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.

Rapid economic growth has always been one of the goals of the South African government after 1994. Despite the contradicting views of the theorists, the country considered the global market as one of the gateways to accelerated economic growth. In the early 1990s South Africa opened up to foreign markets by removing trade barriers. However, the results of such actions were not entirely as expected. Different economists suggest other barriers that may be the reason behind lower levels of national output. This study examined the causal relationship between exports and economic growth in South Africa using annual data from 1970 to 2014. However, in order to achieve the main objective of this study, it was necessary to include other variables in the model as suggested by both theoretical and empirical literature. The choice of these variables was informed by an extensive review of literature on both exports and economic growth. The VECM and Granger Wild test has been utilised to capture the short run and long run dynamics of the model. The results from those tests do not approve of the Export-Led growth hypothesis and did not approve any sort relationship between exports and GDP in the short run. In the long run however, using the VECM, the study proved that exports have a positive impact on GDP. The results further suggested a negative long run relationship between consumption and economic growth. Furthermore; the results suggested that government expenditure can be detrimental to the economy in the long run. With regards to private investments, the results of this study suggest a positive relationship between investments and economic growth. Therefore, if South African government seeks to increase economic growth it needs to dedicate a considerable amount of resources in promoting local markets to expand South African exports, cut on government expenditure and attracting investment into the county.

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.

M.Com. (Financial Economics) / The main objective of this mini dissertation is to examine the effect of exchange rate volatility on international trade. The finding of this mini dissertation is however that the impact of exchange rate volatility on international trade could be either positive or negative depending on various reasons that will be discussed when the arguments of the theorists that have either found a positive, negative and sometimes indeterminate effect of exchange rate volatility on international trade are discussed. The focus of this mini dissertation will be on the manufacturing trade between the Republic of South Africa with the United States and China. The need for an analysis of exchange rate volatility on international trade arises from the fact that firstly no consensus has been reached on the true effect of exchange rate volatility on international trade and secondly knowledge of what the true effect of exchange rate volatility is on international trade could assist in drafting the appropriate policies at government level. The finding of this mini dissertation represents a challenge for policy recommendations as it reflects the fact that various industries, sectors and subsectors of the economy of the Republic of South Africa are impacted differently by the volatility of the Rand/Yuan and Rand/Dollar exchange rates, respectively, therefore any policy that is drawn up to improve international trade needs to be done on an individual basis for each industry, sector and subsector respectively taking into account the various dynamics and characteristics of each. Firstly in the literature review a detailed discussion of both sides of the exchange rate volatility debate will be outlined. It would be shown why there is a lack of consensus when it comes to the issue of what effect exchange rate volatility has on international trade. On the one hand the argument of those suggest that exchange rate volatility hampers international trade or has a negative effect on international trade, such as Sekantsi, (2008); Onafowora and Owoye, (2008); Chit, (2010); Vergil, (2008); Arize et al, (2000); Arize and Malindretos, (2002); Klaasen, (2004) and Doganlar, (2002), will be reviewed. The argument of those that say that in fact exchange rate volatility has no impact on international trade, such as Raddatz, (2008); Frankel, (2007); Arize and Malindretos, (2002); Arize et al, (2000); Klaasen, (2004); Chowdhury, (1993) and Hassan and Sukar, (1999), will also be reviewed. This discussion and the results that arise from exploring this debate have very important implications on the recommendations that are passed on to government to be considered when drafting policies, such as the New Growth Path (NGP). Secondly when the background of the manufacturing industry in South Africa is discussed, all the initiatives and policies such as the NGP that government has planned and put in place in order to rejuvenate the manufacturing industry will be outlined. The impact of exchange rate volatility on international trade has a direct impact on these policies. Recommendations regarding how best enhance the policies to rejuvenate the manufacturing industry cannot be possibly made when consensus about the impact of exchange rate volatility has not be reached. For this reason it was it imperative that the true impact of exchange rate volatility on international trade be made clear.

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.

