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Economica

Évf. 14 szám 3-4 (2023)
Folyóiratcikk

Estimating the Impact of North-South and South-South Regional Trade Agreements on South African bilateral trade

Megjelent:
2024-03-20
DOI Linkhttps://doi.org/10.47282/economica/2023/14/3-4/11070
Szerző
MCHANI SIBULELE
Megtekintés
pdf (Angol)
Kulcsszavak
gravity model RTA OLS South Africa
Hogyan hivatkozzuk
Kiválasztott formátum: APA
MCHANI, S. (2024). Estimating the Impact of North-South and South-South Regional Trade Agreements on South African bilateral trade. Economica, 14(3-4), 13-22. https://doi.org/10.47282/economica/2023/14/3-4/11070
Absztrakt

Based on the gravity model, this paper aimed to evaluate the impact of three regional trade agreements on South Africa’s bilateral trade with thirty-eight countries. Ordinary least squares (OLS) was employed as an estimator of the gravity model. The results demonstrate that the SACU-MERCOSUR preferential trade agreement and EU-SADC free trade agreement are positive and statistically significant. While the SACU-EFTA free trade agreement increases trade intensity by 2.4-fold, the EU-SADC free trade agreement enhances it 2.6-fold. In other words, the participation of South Africa and a respective trade partner in the SACU-EFTA trade agreement improve their bilateral trade by 2.4-fold, while their membership in the EU-SADC free trade agreement raises bilateral trade by 2.6-fold.

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