Investigating The Effects Of Terms Of Trade On Economic Growth

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The Case Of South Africa

The book assesses the effects of terms of trade, volume of import and export on economic growth as measured by South Africa’s value of GDP.

The distinctive feature of this study is that terms of tradeand economic growth is examined from a time series perspective.The importance of the study lies with a policy perception that the element of trade liberalization adds a significance value to government’s decision making process with regard to comprehending the underlying supply capacity of the economy.

The distinctive feature of this study is that terms of trade and economic growth is examined from a time series perspective.

An important and interesting matter worth noting from the research is that the empirical results present both the volume of export and the terms of trade as positively related to growth whilst volume of imports is negatively related to growth.

Given these outcomes, the paper therefore concludes that the price effects from tradable goods (including gold) and other services have a significant role in stimulating South Africa’s economic growth.

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