What role can the commercialisation of natural resource products play in the efforts to reduce poverty and vulnerability and how can this be enhanced? With poverty alleviation at the top of the global development agenda, this is a question posed by many scholars, practitioners, donor agencies and government departments operating at the environment-development interface. However, recent commentary on this issue is mixed and ambiguous, with some observers being quite optimistic regarding the potential of these products, while others hold a counter view. This thesis explores the livelihood contributions and poverty alleviation potential of four products traded locally in the Bushbuckridge municipality, South Africa; namely traditional brooms, reed mats, woodcraft and a beer made from the fruits of Sclerocarya birrea. A common approach, employing both quantitative and qualitative methods, was used to investigate the harvesting, processing and marketing arrangements, sustainability and livelihood contributions of each product. The results illustrate that any inference regarding the potential of the trade to alleviate poverty depends on how poverty is defined and interpreted, and on whether the role of these products is assessed from a holistic livelihood perspective that includes notions of vulnerability, alternatives and choice, diversification and the needs of rural producers themselves. Overall, the products studied were key in enhancing the livelihood security of the poorest members of society, forming an important safety net and assisting in raising household incomes to levels equivalent to the wider population, but generally were unlikely, on their own, to provide a route out of poverty. However, there were notable exceptions, with marked variation evident both within and across products. Incomes often surpassed local wage rates, and a minority of producers were obtaining returns equivalent to or greater than the official minimum wage. Other benefits, such as the opportunity to work from home or to diversify the livelihood portfolio, were also crucial, with the trade representing different livelihood strategies for different households. When viewed within the context of rising unemployment and HIV/AIDS these findings assume greater significance. While the trades were complex and growth limited, livelihood benefits could be improved on a sustainable basis if the sector was given the attention and support it deserves.

LL.M. (Tax Law) / This dissertation seeks to analyse the phrase “carrying on a trade” in the context of South African income tax law. South African income tax law places emphasis on the phrase “carrying on a trade”. The Income Tax Act 58 of 1962 (hereinafter referred to as “the Act”) makes reference to the phrase in several different contexts. Trading is relevant to the tax treatment of both income (the amount that falls in the gross income of the taxpayer) and expenditure (the amount that qualifies for deduction). The importance of “carrying on a trade” within the income tax law can be seen in light of the following provisions of the Act that form the crux of this dissertation: section 1 defines trade; section 7 provides for the treatment of income from the trade of spouses married in community of property; section 11 deals with deductions; section 20(1) deals with setting off of assessed losses; section 23(g) deals with deductions not permitted in terms of the Act; and section 24H deals with the treatment of income derived by a partner carrying on a trade in a partnership. It is important to note that though it is not explicitly mentioned in the Act, the revenue receipts or accruals arising out of trade are included in the taxpayer's gross income provided that the trade constitutes a scheme of profit-making. Section 11(a) of the Act contains what is often described as the general deduction

M. Comm. / The aim of this study was to analyse the trade between South Africa and Thailand. The relation between factor endowments and comparative advantage of the Heckscher-Ohlin (H-O) theory as well as the alternative theory of the modern international trade theory were used in the analysis. The trade opportunities and the future trade prospectives of both countries were being presented according to the theory on international trade. The relation between factor endowments and comparative advantage of Thailand and South Africa were presented in the case of labour cost, labour productivity, skilled labour, economic indicators, natural resources as well as technology, research and development. The methodology of the study was based on statistics obtained from different sources in South Africa and in Thailand. These included information from The Royal Thai Embassy in Pretoria. The data were obtained from institution like the Bank of Thailand, the South African National Productivity Institute and the Central Statistic Service of South Africa. The comparative advantage of factor endowments according to the H-O theory and the alternative theory were used in the comparison of both Thailand and South Africa. The result of this comparison clearly points to the fact that Thailand has a comparative advantage in labour intensive manufactures and agricultural land intensive products, while South Africa has a comparative advantage in minerals and higher technology. It is true to state that according to the findings of this study, Thailand has the potential to export labour intensive manufactures and agricultural land intensive products such as garments, fabrics, footwear & parts, computer & parts, rice and natural rubber. South Africa has the potential to export minerals and high technology products (raw material products, mineral products, steel & iron, pipe & parts, chemical products) to Thailand. The study succeeds in confirming the relation between comparative advantage and factor endowments of the H-O theory and the alternative theory. It is also clear that future trade prospects of the two countries are based on comparative advantage and factor endowment. Furthermore, the trade opportunities identified will be beneficial to South African and Thai businessmen.

