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 analysed the intricacies of trade flows imbibed in the EU-SA TDCA. It assessed the trade creation and trade diversion effects of this bilateral trade agreement – using the top 10 selected commodity exports. This follows the report on the Harmonised System (HS) at the 2-digit codes. A Gravity Model Approach on bilateral trade flows is grounded on panel data models for the period 2000-2017 between South Africa as exporter country and the twenty EU countries (EU-20) as importer country-block out of the twenty-eight countries (EU-28). The study reports that the EU-SA TDCA enhanced significant trade expansion and trade creation effects. Mixed results for GDPs and GDPPKs for both South Africa and the EU countries were reported, but the overall results showed that the bilateral agreement do affect South African commodity exports more negatively, albeit with few positive effects from the EU countries in particular. Besides, ICTSA does have a negative effect on commodity exports, while the South African REER has the positive effect on export models. Lastly, the distance as a proxy of transportation costs negatively affects South Africa’s exports, while common colonial relationship and English as common official language have both a positive effect on exports. The findings imply that trade policies should focus on adequate telecommunication tools, alongside fair trade practices allowing South Africa to integrate with the global market, promote economic growth as well as enhance competitive advantage in most sectoral trades. / Business Management / M. Com. (Business Management (International Business and Finance))