Intra-industry trade is a recent development in international trade theory. This study attempts, for the first time, to measure the extent of intra-industry trade in South Africa. It is found that approximately a one-third of total South African trade is of the intra-industry type. The first chapter places theoretical developments accounting for intra-industry trade in relation to the conventional models of trade. This chapter is followed by a detailed coverage of seven models that allow for intra-industry trade, in order to ascertain the major determinants of intra-industry trade. A third chapter examines the "existence problem" and discusses measures of intra-industry trade and a fourth chapter estimates the level of intra-industry trade in South Africa. Statistical analyses of the major determinants of intra-industry trade were generally successful, except for the poor performance of product differentiation proxies. A final chapter concerns the commercial policy and welfare aspects of intra-industry trade, concluding that there are gains to be had, from social and political changes within South Africa, if such changes lead to greater economic integration and cooperation in the Southern Africa region. / Thesis (M.Com.)-University of Natal, 1987.

This study proposes to examme the significance of trade policy in promoting the international competitiveness of South African industry during the period from the early 1970s up until the present day. By providing a background of South Africa's past trade policies, it is argued that the origins of South Africa's low levels of competitiveness essentially lie in the apartheid years where trade policies were not linked to the attainment of international competitiveness and improved productivity. The study then reviews the development of South Africa's trade policies in the 1990s. In so doing, it reveals weaknesses in the areas of implementation which are critiqued in greater detail by using the clothing and textile industries as a case study, and other selected examples. The study finally concludes that trade policy is crucial to global competitiveness and that it is the responsibility of all parties concerned to ensure that trade policies enhance and not inhibit competitiveness.

South Africa, in common with many other developing countries, embarked on an import substitution policy to promote development and industrialisation. Although initially successful, it was recognised in the late 1960s that the scope for further import substitution was limited and that alternative development strategies should be embarked upon. Unfortunately, the years of import substitution resulted in high levels of protection and consequently an anti-export bias. In 1972, under the leadership of Dr Reynders, a commission found that South Africa should embark upon a policy of export promotion. In 1980 a new form of export incentive was introduced, viz. Category A and B. Category A incentives were aimed at neutralising the effects of import substitution and compensated exporters fifty per cent of the duty payable on inputs, regardless of whether the inputs were imported or not. Category B incentives compensated exporters for the consequences of cost increasing on non-intermediate inputs because of the import substitution policy and was calculated on the value added. Exporters also enjoyed various grants and tax breaks to enable them to undertake export marketing. The schemes were unsuccessful and were replace by a General Export Incentive Scheme (GElS) in 1990. The main aim of the GElS was to encourage the export of manufactured products. With the means of an econometric model, the success of GElS is evaluated on a sectoral basis. GElS brought with it rent seeking, corruption, lobbying, and threats of countervailing duties. In addition to the enormous costs, exceeding R6 billion, there were other bureaucratic costs. In general, the GElS was not successful. The sectors that did benefit from receiving GElS benefits were the tobacco industry, footwear, furniture, metal products, and electrical machinery. In most cases, exporters would have exported with or without GElS. GElS was simply a windfall. Policy-makers failed to recognise the dynamics of exporting. GElS contributed neither to additional exports, export capacity nor to a sustained competitive advantage. import substitution policy to promote development and industrialisation. Although initially successful, it was recognised in the late 1960s that the scope for further import substitution was limited and that alternative development strategies should be embarked upon. Unfortunately, the years of import substitution resulted in high levels of protection and consequently an anti-export bias. In 1972, under the leadership of Dr Reynders, a commission found that South Africa should embark upon a policy of export promotion. In 1980 a new form of export incentive was introduced, viz. Category A and B. Category A incentives were aim.ed at neutralising the effects of import substitution and compensated exporters fifty per cent of the duty payable on inputs, regardless of whether the inputs were imported or not. Category B incentives compensated exporters for the consequences of cost increasing on non-intermediate inputs because of the import substitution policy and was calculated on the value added. Exporters also enjoyed various grants and tax breaks to enable them to undertake export marketing. The schemes were unsuccessful and were replace by a General Export Incentive Scheme (GElS) in 1990. The main aim of the GElS was to encourage the export of manufactured products. With the means of an econometric model, the success of GElS is evaluated on a sectoral basis. GElS brought with it rent seeking, corruption, lobbying, and threats of countervailing duties. In addition to the enormous costs, exceeding R6 billion, there were other bureaucratic costs. In general, the GElS was not successful. The sectors that did benefit from receiving GElS benefits were the tobacco industry, footwear, furniture, metal products, and electrical machinery. In most cases, exporters would have exported with or without GElS. GElS was simply a windfall. Policy-makers failed to recognise the dynamics of exporting. GElS contributed neither to additional exports, export capacity nor to a sustained competitive advantage. / Thesis (M.Com.)-University of Natal, 1996.

