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Inter-Sectoral Comparative And Competitive Advantages Of South Africa

Author

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  • Macleans MZUMARA*
  • Anna CHINGARANDE*

Abstract

The authors investigate the inter-sectoral comparative and competitive advantages of South Africa using Balassa technique. South Africa demonstrates significant, comparative and competitive-advantages in chemicals and the allied industries, metals and machinery/electrical sectors. There are comparative and competitive disadvantages in foot wear/head gear sector. This sector is followed by raw hides, skin, leather, and fur sectors. Most of the sectors fall in the middle ranks and there is an evidence of substantial manufacturing in South Africa. It is recommended that South Africa should work on attracting new investment, especially the foreign direct investment to improve those sectors which fall in the middle ranks. It is also recommended that South African channel resources from sectors which lack comparative and competitive advantages to sectors with such advantages, to ensure specialization where South Africa’s productive capacities are efficient.

Suggested Citation

  • Macleans MZUMARA* & Anna CHINGARANDE*, 2016. "Inter-Sectoral Comparative And Competitive Advantages Of South Africa," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 26(1), pages 1-14.
    • Handle: RePEc:pje:journl:article16jani
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    References listed on IDEAS

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    1. Siegfried Bender & Kui-Wai Li, 2002. "The Changing Trade and Revealed Comparative Advantages of Asian and Latin American Manufacture Exports," Working Papers 843, Economic Growth Center, Yale University.
    2. Waldo Krugell & Marianne Matthee, 2009. "Measuring the export capability of South African regions," Development Southern Africa, Taylor & Francis Journals, vol. 26(3), pages 459-476.
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    Keywords

    INTER-SECTORAL; Balassa technique;

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