51. South Africa's export predicament.
- Author
-
Hausmann, Ricardo and Klinger, Bailey
- Subjects
EXPORTS ,ECONOMIC development ,INTERNATIONAL trade ,PRODUCTION (Economic theory) ,ECONOMIC policy ,ECONOMICS ,PER capita - Abstract
Using South Africa as an example, this article explores how the structure of production affects export diversification and economic growth. We show that the lagging process of structural transformation is part of the explanation for stagnant exports per capita in South Africa over the past 40 years. This slow structural transformation is shown to be a consequence in part of the peripheral nature of South Africa's productive capabilities: the country is specialized in sectors intensive in highly specific factors of production that cannot be easily redeployed to other activities. Using this methodology, we examine the sectoral priorities of the South African Department of Trade and Industry and explore the policy implications of the country's orientation in the product space. [ABSTRACT FROM AUTHOR]
- Published
- 2008
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