Measuring the industry maturity of the South African export table grape industry
- Authors: De Bruyn, Corean
- Date: 2019
- Subjects: Exports -- South Africa , Fruit trade -- South Africa Agriculture -- Economic aspects -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/39403 , vital:35243
- Description: Despite the fact that the South African export table grape industry is more than a century old, studies which focus on the development of the industry have not previously been conducted. The main aim of this study was to measure the phase of maturity of the South African export table grape industry. The industry life cycle model was a main focus point to measure the maturity of the South African export table grape industry and as such has been used to analyse the dynamics of the South African export table grape industry. An expansive literature study was conducted to identify as many variables as possible that serve as indicators of the phase of maturity. A measuring instrument, in the form of a questionnaire, was developed, based on these identified variables. A randomly selected sample of 214 export table grape producers completed the questionnaire. Five main export table grape regions are present in South Africa, namely, the Hex River Valley region, the Berg River region, the Olifants River region, the Orange River region and the Northern Province region. An exploratory factor analysis was used to disentangle and reduce the large number of variables. From the factor analysis, four distinct factors emerged, namely: Manufacturing and Distribution, Demand, Research and Development, and Buyer Segments. Cronbach’s coefficient alpha was employed to confirm the reliability and internal consistency of the measuring instrument. The mean scores and standard deviations were used to determine the strength of direction of each of the four variables, followed by a t-test to determine the differences in development between the five regions. Finally, the Pearson’s Product Moment Correlations were calculated for investigating the correlations between the variables used. The findings indicated that, among the five-export table grape regions in South Africa, Manufacturing and Distribution have evolved beyond the introductory phase, but that there is still considerable scope for growth in all the regions. Additionally, there are significant differences between the five regions, thereby indicating that the industry exhibits uneven development with some of the regions being further along the path of development. Demand delivered the second highest mean score and the smallest variation among the five regions. This indicates that export table grapes from South African producers have a loyal customer base. The mean score, however, still indicated that the industry as a whole is in the growth phase of development. Research and Development delivered the highest mean score, thereby signifying the industry’s commitment to research and development. This once again points to an industry being in the growth phase of development. The average mean score delivered by Buyer Segments indicates that the market has begun to fragment. This provides opportunities to create and exploit niche marks. This too conforms to the characteristics of the growth phase in the industry life cycle model. In essence, the current study provided useful information regarding the evolution of the South African export table grape industry. Moreover, a foundation has been laid for further research to be conducted in the industry life cycle of the South African export table grape industry.
- Full Text:
- Date Issued: 2019
- Authors: De Bruyn, Corean
- Date: 2019
- Subjects: Exports -- South Africa , Fruit trade -- South Africa Agriculture -- Economic aspects -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/39403 , vital:35243
- Description: Despite the fact that the South African export table grape industry is more than a century old, studies which focus on the development of the industry have not previously been conducted. The main aim of this study was to measure the phase of maturity of the South African export table grape industry. The industry life cycle model was a main focus point to measure the maturity of the South African export table grape industry and as such has been used to analyse the dynamics of the South African export table grape industry. An expansive literature study was conducted to identify as many variables as possible that serve as indicators of the phase of maturity. A measuring instrument, in the form of a questionnaire, was developed, based on these identified variables. A randomly selected sample of 214 export table grape producers completed the questionnaire. Five main export table grape regions are present in South Africa, namely, the Hex River Valley region, the Berg River region, the Olifants River region, the Orange River region and the Northern Province region. An exploratory factor analysis was used to disentangle and reduce the large number of variables. From the factor analysis, four distinct factors emerged, namely: Manufacturing and Distribution, Demand, Research and Development, and Buyer Segments. Cronbach’s coefficient alpha was employed to confirm the reliability and internal consistency of the measuring instrument. The mean scores and standard deviations were used to determine the strength of direction of each of the four variables, followed by a t-test to determine the differences in development between the five regions. Finally, the Pearson’s Product Moment Correlations were calculated for investigating the correlations between the variables used. The findings indicated that, among the five-export table grape regions in South Africa, Manufacturing and Distribution have evolved beyond the introductory phase, but that there is still considerable scope for growth in all the regions. Additionally, there are significant differences between the five regions, thereby indicating that the industry exhibits uneven development with some of the regions being further along the path of development. Demand delivered the second highest mean score and the smallest variation among the five regions. This indicates that export table grapes from South African producers have a loyal customer base. The mean score, however, still indicated that the industry as a whole is in the growth phase of development. Research and Development delivered the highest mean score, thereby signifying the industry’s commitment to research and development. This once again points to an industry being in the growth phase of development. The average mean score delivered by Buyer Segments indicates that the market has begun to fragment. This provides opportunities to create and exploit niche marks. This too conforms to the characteristics of the growth phase in the industry life cycle model. In essence, the current study provided useful information regarding the evolution of the South African export table grape industry. Moreover, a foundation has been laid for further research to be conducted in the industry life cycle of the South African export table grape industry.
