Regionalism, Trade and Growth: The Case of the Eu-South Africa Free Trade Arrangement

USITC Working Paper No. 2001-07-A

18 Pages Posted: 29 Jul 2001

See all articles by Soamiely Andriamananjara

Soamiely Andriamananjara

World Bank - World Bank Institute (WBI)

Russell H. Hillberry

University of Melbourne - Department of Economics; World Bank - Development Research Group (DECRG)

Date Written: July 2001

Abstract

In a sequential Computable General Equilibrium analysis, we investigate the likely effects of the EU-South Africa Free Trade agreement (FTA), with a special emphasis on South Africa's growth prospects. We find that the FTA increases South African output and welfare. We note, however, that the gains are very modest when viewed in the context of the time period over which full adjustment to the treaty provisions is expected to occur. Only 2 percent of the economic growth expected over the next 18 years in South Africa can be linked to additional trade associated with the FTA. The long phase-in period and the partial benefits of regionalism limit the importance of trade as an engine of growth.

Keywords: Regionalism, Growth, Free Trade Area, South Africa, European Union

JEL Classification: F15, F17, F43

Suggested Citation

Andriamananjara, Soamiely and Hillberry, Russell H., Regionalism, Trade and Growth: The Case of the Eu-South Africa Free Trade Arrangement (July 2001). USITC Working Paper No. 2001-07-A. Available at SSRN: https://ssrn.com/abstract=277719 or http://dx.doi.org/10.2139/ssrn.277719

Soamiely Andriamananjara (Contact Author)

World Bank - World Bank Institute (WBI) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202 458 0284 (Phone)

Russell H. Hillberry

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
338
Abstract Views
1,864
rank
88,518
PlumX Metrics