The objective of the research was to ascertain whether, when compared to a system'of standards, the theoretical promise that economic incentives offered as a low cost solution to the abatement problem, would hold in practice. This was done by applying environmental economic theory to the practical problem of controlling the effluent generated by firms in the South African leather industry. It was found that in this instance the theory did indeed hold in practice. Furthermore, it was found that of the incentives discussed by the theory, marketable permits were the most economically efficient. It was however shown that a charge - not discussed in the ., theory - based on a central treatment agency's (CTA) cost of treatment offered the least cost solution to the abatement problem when the CTA could do at least some of the effluent treatment at a lower cost than the firms. - In addition a formula was developed to show the net benefits accruing to an individual firm if it undertook to treat its effluent. It was shown that in order to maximise the total benefits of treatment, a firm should treat until its net benefits of treatment were zero. A number of problem however were found to exist when the theory was applied to a practical situation. The most important was the "stepped" nature of the firms marginal abatement cost curves which meant that the setting of a charge based on a trial and error method would prove to be more difficult than the theory envisaged. Furthermore, it meant that no matter what method of pollution control was used, it would prove i~possible to reduce effluent to an optimal level. It was recommended that greater use be made of economic incentives to control all industrial effluent. It would nonetheless be necessary to do more research in this field as the theory was not tailor made for all practical situations. Further evidence of the viability of economic incentives could however encourage wider use by policy makers.

M.Com. (Business Management) / Please refer to full text to view abstract

Thesis (M.B.A.)-Business Studies Unit, Durban University of Technology, 2006 x, 68 leaves / The purpose of this study is to identify the training needs of leather technicians with the aim of supporting corporate competitive advantage within their company. Identifying competencies is an essential first step towards developing a training programme and to support corporate competitive advantage. / M

Thesis (M.B.A.)-Business Studies Unit, Durban Institute of Technology, 2006 viii, 105 leaves / The South African automotive leather export sewing industry was established in about 1991, when domestic firms were exposed to international markets. The industry’s success was largely attributed to the relatively cheap labour, infrastructure, leather and tax incentives given by the South African government. Interest in investment shown by multinational companies has resulted in significant growth in the industry today. However, at one time, the socio-political status in South Africa meant that the environment in which the industry developed was artificial. Economic, political and cultural conditions were not conducive to export manufacturing due to international sanctions. Consequently, the leather export industry was provided with an opportunity to integrate into the international arena primarily through the Motor Industry Development Programme (MIDP). The MIDP initiative allows South African automotive companies to offset import duties against exports. This duty offset programme aims to encourage firms to focus on high volume production runs and import less popular models that are expensive to produce locally. However, with the inclusion of the Eastern European countries into the European Union, it is expected that the market will become highly competitive. It has already been predicted by Ballard (2002) in a study on the South African leather business that the automotive leather sewing export industry is an “easy-come-easy-go” industry, with its success not linked to any intrinsic advantages South Africa possesses, but due to rebates from the Motor Industry Development Programme. Although South Africa has a number of advantages such as relatively cheap labour, material in leather hides, and a good infrastructure, the automotive sewing industry has yet to establish its efficiency when exposed to open market competition. Therefore, to create a perception of stability for international investors, the industry must seek contact with outside partners for market access, technology and process know-how through collaboration and benchmarking. This study therefore aims to develop a discourse related specifically to the sustainability of the leather export sewing industry as it approaches deregulation. / M

Thesis (M.B.A.)-Business Studies Unit, Durban University of Technology, 2006 x, 68 leaves / The purpose of this study is to identify the training needs of leather technicians with the aim of supporting corporate competitive advantage within their company. Identifying competencies is an essential first step towards developing a training programme and to support corporate competitive advantage.

