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The Impact Of European Union - South Africa Trade Development And Cooperation Agreement On Botswana, Lesotho, Namibia And Swaziland

Author

Listed:
  • Montseng TSOLO

    (Department of Economics, National University of Lesotho)

  • Imogen Bonolo MOGOTSI

    (University of Botswana, Private Bag UB 705, Gaborone, Botswana)

  • Gaotlhobogwe MOTLALENG

    (Department of Economics, University of Botswana, Private Bag UB 705, Gaborone, Botswana)

Abstract

This paper examines the impact of the European Union-South Africa Trade Development and Cooperation Agreement (EU-SA TDCA) on trade between the RSA and Botswana, Lesotho, Namibia and Swaziland (BLNS). The results indicate that demand for imports are income elastic and price inelastic. This implies that imported goods are necessary and consumers and producers of the BLNS countries depend on them. The results also indicate that the agreement between the RSA and the EU brought about increased imports to the BLNS countries. Demand for exports is also income elastic and price inelastic. The volume of exports to the RSA, from the BLNS, seems to increase following the agreement. The empirical findings imply first, that imports could have led to a crowding out of domestic production, which would negatively impact on domestic industry. Second, the EU-SA TDCA has benefited the BLNS countries by boosting their exports.

Suggested Citation

  • Montseng TSOLO & Imogen Bonolo MOGOTSI & Gaotlhobogwe MOTLALENG, 2010. "The Impact Of European Union - South Africa Trade Development And Cooperation Agreement On Botswana, Lesotho, Namibia And Swaziland," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 5, pages 129-148, June.
    • Handle: RePEc:aic:revebs:y:2010:i:5:tsolom
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    File URL: http://rebs.ro/resource/REBS_5/Focus%20On%20Economic%20Development%20In%20Africa/Tsolo,M,%20Mogotsi,I,%20Motlaleng,G%20%97%20The%20Impact%20Of%20European%20Union%20-%20South%20Africa%20Trade%20Development%20And%20Cooperation%20Agreement%20On%20Botswana,%20Lesotho,%20Namibia%20And%20Swaziland.pdf
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    More about this item

    Keywords

    EU-SA TDCA; Customs Union; SACU; Trade; BNLS; RSA.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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