- Full Text:
- Date Issued: 2019
South Africa’s exports to Zimbabwe: a gravity model analysis
- Authors: Muronda, Francis
- Date: 2018
- Subjects: Exports -- South Africa , Foreign trade promotion -- South Africa Foreign trade promotion -- Zimbabwe International finance South Africa -- Economic policy
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/22375 , vital:29964
- Description: This study sets out to explore South Africa’s exports to Zimbabwe as explained by the exchange rates, distance, the two countries’ GDPs and populations. The underlying international trade theories as well as relevant empirical literature are discussed in order to put the study into perspective. Panel data methodology was used to estimate respective gravity models per product category using the log linear specification of the Random effects model. The resultant regression parameters are elasticities. Distance being a proxy to transport costs and the exchange rates retard SA’s exports to Zimbabwe. The GDP of Zimbabwe is found to play a positive and significant role in determining SA’s export flows. The other variables had varying effects from one product category to another. The objectives of the research were threefold: firstly, to apply the gravity model to determine South Africa’s export potential to Zimbabwe; secondly, to determine the gap between the actual and potential flows of exports from South Africa to Zimbabwe and thirdly to apply the speed of convergence tests between the actual and the potential flows of SA’s exports to Zimbabwe. To estimate the gravity models for each product category the study used panel data on South Africa’s exports to SADC countries covering a period of eight years from 2009 when Zimbabwe dollarized to 2016. The parameters obtained were then simulated to provide the point estimates of potential export flows from South Africa to Zimbabwe for each product category. Simple point estimate comparisons between potential flows and the actual flows indicated that most of the product categories portrayed untapped potential; for example, 2017 point estimates showed unutilized potential in 14 product categories. The speed of convergence tests which provide a more efficient measure of expandable opportunities were then carried out between the actual and potential flows for each product category. The results of the speed of convergence tests indicated 10 product categories that presented unutilized potential for South Africa’s exports to Zimbabwe with product category C11 (Textiles and textile articles) at the top of the ranking. Thus the study established that there exists unutilized potential for SA’s exports in Zimbabwe in several product categories despite the prevailing economic hardships that the latter country is facing. Negotiating better bi-lateral trade arrangements specific to product categories; implementation of a one stop border control point and improved international marketing; product quality and disease control strategies are the policy recommendations that the study makes in order for untapped potential to be utilized to realize symbiotic benefits for the two nations.
