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Thesis

English

ID: <

http://hdl.handle.net/20.500.11794/25265

>

Where these data come from
The impact of the emergence of China's economy on South Africa

Abstract

The purpose of this research is to analyze the impact of China’s economic development on the economy of South Africa. In order to address this question, five main channels of impact are identified: (1) Increased competition from Chinese imports on local market; (2) Increased Chinese demand for South African exports; (3) Reduced intermediate input costs for local producers through reduced import prices; (4) Enhanced consumer welfare from reduced consumer prices; (5) Increased competition from Chinese imports in South Africa’s other export markets. A single-country (South Africa) CGE model is adopted to distinguish two external markets for imports and exports: China and the rest of the world. The resulting two-tiered trade sector is captured through the use of nested Armington (import) and CET (export) functions to model substitution between the two external markets.

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