Wednesday, October 9, 2019
Is Levittown (N.Y) a symbol of American progress, or should it be Essay
Is Levittown (N.Y) a symbol of American progress, or should it be considered a symbol of American prejudice - Essay Example Nevertheless, the long seeded racism cultivates in the town against all races other than Caucasian. Even today, a vast majority of the inhabitants of Levittown are white Americans. According to the 1990 census, 97.37 percent of the inhabitants of Levittown were White Americans (The New York Times, 1997, p. 2). Three years later, in the 2000 census, ââ¬Å"[t]he racial makeup of the CDP was 94.36% White, 2.45% African American, 0.16% Native American, 0.96% Asian, 0.04% Pacific Islander, 0.86% from other races, and 1.17% from two or more racesâ⬠(Hispanis Dose, n.d.). Owing to the subdued rights of non-Caucasian Americans in Levittown, it is a symbol of prejudice for America. Cultivation of racism in the Long Islands is detrimental even for the racists. Long Islanders have conventionally made every attempt to keep their Island from according with the notion of ââ¬Å"becoming just like Queensâ⬠(Newsday, 2002). The fundamental ideology of Long Islanders is that to be Queens-l ike is to be urban, which is not something to feel proud of. In order for the Long Islands like Levittown to be considered good, they have to be suburban with a lot of wealth, safety and most importantly, whiteness! However, ââ¬Å"[i]n their effort to keep things as they are, however, Long Islanders are strangling their own chance of maturing as an economic center and as a vibrant, viable regionâ⬠(Newsday, 2002). By making the Long Islands race specific, the developers have narrowed the chances of occupancy of their own children on them. They tend to ruin all opportunities to solve the usual issues of protecting open space, controlling overdevelopment, revitalizing the downtown regions, limiting taxes, and most importantly, handling racism. Racism in Long Islands like Levittown moves from private life of individuals to the societal arena. It may frequently show up in public gatherings in terms of racial appellations displayed on the buildings, and humiliation offered to the f amilies of color by the white people residing in the neighborhood. Beatings find origin in racism in such circumstances. Levittown is one of the Long Islands where this happened in particular. Levittown is the first suburb for the American nation after the war. Black soldiers were denied access to this largest housing scheme in the history of America. Since that time, the town has increased in subtleness manifolds, assisting the establishment of a wide range of institutions ranging from schools and boutiques to hospitals. The consequential circumstances have made it difficult for the establishment to take care of the mushrooming problems. The disparity between the rights of Caucasian Americans and non-Caucasian Americans is detrimental for the peace of the town. Long Islanders tend to achieve self control and develop the economic ability to become indifferent to the state of the rest of the nation. The multiple government layers that results in such a system adds so much volume to t he taxes that they promote isolation of the racial grounds. The process of development is curbed by the fragmentation of leadership and it becomes much harder to abolish racism. The price of houses in the Long Islands like Levittown has conventionally been the maximum among all states in the US. The unusually high prices also find a relation to the racism. If the houses become affordable to the public in general, they
Monday, October 7, 2019
Impact of Culture and Background Knowledge on Writing Article
Impact of Culture and Background Knowledge on Writing - Article Example The culture of language usage in each of these three groups has very different features, which causes very different understanding of ââ¬Å"storiesâ⬠by children from these different cultural backgrounds. From the early childhood ââ¬Å"Roadvilleâ⬠children were expected to give concrete ââ¬Å"correctâ⬠answers to the questions. Such culture of language usage might be explained by the norms of fundamentalist Protestantism society, which can accept only one possible interpretation of Bible. Obviously, such children understand ââ¬Å"storyâ⬠as a true report of events, which has some moral meaning according to the biblical understanding of morality. They are usually not creative in writing, however they usually do well in primary grades, where displaying memorized knowledge is needed. In the contrast to ââ¬Å"Roadvilleâ⬠community, people of ââ¬Å"Tracktonâ⬠value word play, imaginative fictionalized story telling. Children from these families are used to making inventive ââ¬Å"storiesâ⬠, which should not necessarily be true, but should be as creative as possible, filled with proverbs or citations from various parts of popular culture, such as songs or TV shows. While being usually creative in writing, ââ¬Å"Tracktonâ⬠children (opposite to ââ¬Å"Roadvilleâ⬠ones) have difficulties with demonstrating their factual memorized knowledge, such as naming objects and their properties. ââ¬Å"Townspeopleâ⬠families pay special attention to the development of analytical language habits in their children. From the early childhood parents read books together with children and engage them in such analytical activities as interpretation or hypothesizing. As the result, writing skills of these children are the most appropriate according to the requirements of formal school education. The results of Heathââ¬â¢s ethnographic research show why children are not equally ready to fulfill formal requirements of academic writing. Teachers should not neglect these