The objective of the research was to determine the role which South African trade policy played in shaping the development of the domestic petrochemical industry. The focus of the study falls on the domestic development of the petrochemical industry in general, and the polymer industry in particular. Three broad stages are distinguished in the domestic development of the petrochemical industry. Prior to the early 1970's development occurred primarily on an ad hoc basis, with the establishment of domestic production plants for most major petrochemicals. The development of the domestic petrochemical industry over the period from the early 1970's to the early 1980's was characterised by rapid growth in the domestic production of petrochemicals, while the period from the early 1980's to the early 1990's saw a significant slowdown in the annual growth rate for the domestic production of petrochemicals. The role of trade policy in the industry's development over each of these three periods could not be established conclusively. In each period a number of factors were identified which may have impacted on the industry's development. However, two factors do appear to have played particularly important roles in the industry's development prior to the early 1980's, namely strong growth in domestic petrochemical demand and the provision of a substantial degree of protection through quantitative import controls and tariffs. with regard to the industry's development over the period from the early 1980's to the early 1990's, a number of factors were identified which may have influenced trends in domestic petrochemical production, including the withdrawal of quantitative import controls and the progressive lowering of import tariffs, the depreciation of the rand in the mid-1980's, a slowdown in the growth of the domestic demand for petrochemicals, the fall in the international prices of petrochemicals in the early 1980's, and the fall in the international oil price in the mid-1980's. In view of the small size of the domestic petrochemical market it is recommended that local petrochemical producers should continue to expand their focus beyond that of producing solely for the requirements of the domestic market. In light of the key role played by the petrochemical industry in a modern economy, it is also recommended that the industry in South Africa receive more attention from policy makers than it has in the past.

The General Agreement on Tariffs and Trade (GATT) 1994 has resulted in the GATT Contracting States making a renewed commitment to freer global trade and trade liberalisation. These Contracting States signalled their commitment to GATT policies and principles by undertaking to abolish all those non-tariff barriers which were not converted to tariffs and to decrease all tariffs applied by their domestic economies. The movement away from protectionism is intended to bring contracting states in line with the GATT most-favoured-nation and national treatment principles. The only exceptions to these principles are the regional trade arrangements which can be implemented in accordance with Article XXIV of GATT 1947 and the Understanding on the Implementation of Article XXIV of GATT 1947. Regional trade arrangements such as customs unions and free-trade areas have been allowed by the GATT as they are deemed to promote trade liberalisation through the removal of substantially all trade restrictions between countries party to these trade arrangements. In practice this has not been the case, however, as these regional trade arrangements have been known to apply very protectionist trade policies. This research determines whether regional trade arrangements are inherently protective ie does the nature of these regional trade arrangements encourage protectionism? The external trade policies of the European Union (EU), Association of Southeast Asian Nations (ASEAN), Southern African Development Community (SADC) and the Southern African Customs Union (SACU) are analysed to determine whether the contracting parties to regional trade arrangements have corrupted the GATT provisions and so contributed towards the protectionist nature of these regional trade arrangements. The internal trade provisions relating to the implementation of these regional trade arrangements have also been discussed to determine their compliance with Article XXIV of GATT 1947. As all the selected regional trade arrangements have direct or indirect links to South Africa, the implications of the policies chosen by these parties for South Africa have also been discussed. Analysis of the EU, SADC, SACU and ASEAN has shown that prior to the adoption of the GATT 1994, the free-trade areas and customs unions were not implemented in accordance with Article XXIV provisions. These regional trade arrangements have been moulded to fit the economic aspirations of the relevant contracting states. Of the regional trade arrangements accepted by the GATT, free-trade areas have been found to be the least protectionist and are the least likely to be perverted by contracting parties. Customs unions, on the other hand, may encourage contracting parties to protect their economies as they rely on group participation rather than individual participation. Individual Member States become responsible to the group which provides these states with greater economic power. As a result Member States are motivated to protect the new group entity from outside competition. In this way, they are inherently protective. Safeguards are therefore necessary to protect individual non-Member States from such behaviour. The implications of protectionism for South Africa, SADC and SACU have also been discussed.