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GTAP Resource #671 |
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"The Western Cape of South Africa: Export Opportunities, Productivity Growth and Agriculture" by McDonald, Scott and Cecilia Punt Abstract The last 10 to 15 years have seen a virtually complete liberalisation of the agricultural policy environment in South Africa. These changes were largely motivated by internal considerations, and have been reinforced by the expansion of export opportunities that accompanied the end of apartheid. The wine grape producing areas of Worcester and Stellenbosch and the deciduous fruit areas centred on Caledon and Ceres, all in the Western Cape province, are the primary sources of agricultural exports and export potential in South African. However, the wine and fruit growing areas of the Western Cape are hemmed in by the sea to the south and west and by the Karoo to the north and east, which limits the physical possibilities of expanding production, constraints that are reinforced by limits on water supplies for irrigation. This paper reports the use of a computable general equilibrium (CGE) model to analyse the impact of increased agricultural export opportunities upon the economy of the Western Cape, with specific reference to grape and deciduous fruit production that have achieved appreciable productivity growth. The model is calibrated with a SAM for the Western Cape, in which agriculture (24 commodities and 9 agronomic activities/regions) and labour (11 skill classes and 4 racial classes) are extensively disaggregated. |
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Last Modified: 9/15/2023 2:05:45 PM