Sunday, October 6, 2019
Creative paper Consider yourself to be a political candidate for Assignment
Creative paper Consider yourself to be a political candidate for national office - Assignment Example He has lost sight of what is best for the people and instead, allows his own political ambitions, and party affiliations to dictate the moves that he shall make. We were once known as the Last Remaining Super Power in the world. We were the international police. Our presence in turmoil filled countries brought peace and stability. Our political, social, and economic system was once the envy of other nations. We were the allies of those oppressed and the enemies of those who wished to dominate the world. We have lost that standing now. These days, thanks to the cowardly leadership in Washington, North Korea thinks they can aim bombs at our allies, build nuclear weapons, and threaten the peace in South Korea. China has been flexing its muscles in the international community and bullies countries that dare to question their occupation of the Spratly Islands. Rogue nations now think that because America has lost its way, there is no need to fear the countrys position as an international leader anymore. After all, our president has decided that we are spending too much on military improvements and wars abroad. Totally missing the point that witho ut our well equipped military forces, and fighting wars abroad, we would be fighting the terrorist battle right here on our very soil. Causing more sociopolitical and economic problems for the citizens of this country. It isnt surprising that he cant handle diplomatic relations with other nations. That is why he hired Hillary Clinton to be his Secretary of State. Barack Obama doesnt have any international relation skills at all. He was just a newbie senator when he decided to run for president. On his first international trip to Germany as president the first thing he did was apologize for the actions of America during the war. And he has done that every country that he has visited since. He has turned America in a ââ¬Å"lame duckâ⬠country. Further proving that he was in no way, shape, or form ready for the
Saturday, October 5, 2019
Guess who's coming for dinner Essay Example | Topics and Well Written Essays - 1000 words
Guess who's coming for dinner - Essay Example This was a historic ruling since before this time interracial marriages were outlawed in sixteen States. Notably, the film also brings out the generational divide linking parents of the couple, both from different races. The interracial couple comprises Dr John Prentice, an African American doctor and Joanna Drayton, the daughter of two liberal parents- the father being a newspaper publisher and the mother a small art gallery owner. The couple met in Hawaii while Joanna was on holiday and John was attending a medical convention. Set in the home of the Draytons, the film unravels in this setting, as John is invited for dinner by Joanna, and later his parents show up. Considering themselves liberal, the Draytons are plagued with the predicament of approving their daughterââ¬â¢s marriage to a black man when John informs them he would cancel the engagement if they do not approve it. Parents from both sides acknowledge the stigma that would come upon their children if they choose to ma rry; however, when Johnââ¬â¢s parents arrive, a Joannaââ¬â¢s and Johnââ¬â¢s mother come to an understanding and approves the marriage. In this instance, the fathers are still adamant on the impracticality of such a union. The film reaches its climax when Matt Drayton, Joannaââ¬â¢s father, announces his approval since love surpasses all. The film takes a dramatic turn when Matilda Banks, fondly known as Tillie opposes greatly the marriage of Joanna and John. Tillie has been the house-help of the Draytons for over 20 years, having raised Joanna and therefore feels inclined to express her fear over her marriage to a black man despite the fact that she is black too. Throughout the film, fear and prejudice are the two things that ail society, including even the most liberal of people- the Draytons. This is because they are afraid the world will shun their daughter for her choice of marriage partner. Moreover, Tillie is prejudiced towards white people as she feels they say one thing out in the open but act in a different manner when they are in closed quarters. Furthermore, she understands the stereotype of black peopleââ¬â¢s inferiority by stating that John was getting ahead of himself by not only being a brilliant doctor, but also falling in love with a white woman. However, John defends his father his decision to marry Joanna, amid all the prejudices, he states that his father had to transport mail for such long distances in order to support him, as it is his responsibility as the person that brought him to earth. John declares that if he were to get a son, he would have the same responsibility. This depiction implies that a parentââ¬â¢s role lies fundamentally in upbringing and support; however, it does not afford the parent the right to dictate the childââ¬â¢s decisions. This is why John unwaveringly states he owes his father nothing and his decision will not be faltered. This is hypocritical as he is willing to cancel the engagement if Joa nnaââ¬â¢s father disapproves but he will not do the same if his father disapproves. Stanley Kramer, the producer of the film, received accolade for the film as it addressed a vital topic in society relating to the segregation between blacks and whites that had long persisted in America. The film was a revolutionary as it confronted racism from a societal point of view this is because
