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Understanding and Characterizing the Services Sector in South Africa: An Overview

Author

Listed:
  • Haroon Bhorat
  • Francois Steenkamp
  • Christopher Rooney
  • Nomsa Kachingwe
  • Adrienne Lees

    (University of Cape Town
    Director)

Abstract

The South African services sector is large and growing. This coupled with declining employment shares in manufacturing and mining (i.e. deindustrialisation) suggests that South Africa is a de facto service-orientated economy. Employment patterns in services reveal a segmentation that is characterised by high-productivity, high-wage services, low-productivity, low-wage services, and government services. There has been sustained growth in services exports in the post-1994 period but the composition is biased toward traditional services. Increased entry into developing country markets is characterised by increasingly sophisticated services. A key driver of export growth is the expansion of FDI into developed country markets, and increasingly, into developing country markets, particularly African markets.

Suggested Citation

  • Haroon Bhorat & Francois Steenkamp & Christopher Rooney & Nomsa Kachingwe & Adrienne Lees, 2018. "Understanding and Characterizing the Services Sector in South Africa: An Overview," Working Papers 201803, University of Cape Town, Development Policy Research Unit.
  • Handle: RePEc:ctw:wpaper:201803
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    File URL: https://commerce.uct.ac.za/sites/default/files/content_migration/commerce_uct_ac_za/1093/files/DPRU%2520WP201803.pdf
    File Function: First version, 2018
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    Citations

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    Cited by:

    1. Njoya, Eric Tchouamou & Nikitas, Alexandros, 2020. "The role of air transport in employment creation and inclusive growth in the Global South: The case of South Africa," Journal of Transport Geography, Elsevier, vol. 85(C).
    2. Haroon Bhorat & Kezia Lilenstein & Morné Oosthuizen & Amy Thornton, 2020. "Structural transformation, inequality, and inclusive growth in South Africa," WIDER Working Paper Series wp-2020-50, World Institute for Development Economic Research (UNU-WIDER).
    3. Melia, Elvis, 2020. "African jobs in the digital era: Export options with a focus on online labour," IDOS Discussion Papers 3/2020, German Institute of Development and Sustainability (IDOS).
    4. Abeer Mohamed Ali Abd Elkhalek, 2019. "Economic Development and Participation of Women in Services Sector: Empirical Evidence from Egypt," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(2), pages 155-164, February.
    5. Petersen, Il-haam & Kruss, Glenda, 2021. "Universities as change agents in resource-poor local settings: An empirically grounded typology of engagement models," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    6. Ivan Turok & Justin Visagie, 2020. "Building malls or metros?: South Africa's exports of tradable urban services to the rest of Africa," WIDER Working Paper Series wp-2020-94, World Institute for Development Economic Research (UNU-WIDER).
    7. Adaiah Lilenstein, 2020. "Better measures of progress: Developing reliable estimates of educational access and quality in Francophone sub-Saharan Africa," Working Papers 13/2020, Stellenbosch University, Department of Economics.
    8. Koomson, Isaac & Afoakwah, Clifford & Ampofo, Akwasi, 2022. "How does ethnic diversity affect energy poverty? Insights from South Africa," Energy Economics, Elsevier, vol. 111(C).
    9. Tolcha, Tassew Dufera & Bråthen, Svein & Holmgren, Johan, 2020. "Air transport demand and economic development in sub-Saharan Africa: Direction of causality," Journal of Transport Geography, Elsevier, vol. 86(C).

    More about this item

    Keywords

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    JEL classification:

    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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