Trade and growth in SACU countries: A panel data analysis

Farai Manwa, Albert Wijeweera, Michael A. Kortt

    Research output: Contribution to journalArticlepeer-review

    27 Scopus citations

    Abstract

    Recent research from the IMF and the World Bank suggests that restrictive trade policies could lead to poor economic growth in many developing countries. This paper exploits over 30 years of panel data from five Southern African Customs Union (SACU) countries – Botswana, Lesotho, Namibia, South Africa, and Swaziland – to investigate the possible link between trade liberalization and economic growth. The paper contributes to the literature by introducing multiple indicators of liberalization to estimate the possible relationships between trade openness and economic growth. In particular, we use four different trade liberalization indicators: (i) tariffs, (ii) real effective exchange rates (REER), (iii) trade ratios, and (iv) adjusted trade ratios. The results from our fixed-effect regression models indicate that there is little, if any, compelling evidence that trade liberalization has had a positive impact on the economic growth on SACU countries over the last 30 years.

    Original languageBritish English
    Pages (from-to)107-118
    Number of pages12
    JournalEconomic Analysis and Policy
    Volume63
    DOIs
    StatePublished - Sep 2019

    Keywords

    • Panel method
    • SACU countries
    • Trade liberalization

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