Friday, October 4, 2019
Chromosomal Instability Essay Example | Topics and Well Written Essays - 2250 words
Chromosomal Instability - Essay Example due to the aberrations in the genomes, there is chromosomal instability leading to aneuploidy, i.e, an imbalance in the chromosomes results, so that the possibility for cancerous growths is increased.(Pollack, 2006). In a brief article, Pollack (2006) has summarized the findings of a study of aneuploidy that was taken up recently, where a gene expression was identified as a possible identifying symptom of chromosomal instability. In their study of chromosomal instability, the authors identified 25 genes that could predict the clinical outcome for six different types of cancer. Maintaining the chromosomal integrity of a cell is a complicated process because DNA regulation in the cell must be precisely regulated, while damaged DNA must be recognized and repaired quickly. Shima et al (2007) conducted earlier studies where they identified a Chaos3 mutation in mice that causes spontaneous chromosomal aberrations. In the instant study, they report that this chromosomal instability, which was isolated in a forward genetic screen, is a viable allele of Mcm4 (michromosome maintenance deficient 4 homolog). This allele is a component of the MCM2-7 complex, which is the replication licensing factor. Shima et al (2007) conducted their study on female mice and found that mutant embryonic fibroblasts in these mice were susceptible to chromosomal instability induced by inhibition of DNA replication. 80% of the subjects of the study succumbed to mammary carcinomas. The findings in this study suggest that the hyphomorphic alleles such as mcm4 of the genes that encode the subunits of the MCM2-7 complex may cause an increase in the risk of breast cancer. Another causal element identified in chromosomal instability is the mSds3 chromatin regulator, which is a key component of the mSin3 compressor complex that regulates target gene expression through chromatin modification.(David et al, 2006). In their study, David et al (2006) carried out their study using mice assessed whether the
Thursday, October 3, 2019
Eating disorders and healthy eating Essay Example for Free
Eating disorders and healthy eating Essay Men make up 10 to 15 percent of the population with anorexia and bulimia, but are the least likely to seek help due to the gender stereotypes surrounding the disorders. a. Almost half of people in the United States personally know someone with an eating disorder, that half of the people in the class room know someone that has an eating disorder. b. Packing lunch , choosing restaurants wisely and keeping nutritious snacks on hand are just a few of the ways you can still manage to eat something and stay healthy at the same time. c. I would like to tell you more about healthy eating and what eating disorders and the effects are , how you can find out if some one you know has them and recognizing the symptoms d. What are the three types of eating disorders A. Anorexia Nervosa and Bulimia Nervosa and over eating Anorexia is a pathological fear of gaining weight leading to bad eating patterns, malnutrition, and u sually excessive weight loss and refusal to maintain a healthy weight. 1. When the person sees them self in the mirror they see extremely fat person, and to everyone else extremely skiny Bulimia is repeated binge eating followed by behaviors followed by purging to avoid weight gain 2. Taking laxative is also one the behaviors that people will take on to be able to lose the weight and be skinny Over eating is constantly eating without boundaries and past the appropriate amour of food or eating past the point of fullness 3. Some reasons are Boredom , anxiety and stress or even to please someone. B. Effects of eating disorders Treatments of eating disorders 1. Weight loss, fatigue, fainting, thin hair and nails Dehydration, menstrual irregularly, heart problems, took damge The worst one of all death Some therapy to talk about why the eating disorders is present and help the patient though it. 1. Most of the times eating disorders are issues that have gone untreated; and a way for people to feel like they have control over their lives. Medication that increases hunger for some and suppresses hunger for others
South Africaââ¬â¢s Comparative Advantage: EU and SADC
South Africaââ¬â¢s Comparative Advantage: EU and SADC SOUTH AFRICAS POSITION IN WORLD TRADE: A COMPARATIVE STUDY OF SOUTH AFRICAS COMPARATIVE ADVANTAGE WITHIN THE EU AND SADC INTRODUCTION The South African economy has undergone a gradual process of trade reform in the last three decades, the ultimate aim being to improve resource allocation by shifting policy towards a more competitive, export-oriented focus, and more specifically to diversify exports into non-gold items (PETERSSON, 2005). Over the last two decades the world has seen the creation of many preferential trade areas both within and across continents. Today South Africa has signed trade agreements with many countries including China, India, USA (through AGOA) and notably free trade agreements (FTAs) with the South African Development Community (SADC) and the Trade, Development and Co-operation Agreement (TDCA) with the EU. The main goal of this study is to analyze and draw a comparison between South Africas comparative advantage within the European Union and within the SADC FTAs and investigate the effects of these trade agreements on trade flows among the participating/ economically allied countries. This study will also analyze the credibility and relationship between South Africas policy