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A firm level analysis of trade, technology and employment in South Africa

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Author Info
Lawrence Edwards (School of Economics, University of Cape Town, Rondebosch, South Africa)

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Abstract

This paper uses two firm level surveys, the National Enterprise (NE) survey and the Greater Johannesburg Metropolitan Area (GJMA) survey, to explore the implications of globalization for employment in South Africa. These relationships are explored using cross-tabulations and estimated labour demand functions. The paper finds that rising import penetration negatively affected employment in large firms, but not small firms. Relatively large declines in employment also occurred within export firms, despite improvements in export competitiveness and export growth through trade liberalization. Finally, the study finds that skill-biased and trade-induced technological change, as reflected in increased use of computers, foreign investment and the importation of raw material inputs, have raised the skill intensity of production. Copyright © 2004 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jid.1062
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 16 (2004)
Issue (Month): 1 ()
Pages: 45-61
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Handle: RePEc:wly:jintdv:v:16:y:2004:i:1:p:45-61

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  1. Greenaway, David & Hine, Robert C. & Wright, Peter, 1999. "An empirical assessment of the impact of trade on employment in the United Kingdom," European Journal of Political Economy, Elsevier, vol. 15(3), pages 485-500, September. [Downloadable!] (restricted)
  2. Milner, Chris & Wright, Peter, 1998. "Modelling Labour Market Adjustment to Trade Liberalisation in an Industrialising Economy," Economic Journal, Royal Economic Society, vol. 108(447), pages 509-28, March. [Downloadable!] (restricted)
  3. Robert C. Feenstra & Gordon H. Hanson, 1995. "Foreign Direct Investment and Relative Wages: Evidence from Mexico's Maquiladoras," NBER Working Papers 5122, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. H. Bhorat & J. Hodge, 1999. "Decomposing Shifts in Labour Demand in South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 67(3), pages 155-168, 09. [Downloadable!] (restricted)
  5. Gunnar Jonsson & Arvind Subramanian, 2000. "Dynamic Gains from Trade - Evidence from South Africa," IMF Working Papers 00/45, International Monetary Fund.
  6. Stephen Machin & John Van Reenen, 1998. "Technology And Changes In Skill Structure: Evidence From Seven Oecd Countries," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1215-1244, November. [Downloadable!] (restricted)
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  7. Pissarides, Christopher A, 1997. "Learning by Trading and the Returns to Human Capital in Developing Countries," World Bank Economic Review, Oxford University Press, vol. 11(1), pages 17-32, January.
  8. Currie, Janet & Harrison, Ann E, 1997. "Sharing the Costs: The Impact of Trade Reform on Capital and Labor in Morocco," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages S44-71, July. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jenkins, Rhys, 2005. "Globalization, Production and Poverty," Working Papers RP2005/40, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  2. Frank Cörvers & Jaanika Meriküll, 2007. "Occupational structures across 25 EU countries: the importance of industry structure and technology in old and new EU countries," Economic Change and Restructuring, Springer, vol. 40(4), pages 327-359, December. [Downloadable!] (restricted)
    Other versions:
  3. J. Paul Dunne & Lawrence Edwards, 2006. "Trade Technology and Employment: A case Study of South Africa," Discussion Papers 0602, University of the West of England, Department of Economics. [Downloadable!]
  4. Andrews, Matthew, 2008. "Is Black Economic Empowerment a South African Growth Catalyst? (Or Could It Be...)," Working Paper Series rwp08-033, Harvard University, John F. Kennedy School of Government. [Downloadable!]
  5. Rahman, Tauhidur & Mittelhammer, Ron C., 2006. "Measuring the Impact of Globalization on the Well-being of the Poor: Methodology and an Application to Africa," 2006 Annual meeting, July 23-26, Long Beach, CA 21100, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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