Thesis (M.B.A.)-Business Studies Unit, Durban Institute of Technology, 2006 viii, 105 leaves / The South African automotive leather export sewing industry was established in about 1991, when domestic firms were exposed to international markets. The industry’s success was largely attributed to the relatively cheap labour, infrastructure, leather and tax incentives given by the South African government. Interest in investment shown by multinational companies has resulted in significant growth in the industry today. However, at one time, the socio-political status in South Africa meant that the environment in which the industry developed was artificial. Economic, political and cultural conditions were not conducive to export manufacturing due to international sanctions. Consequently, the leather export industry was provided with an opportunity to integrate into the international arena primarily through the Motor Industry Development Programme (MIDP). The MIDP initiative allows South African automotive companies to offset import duties against exports. This duty offset programme aims to encourage firms to focus on high volume production runs and import less popular models that are expensive to produce locally. However, with the inclusion of the Eastern European countries into the European Union, it is expected that the market will become highly competitive. It has already been predicted by Ballard (2002) in a study on the South African leather business that the automotive leather sewing export industry is an “easy-come-easy-go” industry, with its success not linked to any intrinsic advantages South Africa possesses, but due to rebates from the Motor Industry Development Programme. Although South Africa has a number of advantages such as relatively cheap labour, material in leather hides, and a good infrastructure, the automotive sewing industry has yet to establish its efficiency when exposed to open market competition. Therefore, to create a perception of stability for international investors, the industry must seek contact with outside partners for market access, technology and process know-how through collaboration and benchmarking. This study therefore aims to develop a discourse related specifically to the sustainability of the leather export sewing industry as it approaches deregulation.

Traditional trade theories, such as the Ricardian and Heckscher-Ohlin models, posit that comparative advantage determines a country’s industrial structure in a liberalized trade environment. However, developments in contemporary trade theory challenge the central tenants of this approach. Ricardian and Heckscher-Ohlin models assume that industries are comprised of homogeneous firms that can be modeled using a representative firm. Under this conception, industrial evolution is driven by comparative advantages. However, empirical evidence of post-liberalisation industrial change indicates that industrial performance is significantly more variable than predicted by traditional models. Even within industries, firms exhibit markedly divergent performance. The new trade theory of heterogeneous firms thus argues that there are fundamental differences between firms, even within narrowly defined industries, and these differences drive a post-liberalisation churning process that results in the reallocation of capital and labour within an industry. This study takes an innovative approach. Instead of comparing productivity across a large sample of firms in different industries, it uses a case study to examine, in depth, the differences between firms within a particular industry. The industry selected for the study is the South African footwear manufacturing sector. The study employs qualitative research techniques to interrogate the applicability of the new trade theory of heterogeneous firms and, importantly, to investigate the scope for constructive development policy. It finds that there are marked differences between firms in the South African footwear manufacturing sector, and provides evidence that these differences matter. Additionally, it finds evidence of intra-industry reallocations in the period following trade liberalisation. These findings are significant in that they emphasise that in a liberalised trade environment, individual firms possess agency that allows them to develop a competitive advantage that may run contrary to the comparative advantage of the country in which they operate. These findings are helpful in developing a more accurate understanding of trade liberalisation dynamics, and they support the argument for industrial policy support in strategic industries. / Thesis (M.Dev.Studies)-University of KwaZulu-Natal, Durban, 2012.

The South African leather industry has undergone a significant transformation since the 1990’s and this can be attributed primarily owing to two major factors that occurred. The first being trade liberalisation, which meant the fall of trade barriers, and the second being the Motor Industry Development Programme (MIDP), which was implemented in South Africa on 1 September 1995. The MIDP was implemented in the context of the country’s political and economic liberalisation, and the major structural shift in government policy and the trade regime. South Africa became much more globally integrated and the South African leather industry benefited because of this, as well as the incentives that was offered under the MIDP. Automotive exports of stitched leather seat parts responded positively to the incentives offered under the MIDP and stitched leather seat parts, as a component under the MIDP, became one of the best performing components being exported from South Africa. The MIDP had been terminated at the end of 2012 and is now being followed by government’s latest rendition of automotive policy, namely the Automotive Production and Development Programme (APDP). The APDP focuses on value addition, which pursues beneficiation of the country’s raw materials to the final stages, to ensure maximum benefit to the South African economy. The findings of the study entail that the South African leather industry is now in a vulnerable state because of the new automotive policy. This is mainly because the APDP does not provide the same level, or type, of incentives that the MIDP had provided to the industry. / Business Management / M. Com. (Business Management)