Trade liberalisation, competitiveness and the real exchange rate (RER) : an analysis of developments in South Africa during the 1990s

Loading...
Thumbnail Image

Authors

Rangasamy, L.
Harmse, Chris

Journal Title

Journal ISSN

Volume Title

Publisher

Faculty of Economic and Management Sciences, University of Pretoria

Abstract

This paper tests whether tariff liberalisation has lead to increased competitiveness in the South African economy. The 46 sectors of the South African economy are classified as exportable, importable, importable and exportable and non-tradable. The impact of trade liberalisation on domestic prices for importables and exportables is then assessed by making use of real exchange rate calculations. It is concluded that while increased globalisation of production processes in South Africa may have improved the competitiveness of the tradable sector, tariff liberalisation played a minimal role in improving competitiveness in the manufacturing sector.

Description

Keywords

Trade liberalisation, Competitiveness, Real exchange rate (RER), South African economy

Sustainable Development Goals

Citation

Rangasamy, L & Harmse, C 2003, 'Trade liberalisation, competitiveness and the real exchange rate (RER) : an analysis of developments in South Africa during the 1990s', South African Journal of Economic and Management Sciences, vol. 6, no. 4, pp. 643-665. [http://www.journals.co.za/ej/ejour_ecoman.html]