The use of selective industrial policy to re-integrate South Africa's previously protected automotive industry into the global business is one of the few successful cases on the African continent in recent times. South Africa's success provides a useful reference point for other African countries in which selective industrial policy is a key part of national development strategy. Despite the re-integration, the automotive industry has experienced deteriorating trade deficit since 1995 contrary to what had been envisaged. The paper uses a system dynamics model to explain this apparent contradiction. It is found that the offer fiscal incentives to the industry had a positive effect on industry investment and exports but not long-term competitiveness. The paper argues that for a replica of South Africa's selective industry support model to sustain industrial growth and subsequent international trade, it has to be implemented in conjunction with a targeted technology acquisition strategy.

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Date created

• 2009 July 26-2009 July 30

Type

• Document

Processing Activity

• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

License

• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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ITEM CONTEXT

Part of

4818cb531cdd68d6ec6af3f291216fc7

Scope and Contents

Part of

b3584c6b53c3f58e0202549d7d851f84

Scope and Contents

Part of

23d738ba88f8333bc39725f9cb5bd0b8

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Collection

System Dynamic Society Records

Scope and Contents

Collecting area

• This collection is part of the University Archives