A Tale of Two Countries and Two Stages: South Africa,China and the Lewis Model

The paper compares the economic progress of two countries, South Africa and China, in relation to the Lewis model. These economies are chosen because they have interesting similarities and also interesting differences. At the start of economic reform in China and with the advent of democracy in South Africa, both countries had surplus labour: they were at the first, labour-surplus, stage of the Lewis model. It is shown that, since then, South Africa has continued to experience surplus labour: the unemployment rate has risen. By contrast, China’s labour market is shown to have tightened, and there is evidence that China has entered the second, labour-scarce, stage of the Lewis model. The difference lies in their growth rates. There are sections explaining why the South African economy has grown slowly and why the Chinese economy has grown rapidly, in relation to the growth of their labour forces. The Lewis model provides an enlightening framework for explaining how widely the fruits of economic development can be shared.     

Measuring the Carbon Intensity of the South African Economy

We estimate the carbon intensity of industries, products and households in South Africa using data from a high resolution supply‐use table. Direct and indirect carbon usage is measured using multiplier methods that capture inter‐industry linkages and multi‐product supply chains. Carbon intensity is found to be high for exports but low for major employing sectors. Middle‐income households are the most carbon‐intensive consumers. These results suggest that carbon pricing policies (without border tax adjustments) would adversely affect export earnings, but should not disproportionately hurt workers or poorer households. Seven percent of emissions arise through marketing margins, implying that carbon pricing should be accompanied by supporting public policies and investments.     

The influence of a film on destination image and the desire to travel: a cross‐cultural comparison

The objective of this study was to measure the immediate impacts of a film on the perceptions of viewers from different countries. The film chosen for this experiment was the Motorcycle Diaries in which South America was featured prominently in the film. Using established scales from the tourism and marketing literature, viewers from the USA, Canada and Spain were surveyed before and after seeing the film, and results showed that the film did change the viewers' perceptions of South America. After watching the film, a large percentage of the respondents expressed a desire to visit the countries seen in the film, with Canadians showing a significantly higher desire to visit South America than the US and Spanish participants. Those who were motivated to travel by the film were especially influenced by the scenery, landscape and the cultural attractions of the destination as depicted in the movie. Copyright © 2010 John Wiley & Sons, Ltd.     

How and where to offshore: a productivity comparison at the firm level

Using recent survey data on South Korean firms’ strategies for sourcing intermediate goods from abroad, we investigate whether there exists a productivity premium of offshoring by considering organizational forms (insourcing versus outsourcing) and the income level of offshored countries (North versus South) altogether. Thus, we consider the following four offshoring types: outsourcing from South, insourcing from South, outsourcing from North and insourcing from North. Unlike previous studies, we give particular attention to the comparison between outsourcing from North and insourcing from South and find that firms outsourcing from North are more productive than firms sourcing from their own affiliates in South. We offer three critical conditions to incorporate our empirical findings into the standard firm heterogeneity model: the fixed cost is higher for insourcing than for outsourcing and is higher in North than in South, the headquarters receive a larger share of the final revenue through insourcing than through outsourcing, and sourcing from North guarantees better profitability (or a bigger share) in the market for the headquarters than sourcing from South. Thus, this article contributes to the literature by identifying a new productivity order.     

Do we need a global VAR model to forecast inflation and output in South Africa?

This study determines whether the global vector autoregressive (GVAR) approach provides better forecasts of key South African variables than a vector error correction model (VECM) and a Bayesian vector autoregressive (BVAR) model augmented with foreign variables. The article considers both a small GVAR model and a large GVAR model in determining the most appropriate model for forecasting South African variables. We compare the recursive out-of-sample forecasts for South African GDP and inflation from six types of models: a general 33 country (large) GVAR, a customized small GVAR for South Africa, a VECM for South Africa with weakly exogenous foreign variables, a BVAR model, autoregressive (AR) models and random walk models. The results show that the forecast performance of the large GVAR is generally superior to the performance of the customized small GVAR for South Africa. The forecasts of both the GVAR models tend to be better than the forecasts of the augmented VECM, especially at longer forecast horizons. Importantly, however, on average, the BVAR model performs the best when it comes to forecasting output, while the AR(1) model outperforms all the other models in predicting inflation. We also conduct ex ante forecasts from the BVAR and AR(1) models over 2010:Q1–2013:Q4 to highlight their ability to track turning points in output and inflation, respectively.     

