South Africa’s wood export potential using a gravity model

Abstract

Under the Accelerated Shared Growth Initiative for South Africa (ASGISA), the South African government identified priority sectors that need to be promoted and developed in order to accelerate growth and reduce unemployment and poverty by the year 2014. Among these, the wood sector was identified as a priority sector that needs to be developed for this purpose. The development of this sector may contribute towards achieving this objective by higher levels of economic participation and income generation. This paper analyses the determinants of exports of wood and articles of wood using a gravity model approach. It further investigates whether there is unexploited trade potential between South Africa and its trading partners within this sector. The analysis has shown that there is unexploited trade potential among some of South Africa’s trading partners which could stimulate growth to alleviate unemployment and poverty.