MODELLING THE IMPACTS OF MACROECONOMIC AND TRADE POLICIES ON THE SOUTH AFRICAN AGRICULTURAL SECTOR

The purpose of this paper is to investigate the importance of macroeconomic and trade policies on the agricultural sector in South Africa. Macroeconomic and trade policies are determined outside the agricultural sector and since the 1990s South Africa has been moving towards deregulation and trade liberalization. Structural econometric model was applied to determine the impacts of changes in macroeconomic and trade policies on the agricultural sector. Two Stage Least Squares (TSLS) was the technique used because of the simultaneous nature of the equations in the model. The results of the study shows that 10 percent reduction in import tariffs will lead to 11.44 percent increase in the degree of openness of the South African economy. Furthermore, the appreciation of the Rand will raise the domestic prices received by farmers.


Issue Date:
2003
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/19085
PURL Identifier:
http://purl.umn.edu/19085
Total Pages:
12
Series Statement:
41st Annual Conference of the Agricultural Economics Association of South Africa, CSIR conference centre, Pretoria, 2 October 2003.




 Record created 2017-04-01, last modified 2018-01-22

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)