South Africa's Reintegration Into World and Regional Markets: Trade Liberalization and Emerging Patterns of Specialization in the Post-apartheid EraThe economics of international trade have long been a key concern for researchers studying the relationship between the industrial world and the developing world. Trade theory has made much progress over the last half century and has advanced a number of analytical tools. Yet, despite these achievements, the field in many respects has fallen short of comprehensively explaining the causes and consequences of trade as it is observed in the real world. With China and India emerging as the main global players of the future, will trade still be the key to economic development for other developing countries? This book explores South Africa's emerging pattern of trade in the 1990s. Decades of inward-oriented industrialization and strict segmentation of the labor market under the apartheid regime have resulted in a legacy of capital-intensive industries on the one hand, and millions of jobless on the other. Would opening up to trade in the late 1990s bring about a new pattern of specialization and create jobs? For the case of South Africa, the book concludes that the trade pattern is indeed changing dramatically and for the better. The analysis provides a differentiated understanding of the underlying forces and determinants of international trade in modern times, and it points out the limitations of theoretical models to fully capture such dynamics. |
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abundance agricultural analysis apartheid author's calculations average basic bilateral trade BLNS countries capital capital-intensive capital-labour ratios characterised commodity comparative advantage competitiveness country's developing countries differentiated industries discussed effects empirical employment estimated expected export shares factor endowments factor prices factors of production growth HO-model impact implications increased trade openness indicate intensive intermediate intra-industry trade labour market levels of IIT mainly manufacturing sector middle income countries Moreover output overall pattern of specialization pattern of trade predicted preferential trade product groups RCA values recent regional integration regional trade respect result SACU SADC sample sanctions scale economies shifts South Africa South Africa's trade substantially Table tariff textiles theoretical tion total exports trade agreements trade and specialization trade arrangements trade blocs trade creation trade diversion trade flows trade integration trade liberalization trade pattern trade policy trade potential trade relations trade theory trading partners variables vis-à-vis wages Zimbabwe