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Trade Facilitation and Export diversification in South Africa

This paper uses a gravity model to investigate the impact of trade facilitation on export diversification in South Africa. This paper uses panel data of 124 countries ranging over the period 2012 – 2016. In this paper, a statistical approach called factor analysis was used to construct four new aggr...

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Main Author: Primo, Jessyca
Other Authors: Edwards, Lawrence
Format: Thesis
Language:English
Published: School of Economics 2019
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access_status_str Open Access
author Primo, Jessyca
author2 Edwards, Lawrence
author_browse Edwards, Lawrence
Primo, Jessyca
author_facet Edwards, Lawrence
Primo, Jessyca
author_sort Primo, Jessyca
collection Thesis
description This paper uses a gravity model to investigate the impact of trade facilitation on export diversification in South Africa. This paper uses panel data of 124 countries ranging over the period 2012 – 2016. In this paper, a statistical approach called factor analysis was used to construct four new aggregate trade facilitation indicators from a wide range of primary indicators that measured many aspects of trade facilitation for each of the countries in the panel and the number of product lines exported from South Africa was used as a measure of export diversification. We include simple average import tariffs of each country, distance, GDP, population, geographical and cultural variables and regional trade agreements with South Africa. As our export diversification measure is discrete (i.e. count data), we postulate that the number of product lines exported to each country follows a Poisson distribution which follows the approach used by Dennis & Shepherd (2011) and Persson (2013). The focus of this paper is to determine the impact of on-the-border trade facilitation on export diversification. We find that border and transport efficiency contributes significantly to export diversification and the effect is confirmed when examining export diversification between countries. We also find that ocean ports, airports, custom procedures and number of days to import drive this contribution of border and transport efficiency on export diversification.
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institution University of Cape Town (South Africa)
language eng
last_indexed 2026-06-10T12:42:05.816Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2019
publishDateRange 2019
publishDateSort 2019
publisher School of Economics
publisherStr School of Economics
record_format dspace
source_str UCTD — University of Cape Town Open Access Repository
spelling oai:open.uct.ac.za:11427/29364 Trade Facilitation and Export diversification in South Africa Primo, Jessyca Edwards, Lawrence Economics This paper uses a gravity model to investigate the impact of trade facilitation on export diversification in South Africa. This paper uses panel data of 124 countries ranging over the period 2012 – 2016. In this paper, a statistical approach called factor analysis was used to construct four new aggregate trade facilitation indicators from a wide range of primary indicators that measured many aspects of trade facilitation for each of the countries in the panel and the number of product lines exported from South Africa was used as a measure of export diversification. We include simple average import tariffs of each country, distance, GDP, population, geographical and cultural variables and regional trade agreements with South Africa. As our export diversification measure is discrete (i.e. count data), we postulate that the number of product lines exported to each country follows a Poisson distribution which follows the approach used by Dennis & Shepherd (2011) and Persson (2013). The focus of this paper is to determine the impact of on-the-border trade facilitation on export diversification. We find that border and transport efficiency contributes significantly to export diversification and the effect is confirmed when examining export diversification between countries. We also find that ocean ports, airports, custom procedures and number of days to import drive this contribution of border and transport efficiency on export diversification. 2019-02-06T12:38:05Z 2019-02-06T12:38:05Z 2018 2019-02-06T09:10:55Z Master Thesis Masters MCom http://hdl.handle.net/11427/29364 eng application/pdf School of Economics Faculty of Commerce University of Cape Town
spellingShingle Economics
Primo, Jessyca
Trade Facilitation and Export diversification in South Africa
thesis_degree_str Master's
title Trade Facilitation and Export diversification in South Africa
title_full Trade Facilitation and Export diversification in South Africa
title_fullStr Trade Facilitation and Export diversification in South Africa
title_full_unstemmed Trade Facilitation and Export diversification in South Africa
title_short Trade Facilitation and Export diversification in South Africa
title_sort trade facilitation and export diversification in south africa
topic Economics
url http://hdl.handle.net/11427/29364
work_keys_str_mv AT primojessyca tradefacilitationandexportdiversificationinsouthafrica