Analysing exports in South Africa's chemical sector : a panel data approach

Abstract

Under the Industrial Policy Action Plan of 2007, the South African government identified priority sectors that need to be promoted and developed in order to accelerate growth, reduce unemployment and alleviate poverty. Among these, the chemical sector was identified as a priority sector that needs to be developed for this purpose. This paper analyses exports within the chemical sector using a gravity model approach. It further investigates whether there is unexploited trade potential between South Africa and its trading partners within this sector. The paper identified unexploited trade potential in Austria, Czech Republic, Finland, France, Greece, Hungary, Japan, Malawi, Mauritius, Spain, Tanzania, United Kingdom, United States and Zimbabwe. The analysis concludes by identifying stable and reliable export destinations within the chemical sector which could be targeted to alleviate unemployment, poverty and stimulate growth.