Original Research

Stages of growth in the South African economy: The role of agriculture

R. F. Townsend, J. van Zyl
South African Journal of Economic and Management Sciences | Vol 1, No 2 | a1876 | DOI: https://doi.org/10.4102/sajems.v1i2.1876 | © 2019 R. F. Townsend, J van Zyl | This work is licensed under CC Attribution 4.0
Submitted: 19 September 2020 | Published: 30 June 1998

About the author(s)

R. F. Townsend, Department of Agricultural Economics, University of Pretoria, South Africa
J. van Zyl, Department of Agricultural Economics, University of Pretoria, South Africa

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Abstract

This paper identifies the stages of growth in the South African economy with particular reference to agriculture. Simple a-matrix causality tests are used to determine the direction of causality between the gross sectoral products of the economy and the gross agricultural product. The percentage share of the agricultural industry in the South African economy is relatively small and continues to decline as the economy grows. However, there has been a greater integration of agriculture within the economy during the 1990s as a result of the liberalisation of many aspects of the economy. Agriculture may have played a passive role in the economy, but has provided foreign exchange revenue from net exports to facilitate growth in other sectors of the economy. In a more decontrolled environment, the agricultural sector will become increasingly susceptible to the changes in the macroeconomy, particularly the exchange rate.

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Crossref Citations

1. AGRICULTURAL POLICY RESEARCH IN SOUTH AFRICA: CHALLENGES FOR THE FUTURE
Nick Vink
Agrekon  vol: 39  issue: 4  first page: 432  year: 2000  
doi: 10.1080/03031853.2000.9523664