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The Contributions Of Manufacturing And Services To Employment Creation And Growth In South Africa

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  • Fiona Tregenna

Abstract

This study examines the linkages between the manufacturing and services sectors, and between each of them and the rest of the domestic economy, based on analysis of input‐output tables and employment trends. This reveals that manufacturing is particularly important as a source of demand for the services sector as well as the rest of the economy through its strong backward linkages, which suggests that in this respect a decline in manufacturing could negatively affect future growth. Services are especially important in terms of employment creation, both direct and indirect.

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  • Fiona Tregenna, 2008. "The Contributions Of Manufacturing And Services To Employment Creation And Growth In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 76(s2), pages 175-204, August.
    • Handle: RePEc:bla:sajeco:v:76:y:2008:i:s2:p:s175-s204
    DOI: 10.1111/j.1813-6982.2008.00187.x
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    1. Vos, Rob & Frenkel, Roberto & Ocampo, José Antonio & Palma, José Gabriel & Marfán, Manuel & Ros, Jaime & Taylor, Lance & Correa, Nelson & Cimoli, Mario, 2005. "Beyond Reforms: Structural Dynamics and Macroeconomic Vulnerability," IDB Publications (Books), Inter-American Development Bank, number 347, November.
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    6. Rob Vos & Roberto Frenkel & José Antonio Ocampo & José Gabriel Palma & Manuel Marfán & Jaime Ros & Lance Taylor & Nelson Correa & Mario Cimoli, 2005. "Beyond Reforms: Structural Dynamics and Macroeconomic Vulnerability," IDB Publications (Books), Inter-American Development Bank, number 59518 edited by José Antonio Ocampo, February.
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    Cited by:

    1. Nguimkeu, Pierre & Zeufack, Albert, 2024. "Manufacturing in structural change in Africa," World Development, Elsevier, vol. 177(C).
    2. Gillian Chigumira, 2019. "Assessment of demand in agro-processing machinery in the SADC region: A case study of the maize-milling machinery value chain in South Africa and Zambia," WIDER Working Paper Series wp-2019-70, World Institute for Development Economic Research (UNU-WIDER).
    3. Murat Arsel & Servaas Storm, 2015. "Forum 2015," Development and Change, International Institute of Social Studies, vol. 46(4), pages 666-699, July.
    4. Kijong Kim & Ipek Ilkkaracan & Tolga Kaya, 2017. "Investing in Social Care Infrastructure and Employment Generation: A Distributional Analysis of the Care Economy in Turkey," Economics Working Paper Archive wp_882, Levy Economics Institute.
    5. Afşin Şahin & Aysit Tansel & M. Hakan Berument, 2015. "Output–Employment Relationship Across Sectors: A Long- Versus Short-Run Perspective," Bulletin of Economic Research, Wiley Blackwell, vol. 67(3), pages 265-288, July.
    6. Hongsen Wang & Qing Guo & Xianming Kuang, 2023. "Effects of manufacturing input servitization on labor income share and income distribution," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    7. Maciej Sobolewski & Grzegorz Poniatowski, 2013. "What Affects the Main Engine of Growth in the European Economy? Industrial Interconnectedness and Differences in Performance of Business Services Across the EU25," CASE Network Studies and Analyses 0455, CASE-Center for Social and Economic Research.
    8. Weiping Li & Saite Lu, 2024. "Assessing Structural Transformation and the Potential Impacts of Belt and Road Initiative Projects in Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 548-570, June.
    9. Erten, Bilge & Leight, Jessica & Tregenna, Fiona, 2019. "Trade liberalization and local labor market adjustment in South Africa," Journal of International Economics, Elsevier, vol. 118(C), pages 448-467.
    10. Carl Friedrich Kreuser & Carol Newman, 2018. "Total Factor Productivity in South African Manufacturing Firms," South African Journal of Economics, Economic Society of South Africa, vol. 86(S1), pages 40-78, January.
    11. Mbanda, Vandudzai & Bonga-Bonga, Lumengo, 2018. "Impacts of Public Infrastructure Investment in South Africa: A SAM and CGE-Based Analysis of the Public Economic Sector," MPRA Paper 90613, University Library of Munich, Germany.
    12. Carl Friedrich Kreuser & Carol Newman, 2018. "Total Factor Productivity in South African Manufacturing Firms," South African Journal of Economics, Economic Society of South Africa, vol. 86(S1), pages 40-78, January.
    13. Tregenna, F., 2009. "Contracting Out of Service Activities and the Effects on Sectoral Employment Patterns in South Africa," Cambridge Working Papers in Economics 0906, Faculty of Economics, University of Cambridge.
    14. Amy Kahn & Moses Sithole & Yasser Buchana, 2022. "An analysis of the impact of technological innovation on productivity in South African manufacturing firms using direct measures of innovation," South African Journal of Economics, Economic Society of South Africa, vol. 90(1), pages 37-56, March.
    15. repec:ilo:ilowps:486701 is not listed on IDEAS
    16. S. M. Woahid, Murad, 2009. "The trends of labor market in Bangladesh and its determinants," MPRA Paper 32381, University Library of Munich, Germany.
    17. Mawussé K. N. Okey, 2017. "Does migration promote industrial development in Africa?," Economics Bulletin, AccessEcon, vol. 37(1), pages 228-247.
    18. Tregenna, Fiona., 2015. "Sectoral dimensions of employment targeting," ILO Working Papers 994867013402676, International Labour Organization.

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