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Results for South Africa's trade with the rest of the world and regional blocks excluding trade in services for 1990 and 2000 revealed interesting results just like the factor content approach. A simple OLS was estimated for the two periods and a pooled OLS was estimated with yearly dummies as before and the results are presented in table 6 below:South Africa’s trade with the rest of the world excluding services for 1990, 2000 and the pooled regression showed that South Africa's trade is capital and unskilled labour intensive as the coefficients are positive. Going to regional blocks, looking at Africa and Rest of Asia, in 1990 South Africa's trade coefficient of capital was positive, while of skilled and unskilled labour were negative. These coefficients reveals that its exports are likely to increase due to a rise in capital endowments, while a rise in skilled and unskilled labour endowments are unlikely to increase South Africa's exports. This trend reversed in 2000 as trade with Africa revealed positive coefficients for capital and skilled labour and a negative coefficient for unskilled labour. This reveals that South Africa's exports are likely to be driven by capital and skilled labour endowments. This result reflect what we could expect according to the HOV model as South Africa is relatively capital and skilled labour abundant relatively to most African nations. On the other hand results for trade with Rest of Asia in 2000 revealed positive coefficients for capital and unskilled labour, while skilled labour had a negative coefficient. Turning to developed nations, both in 1990 and 2000 South Africa's trade revealed positive coefficients for capital and unskilled labour, while skilled labour had a negative coefficient. A positive coefficient on unskilled labour and a negative on skilled are as expected as South Africa is likely to export unskilled labour intensive goods, while it is unlikely to export skilled intensive goods to developed nations. However, a positive coefficient for capital reveals that South Africa is likely to export capital intensive goods to developed nations, a result which is rather surprising when considering the underlying assumptions of the HOV model. This result reinforces results from the FCA which found that South Africa was relatively capital abundant than developed nations.

The overall pooled regression analysis showed that for regional trade, South Africa was likely to export capital and skilled intensive goods to Africa and less likely to export unskilled labour intensive goods. As for Asia, South Africa was likely to export capital intensively produced goods and less likely to export skilled and unskilled goods, while for developed nations South Africa was likely to export capital and unskilled labour intensively produced goods and less likely to export skilled labour intensively produced goods.

Conclusion

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