## South Africa’s Exports Performance: Any Role for Structural Factors?

_IMF Working Papers, February 12, 2016_

## Source details

**Canonical URL:** [South Africa’s Exports Performance: Any Role for Structural Factors?](https://www.imf.org/en/publications/wp/issues/2016/12/31/south-africas-exports-performance-any-role-for-structural-factors-43704)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/south-africas-exports-performance-any-role-for-structural-factors-43704/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/south-africas-exports-performance-any-role-for-structural-factors-43704/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/south-africas-exports-performance-any-role-for-structural-factors-43704/bundle-manifest.json)

## Bibliographic details
- Authors: Rahul Anand, Roberto Perrelli, Boyang Zhang
- Published: February 12, 2016
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475594003.001

---

### Overview
- Title: South Africa’s Exports Performance: Any Role for Structural Factors?
- Authors: Rahul Anand, Roberto Perrelli, Boyang Zhang
- Publication date: February 12, 2016
- Series: Working Paper No. 2016/024; Issue: 024; Volume: 2016
- Pages: 16
- DOI: https://doi.org/10.5089/9781475594003.001
- Stock No: WPIEA2016024
- ISBN: 9781475594003
- ISSN: 1018-5941

### Research question and scope
- Focus: Explain why South Africa’s export performance has been disappointing since the global financial crisis despite a substantial and prolonged exchange rate depreciation.
- Approach: Construct a unique database of export performance at the firm level to analyze the role of structural factors in reducing the responsiveness of South African exports to the real exchange rate depreciation.

### Key findings
- Exchange rate and export responsiveness:
  - Despite a substantial and prolonged exchange rate depreciation, South Africa’s export performance has disappointed since the global financial crisis.
  - Structural factors have reduced the responsiveness of firms’ exports to the rand depreciation.
- Structural constraints identified:
  - Electricity bottlenecks have reduced firms’ export responsiveness to the rand depreciation.
  - Limited product market competition has reduced firms’ export responsiveness to the rand depreciation.
  - Labor market constraints have reduced firms’ export responsiveness to the rand depreciation.
- Diversification effects:
  - A firm’s ability to diversify its exports has helped it benefit more from currency movements.

### Methodology (as described)
- Data: Unique firm-level export performance database constructed by the authors.
- Analysis: Empirical examination of how firm-level structural characteristics interact with real exchange rate depreciation to determine export responsiveness.

### Policy implications (inferred from findings)
- Address electricity constraints to improve firms’ ability to respond to real exchange rate movements.
- Enhance product market competition to increase export responsiveness to depreciation.
- Reform labor market constraints that limit firms’ export supply responsiveness.
- Support firm-level export diversification to help firms capture gains from currency movements.

### Subject categories and keywords
- Subject: Commodities, Depreciation, Electricity, Export performance, Exports, Foreign exchange, International trade, National accounts, Real effective exchange rates
- Keywords: Africa, current account, Depreciation, Electricity, export firm, export market concentration, Export performance, export sales, Exports, firm, firm size, panel data, production function, Real effective exchange rates, South Africa, structural bottlenecks, WP

*IMF Working Paper No. 2016/024 — Rahul Anand, Roberto Perrelli, Boyang Zhang (February 12, 2016).*

---

## Content in this bundle

- **Wp1624**
  - [Wp1624 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2016/_wp1624.pdf.md){rel="alternate" type="text/markdown"}
  - [Wp1624 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2016/_wp1624.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/south-africas-exports-performance-any-role-for-structural-factors-43704_