Development of BRICS Bilateral Trade Relations: A South African Perspective

Adrino MAZENDA

Abstract


This study examines the structure, value, intensity and complementarity of South Africa’s trade with its Brazil–Russia-India-China (BRIC) partners. It highlights the increasing dynamism of intra- BRICS trade, which started on accession to the World Trade Organisation in 2010. Key determinants to this dynamism include the rapid growth of Chinese and Indian economies accompanied by a steep rise in demand for South Africa’s primary commodities. The rising intensity with China is demand-oriented, while the intensity with India is supply-oriented, mostly in semi-finished and finished commodities.

South Africa’s addition to BRIC coincided with three key developments; its trade balance with most BRIC economies narrowed; the quality of its exports to the BRIC improved; and the value of its exports to BRIC exceeded the value of exports to the European Union and Central Asia. The latter development is attributable to trade diversion from the European Union and Central Asia to the BRIC.

Inclusive growth is probable if South Africa could leverage trade with the BRIC. More, so while employment is at peak in labour- intensive primary industry, intra-industry trade with the BRIC would resuscitate the manufacturing and services sectors so that the complementary effects of trade would be feasible.


Keywords


South Africa; BRICS; Bilateral Trade Relations

Full Text:

PDF

References


Cattaneo, N., Biziwick, M., & Fryer, D. (2015). The BRICS Contingent Reserve Arrangement and its Position in the Emerging Global Financial Architecture, SAIIA Policy Insights, 10, 1-7.

De-Castro, T. (2012). Trade Co-operation indicators: Development of BRIC bilateral trade flows. International Review of Business Research papers, 8(1), 211-223.

Didier, L., & Hoarau, J.F. (2014, 03 October). Determinants of Bilateral Trade between BRICs and Sub Saharan Africa: What the Gravity Model tells us? CEOMI, University of La Reunion. CEOMI website: http://cerdi.org/uploads/html/437/Didier.pdf

Edwards, L., & Lawrence, R. (2012). A strategic View of South Africa’s trade policy in relation to future global trading environment, South African Journal of International Affairs, 19(3), 277–298.

Gelb, S. (2014).South Africa’s Foreign Direct Investment Links with the BRIC countries: WTI/Mandela Institute Working paper, September 2014.

Industrial Development Cooperation. (2014). BRICS trade performances focussing on South Africa: Trade Report, Gauteng, Department of Research and Information. http://www.idc.co.za/images/Content/IDC_research_report_BRICS_trade_performance_focusing_on_South_Africa.pdf.

International Trade Centre.(2015, 22 December). Database, ITC website: http://www.trademap.org/tradestat/Product_SelCountry.

Jacobs, C. (2012). Identifying Export Opportunities for SA in South America with Special Reference to Measuring Trade Barriers, Unpublished Thesis, North West University, Potchefstroom, South Africa

Krugman, P. (1979). Increasing Returns, Monopolistic Competition and International Trade: Journal of International Economics, 9(4), 469-79.

Kuboniwa, M.(2011). Impact of trading gains on economic growth in BRICs. Some Lessons from BRICs, RRC Working Paper Series, No. 31

Leao, E.R.,& Leao, P.R (2009). Trade based on economies of scale under monopolistic competition: A Clarification of Krugman’s Model, Technical University of Lisbon Working Paper, 10/DE/UECE.

Lederman, D.,& Maloney, W.F. (2003). Trade Structure and growth. World Bank Policy Research, Working Paper No. 3025.

Lewis, J.D. (2001). Reform and Opportunity: The Changing Role and Patterns of Trade in South Africa and SADCC Region, South Africa, Working Paper Series No.14.

Mathur, S., & Dasgupta, M. (2013, 20 September). BRICS, Trade Policies, Institutions and Areas for Deepening Cooperation, Bhawan, New Delhi, Centre for WTO Studies, Indian Institute of Foreign Trade, http://wtocentre.iift.ac.in/books_reports.asp

Onyekwena, C., Taiwo, O.,& Eberechukwu, U. (2014). South Africa in BRICS: A bilateral trade analysis, South African Institute of International Affairs. African global insights, Economic Diplomacy Programme, Pretoria, Occasional Paper No. 1

Sandrey, R., Fundira, T., Vink, N., Jensen, H.G., Vilijoen, W.,& Nyhodo, B. (2013). BRICS: South Africa’s Way Ahead? Stellenbosch, Trade Law Centre.

Schneider, P.H. (2003). International Trade, Economic Growth and Intellectual Property Rights: A Panel Data Study of Developed and Developing Countries. Journal of Development Economics, 7, 529-547.

Singh, S.P., & Dube, M. (2013, 23 December). BRICS and the World Order: A Beginner’s Guide: http:www.policypointers.org/Page/View/15114.

South African Reserve Bank. (2014). Quarterly Bulletin, March 2014. Pretoria, South Africa Reserve Bank.

South Africa Revenue Services (2015, December 24). Merchandise Trade Statistics, SARS website: http://www.sars.gov.za/ClientSegments/CustomsExcise/TradeStatistics/.

The Presidency. (2014). SA in Global Arena, from The 20 Year Review Extract, Section 8.2.11, Trade and investment in Chapter 8, Pretoria, South Africa.

United Nations Commercial Trade (2014, March 14). South Africa 2013, UN Comtrade website: http://docz.io/doc/1084086/south-africa---un-comtrade.

Volchkova, N., & Ryabtseva, M. (2013, 21 March). Russia–SA Relations: Collaboration in BRICS and the G-20, South African Institute of International Affairs, Occasional Paper, 135. SAIA website: http://www.saiia.org.za/occasional-papers/russia%E2%80%93south-africa-relations- collaboration-in-brics-and-the-g-20.

United Nations Conference on Trade and Development (2015, 5 March). Foreign Direct Investment Report, UNCTAD website: http://unctadstat.unctad.org.

United Nations Development Organisation (2012) Structural Change, Poverty Reduction and Industrial Policy in the BRICS: Policy Report, Vienna, Switzerland.

World Integrated Trade Solutions.(2016, 2 January). Database: World Development Indicators, WITS website: www.wits.worldbank.org.

World Bank.(2015, 23 December). World Development Indicators, World Bank website: http://data.worldbank.org/indicator/FS.AST.PRVT.GD.ZS.

World Bank.(2015, 23 December). Database, World Bank website: http://dataworldbank.org/.

World Trade Organisation.(2015, 14 October). South Africa Profile, WTO website:

http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=F&Country=ZAHome>Resources>Statistics>Statisticsdatabase>Tradeprofiles.pdf.




DOI: http://dx.doi.org/10.20321/nilejbe.v2i2.49

Refbacks

  • There are currently no refbacks.




Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.