South Africa's Exports Performance: Any Role for Structural Factors?

17 Pages Posted: 28 Mar 2016

See all articles by Rahul Anand

Rahul Anand

International Monetary Fund (IMF)

Roberto Perrelli

International Monetary Fund (IMF)

Boyang Zhang

Cornell University, Department of Economics, Students

Date Written: February 2016

Abstract

Despite a substantial and prolonged exchange rate depreciation, South Africa's export performance has disappointed since the global financial crisis. In this paper we focus on the role of structural factors in reducing the responsiveness of South African exports to the real exchange rate depreciation. To this end, we construct a unique database of export performance at the firm level. Our analysis suggests that electricity bottlenecks, limited product market competition, and labor market constraints have reduced the responsiveness of firms' exports to the rand depreciation. On the other hand, a firm's ability to diversify its exports has helped it benefit more from currency movements.

Keywords: structural bottlenecks, exchange rate, depreciation, relative prices, currency, Country and Industry Studies of Trade, Macroeconomic Analyses of Economic Development,

JEL Classification: F14, F32, O11

Suggested Citation

Anand, Rahul and Perrelli, Roberto and Zhang, Boyang, South Africa's Exports Performance: Any Role for Structural Factors? (February 2016). IMF Working Paper No. 16/24. Available at SSRN: https://ssrn.com/abstract=2754928

Rahul Anand (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Roberto Perrelli

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Boyang Zhang

Cornell University, Department of Economics, Students ( email )

Ithaca, NY
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
75
Abstract Views
340
rank
315,195
PlumX Metrics