- Full Text:
- Date Issued: 2018
- Authors: Muronda, Francis
- Date: 2018
- Subjects: Exports -- South Africa , Foreign trade promotion -- South Africa Foreign trade promotion -- Zimbabwe International finance South Africa -- Economic policy
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/22375 , vital:29964
- Description: This study sets out to explore South Africa’s exports to Zimbabwe as explained by the exchange rates, distance, the two countries’ GDPs and populations. The underlying international trade theories as well as relevant empirical literature are discussed in order to put the study into perspective. Panel data methodology was used to estimate respective gravity models per product category using the log linear specification of the Random effects model. The resultant regression parameters are elasticities. Distance being a proxy to transport costs and the exchange rates retard SA’s exports to Zimbabwe. The GDP of Zimbabwe is found to play a positive and significant role in determining SA’s export flows. The other variables had varying effects from one product category to another. The objectives of the research were threefold: firstly, to apply the gravity model to determine South Africa’s export potential to Zimbabwe; secondly, to determine the gap between the actual and potential flows of exports from South Africa to Zimbabwe and thirdly to apply the speed of convergence tests between the actual and the potential flows of SA’s exports to Zimbabwe. To estimate the gravity models for each product category the study used panel data on South Africa’s exports to SADC countries covering a period of eight years from 2009 when Zimbabwe dollarized to 2016. The parameters obtained were then simulated to provide the point estimates of potential export flows from South Africa to Zimbabwe for each product category. Simple point estimate comparisons between potential flows and the actual flows indicated that most of the product categories portrayed untapped potential; for example, 2017 point estimates showed unutilized potential in 14 product categories. The speed of convergence tests which provide a more efficient measure of expandable opportunities were then carried out between the actual and potential flows for each product category. The results of the speed of convergence tests indicated 10 product categories that presented unutilized potential for South Africa’s exports to Zimbabwe with product category C11 (Textiles and textile articles) at the top of the ranking. Thus the study established that there exists unutilized potential for SA’s exports in Zimbabwe in several product categories despite the prevailing economic hardships that the latter country is facing. Negotiating better bi-lateral trade arrangements specific to product categories; implementation of a one stop border control point and improved international marketing; product quality and disease control strategies are the policy recommendations that the study makes in order for untapped potential to be utilized to realize symbiotic benefits for the two nations.
- Full Text:
- Date Issued: 2018
An investigation into factors impacting on exports from South Africa to the Southern African Development Community (SADC)
- Authors: Fish, Colin
- Date: 2012
- Subjects: Exports -- South Africa , Exports -- Africa, Southern , Manufactures -- South Africa , Manufactures -- Africa, Southern , Economic assistance
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8800 , http://hdl.handle.net/10948/d1016494
- Description: Globalisation has changed the world economy. Manufacturers face vigorous competition in both local and export markets and need to have a genuine competitive advantage in order to prosper and grow. South Africa is still predominantly a resource based exporter with high aspirations of developing trade in value-added products. The government has recognised the importance of developing national manufacturing capacity as a means of increasing employment and reducing poverty. To this end the government provides substantial support to both the manufacturing and exporting sectors. The government also negotiated the Southern African Development Community (SADC) agreement which leverages some powerful competitive advantages for South African manufacturers exporting into the region. However, since ratification of the SADC agreement in 2008 there has been no perceptible increase in export activity to the region when compared to other markets. This research study was conducted to determine why this is the case and what factors are influencing the process. A literature review was undertaken encapsulating three principal themes; namely, export barriers, the role of the South African government in the export process, and the SADC agreement. Based on the findings of the literature review a research questionnaire was constructed and subsequently completed by a cross section of manufacturers in the Eastern Cape. It was found that export barriers do not pose a major obstacle to trade into the SADC region. The role the government plays was less conclusive with some successes noted, but on the whole the impact is not meaningfully positive. On the other hand the SADC agreement and the dynamics prevailing in the free trade area do have a positive impact on exports to the region. The level of awareness with regard to the government support initiatives was disappointingly low. The government offers a number of helpful support initiatives which are unknown to more than half the response group. The awareness level of the dynamics prevailing in the SADC region are an improvement but are still surprisingly low. South African manufacturers enjoy significant competitive advantages within the region that are going largely unnoticed. It is recommended, inter alia, that the government consolidates some of its support initiatives, as well as provides a dedicated SADC support desk. Management should adopt an export culture and re-evaluate the opportunity to trade with the SADC region.
