Balance-of-payment constrained growth : the case of South Africa
The paper contributes to the theory of balance of payments constrained growth, particularly by testing whether the South African balance of payments equilibrium growth rate can explain the actual growth rate in the economy. The paper uses Thirlwall’s law and its methodology for estimations. Running an ordinary least squares regression on the quarterly data from the South African Reserve Bank (SARB) on exports, imports, exchange rate, price of exports, price of imports and actual growth rate from 1960 - 2016, it shows that the South African economy is balance of payments constrained. Policy positions on exchange rate and export promotion are discussed and policy recommendations are presented.
A research report submitted in fulfilment to the Degree of Master of Economics Science in the School of Economic and Business Sciences, University of the Witwatersrand, 2018
Ntshwanti, Mzwanele (2018) Balance of payment constrained growth : the case of Africa, University of the Witwatersrand, Johannesburg, https://hdl.handle.net/10539/28127