Dynamic gains from trade: evidence from South Africa (Gunnar Jonsson and Arvind Subramanian): a review.

Abstract

The specific objective of the paper was to examine the empirical relationship between trade and total factor productivity (TFP) in South Africa, with the hypothesis that enhanced trade in recent years had improved efficiency in the South African economy. The authors believed that the study would be important from a policy perspective, as trade liberalization constituted an important element in the government's effort to boost the underlying supply capacity of the economy. The outcome was also expected to reveal if the South African experience differed from that of other countries.