Trade policy,productivity and learning: Evidence in South Africa

The theoretical argument in support of trade liberalisation is based, in part, on exports that foster dynamic efficiency gains primarily through learning and technological upgrading. Using data collected in the motor vehicle components industry, the article explores whether there is any evidence in the South African manufacturing sector to support this hypothesis. Although the conclusions are tentative, the author finds no unambiguous empirical support for the argument that, in the South African context, trade liberalisation fosters learning and innovation at the level of the firm.     

Does South Africa need trade promotion organisations?

This article analyses one aspect of export promotion that has come to be an important mechanism for public sector implementation of export promotion, namely trade promotion organisations. Drawing on the export experiences of firms in the KwaZulu-Natal province of South Africa, we explore the possible role of a trade promotion organisation (TPO) in efforts to promote exports. Based on this, we conclude that services that may be offered by a TPO are already offered by a combination of private and public sector service providers; that the barriers to export growth in KwaZulu-Natal firms have little, if any, relationship to TPO services; and that, based on this evidence, there seems to be no case for public sector investment in TPOs. We do, however, find some weaknesses in export service provision, and suggest some policy changes in this regard.