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What Does South Africa's Pattern of Trade Say About its Labor Markets?
Author:
Mr. Arvind Subramanian
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Mr. Trevor Serge Coleridge Alleyne
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Series:
IMF Working Papers
Volume/Issue:
Volume 2001: Issue 148
Language:
English
Publication Date:
01 Oct 2001
DOI:
https://doi.org/10.5089/9781451856828.001
ISBN:
9781451856828
ISSN:
1018-5941
Pages:
25
Keywords:
WP; mi fontweight; South Africa; trade; factor intensity; South Africa's net export; production structure; disaggregated trade data; South Africa's trade; trade pattern; WEFA South Africa; merchandise trade account; intensity of trade and production; manufac tured goods; industry trade; Exports; Capital productivity; Trade balance; Consumption; Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper examines the factor intensity of South Africa's trade. The conclusion is that South Africa is revealed though its trade pattern to be capital abundant (relative to labor). Surprisingly, this result holds especially for South Africa's trade with its high income partners, which should presumably have been more capital-rich than South Africa. Moreover, this revealed capital intensity of South African production was not reversed during the 1990s after the dismantling of apartheid. This favoring of capital use, against the background of high and rising under-utilization of the country's labor resources, raises questions about the functioning of South Africa's labor market institutions.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2001: Issue 148