Evaluating the Nexus Between Exports, Imports, GDP, and Gross Capital Formation in South Africa
Purpose: This study evaluates the connection between exports, imports, GDP, and gross capital formation in South Africa. Method: The study employed the AutoRegressive Distributed Lag (ARDL) method, along with unit root tests to validate data stationarity, and bounds testing to confirm long-run coin...
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| Format: | Article |
| Language: | English |
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Universitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and Business
2025-01-01
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| Series: | Journal of Enterprise and Development |
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| Online Access: | https://journal.uinmataram.ac.id/index.php/jed/article/view/11563 |
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| author | Ahmed Oluwatobi Adekunle |
| author_facet | Ahmed Oluwatobi Adekunle |
| author_sort | Ahmed Oluwatobi Adekunle |
| collection | DOAJ |
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Purpose: This study evaluates the connection between exports, imports, GDP, and gross capital formation in South Africa.
Method: The study employed the AutoRegressive Distributed Lag (ARDL) method, along with unit root tests to validate data stationarity, and bounds testing to confirm long-run cointegration among the variables. EViews 12 software was used to analyze the data spanning from 1986 to 2022.
Results: The findings indicate a statistically significant positive relationship between imports and gross capital formation at the 1% level, suggesting that imports stimulate gross capital formation in South Africa. Exports also demonstrate a direct connection with gross capital formation. Empirically, both exports and imports are significant factors in enhancing the level of gross capital formation in the country. This indicates that increasing the gross domestic product (GDP) is crucial for diversifying exports, with economic policy being a major determinant that can promote investment in gross capital formation to boost both exports and imports. This sets the foundation for ensuring that exports and imports have a long-term impact on gross capital formation (GrCaF).
Practical Implications for Economic Growth and Development: This study contributes to economic growth and development by highlighting the critical role of imports and exports in enhancing gross capital formation, which in turn improves the South African economy. The findings suggest that robust policies should be implemented, including tax cuts, increased infrastructure development, the promotion of manufactured goods, and advancements in domestic technologies. The government must provide stronger support for domestic industries to translate these efforts into economic growth and development.
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| format | Article |
| id | doaj-art-b29687dc9de94ebba34185d5f6fe3828 |
| institution | Kabale University |
| issn | 2715-3118 2685-8258 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Universitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and Business |
| record_format | Article |
| series | Journal of Enterprise and Development |
| spelling | doaj-art-b29687dc9de94ebba34185d5f6fe38282025-01-03T08:34:27ZengUniversitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and BusinessJournal of Enterprise and Development2715-31182685-82582025-01-017110.20414/jed.v7i1.11563Evaluating the Nexus Between Exports, Imports, GDP, and Gross Capital Formation in South AfricaAhmed Oluwatobi Adekunle0Kwara State University, Nigeria; Walter Sisulu University, South Africa Purpose: This study evaluates the connection between exports, imports, GDP, and gross capital formation in South Africa. Method: The study employed the AutoRegressive Distributed Lag (ARDL) method, along with unit root tests to validate data stationarity, and bounds testing to confirm long-run cointegration among the variables. EViews 12 software was used to analyze the data spanning from 1986 to 2022. Results: The findings indicate a statistically significant positive relationship between imports and gross capital formation at the 1% level, suggesting that imports stimulate gross capital formation in South Africa. Exports also demonstrate a direct connection with gross capital formation. Empirically, both exports and imports are significant factors in enhancing the level of gross capital formation in the country. This indicates that increasing the gross domestic product (GDP) is crucial for diversifying exports, with economic policy being a major determinant that can promote investment in gross capital formation to boost both exports and imports. This sets the foundation for ensuring that exports and imports have a long-term impact on gross capital formation (GrCaF). Practical Implications for Economic Growth and Development: This study contributes to economic growth and development by highlighting the critical role of imports and exports in enhancing gross capital formation, which in turn improves the South African economy. The findings suggest that robust policies should be implemented, including tax cuts, increased infrastructure development, the promotion of manufactured goods, and advancements in domestic technologies. The government must provide stronger support for domestic industries to translate these efforts into economic growth and development. https://journal.uinmataram.ac.id/index.php/jed/article/view/11563exportimportgross capital formationGDPARDL |
| spellingShingle | Ahmed Oluwatobi Adekunle Evaluating the Nexus Between Exports, Imports, GDP, and Gross Capital Formation in South Africa Journal of Enterprise and Development export import gross capital formation GDP ARDL |
| title | Evaluating the Nexus Between Exports, Imports, GDP, and Gross Capital Formation in South Africa |
| title_full | Evaluating the Nexus Between Exports, Imports, GDP, and Gross Capital Formation in South Africa |
| title_fullStr | Evaluating the Nexus Between Exports, Imports, GDP, and Gross Capital Formation in South Africa |
| title_full_unstemmed | Evaluating the Nexus Between Exports, Imports, GDP, and Gross Capital Formation in South Africa |
| title_short | Evaluating the Nexus Between Exports, Imports, GDP, and Gross Capital Formation in South Africa |
| title_sort | evaluating the nexus between exports imports gdp and gross capital formation in south africa |
| topic | export import gross capital formation GDP ARDL |
| url | https://journal.uinmataram.ac.id/index.php/jed/article/view/11563 |
| work_keys_str_mv | AT ahmedoluwatobiadekunle evaluatingthenexusbetweenexportsimportsgdpandgrosscapitalformationinsouthafrica |