Inward and Outward Spillovers in the SACU Area
25 Pages Posted: 22 Feb 2013
Date Written: January 2013
Spillovers from South Africa into the other members of the Souther Africa Customs Union (known as the BLNS for Botstwana, Lesotho, Namibia, and Swaziland) are substantial reflecting sizeable real and financial interlinkages. However, shocks to real GDP growth in South Africa do not seem to systematically affect growth developments in BLNS countries as a group. Nevertheless, vector autoregressions, which allow country-specific parameters, suggest some strong spillovers onto the smaller economies.
Keywords: SACU area, Spillovers, Sub-Saharan Africa
JEL Classification: F14, F23, F42, O55
Suggested Citation: Suggested Citation