Growth Spillovers from BRIC Countries into South Africa

Abstract

Chapter 2 focused on the susceptibility of the South African economy to GDP growth shocks emanating from G8 countries. However, is it also possible that South Africa’s economic growth is exposed to the direct and indirect effects from economic growth impulses from Brazil, Russia, India, and China (BRIC) countries? This chapter (1) analyses the contribution of BRIC member countries’ GDP growth shocks to South Africa’s economic growth dynamics; (2) determines the channels of transmission; and (3) establishes whether the third–country effects channel exists. We perform a counterfactual analysis to determine the amplifying abilities of some channels on South African growth response to BRIC growth shocks.