Industrialisation and the decline of the coastal cities in South Africa: A neglected dimension

Abstract

Empirical evidence points to a mismatch between the growth of population and the growth of manufacturing activity among the metropolitan centres of South Africa. While the coastal metropoles lag behind the PWV and certain secondary cities and towns in terms of manufacturing growth, the opposite applies to urbanization. Various market failures and policy‐induced distortions may have contributed to the relatively poor per‐formance of manufacturing in the coastal cities. Until such time as these distortions have been completely removed by suitable changes to government policy, temporary subsidies to offset the disadvantages of the coastal areas may be advisable.

Notes

Department of Economics, University of Stellenbosch and Department of Economics, University of the Western Cape, respectively. Parts of this paper are based on an unpublished report compiled by the Development Bank of Southern Africa (hereafter referred to as DBSA, 1989). The authors would like to thank Professor Colin McCarthy of the Department of Economics, University of Stellenbosch for helpful comments on an earlier draft, and Dr D Mullins and Mr H Langenhoven of Central Economic Advisory Services for fruitful discussions on several issues raised in the paper. The financial assistance of the Human Sciences Research Council is gratefully acknowledged.