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Deregulation, Trade Reform and Innovation in the South African Agriculture Sector


  • Ron Sandrey
  • Nick Vink


This case study examines the effect of deregulation and trade reform on South Africa’s agriculture sector, which is highly dualistic consisting of a developed commercial sector and a subsistence farming sector. Deregulation and trade reform has led to substantial changes in innovation in the commercial agriculture sector, such as wine and fruit, leading to a large change in composition while innovation seems to have been more limited in subsistence agriculture, which lacks absorption capacity. Legal uncertainties related to land reform may also be a factor which can negatively affect innovation in the commercial farming sector. Keywords: innovation, deregulation, trade reform, South Africa, agriculture, wine, fruit, field crops, foreign investment, absorption capacity.

Suggested Citation

  • Ron Sandrey & Nick Vink, 2009. "Deregulation, Trade Reform and Innovation in the South African Agriculture Sector," OECD Journal: General Papers, OECD Publishing, vol. 2008(4), pages 219-255.
  • Handle: RePEc:oec:packab:5ksm2s8kpbwk

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    Cited by:

    1. Cusmano, Lucia & Morrison, Andrea & Rabellotti, Roberta, 2010. "Catching up Trajectories in the Wine Sector: A Comparative Study of Chile, Italy, and South Africa," World Development, Elsevier, vol. 38(11), pages 1588-1602, November.
    2. Letty, Brigid & Shezi, Zanele & Mudhara, Maxwell, 2012. "An exploration of agricultural grassroots innovation in South Africa and implications for innovation indicator development," MERIT Working Papers 023, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Daniels, Reza Che & Partridge, Andrew & Kekana, Dineo & Musundwa, Sibongile, 2013. "Rural Livelihoods in South Africa," SALDRU Working Papers 122, Southern Africa Labour and Development Research Unit, University of Cape Town.

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