Trade shocks from BRIC to South Africa: A global VAR analysis

Mustafa Çakır and Alain Kabundi ()

Economic Modelling, 2013, vol. 32, issue C, 190-202

Abstract: This paper studies the trade linkages between South Africa and the BRIC (Brazil, Russia, India and China) countries. We apply a global vector autoregressive model (global VAR) to investigate the degree of trade linkages and shock transmission between South Africa and the BRIC countries over the period 1995Q1–2009Q4. The model contains 32 countries and has two different estimations: the first one consists of 24 countries and one region, with the 8 countries in the euro area treated as a single economy; and the second estimation contains 20 countries and two regions, with the BRIC and the euro area countries respectively treated as a single economy. The results suggest that trade linkages exist between our focus economies; however the magnitude differs between countries. Shocks from each BRIC country are shown to have considerable impact on South African real imports and output.

Keywords: BRICS; Trade linkages; Global VAR; Trade shocks (search for similar items in EconPapers)
JEL-codes: C32 C51 F15 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:32:y:2013:i:c:p:190-202

DOI: 10.1016/j.econmod.2013.02.010

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