of free trade and its own economic performance. Background to the Study South Africa signed the Trade, Development and Co-operation Agreement (TDCA) with the European Union (EU) in 1999 and with the SADC in (2000) which were intended to remove most of the trade barriers over the next decade. The European Union has been South Africas biggest trading partner both before and after Apartheid. From 1999, the European Union was a destination of more than 40% of South Africas exports while at the same time accounting for over 70% of South Africas Foreign Direct Investment (FDI). The TDCA was mainly intended to create a free-trade area between South Africa and the EU, in order to ensure that South Africa enjoyed free access to the EU market and vice versa. The Agreement provided for liberalization of 95% of the imports by the EU from South Africa within the period of ten years, and 86% of imports by South Africa from the European Union in twelve years. However vulnerable sectors both within the EU and South Africa are allowed to be protected from competition. For example, the EU is allowed to continue protecting its agricultural products against similar imports from South Africa and the agreement permits South Africa to shelter some industrial products. Thus some motor vehicle p roducts, petroleum and petroleum products, beef, sugar, chocolate, Ice cream, dairy, chemical products, certain textile and clothing products etc, are protected against similar imports from the European Union products. In 1994 Economic sanctions against South Africa had rendered the economy inefficient due to years of isolation from the global economy. The post-apartheid democratic government inherited many social and economic problems among which included: high unemployment especially amongst the black population most of whom lacked education, differing levels of poverty and income disparities and lack of competitiveness in the industrial sector. All these issues required urgent attention and an almost complete restructuring of the economy, the way it was run and the adoption of policies that would help the nation emerge from decades of apartheid and international isolation. Being a complex economy that exhibited features of developing and developed nations, South Africa met strong opposition notably from some EU member countries. Later South Africa was denied trade concessions ratified in the Lomà ©Ã [i]à Convention that were intended for under developed countries. , However South Africa itself did not see relying on aid as an important strategy for its long term drive towards development (Perry, 2000). As a result South Africas government embarked on improving its competitiveness in the world economy through promoting trade by negotiating trade treaties with several countries as a tool towards sustainable growth, eradication of poverty and income inequality. South Africa and the European Union finally signed a Free Tra de Area agreement in 1999 after a long period of negotiations that were characterized by all sides trying to negotiate the best deal possible for themselves. In the end, both managed to secure barriers in areas where they feared fiercest competition. For example France and Portugal already had concerns about South Africas wine and agricultural exports that were in direct competition in the EU market even before the TDCA was in effect and were reluctant to open their markets any further. Likewise, South Africa wanted to protect some of its infant industry especially in manufacturing. Perry (2000) notes that south Africa will had to fight for each favorable term of trade in which it has a strong comparative advantage as some countries within the European Union would have preferred to shield their individual sectors from any threatening outside competitive forces. They are only likely to engage in free trade with nations from which they expect more benefits rather than helping developi ng countries integrate into the world economy. Although there is no evidence yet to support Perrys argument, such should not be swept aside without consideration. Some of the main objectives of the TDCA include supporting South Africa in its economic and social transition, as well as promoting the countrys economic integration in the world economy (ROBLES, 2008). This being the case, the EUs decision to impose barriers on South Africas wine and Agricultural exports can be seen as a sign of double standards. The South African government could have expected to receive more concessions in such sectors. . Asante 1997 noted that the European Union is even more likely to benefit than South Africa because of adjustment costs originating from a general reduction of tariffs and from protectionism in Agriculture by the EU. He further stresses that South Africa tariffs are about five to six times higher than those of the EU. By removing tariffs on imports, South Africa looses five to six times worth of revenue than the EU. Losing so much tax revenue and still be able to run the economy and compete effectively, will require South Africa to have a significant comparative advantage over the EU in the production of various commodities so that the losses in revenue are covered by gains from exports. This paper is therefore directed at identifying sectors in which South Africa experiences a higher comparative advantage over any other member of the European Union. We would therefore expect these sectors to have free access to the European markets without import duties being levied on them. Literally, attaining such trade terms would mean that South Africa has strong bargaining power in the EU because it can manipulate policies that favor