Trade policy, productivity and learning: Evidence in South Africa

The theoretical argument in support of trade liberalisation is based, in part, on exports that foster dynamic efficiency gains primarily through learning and technological upgrading. Using data collected in the motor vehicle components industry, the article explores whether there is any evidence in the South African manufacturing sector to support this hypothesis. Although the conclusions are tentative, the author finds no unambiguous empirical support for the argument that, in the South African context, trade liberalisation fosters learning and innovation at the level of the firm.

Notes

Research Fellow, School of Development Studies, University of Natal. Thanks to colleagues on the project, especially Justin Barnes. Thanks also to Vishnu Padayachee for comments and to Trade and Industrial Policy Secretariat for assistance with funding.