South Africa is no longer a pariah state and has been fully integrated into the global family of nations. With the country’s accession to multilateral agreements like the World Trade Organization (WTO), there has been pressure on the government to abandon its hitherto protectionist trade regime in favour of free and fair trade. Trade liberalisation has had profound implications for the country’s manufacturing sector in general, and the automotive industry in particular, which has seen tariff protection radically slashed and import restrictions greatly eased. Not only has the market share of domestic producers fallen, but increases in exports have to date not matched those of imports. As a result there has been a deterioration in the sector’s balance of trade and a reduction in employment levels, at a time when the country desperately needs to create new jobs. Recent developments, however, suggest that this scenario may be set to change. The thesis applies orthodox neoclassical and heterodox approaches to trade policy to an assessment of the likely economic impact of trade liberalisation on the automotive industry in the Eastern Cape, and by extension nationally. The thesis argues that reliance on orthodox trade theory to inform the direction of trade policy, especially in a developing country context, is unlikely to bring about an adequate increase in the level of exports and employment. This is because liberalisation of the import regime is likely to increase import levels without necessarily stimulating export levels, a scenario which serves to negate the presupposed benefits of liberalisation. The study uses information from surveys conducted on both motor vehicle assemblers and component manufacturing firms to investigate the effect of trade liberalisation on the sector in the Province and finds that, by and large, the motor assemblers have not fared as badly as expected and have in fact positioned themselves to export more vehicles and components. The components sector has had to contend with increased competition from cheaper imports. The thesis, while acknowledging that, as far as possible, free trade is an optimal position, nonetheless argues that governments still have an important role to play in the promotion of industrialisation. The scope of government intervention should, however, be limited to selective interventions which are aimed at counteracting market failure and facilitating innovation and the diffusion of technological know-how. The thesis argues that institution of supply side measures, such as the encouragement of research and development (R&D), skills development and industrial training, is necessary for sustained growth in the manufacturing sector to be realised. The thesis also finds that, contrary to expectations, the liberalisation of the automotive sector has not had the desired effects. Despite an increase in the value of automotive exports and an overall trend towards reduced net foreign exchange usage, employment levels are on the decline. The thesis also finds that without major export initiatives by both motor vehicle assemblers and component manufacturers, the future of the industry will be placed in jeopardy, especially with reduced protection and incentives.

A research report submitted to graduate School of Social Sciences of University of the Witwatersrand in partial fulfillment of the requirements for the degree of Master International Relations in Department of International Relations University of the Witwatersrand, Johannesburg February 2017 / Manufacturing and International trade are key concept between advanced and developing countries for growth. However, developing countries on the path of industrialization are perceived to have a gloomy future regarding their trade patterns and strategies because these countries are schizophrenic about the liberalization of the trade policy to protect their industry. The purpose of this research report is to analyze this fogginess on the path of newly industrialized countries by observing the similarities and differences between Turkey and South Africa export patterns and strategies. The study covers South African and Turkey export conducted only in 2015. Both countries’ patterns and strategies are analyzed with data based descriptive statistic embodied by the author. We use various indexes from the literature and develop some original indexes as our own contributions. We classified the export commodities based on: (1) Natural Resource, (2) Low-Tech Manufacturing, (3) High-Tech Manufacturing. / MT2018