its competitive exports in the free trade zone. It is argued that when countries form a Free Trade Area by removing protectionist barriers (e.g. tariffs on imports, import quotas, and subsidies on local industries), they strengthen greater trading relations among themselves. This sometimes results in increased production of goods and services as firms no longer target domestic demand but also reach the foreign market. Access to the EU and SADC markets in this case will always be determined by how diversified S. Africas and its trading partners economies are, because it makes no point for countries to engage in trade of products that they can effectively produce for themselves. Diversification ensures that a country is more likely to produce what other countries do not. If member countries trade in similar products, then there should be a higher degree of intra-industry trade for the exchange of goods and services to be successful. This calls for more research and the adoption of efficient technologies that make it possible for cou ntries to successfully differentiate those products that are more or less identical. Product differentiation means that countries can produce an identical product but with noticeable differences in terms of branding, durability and value added. One of the major reasons behind forming Free Trade Area with SADC and the EU is to enable South Africa to successfully integrate into the world economy (ROBLES, 2008). For South Africas major trading partners in the EU for example, forming a free trade area involves removing barriers to trade and making few adjustments in order to allow free movement of goods and services because they already possess the prerequisites for surviving trade competition under an open economy. However, for a developing economy like South Africa, successful integration into the EU and World market involves a very wide range of policies. For example increasing production and diversification, adopting new production technologies in order to increase value added to intermediate inputs, facilitating local agricultural production to successfully compete with subsidized European Agriculture, fighting crime and boosting local demand in order to increase investor confidence, and developing the local transport syst em. Implementation of all these policies is a gradual process that requires not only money and time but also a population that is equally skilled and well off enough to participate in production and again absorb the increased proceeds from higher production and trade. According to Mthembu (2008), countries in Sub-Saharan Africa depend on taxes on trade to generate between a quarter and a third of their national revenue. By Forming Free Trade Areas South Africa hopes to increase its share of world exports by importing low cost technology and transforming it into goods and services that can be exported at a higher value and price and through producing at a higher volume and enjoying higher economies of scale, thereby gaining more foreign exchange and employment that will accelerate the growth of the economy. However this comes at a cost of lost tax revenues. Although it is true that when a country trades more, it can increase its share of world exports and demand and gain more power on the final world prices and supply, this is not always the case. Opening up to trade does not automatically guarantee economic success (Krugman, 1996, Rodrik. 2005, Rodrik, 2008). Thirlwall (2000) points out that trade between developing and developed countries has oft en resulted into trade diversion rather than creation. Rodrik (2005), amongst others, has suggested that countries should only open up to free trade when they have a very strong local industry that can compete on the world market. It is only when nations have a strong economic base that they can start benefiting from international trade. Conversely, many other studies have concluded that international trade has been a vital force behind the economic breakthrough of different countries (Hachicha 2003, Dhawan and Biswal 1999, Ahmed et al. 2007, Tang 2010) by not only increasing local production but also by provoking growth between regions. In South Africas case, we need to examine the relationship between its external trade and growth by analyzing the causal relationship between international trade and economic performance. If it is found that it is growth that causes exports, then the South African policy should be redirected altogether from focusing on international trade to other strategies for increasing domestic economic growth Conclusion At this stage, the most important issue for South Africa is not whether to trade or not but rather it is about how to trade and with which products. The over all gains from trade could be huge if the trade pattern with the EU and SADC provides products in which South Africa has a strong competitive advantage and free access to the respective markets. With a favorable trade environment, South Africa would with no doubt achieve sustainable growth and integration into the world economy. This study therefore will examine whether the two free trade agreements cited have had either positive or negative impact on the trading patterns for South Africa by studying the growth characteristics of trade flows between South Africa and each individual free trade area shortly before and after their inception. If we find that South Africas exports have been decreasing while imports continue to grow, then South Africa should push for more favorable trade conditions. These conditions would be slightly different if the imports are mainly composed of capital goods. Statement of