Linkages in South African Economic Development : : Industrialisation Without Diversification?

• Author: Schwank, Oliver.
• Place / Publishing House: Frankfurt am Main : : Peter Lang GmbH, Internationaler Verlag der Wissenschaften,, 2010.; ©2010.
• Year of Publication: 2010
• Edition: First edition.
• Language: English
• Series: Forschungsergebnisse der Wirtschaftsuniversitaet Wien.
• Physical Description: 1 online resource (212 pages)

How can South Africa diversify its industrial sector so that it is less dependent on mineral exports, increases labour absorption and reduces unemployment? This book sheds more light on the structure of South Africa’s economy, its industrial sector and inter-sectoral linkages by simulating an economic geography model of the vertical linkages type, by testing linkage strength econometrically and by analysing industrial policy’s role in shaping its development path. It finds that linkages did play an important role in industrial development in South Africa, yet they have often been reinforced by policy interventions. Industrial policy is still geared to benefit the sectors close to the country’s mineral endowment, and thus contributes to South Africa‘s lopsided industrial development.

Table of Contents

Cover -- List of Abbreviations -- Preface -- 1 Introduction -- 1.1 Motivation -- 1.2 Statement of the Problem-A Rapprochement -- 1.3 State of the Field -- 1.4 Research Question and Purpose of the Study -- 1.5 Structure of the Dissertation -- 2 South African Industrial Development -- 2.1 The Discovery of Minerals and the Rise of Capitalism -- 2.2 Racial Capitalism-The Apartheid Era -- 2.2.1 Early Years - The Rise and Golden Age of Apartheid -- 2.2.2 Crisis and Transition -- 2.3 Democracy-The First Decade of ANC Rule -- 2.3.1 The Macro-Economy -- 2.3.2 Sectoral and Industrial Development -- 3 Linkages in Economic Theory -- 3.1 Linkages in Development Economics -- 3.2 Linkages in the New Economic Geography -- 3.2.1 The Logic of NEG: The Core-Periphery Model -- 3.2.2 Vertical Linkages Models: An Exposition -- 3.2.3 A Simulation Exercise -- 3.2.4 Conclusion -- 4 A Simulation of Linkage Effects -- 4.1 The Multi-Industry Model -- 4.1.1 Logic of the Model -- 4.1.2 The Formal Model -- 4.1.3 The Mining Sector -- 4.2 Simulation Results -- 4.2.1 Three Regions, Five Industries: a Simple Case -- 4.2.2 Three Regions, Ten Industries: South Africa -- 5 Linkages at Work? Empirical Results -- 5.1 Empirics of Linkage Effects -- 5.1.1 Empirics of the New Economic Geography -- 5.1.2 Linkage Effects in South Africa -- 5.2 Testing for Linkage Effects-A SVAR, Approach -- 5.2.1 Structural VARs -- 5.2.2 Linkages and Sectoral Development -- 6 Industrial Policy Revisited -- 6.1 Developmental States -- 6.1.1 Economic and Political Schools -- 6.1.2 Social Actors and the Accumulation Regime -- 6.1.3 A South African Developmental State -- 6.2 Industrial Policy in a Developmental Regime -- 6.2.1 Industrial Policy after 1994 -- 6.2.2 National Industrial Policy Framework -- 6.2.3 Capacity and Coherence -- 6.2.4 Competing Visions -- 7 Conclusion -- Bibliography -- Appendix.