African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6688

Full Length Research Paper

Causality relationship between agricultural exports and agriculture’s share of gross domestic product in South Africa: A case of avocado, apple, mango and orange from 1994 to 2011

M. B. Bulagi
  • M. B. Bulagi
  • Department of Agricultural Economics and Animal Production, University of Limpopo, Private Bag X1106, Sovenga 0727, South Africa.
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J. J. Hlongwane
  • J. J. Hlongwane
  • Department of Agricultural Economics and Animal Production, University of Limpopo, Private Bag X1106, Sovenga 0727, South Africa.
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A. Belete
  • A. Belete
  • Department of Agricultural Economics and Animal Production, University of Limpopo, Private Bag X1106, Sovenga 0727, South Africa.
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  •  Received: 24 January 2014
  •  Accepted: 17 December 2014
  •  Published: 26 February 2015

Abstract

The study analysed causality between agricultural exports and its share of gross domestic product in South Africa from 1994 to 2011. Apple, avocado, mango and orange exports in tonnes were used to Granger analyse agricultural exports versa agricultural GDP contribution. The results of the Granger causality test showed a unidirectional causality between exports and GDP. Policies and programmes can help farmers with employees wage to enter the export markets which are ineffectual. Policies can be aimed at redress, such as the Employment Equity Act; which is size dependent on other sectors outside agriculture which discourage growth and export participation.

 

Key words: Agricultural economic growth, agricultural exports, agricultural trade policies, export-led growth, Granger Causality test.