South Africa’s Exports Performance: Any Role for Structural Factors?
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
Despite a substantial and prolonged exchange rate depreciation, South Africa’s export performance has disappointed since the global financial crisis. In this paper we focus on the role of structural factors in reducing the responsiveness of South African exports to the real exchange rate depreciation. To this end, we construct a unique database of export performance at the firm level. Our analysis suggests that electricity bottlenecks, limited product market competition, and labor market constraints have reduced the responsiveness of firms’ exports to the rand depreciation. On the other hand, a firm’s ability to diversify its exports has helped it benefit more from currency movements.
Series:
Working Paper No. 2016/024
Subject:
Commodities Depreciation Electricity Export performance Exports Foreign exchange International trade National accounts Real effective exchange rates
English
Publication Date:
February 12, 2016
ISBN/ISSN:
9781475594003/1018-5941
Stock No:
WPIEA2016024
Pages:
16
Please address any questions about this title to publications@imf.org