the problem Trade with the European Union provides South Africa with diverse trading opportunities by allowing it free access to a very wide market composed of 25 different economies. On the other hand, given the fact that South Africa is a developing economy, gains from trade are limited by lack of competitive advantage in manufacturing, transport costs and the European Unions protection of Agriculture and intellectual property rights. From another perspective however, South Africa is in a better position to trade with SADC than it is with the European Union. This is because South Africas economy is more advanced than most SADC countries in terms of technology, capital, financial institutions and skilled labor, which ought to give South Africa more competitive advantage. So, following the classical theory of trade, should South Africa work on increasing its trade with SADC rather than with the EU because it is more likely to always import more than it exports to the European Union but export more than it imports from the SADC? 1.4. Objectives of the study To understand and determine South Africas comparative advantage in the European Union and SADC. To determine whether FTAs have indeed created trade for South Africa or led to trade diversion. To analyze the validity of South Africas liberalization of trade as the Major drive towards sustainable economic growth by analyzing the causal relationship between exports and GDP. 1.5. Research hypotheses South Africas comparative advantage in the EU is limited to Mining and Agriculture. South Africa enjoys more comparative advantage in the SADC than in the EU Exports cause economic growth for South Africa. There has been more trade creation between South Africas trade with the EU than with SADC. Research methodology This chapter presents the master plan of the study entailing procedures that will be followed so as to obtain the goals of the research. Study population, Sample size and source of data The study will be conducted on a population of two Free Trade Areas (FTAs) namely Southern Africa Development and Cooperation (SADC) and the European Union. In order to determine the comparative advantage of South Africa in the above mentioned FTAs, we shall consider a sample size of fifteen countries from the EU countries that trade with South Africa more than the others. The data from the other remaining countries will be used in calculations of aggregates where necessary. The EU has 27 member countries and representing and analyzing trade data for each member would be very tiresome and time consuming. All of SADC countries on the other hand will be included in the study. Data collection methods and Analysis The study will involve both qualitative and quantitative methods of data collection. Documents will be reviewed in order to gather views by different researchers on a given topic and then analyze their views from our perspective. We shall also gather trade data specifically from web-based databases (for example United Nations and SADCs international trade databases) of all countries involved in this study. The obtained data will then be arranged in related patterns and logical order that would allow for regression analysis and hypothesis testing. According to Linda (2008) Data processing involves summarizing, aggregation, validation, tabulation and analysis of data in order to extract useful information. The obtained data will be processed and analyzed using Microsoft Excel and SPSS 18 data processing software packages. Objectives, Indicators, Data source, Data collection techniques and methods of data analysis (summary) Objective Indicator Data Sources Collection technique Method of analysis To understand and determine South Africas comparative advantage in the European Union and SADC. The share of South Africas exports in the trade area as opposed to the share of exports of other partners within the reference area. W.T.O database and other documents (according to their availability) documentary review of (monthly, quarterly, semi and annual bulletins) Balassa index of comparative advantage To determine whether FTAs have indeed created trade for South Africa or led to trade diversion Changes in Trade flows and trade volumes between South Africa and the reference area since 1994 to 2009 W.T.O database and other documents (according to their availability) documentary review of (monthly, quarterly, semi and annual bulletins) The Gravity model To analyze the validity of South Africas trade policy by analyzing the causal relationship between exports and GDP Relationship between changes in exports and changes in GDP W.T.O database and other documents (according to their availability) documentary review of (monthly, quarterly, semi and annual bulletins) Granger causality test Balassa index of revealed comparative advantage (RCA) In order to determine the comparative advantage of South Africa in the EU and SADC we shall use the comparative export performance index commonly known as balassa index. The Revealed comparative advantage (RCA) index is used to determine whether a countrys trade flows have been increasing or decreasing within a specified period of time. The index can also be used to identify products that a country is producing more effectively than the other trading partners. More still, the index identifies industries in which a country is performing poorly. This can be helpful especially when a country wants to make policies that would promote the competitiveness of those industries. Therefore, the RCA index provides very important information about a countrys general trade with the rest of the world. The index of revealed comparative