Determinants of South Africa's exports of agriculture, forestry and fishing products to SADC: a gravity model approach

Abstract

The objective of the study is to examine agricultural, forestry and fishing exports determinants between South Africa and SADC countries using a gravity model approach. This paper uses annual data covering the year 2005 to 2014. The result of the study indicates that exporter's GDP, importer's population, South African inflation, exchange rate have a negative association with South African exports of agriculture, forestry and fishing. On the other hand, the results indicate that importer's GDP and exporter's population have a positive impact on South African export of agriculture, forestry and fisheries products. The results imply that increase in GDP suggests self-sufficiency and less need to export. Price and exchange rate stability are important for export of these products. The results also indicate that increase in GDP of SADC countries are important for exports of these products.