SOCIAL NETWORKS AND ETHNIC NICHES: AN ECONOMETRIC ANALYSIS OF THE MANUFACTURING SECTOR IN SOUTH AFRICA

This paper analyses the link between social networks and ethnic occupational niches in the manufacturing sector in South Africa. To this end, it employs the methodology of Bertrand et al. to minimise the omitted variable bias induced by standard approaches investigating network effects and adopts Model's concentration index to define an ethnic niche. The results indicate that 25% of the sample is employed in ethnic niches in the manufacturing sector, but that niche employment varies markedly by language group. In addition, certain language groups tend to be clustered in advantageous niches where monthly income and skill levels are relatively high, while others occupy disadvantageous niches where monthly income and skill levels are relatively low. A number of different econometric specifications find strong evidence of social network effects. This highlights the role that these networks play in forming ethnic niches in the manufacturing sector in South Africa.     

THE CONTRIBUTIONS OF MANUFACTURING AND SERVICES TO EMPLOYMENT CREATION AND GROWTH IN SOUTH AFRICA

This study examines the linkages between the manufacturing and services sectors, and between each of them and the rest of the domestic economy, based on analysis of input-output tables and employment trends. This reveals that manufacturing is particularly important as a source of demand for the services sector as well as the rest of the economy through its strong backward linkages, which suggests that in this respect a decline in manufacturing could negatively affect future growth. Services are especially important in terms of employment creation, both direct and indirect.     

Enhancing productive capabilities through intra-regional trade and cross-border investments in Southern Africa

Regional integration is an important factor for enabling knowledge flows between economies and enhancing the capacity of firms within the integrated block to benefit from local knowledge spillovers. This study analyses data on economic interactions between Botswana and its technologically more advanced southern neighbour, South Africa, to examine the extent to which knowledge flows facilitated by geographical proximity translate into fostering technological learning and productivity of manufacturing firms. Industry- and firm-level data on bilateral capital goods trade and investments over the period 1991–2013 are used to assess the technological learning of the manufacturing sector in Botswana. This study also applies the Hunt, J, &; Tybout, J (1999. Does Promoting High-Tech Products Spur Development? FEEM Working Paper REG 42. Milan: Fondazione Eni EnricoMattei) technological sophistication framework to analyse the role played by regional trade and investment flows between the economies of South Africa and Botswana in the skills intensification of manufacturing firms. Skills intensity decomposition reveals that Botswana’s manufacturing technical intensity has been positively influenced by the extent of capital goods trade and investment linkages with South African economy.     

Foreign trade regimes and employment in South Africa: An intertemporal comparison

Previous research has suggested that the labour requirements of an import substitution policy compare unfavourably with a policy of export promotion for South Africa. This paper presents an alternative methodology. Using an open input/output model, more emphasis is placed on the backward linkages that trigger off spillover effects which result from a unit Increase in domestic value added ofexportables and importables. The results show that a broad import substitution policy is not less favourable in terms of employment generation than a broad export promotion policy. This could indicate that a policy of ‘inward industrialisation ‘, which relies to some extent on import substitution, might not have relatively unfavourable employment effects.     

ASYMMETRIC PRICE TRANSMISSION AND MARKET CONCENTRATION: AN INVESTIGATION INTO FOUR SOUTH AFRICAN AGRO-FOOD INDUSTRIES

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