advantage is stated as shown below: xij: exports of product j from country i Xi: total exports from country i xaj total exports of product j from the reference area (e.g. the world) Xa: total exports from reference area The values of the index range zero to Infinity. If the index takes on a value that is less than one implies that the country has a revealed comparative disadvantage in the product. Similarly if the index takes on a value that exceeds one, the country is said to have a revealed comparative advantage in that product. It is possible for more than one country to have comparative in the same product. In this case, a country with a higher value of the index has the strongest advantage because it can produce the product in question more effectively than the other countries. Causality test The variable of investment will be added to the equation of the growth model because of its significance in enhancing economic growth. The function of the model will be expressed as GDP = f(X,Inv) where GDP represents economic growth, X and Inv represent export and investment respectively. GDP=bo + b1X + b2Inv + E According to Studenmunds (1987) the granger causality test should not be applied to non stationary data because sometimes it may produce misleading results. Therefore before testing for causal relationship between exports and Growth, we shall test for stationarity of the underlying data series by testing for the unit root by applying the ADF test. The ADF test determines whether or not the variables follow a stationary trend. If the time series is non stationary, then we shall carry out a cointegration test to determine whether there is a long term relationship between the variables. The gravity model In order to determine whether FTAs have created or diverted trade, two models are usually applied; the Computable General Equilibrium (CGE) and the Gravity model of bilateral trade. The CGE is suitable for the analysis of trade among countries before the removal of trade barriers. The Gravity model on the other hand is used to analyze trade after the removal of trade barriers among countries (Cenart 2003) The gravity model originated from Newtons law of Universal Gravitation 1687 which states that the ability of one object to attract other particles is positively related to its mass and the mass of the other objects and negatively related with the distance between them. More than 270 years later, in 1962 Jan Tinbergen suggested the application of the same model to the analysis of trade flows among countries by stating that bilateral trade is positively related to GDP and negatively related to distance. The model takes the form below: Fij = ÃŽà ²0 MiMj/Dij Where i,j = trading partners F = Trade flows M = Economic Mass (measured in GDP and population) of a country ÃŽà ²0 = Constant Rewriting the above formula in a linear equation we introduce logs and the error term in order to allow for the estimation using OLS. Fij = ÃŽà ²0 + ÃŽà ²1(Mi + Mj) + ÃŽà ²2(Pi + Pj) ÃŽà ²3Dij + E LogFij = ÃŽà ²0 + ÃŽà ²1(LogMiMj) + ÃŽà ²2(LogPiPj) ÃŽà ²3LogDij + E Where D represents the distance between South African Port to the trading partners port of entry; P represents population of a given country. By introducing dummies for FTAs, the model can capture whether the trade area enhances or restricts bilateral tradeà ¢Ã¢â ¬Ã ¦.. We shall analyze the change in the importance of the coefficients after every two years since 1997 up to 2009. The subscript j will be used to represent South Africas data while subscript i will represent data for other trading partners. Trade creation and trade diversion (specification of the gravity model) Different studies have used the gravity model to explain creation and diversion of trade by Free Trade Areas (citation) Scope of the study The study will be focused on South Africas trade with the European Union and SADC countries before and after their formation; that is between the periods 1995 to 2009 Significance of the study The establishment of those sectors in which South Africa has a strong advantage will help stakeholders to motivate further liberalization where they have been denied especially in the European Union and also design policies to improve efficiency in the production of those commodities in which South Africa is currently doing poorly but still has the potential to improve. Further more, the establishment of the relationship between free trade and South Africas economic performance will help to add an insight into South Africas trade policy. The findings of the study can be based upon to design policies that can do better to achieve a good economic performance. The study is also expected to provide useful inputs to researchers and others who have a keen interest in South Africas trade with the rest of the world. Organization of the study The research work will consist of five chapters and they will be arranged as follows: Chapter one will consist of the introduction, background to the study, statement of the problem, objectives of the study, the research hypotheses, the significance of the study, scope of the study and finally the organization of the study. The second chapter will comprise of literature review of various studies by other researchers on this subject. The third Chapter will explore methodological aspects of how data was obtained and analyzed. The fourth chapter will present research findings, provide data analysis and interpretation. The fifth chapter will give summary of the findings, a conclusion and recommendations as well as suggestions for further research in relation to the topic.
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