oa South African Journal of Economic and Management Sciences - Stages of growth in the South African economy: the role of agriculture
|Article Title||Stages of growth in the South African economy: the role of agriculture|
|© Publisher:||University of Pretoria|
|Journal||South African Journal of Economic and Management Sciences|
|Affiliations||1 Department of Agricultural Economics, University of Pretoria|
|Publication Date||Jun 1998|
|Pages||204 - 218|
|Keyword(s)||Agricultural industry, Agriculture, Agriculture development, Business, Causality, Economic growth, Economics, Exports, Foreign exchange revenue, GAP, GDP, Gross Agricultural Product, Gross Domestic Product, Gross sectoral products, Industry, Macro-economy, Shares and Unit root tests|
ISI Social Science
This paper identifies the stages of growth in the South African economy with particular reference to agriculture. Simple a-matrix causality tests are used to determine the direction of causality between the gross sectoral products of the economy and the gross agricultural product. The percentage share of the agricultural industry in the South African economy is relatively small and continues to decline as the economy grows. However, there has been a greater integration of agriculture within the economy during the 1990s as a result of the liberalisation of many aspects of the economy. Agriculture may have played a passive role in the economy, but has provided foreign exchange revenue from net exports to facilitate growth in other sectors of the economy. In a more decontrolled environment, the agricultural sector will become increasingly susceptible to the changes in the macro economy, particularly the exchange rate.
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