- Full Text:
- Date Issued: 2012
- Authors: Fish, Colin
- Date: 2012
- Subjects: Exports -- South Africa , Exports -- Africa, Southern , Manufactures -- South Africa , Manufactures -- Africa, Southern , Economic assistance
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8800 , http://hdl.handle.net/10948/d1016494
- Description: Globalisation has changed the world economy. Manufacturers face vigorous competition in both local and export markets and need to have a genuine competitive advantage in order to prosper and grow. South Africa is still predominantly a resource based exporter with high aspirations of developing trade in value-added products. The government has recognised the importance of developing national manufacturing capacity as a means of increasing employment and reducing poverty. To this end the government provides substantial support to both the manufacturing and exporting sectors. The government also negotiated the Southern African Development Community (SADC) agreement which leverages some powerful competitive advantages for South African manufacturers exporting into the region. However, since ratification of the SADC agreement in 2008 there has been no perceptible increase in export activity to the region when compared to other markets. This research study was conducted to determine why this is the case and what factors are influencing the process. A literature review was undertaken encapsulating three principal themes; namely, export barriers, the role of the South African government in the export process, and the SADC agreement. Based on the findings of the literature review a research questionnaire was constructed and subsequently completed by a cross section of manufacturers in the Eastern Cape. It was found that export barriers do not pose a major obstacle to trade into the SADC region. The role the government plays was less conclusive with some successes noted, but on the whole the impact is not meaningfully positive. On the other hand the SADC agreement and the dynamics prevailing in the free trade area do have a positive impact on exports to the region. The level of awareness with regard to the government support initiatives was disappointingly low. The government offers a number of helpful support initiatives which are unknown to more than half the response group. The awareness level of the dynamics prevailing in the SADC region are an improvement but are still surprisingly low. South African manufacturers enjoy significant competitive advantages within the region that are going largely unnoticed. It is recommended, inter alia, that the government consolidates some of its support initiatives, as well as provides a dedicated SADC support desk. Management should adopt an export culture and re-evaluate the opportunity to trade with the SADC region.
- Full Text:
- Date Issued: 2012
The role of export diversification on economic growth in South Africa: 1980 - 2010
- Authors: Mudenda, Caroline
- Date: 2012
- Subjects: Economic development -- South Africa , International trade , Exports -- South Africa , Capital movements -- South Africa , Human capital -- South Africa , Free trade -- South Africa , Foreign exchange -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11463 , http://hdl.handle.net/10353/d1007044 , Economic development -- South Africa , International trade , Exports -- South Africa , Capital movements -- South Africa , Human capital -- South Africa , Free trade -- South Africa , Foreign exchange -- South Africa , South Africa -- Economic conditions
- Description: This study examined the role of export diversification on economic growth in South Africa. The study used annual time series data for the period covering 1980 to 2010 and employed a Vector Error Correction Model to determine the effects of export diversification and possible factors that affect it on economic growth. Possible factors that affect export diversification considered as independent variables in this study include gross capital formation, human capital, real effective exchange rate and trade openness. Results of the study reveal that export diversification and trade openness are positively related to economic growth while real effective exchange rate, capital formation and human capital have negative long run relationships with economic growth. The study recommended the continual implementation of trade liberalisation by the South African government. The South African government is also encouraged to promote the production of a diversified export basket through subsidisation, promotion of innovation and production of new products.
- Full Text:
- Date Issued: 2012
- Authors: Mudenda, Caroline
- Date: 2012
- Subjects: Economic development -- South Africa , International trade , Exports -- South Africa , Capital movements -- South Africa , Human capital -- South Africa , Free trade -- South Africa , Foreign exchange -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11463 , http://hdl.handle.net/10353/d1007044 , Economic development -- South Africa , International trade , Exports -- South Africa , Capital movements -- South Africa , Human capital -- South Africa , Free trade -- South Africa , Foreign exchange -- South Africa , South Africa -- Economic conditions
- Description: This study examined the role of export diversification on economic growth in South Africa. The study used annual time series data for the period covering 1980 to 2010 and employed a Vector Error Correction Model to determine the effects of export diversification and possible factors that affect it on economic growth. Possible factors that affect export diversification considered as independent variables in this study include gross capital formation, human capital, real effective exchange rate and trade openness. Results of the study reveal that export diversification and trade openness are positively related to economic growth while real effective exchange rate, capital formation and human capital have negative long run relationships with economic growth. The study recommended the continual implementation of trade liberalisation by the South African government. The South African government is also encouraged to promote the production of a diversified export basket through subsidisation, promotion of innovation and production of new products.
