South Africa’s Trade with G20 and Top ten African Countries-Applying Gravity Model
: In this paper, we have used the Gravity model to evaluate the factors or parameters, which eventually influence international trade activities of South Africa based on panel data. We have utilized data of nineteen countries and European Union (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, Greece, Hungary, Ireland, Latvia, Lituania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden) accounting for the G20 nations and top ten African countries namely Nigeria, Egypt, Algeria, Morocco, Sudan, Kenya, Angola, Libya, Tunisia between the time period 2007 to 2016 and the data has majorly been collected from International Trade Centre (ITC), and United Nations Conference on Trade and Development (UNCTAD). The estimated results affirm that there is a definite influence of economic size, market size and distance as they are important determining factors for trade flows in South Africa.
KEYWORDS: G20 Countries, South Africa, Gravity model, trade potential
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