Original Research

Do international economic developments affect the South African economy?

JA Swanepoel
South African Journal of Economic and Management Sciences | Vol 9, No 1 | a1162 | DOI: https://doi.org/10.4102/sajems.v9i1.1162 | © 2014 JA Swanepoel | This work is licensed under CC Attribution 4.0
Submitted: 11 July 2014 | Published: 11 July 2014

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JA Swanepoel, SA Reserve Bank

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Abstract

Globalisation has opened economies more, exposing them to more international shocks and increasing the challenges to which domestic economic policies must respond. This paper provides a starting point for the analysis of the impact of international economic developments on the South African economy by means of graphical illustrations, correlations coefficients and in some cases a VAR analysis. Although this paper has shed some light on the importance of international economic developments on the South African economy, more rigorous econometric investigation is needed to validate the arguments and to address many of the unresolved questions.

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