Abstract:
Economic growth can be enhanced through increased trade among countries, provided the correct
institutional structures are in place. A country’s trade is dependent not only on its own trade
facilitation reforms but also on those of the trading partners. This paper, using an augmented
gravity model, examines trade facilitation factors that impact on South Africa’s exports to other
selected African countries. The results of the estimation reveal the following. An improvement
in the customs environment within the importing country provides the largest gain in terms of
increasing trade flows, followed by the regulatory environment and domestic infrastructure.
Furthermore, adjacency and common language impact positively on South African exports,
while distance between countries impacts negatively on it. Being part of the Southern African
Development Community is also enhancing exports from South Africa, compared with being
part of the East African Community.