- Full Text:
- Date Issued: 2012
An empirical analysis of the determinants and growth of South African exports
- Authors: Choga, Ireen
- Date: 2008
- Subjects: Exports -- South Africa -- History , Export marketing -- South Africa , International trade -- South Africa , Exports -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11452 , http://hdl.handle.net/10353/198 , Exports -- South Africa -- History , Export marketing -- South Africa , International trade -- South Africa , Exports -- South Africa
- Description: Exports have considerable effects on economic growth, employment and trade so it is crucial to understand the factors that are responsible for their variation. This study analyses the fundamental determinants of exports using annual South African data covering the period 1980 to 2006. It initially provides an overview of the South African export structure and export growth. A review of theoretical determinants is then specified. The study tests for stationarity and cointegration using the Johansen (1991, 1995) methodology. A vector error correction model is run to provide robust determinant variables on exports. The following variables which have been found to have a long run relationship with exports include: the domestic price of exports, real effective exchange rate, trade openness, foreign income and price of inputs (cost of production). The estimate of the speed of adjustment coefficient found in this study indicates that about 96% of the variation in exports from its equilibrium level is corrected within one year. The results that have emerged from this analysis corroborate the theoretical predictions and are also supported by previous researchers or studies.
- Full Text:
- Date Issued: 2008
- Authors: Choga, Ireen
- Date: 2008
- Subjects: Exports -- South Africa -- History , Export marketing -- South Africa , International trade -- South Africa , Exports -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11452 , http://hdl.handle.net/10353/198 , Exports -- South Africa -- History , Export marketing -- South Africa , International trade -- South Africa , Exports -- South Africa
- Description: Exports have considerable effects on economic growth, employment and trade so it is crucial to understand the factors that are responsible for their variation. This study analyses the fundamental determinants of exports using annual South African data covering the period 1980 to 2006. It initially provides an overview of the South African export structure and export growth. A review of theoretical determinants is then specified. The study tests for stationarity and cointegration using the Johansen (1991, 1995) methodology. A vector error correction model is run to provide robust determinant variables on exports. The following variables which have been found to have a long run relationship with exports include: the domestic price of exports, real effective exchange rate, trade openness, foreign income and price of inputs (cost of production). The estimate of the speed of adjustment coefficient found in this study indicates that about 96% of the variation in exports from its equilibrium level is corrected within one year. The results that have emerged from this analysis corroborate the theoretical predictions and are also supported by previous researchers or studies.
- Full Text:
- Date Issued: 2008
Does primary resource-based industrialisation offer an escape from underdevelopment?
- Authors: Ali, Fatimah
- Date: 2006
- Subjects: Comparative advantage (International trade) , Exports -- Africa, West , Exports -- Mauritius , Exports -- South Africa , Foreign trade promotion -- Mauritius , International trade , Primary commodities -- Africa , Human capital -- Economic aspects -- Africa , Natural resources -- Africa , Africa -- Commerce
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1018 , http://hdl.handle.net/10962/d1002753 , Comparative advantage (International trade) , Exports -- Africa, West , Exports -- Mauritius , Exports -- South Africa , Foreign trade promotion -- Mauritius , International trade , Primary commodities -- Africa , Human capital -- Economic aspects -- Africa , Natural resources -- Africa , Africa -- Commerce
- Description: It is commonly believed about sub-Saharan Africa (SSA) that the region has a comparative advantage in primary resources as reflected by its high share of primary exports to total exports. In acknowledging the region's comparative advantage, the study tries to put the determinants from the Wood and Mayer (1998, (999) (W-M) Heckscher-Ohlin based model in the context of two relatively diversified countries (South Africa and Mauritius) and two commodity-export-dependent countries of sub-Saharan Africa (Nigeria and Cô̌̌te d'Ivoire). The study finds that the skill and land resource measures used in the W -M (1998, 1999) thesis do not explain why Nigeria, having a similar level of skill per worker ratio to South Africa, has not diversified. Further, Mauritius having relatively