoms. Wyn en vonkelwyn kwotas wat deur die Europese Unie aan Suid Afrika toegestaan is, beloop 79 persent van die uitvoere na die Europese Unie. Suid Afrika het die Europese Unie In kwota van 0.26 miljoen liter vir vonkelwyn en 1 miljoen kwota vir gebottelde wyn toegestaan. Voorts sal Suid Afrika die terme "port", "sherry", "grappa", "ouzo", "kom" , "jagertee" and "pacharan" met die ooreengekome peri odes uitfaseer. Die aspek sal egter na die WHO geneem word vir In finale beslissing. Die Europese Unie het ooreengekom om aan Suid Afrika In tarief vrye kwota vir wyn toe te staan, maar het dit opgehef tot tyd en wyl die Wyn en Spiritualie ooreenkoms onderteken is. Die Europese Unie sal ook finansiele ondersteuning van 15 miljoen ECU skenk om die Suid Afrikaanse Wyn en Spiritualiee industrie te help hestruktureer. Suid Afrikaanse Landbou sal notisie moet neem van die konstante verandering in die intemasionale bemarkingsomgewing. Die Vrye Handelsooreenkoms wat geteken is met die Europese Unie, open nuwe markte en sal bestaande markte bevorder. Hierdie geleenthede moet benut word. Dit is baie belangrik dat elke rolspeler sy vlak van kompeterende vermoe moet evalueer, om so sy eie siening oor die ooreenkoms te kan uitspreek. Hieruit is die boodskap dus baie duidelik: Landbou produksie met In intemasionale handels uitkyk, is die enigste volhoubare pad om te volg.

Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: During the negotiating stages of the TOCA, the EU and South Africa could not reach an agreement on the use of certain EU geographical indications related to wine products. The geographical indication issue threatened the signing of the entire TOCA. At the request of the EU, South Africa agreed to negotiate a separate Wine and Spirits Agreement, in order to finalise the TOCA. The EU-SA Wine and Spirits Agreement was eventually negotiated and came into effect on 1 January 2002. The initial issue relating to the geographical indications remained controversial throughout the negotiations and matters were made worst when the initial contentious denominations of Port and Sherry were expanded by the EU to include Grappa, Ouzo, Korn, Kornbrand, Jagertee, Jaqertee, Jagatee and Pacharan. South Africa eventually agreed to phase out the use of these denominations over specified time periods. The current wording of the agreement will also result in South Africa having to yield a variety of well known trade marks such as Nederburg and Roodeberg. Article 7(8) of the Wine Agreement implies that in the case of conflict between a South African wine trade mark and an EU geographical indication for wine, the South African trade mark will always have to yield to the EU geographical indication. The entire geographical indication matter is being contested by South Africa and is still under negotiation. South Africa and the EU agreed to allocate reciprocal duty free tariff quotas to wine products. These tariff quotas will remain effective until the FTA has been established, following the transitional periods as agreed upon in the TOGA. The duty free funds will however not have such a direct impact on the wine industry as have been envisaged initially, because the funds are in the hands of the EU importers. Various business plans are being implemented to allow the South African wine industry to benefit from these and any future funds. The EU offered financial assistance to the value of €15 million for the restructuring of the South African wine industry as well as for the marketing of the South African wine and spirits products. To date none of these funds have been allocated and various proposals have been made to the South African government in order to obtain these funds from the EU. The EU-SA Wine and Spirits Agreement is a continuous evolving agreement, where both parties are allowed to modify the existing agreement with the consent of the other party. Such modifications are allowed with the premise that it would contribute to the facilitation and promotion of trade in wine and spirits products between South Africa and the EU. South Africa must take cognisance of the implications of the EU-SA Wine and Spirits Agreement and ensure that they do not end up losing more than what they are gaining. / AFRIKAANSE OPSOMMING: Sien volteks vir opsomming

Sub-Saharan African nations are highly dependent on the agricultural sector for livelihoods. South Africa and Nigeria depend on agriculture due to the availability of abundant land, labour and natural resources. According to the theory of comparative advantage a state exports the products that it has a comparative advantage in and imports those where it does not have a comparative advantage. This is facilitated by international trade. International trade is defined as trade among nations that enables a nation to buy certain products that it cannot produce from other nations at a cheaper rate. Furthermore, it is expected that every sovereign state would be able to provide not only food and water but also good access to sufficient food and water to its people. Section 27.1b of Chapter 2 of the South African Constitution of 1996 and Article 16 of Nigeria’s Constitution of 1999 enshrine this provision. A number of factors impact food security. The first is international trade. This is spelt out in the World Trade Organization (WTO) Agreement on Agriculture (AoA). The agreement establishing the WTO is commonly known as the “Marrakesh Agreement.” It was signed in Marrakesh, Morocco on the 15th of April, 1994, at the end of the Uruguay Round of Multiple Trade Negotiations. The AoA consists of three pillars: market access, export subsidies and domestic support .Market access requires all parties to the AoA to remove non-tariff barriers which comprise of import quotas and restrictions and convert them to tariffs; a process known as ‘tariffication’. States are also obliged to reduce export subsidies at the same time as increasing their imports. Domestic support, states are to remove subsidy it gives to its people a process that increases the price of goods. Another factor is trade liberalization. This study examines the effects of WTO agricultural trade liberalization on food security and the mechanisms available to address this issue. It focuses on the food security implications of the WTO AoA and asserts that the AoA favours agricultural producers in developed countries. The study seeks to ascertain the extent to which the realization of the objectives of the agreement will promote food security by looking into the abovementioned three pillars and their relationship with food security. / Thesis (LL.M.)-University of KwaZulu-Natal, Durban, 2013.

Overall the conclusions drawn about South Africa’s negotiating style and tactics were arrived at by analysing a number of reports (that closely followed the evolution of the negotiations) and then paralleling this case study’s findings with the conjectures made by the theoretical frameworks (i.e. works by Putnam, Zartmann and Churchmann) about how negotiations proceed. In the final analysis, the findings of this case are intended to provide insight for the south about how to approach any future trade negotiations with the North (or more specifically with the EU).

In this study an analysis of the long-term equilibrium relationship between economic growth measured as real GDP growth and private capital inflows is explored. The link between private capital inflows and economic growth is well-documented in the literature. However, a void in the literature relates to examining the cointegrating relationship between private capital inflows and economic growth particularly for South Africa. It is widely claimed that private capital inflows foster economic growth by closing the savings/investment gap. However, clarity on this point is necessary because of the seemingly unclear nature of the relationship in the literature. The exact form of this relationship as well as the nature of capital flows that could impact on real growth requires further investigation. Moreover, what exactly happens to this relationship in an economic crisis such as recently recorded in the global financial crisis is not clear. The analysis is undertaken by employing cointegration and vector error correction modeling approach using quarterly data for the period 1989q4-2009q4. This study employs the Johansen (1998) cointegration test. This technique distinguishes itself since it establishes the long run relationship between variables. Thereafter, residual diagnostic checks are performed on the variables. Our results show among others, that private capital inflows have impacted positively on the growth of the South African economy. The areas for further research that emerge from this study include the effect of some government policies on economic growth that should also receive more attention in the future since political instability slows down investment.

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.