What Does South Africa's Pattern of Trade Say About its Labor Markets?

Author/Editor:

Arvind Subramanian ; Trevor Serge Coleridge Alleyne

Publication Date:

October 1, 2001

Electronic Access:

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Summary:

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.

Series:

Working Paper No. 2001/148

Subject:

Capital productivity Consumption Exports International trade Labor National accounts Production Trade balance

English

Publication Date:

October 1, 2001

ISBN/ISSN:

9781451856828/1018-5941

Stock No:

WPIEA1482001

Pages:

25

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