International Trade and Investment Sanctions

Potential Impact on the South African Economy

Bibliographic Data

ID6284437
AuthorsRichard C Porter (Department of Economics University of Michigan, corresponding author)
Year1979
Volume23
Issue4
Pages579-612
Publication date1979-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Conflict Resolution (JOURNAL)
Journal identifiersISSN: 0022-0027 • E-ISSN: 1552-8766
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/002200277902300401
OpenAlexW2049229820
LanguageEN
Citations received9
References cited4

The purpose of this paper is to clarify the theory of international economic sanctions and to provide estimates of the short-run economic impact on South Africa of externally imposed reductions of the imports and capital flows into that country. A macroeconomic picture of South Africa's "dependence" is drawn, and the economy's vulnerability in the short run is seen to be in its capacity to import, not in exports or capital flows. Trade and capital sanctions most clearly damage South Afnca's growth potential; the short-run impact is harder to quantify. A static linear programming model of the South African economy is constructed in an attempt at this quantification. This model estimates that small sanctions would have small impact—i.e., if imports were reduced by less than one-fourth, GDP would be cut by only about one half as large a percentage as imports. Larger import reductions cause greater damage. If imports were to be cut in half, not only would GDP be seriously reduced but massive unemployment and relocation of white labor would occur

Capital (architecture · Capital flows · Economic sanctions · Economics · External sector · Geography · International economics · International trade · Investment (military · Macroeconomics · Monetary economics · Relocation · Sanctions · Short run · Unemployment · Vulnerability (computing · Economic Sanctions and International Relations

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