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An analysis of trade between South Africa and Thailand

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.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:10173
Date12 September 2012
Source SetsSouth African National ETD Portal
Detected LanguageEnglish
TypeThesis

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