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Does bilateral trade in cereals within SADC reflect virtual trade in water between countries with different water endowments?

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  • Greenwell Matchaya
  • Roberto J. Garcia
  • Fousseini Traoré

Abstract

This paper examines intraregional bilateral trade in virtual water embedded in cereal flows between the Southern Africa Development Community (SADC) states. A gravity model is employed to examine whether annual bilateral trade depends on differences in water endowments, but also includes socio-economic and political determinants that affect trade. There is evidence that the abundance of water resources in a country influences trade for a product that is water dependent. Thus, the adverse effect of water scarcity in a country may be ameliorated by encouraging exports of water-intensive cereal crops where water is in abundance and imported where water is scarce.

Suggested Citation

  • Greenwell Matchaya & Roberto J. Garcia & Fousseini Traoré, 2023. "Does bilateral trade in cereals within SADC reflect virtual trade in water between countries with different water endowments?," Water International, Taylor & Francis Journals, vol. 48(6), pages 759-782, August.
    • Handle: RePEc:taf:rwinxx:v:48:y:2023:i:6:p:759-782
    DOI: 10.1080/02508060.2023.2255822
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