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Trade openness, economic growth and economic development nexus in South Africa: a pre- and post-BRICS analysis

Author

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  • Micaela Naledi Monyela

    (University of Johannesburg, Auckland Park Kingsway Campus, PO Box 524 Auckland Park)

  • Charles Shaaba Saba

    (University of Johannesburg, Auckland Park Kingsway Campus, PO Box 524 Auckland Park)

Abstract

This research analyses the interplay between trade liberalisation, economic growth, and economic development in South Africa. The research focuses on two distinct periods, pre-BRICS (1991 to 2010) and post-BRICS (2011 to 2021) and aims to assess economic growth and development trajectories which are intertwined with liberalisation. A Vector Error Correction Model (VECM) is used to account for potential cointegration among the variables. The study reports a long-run equilibrium relationship among the variables. The study finds that trade openness substantially influences GDP growth in the post-BRICS period and highlights a unidirectional causal relationship between trade liberalisation and economic growth. The research also reveals a positive association between trade openness and economic development, implying that openness fosters growth and facilitates broader development outcomes in South Africa. The research underscores the importance of trade openness as a driving force for economic growth and economic development in emerging economies like South Africa.

Suggested Citation

  • Micaela Naledi Monyela & Charles Shaaba Saba, 2024. "Trade openness, economic growth and economic development nexus in South Africa: a pre- and post-BRICS analysis," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-18, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03604-2
    DOI: 10.1057/s41599-024-03604-2
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