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Trade Liberalization, Technical Change and Firm Level Restructuring in the South African Automotive Component Sector

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  • Anthony Black

    (School of Economics, University of Cape Town)

Abstract

This paper examines the interplay between trade liberalization and the processes of learning, technical change and capability development in the South African automotive component sector. Using case studies based on firm level interviews conducted at various points since 1992, it illustrates how the technological capabilities of the industry were shaped by protection, and how this in turn mediated responses to trade liberalization initially via internal restructuring and more recently in the phase of internationalization and growing foreign ownership. In essence, the paper presents a ‘before and after’ picture of firm level responses to liberalization.

Suggested Citation

  • Anthony Black, 2011. "Trade Liberalization, Technical Change and Firm Level Restructuring in the South African Automotive Component Sector," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(2), pages 173-202, July.
    • Handle: RePEc:umk:journl:v:3:y:2011:i:2:p:173-202
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    - auto-parts; foreign direct investment; industrial policy; South Africa; technology; trade;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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