Abstract
<p class="NoSpacing1">South Africa orange exporters have for a long time enjoyed a sizeable market share in many parts of the world. A large portion of that sizeable market share can be located in the European countries then followed by fast developing countries in Asia. This market share can be associated with a declining South African currency compared to the values of these major currencies. On the other hand a number of trade agreements that have been reached by South Africa and these countries over the years have also contributed handsomely in the mentioned market share. Furthermore, diets of consumers in these countries have as well contributed in the conquered market share. Although a number of studies have been conducted on the subject of South Africa’s declining currency and the established trade agreements on products with mixed magnitudes in influencing trade flows, further research is needed for a better understanding on the trade determinants patterns in specific products. This paper focuses on the determinants of South Africa’s orange trade in the top European and Asian importing countries. In order to understand these trade determinants, gravity model has been applied to identify and analyze significant factors encouraging or discouraging the quantities/volumes of oranges exported to the above mentioned countries. Findings have shown that over the reviewed period, South Africa’s orange exports to the European market have been consistence, while exports to Asian market started slow and gradually increased over the years. Gravity model estimated coefficients also showed expected signs.</p>
Highlights
In South Africa (SA), when orange plantations were introduced decades and decades ago the main aim was exportation
The real exchange rate is highly significant correlation with trade variation indicating that price competitiveness is important for South Africa’s orange exports, when South African currency appreciates with a percent tends to be associated with 8% percent fall of volumes being exported
European market has been for a long time a prioritized market destination for SA oranges due to its conducive importing standards that have been established after certain trade agreements been reached
Summary
In South Africa (SA), when orange plantations were introduced decades and decades ago the main aim was exportation. South Africa is found in the leading countries in orange exports, with over half of its exports destined for the European countries with Russia included Such large quantities can be associated with trade agreements which have been established between SA and European countries over the years. The NTMs are not the main focus of this paper and are not analyzed and that requires a further research beyond this paper It is in this regard that this paper evaluates the SA orange trade determinants to the top European and Asian importing countries by identifying and analyzing significant factors that have encouraged or discouraged the quantities/volumes of citrus exported based on a gravity model and time series data from 2001 to 2013, prior the rise of NTMs in these countries. The paper presents results and discussions and lastly conclusion remarks
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
