DETERMINANTS OF AGRICULTURAL TRADE OPENNESS, AND THEIR LINK TO ECONOMIC GROWTH: A CASE OF SADC COUNTRIES FROM 2000 TO 2021

Abstract

This study evaluates the determinants of agricultural trade openness, exports, and their link to economic growth in the SADC region, using secondary panel data from 2000 to 2021. Countries in SADC have limited access to the advantages that are as a result of trade openness and agricultural exports. The aim of the study will be to analyse the determinants of agricultural trade openness, agricultural exports and the link to economic growth in the SADC countries from 2000 to 2021. Both fixed and random effects models are employed for estimation: the fixed effects model controls for individual country-specific factors, while the random effects model assumes no such correlation and allows for time-invariant variables to be estimated . Results show that agricultural GDP positively influences trade openness, indicating that increases in agricultural production encourage greater trade openness in the region. In contrast, the year variable has a negative effect on trade openness, suggesting a declining trend over time. These relationships vary across the broader regional context of 16 countries, highlighting the heterogeneity in trade dynamics within SADC.