Assessing the impact of climatic factors on the trade performance of South African maize commodity

Buhlebemvelo Dube, Nokuthula Khulu, Lesedi Mokoena, Solly Molepo, Lucas Moswane, Joseph Kau

Abstract


The maize commodity is of strategic significance to the South African economy as it is a stable commodity and therefore a key factor for food security. In recent times climate change has impacted on the productivity of this commodity and this has impacted trade negatively. This paper explores the intricate relationship between climatic factors and trade performance for the South African maize. Secondary annual time series data spanning 2001 to 2023, was sourced from an abstract from Department of Agriculture, Land Reform and Rural Development (DALRRD) and World Bank’s Climate Change Knowledge Portal. Autoregressive Distributed Lag (ARDL) cointegration technique was used as an empirical model to assess the long-term and short-term relationships between explanatory variables and the dependent variable. Results of the ARDL model show that, average annual rainfall (β = 2.184, p = 0.056), fertilizer consumption (β = 1.919, p = 0.036), gross value of production (β = 1.279 , p = 0.006) and average annual surface temperature (β = −0.650, p = 0.991) and change in temperature for previous years, (β = −0.650, p = 0.991) and the effects towards coefficient change for export volumes, (β = 0.669, p = 0.0007). In overall, as a recommendation, South African policymakers should consider these findings when developing strategies to mitigate the impacts of some of these climatic factors and implementing adaptive strategies for maize producers.

Keywords


ARDL model; maize; bound test; trade performance; South Africa

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References


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DOI: https://doi.org/10.18686/aat.v5i4.2112

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