The estimation of intra-industry trade in South Africa

Abstract

This article uses recently released data to analyse the nature of trade between South Africa and the world. Two variations of the Grubel-Lloyd index are calculated, and they reveal that South Africa has predictably low levels of intra-industry trade among the primary product chapters, as well as low overall levels of intra-industry trade. It is only in certain manufacturing chapters (eg clothing and textiles) that the level of intra-industry trade is generally higher. There is, however, a very definite upward trend in the overall level of intra-industry trade manifested at all levels.