the highest skill per land ratio specialises in low-skill textiles and clothing, while South Africa specialises in the more human capital-intensive "other manufactures" group. The other measure, a low land per worker ratio that explains Mauritius' relatively higher share of manufacturing exports, also fails to apply to Nigeria. The thesis thus concludes that the W-M land and skill measures could only be rough proxies in determining comparative advantage in manufacturing exports. However, employing the Dutch disease hypothesis recognises the potential of land abundance as a natural resource, namely minerals in South Africa, oil in Nigeria, and cocoa in Cǒ̌te d'Ivoire. The Dutch disease is a dynamic process of structural economic and political development that will permit an understanding of why natural resource abundant countries do not have a comparative advantage in manufacturing, at least in the short to medium term. The study therefore investigates commodity dependence and the Dutch disease effects to examine whether primary resource- based industrialisation offers an escape from underdevelopment. It establishes that South Africa, a mineral resource rich country, diversified based on a broad mineral-energy-complex (MEC) reinforcing the notion that land abundant countries will first invest in capital- intensive primary resource processing. However, the thesis concludes that in Nigeria and Cǒ̌te d'Ivoire where external shocks are more predominant probably because of single commodity export reliance, the manufacturing sector lags behind more due to resource and spending effects that a natural resource boom generates in these economies.
- Full Text:
- Date Issued: 2006
- Authors: Ali, Fatimah
- Date: 2006
- Subjects: Comparative advantage (International trade) , Exports -- Africa, West , Exports -- Mauritius , Exports -- South Africa , Foreign trade promotion -- Mauritius , International trade , Primary commodities -- Africa , Human capital -- Economic aspects -- Africa , Natural resources -- Africa , Africa -- Commerce
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1018 , http://hdl.handle.net/10962/d1002753 , Comparative advantage (International trade) , Exports -- Africa, West , Exports -- Mauritius , Exports -- South Africa , Foreign trade promotion -- Mauritius , International trade , Primary commodities -- Africa , Human capital -- Economic aspects -- Africa , Natural resources -- Africa , Africa -- Commerce
- Description: It is commonly believed about sub-Saharan Africa (SSA) that the region has a comparative advantage in primary resources as reflected by its high share of primary exports to total exports. In acknowledging the region's comparative advantage, the study tries to put the determinants from the Wood and Mayer (1998, (999) (W-M) Heckscher-Ohlin based model in the context of two relatively diversified countries (South Africa and Mauritius) and two commodity-export-dependent countries of sub-Saharan Africa (Nigeria and Cô̌̌te d'Ivoire). The study finds that the skill and land resource measures used in the W -M (1998, 1999) thesis do not explain why Nigeria, having a similar level of skill per worker ratio to South Africa, has not diversified. Further, Mauritius having relatively the highest skill per land ratio specialises in low-skill textiles and clothing, while South Africa specialises in the more human capital-intensive "other manufactures" group. The other measure, a low land per worker ratio that explains Mauritius' relatively higher share of manufacturing exports, also fails to apply to Nigeria. The thesis thus concludes that the W-M land and skill measures could only be rough proxies in determining comparative advantage in manufacturing exports. However, employing the Dutch disease hypothesis recognises the potential of land abundance as a natural resource, namely minerals in South Africa, oil in Nigeria, and cocoa in Cǒ̌te d'Ivoire. The Dutch disease is a dynamic process of structural economic and political development that will permit an understanding of why natural resource abundant countries do not have a comparative advantage in manufacturing, at least in the short to medium term. The study therefore investigates commodity dependence and the Dutch disease effects to examine whether primary resource- based industrialisation offers an escape from underdevelopment. It establishes that South Africa, a mineral resource rich country, diversified based on a broad mineral-energy-complex (MEC) reinforcing the notion that land abundant countries will first invest in capital- intensive primary resource processing. However, the thesis concludes that in Nigeria and Cǒ̌te d'Ivoire where external shocks are more predominant probably because of single commodity export reliance, the manufacturing sector lags behind more due to resource and spending effects that a natural resource boom generates in these economies.
- Full Text:
- Date Issued: 2006
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