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The Real Exchange Rate and Sectoral Employment in South Africa

Author

Listed:
  • Haroon Bhorat
  • Nan Tian
  • Mark Ellyne

    (Development Policy Research Unit
    Director and Professor)

Abstract

This paper examines the impact of exchange rate fluctuations on sectoral employment in South Africa from 1975 to 2009. A major focus is how exchange rate fluctuations impact on employment in South Africa’s formal non-agricultural sector. Another relevant factor to consider is the impact skills have on the employment-exchange rate elasticity Overall, following a real exchange rate appreciation, the results show strong support for a negative and significant employment decline in the tradable sector, limited evidence of a positive employment impact in the non-tradable sector and generally no effect on aggregate employment.

Suggested Citation

  • Haroon Bhorat & Nan Tian & Mark Ellyne, 2014. "The Real Exchange Rate and Sectoral Employment in South Africa," Working Papers 201404, University of Cape Town, Development Policy Research Unit.
    • Handle: RePEc:ctw:wpaper:201404
    as

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    File URL: https://commerce.uct.ac.za/sites/default/files/content_migration/commerce_uct_ac_za/1093/files/DPRU%2520WP201404.pdf
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    References listed on IDEAS

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    Cited by:

    1. Chama CHIPETA & Daniel Francois MEYER, 2018. "Trade Openness, FDI and Exchange Rate Effects on Job Creation in South Africa's Tradable Sectors," Journal of Economics and Behavioral Studies, AMH International, vol. 10(4), pages 197-212.
    2. Chipeta Chama & Meyer Daniel Francois & Muzindutsi Paul-Francois, 2017. "The Effect of Exchange Rate Movements and Economic Growth on Job Creation," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 62(2), pages 20-41, August.
    3. Chama Chipeta, 2022. "Analysing The Employment Effects Of The Exchange Rate, Foreign Direct Investment And Trade Openness On South Africa’S Non-Tradable Sectors," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.

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    More about this item

    Keywords

    Real exchange rate; Employment; South Africa;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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