@article{Mmatlou:206516,
      recid = {206516},
      author = {Mmatlou, Kalaba and Johann, Kirsten},
      title = {Determinants of trade patterns and comparative advantage  of processed agricultural products of SADC},
      address = {2012},
      number = {1737-2016-140325},
      pages = {15},
      year = {2012},
      abstract = {The Southern African Development Community (SADC)  countries in general are facing new challenges of realising  the pre-recession economic performance. This is in addition  to the normal challenges of reducing food insecurity and  poverty, unemployment and to continue improving the living  standards. Agriculture is at the centre of most of these  activities that have high likelihood of making most  contribution given the growing population, demand for food  and growth in urbanisation. In addition the sector engages  many people in rural areas, has many linkages with other  sectors of the economy and utilises unskilled labour force.  Therefore a thriving agricultural sector has a potential to  have more inclusive growth than any other sector. The trade  patterns of agricultural and processed products are  evaluated using the Balassa revealed comparative advantage  method and the augmented gravity model to determine factors  that influence trade. The results show that the share of  agricultural trade in SADC is higher than the world  average, and thus SADC has comparative advantage in  agriculture. However, there are concerns that over time  some of the SADC member countries and the have been losing  comparative advantage in agriculture. Such advantage in  processed and high value agriculture products is low and  applicable to few countries. The contributing factors are  high trade costs due to poor infrastructure, corruption  perception and high administrative requirements. The  situation challenges and limits the sector’s potential to  contribute further towards the economic growth and  development. This also implies that potential gains from  trade may not be fully realised.},
      url = {http://ageconsearch.umn.edu/record/206516},
      doi = {https://doi.org/10.22004/ag.econ.206516},
}