This aim of this thesis is to analyse the demand for labour from trade with a selection of South Africa’s trading partners. It is expected that labour demand will be greater in trade with developed blocs. Trade between developing blocs, however, is thought to be more skilled labour intensive and such trade should have greater linkages. This ought to feed through into greater labour demand so that South-South trade may be more ‘labour creating’ than expected. As it is more skill intensive, it may also be more dynamic, which has implications for future growth and development. Factor content methodology is used to assess labour demand. Calculations consider linkages to other sectors (which will increase labour demand) and the use of scarce resources (which has an opportunity cost to labour). The findings support the claim that trade with developing blocs is more professional labour intensive. Evidence that it may be more dynamic and have greater linkages to labour is borne out in exports to SADC. Greater labour demand through linkages, however, is not evident in net trade to SADC. Neither are they of significance in trade with any of the other developing blocs so labour effects due to linkages appear to be negligible. The advantages of South-South trade may rather lie in the dynamic benefits that trade in higher technology goods provides. When scarce resources such as capital and professional labour are taken into account, it is found that labour demand is negative in net trade to all blocs. However, even without the problem of scarce resources, most blocs have a negative demand for labour in net trade. The indication is that with the present trade patterns, South Africa cannot expect trade to increase labour demand. Policy which could improve this situation would be to increase labour force skills, improve the flexibility of the labour market and develop sectors which are both more advanced as well as labour intensive. Despite the negative impact of trade on labour in general, it is found that trade does differ by direction and that for each labour type there are certain blocs where labour demand is positive. This is also the case in net trade for particular sectors. Such information could be used as part of a targeted trade policy to assist in the marketing of particular sectors in trade and also for increasing labour demand for certain labour groups.

On the 21st September 1995, the government introduced the Motor Industry Development Programme (MIDP), in compliance with the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO). Deliberate efforts by the South African government were required to promote structural changes to the domestic motor industry by opening up the economy to international competition through a programme of tariff reduction and export promotion. The integration of the South African automotive industry into global markets would have been extremely difficult, if not impossible, without the MIDP and it would thus be safe to conclude that the economic performance of the researched would have been close to impossible if it was not for the MIDP. The MIDP, as an economic policy, has been embraced by the researched company as a "vehicle" to drive corporate goals in terms of value creation for all stakeholders. The research proposition that the MIDP as an economic policy has contributed to the economic performance of the researched company is examined. In this respect, Annual and Management Accounting reports were analyzed to determine the effect the MIDP has had on the researched company over the last ten years. In addition, two semi-structured interviews were also conducted with the Strategic Finance Planning executive and the Financial Controller of the company. The results show that the MIDP has had positive spin-offs for the researched company. The same results should be valid for the other original equipment manufacturers (OEMs) in the local automotive industry that have embraced the MIDP as a vehicle to create economic value added.

In this study an analysis of the long-term equilibrium relationship between economic growth measured as real GDP growth and private capital inflows is explored. The link between private capital inflows and economic growth is well-documented in the literature. However, a void in the literature relates to examining the cointegrating relationship between private capital inflows and economic growth particularly for South Africa. It is widely claimed that private capital inflows foster economic growth by closing the savings/investment gap. However, clarity on this point is necessary because of the seemingly unclear nature of the relationship in the literature. The exact form of this relationship as well as the nature of capital flows that could impact on real growth requires further investigation. Moreover, what exactly happens to this relationship in an economic crisis such as recently recorded in the global financial crisis is not clear. The analysis is undertaken by employing cointegration and vector error correction modeling approach using quarterly data for the period 1989q4-2009q4. This study employs the Johansen (1998) cointegration test. This technique distinguishes itself since it establishes the long run relationship between variables. Thereafter, residual diagnostic checks are performed on the variables. Our results show among others, that private capital inflows have impacted positively on the growth of the South African economy. The areas for further research that emerge from this study include the effect of some government policies on economic growth that should also receive more attention in the future since political instability slows down investment.