Abstract
This study explores South Africa’s exports to Australia from 2000 to 2012, using both a static and a dynamic augmented gravity model. Sectors with export potential are identified, whether these are reliable and stable is considered. The largest export potential includes the apparel sectors as well as the basic metals, communication, furniture, glass, iron, leather, motor, paper and printing sectors. The most stable and reliable export sectors are the motor, machinery, iron, basic chemicals and food sectors. Although these sectors could target the promotion of South African exports, South Africa could also serve as an important source country for Australia in strengthening ties with the African continent.
Highlights
South Africa and Australia have a long history of cooperation, as diplomatic relations were established as far back as 1947
South Africa and Australia are both members of the Indian Ocean Rim Association for Regional Cooperation (IOR-ARC), which facilitates trade and investment in the region (DFAT, 2013a)
South African exports to Australia increased by 251 per cent from 2000 to 2008
Summary
South Africa and Australia have a long history of cooperation, as diplomatic relations were established as far back as 1947. The two countries have a firm bilateral economic relationship, with their shared interest in international matters. This includes cooperation on issues such as the Commonwealth, the World Trade Organisation (WTO), the Cairns Group, the New World Wine Producers Group, climate change, protection of fisheries, human rights, human trafficking, law enforcement, defence relations and the customs regulations. The business culture, accounting practices and the legal system are rather similar, and English is the official language in both countries. There has been a strong business migration from South Africa to Australia
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 callMore From: South African Journal of Economic and Management Sciences
Disclaimer: 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.
