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International Trade and Productivity after Apartheid

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  • Rubini Loris

    (University of New Hampshire, Department of Economics, 10 Garrison Av, Durham, 03824, NH, USA)

Abstract

International trade fell in South Africa from the 1970s to the mid-1990s, and climbed fast thereafter, coinciding with the imposition and later removal of apartheid sanctions. Productivity followed suit. This paper explores the extent to which the increase in trade can account for the increase in productivity after apartheid. I use a model of international trade with innovation and calibrate it to match key macroeconomic variables. Non-tariff barriers, mostly related to apartheid sanctions, account for over half the changes in aggregate productivity. Tariffs play a very minor role, in line with existing studies.

Suggested Citation

  • Rubini Loris, 2020. "International Trade and Productivity after Apartheid," The B.E. Journal of Macroeconomics, De Gruyter, vol. 20(2), pages 1-32, June.
    • Handle: RePEc:bpj:bejmac:v:20:y:2020:i:2:p:32:n:7
    DOI: 10.1515/bejm-2019-0154
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    References listed on IDEAS

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    1. Rubini, Loris, 2014. "Innovation and the trade elasticity," Journal of Monetary Economics, Elsevier, vol. 66(C), pages 32-46.
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    More about this item

    Keywords

    apartheid sanctions; growth in South Africa; productivity gains from trade; trade and innovation; trade sanctions; F12; F41; O11; O33;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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