Testing creative destruction in an opening economy

This paper analyses the relationship between trade liberalization and economic growth using a Schumpeterian framework of technological innovation and applies it to sector‐level South African data. The framework examines direct and indirect effects of trade liberalization on productivity growth. Indirect impacts operate through a differential impact of trade liberalization on firms conditional on their distance from the international technological frontier. Results confirm positive direct impacts of trade liberalization. Results confirm also that the greatest positive impact of trade liberalization will be on sectors that are close to the international technological frontier and that experienced a low level of product market competition before liberalization.     

Travelling risks: How did nanotechnology become a risk in India and South Africa?

India and South Africa have invested in nanotechnology since the early 2000s and have identified risks to human health and the environment as an important issue for governance. This is exemplary for a wider trend in which ‘developing countries’ play an increasingly prominent role in the development, production and use of emerging technologies. This validates the claim of the world risk society thesis that countries around the world are now confronted with the risks of emerging technologies. Little is known, however, about the way developing countries deal with the potential risks of emerging technologies. Starting from the observation that the risk colonization of nanotechnology in developing countries cannot be taken for granted, this article draws upon the relational theory of risk in order to investigate how nanotechnology became understood as an object of risk in South Africa and India. The article shows that nanotechnology was constituted as an object of risk in rather different ways in India and South Africa, demonstrating that the spread of risk discourses – and the emergence of a world risk society – cannot be understood without attending to the local context. The article shows that way risk is understood and dealt with changes as risk discourses travel around the world, giving many different faces to the world risk society.     

Are They Hedgers or Speculators? Evidence from South Korea's Political Elections

This study uses a simultaneous equation model based on a three-stage least squares estimation to offer new empirical evidence that investors are hedgers or speculators during South Korea's elections. Major investor groups include individuals, securities companies, and foreigners in the Korea Composite Stock Price Index (KOSPI 200) market. The results show that cash market volatility and futures market activity have lead behaviors with one another. However, the contemporaneous variables of cash market volatility and options market activity have only unidirectional causality. Most investors will trade futures and options contracts for speculating within the entire sample period. During political election periods, investors prefer to trade options contracts for hedging rather than futures contracts.     

Fostering environmental behaviors through observational learning

Abstract

This study applied and operationalized Bandura’s (1977 Bandura, A. (1977). Self-efficacy: Toward a unifying theory of behavioral change. Psychological Review, 84(2), 191. doi: 10.1037/0033-295X.84.2.191[Crossref], [PubMed], [Web of Science ®] , [Google Scholar], 1986 Bandura, A. (1986). Social foundations of thought and action: A social cognitive theory. Englewood Cliffs, NJ: Prentice-Hall. [Google Scholar]) four-step observational learning process (i.e., attention, retention, production, and motivation) to investigate how tour-guides, peer ecotourists, and local community members influenced a convenience sample of South Korean ecotourists’ environmentally responsible behavioral (ERB) intentions. Questionnaires were administered immediately after an ecotourism experience (n?=?207). Path analysis results largely supported a hypothesized Ecotourist Observational Learning Model and predicted ecotourists’ ERB intentions moderately well. Production (i.e., opportunities to engage in modeled ERBs) and motivation (i.e., positive reinforcement for engaging in these ERBs) predicted participants’ ERB intentions. Production was predicted by retention (i.e., observation of tour-guides and peer ecotourists’ modeled ERBs), which was, in turn, predicted by attention (i.e., physical, verbal and cognitive engagement). The findings indicate that Bandura’s (1986 Bandura, A. (1986). Social foundations of thought and action: A social cognitive theory. Englewood Cliffs, NJ: Prentice-Hall. [Google Scholar]) four-step observational learning process helps explain how ecotourists develop ERB intentions. The implications of the study indicate that tour-guides should model ERBs for participants, encourage participants to model ERBs for each other, provide opportunities for participants to engage in ERBs, and provide them with positive feedback for doing so. Others who seek to understand the processes underlying ecotourists’ ERBs during and after their experiences are encouraged to further test and build on the Ecotourist Observational Learning Model.     

Visitors' Motivation for Attending the South Beach Wine and Food Festival,Miami Beach,Florida

The objective of this study was to identify the major factors that motivated visitors to attend the South Beach Wine and Food Festival in Miami Beach, Florida, and determine whether these factors varied among the visitors from the United States, Canada, South America, Europe, and Asia. A survey of 475 visitors to South Florida was conducted in February 2006. Forty‐four motivational items were factor analyzed. The seven factors that motivated first‐time visitors to the festival were the desire to taste new wine and food, enjoy the event, enhance social status, escape from routine life, meet new people, spend time with family, and get to know the celebrity chefs and wine experts. A significant difference in motivation among the five national groups of visitors was found in the area of family influence. Implications of the study results are discussed.