- Title
- The Impact of Automobile Trade on Economic Growth: A Comparative Study of South Africa and Brazil
- Creator
- Bhasa, W
- Subject
- Automobile industry and trade
- Date
- 2018
- Type
- Thesis
- Type
- Masters
- Type
- MCom (Economics)
- Identifier
- http://hdl.handle.net/10353/13292
- Identifier
- vital:39631
- Description
- Economic theory suggests that trade plays a critical role in the economic performance of a country. South Africa and Brazil’s automobile trade has been greatly influenced by government intervention through policy regimes with essentially similar objectives. Through the Automotive Production Development Programme in South Africa and the Plano Brasil Maior in Brazil, both countries have invested much effort in legislation, technology and capital to boost the automobile industry and overcome challenges of strengthening the automotive value chain, sustaining employment, raising productivity and increasing sales volumes both internally and on foreign markets. In light of such government interventions, this study investigates the contribution of the automobile trade on economic growth on South Africa and Brazil. The major concern is to determine whether the impact of the automobile trade is greater in South Africa and lesser in Brazil or vice-versa. This paper uses panel data analysis through the Least Squares Dummy Variable technique using quarterly data from 1995 to 2016. The regression results show that exports of automobiles, domestic investment in automobile trade, employment levels in the automobile industry together with the levels of general government expenditure positively affect GDP growth while imports of automobiles and inflation have a negative effect on general economic performance. Both countries should continue with automobile trade and governments should offer more production incentives and tax exemptions for component imports. Automobile industries are strategic industries which need government protection. Promotion of long-term partnerships and relationships within the automotive industry will play a critical role in boosting production with associated deepening of the components industry. The LSDV model results reveal that the individual country effects are statistically significant; this implies that the results for South Africa and Brazil differ. South Africa had a higher country coefficient which indicates that they benefitted more from the automobile trade than Braz
- Format
- 108 leaves
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Management and Commerce
- Language
- English
- Rights
- University of Fort Hare
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details | SOURCE1 | BHASA W 201615086 MCOM.pdf | 896 KB | Adobe Acrobat PDF | View Details |