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Improving Industrial Policy Intervention: The Case of Steel in South Africa

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  • Wouter Bam
  • Karolien De Bruyne

Abstract

We contribute to the lack of tools to support efficient industrial policy-making, especially in the mineral beneficiation policy literature. To address this vacuum, we adapt the product space analysis approach to incorporate an input-output value chain lens. This framework is applied to the case of steel in South Africa to derive novel insights regarding the (in)efficiency of implementing a downstream linkage-based beneficiation policy. Our dynamic analysis approach allows for interactions with the rest of the product space. We find that a ‘leap-frogging’ approach to development within the value chain may be more optimal than a strict beneficiation based industrial policy.

Suggested Citation

  • Wouter Bam & Karolien De Bruyne, 2019. "Improving Industrial Policy Intervention: The Case of Steel in South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 55(11), pages 2460-2475, November.
    • Handle: RePEc:taf:jdevst:v:55:y:2019:i:11:p:2460-2475
    DOI: 10.1080/00220388.2018.1528354
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    Cited by:

    1. Dominik Hartmann & Flavio L. Pinheiro, 2022. "Economic complexity and inequality at the national and regional level," Papers 2206.00818, arXiv.org, revised Jun 2022.
    2. Karolien De Bruyne & Wouter Bam & Denis Engelbrecht, 2023. "South Africa's titanium industrial policy: A product space perspective," South African Journal of Economics, Economic Society of South Africa, vol. 91(1), pages 3-27, March.
    3. Wouter G. Bam & Karolien Bruyne & Mare Laing, 2021. "The IO–PS in the context of GVC-related policymaking: The case of the South African automotive industry," Journal of International Business Policy, Palgrave Macmillan, vol. 4(3), pages 410-432, September.

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