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Labour: Obstacles and Opportunities

In: African Special Economic Zones

Author

Listed:
  • Bryan Robinson

    (Nelson Mandela University)

Abstract

One of the key attractions for Special Economic Zones in developing economies is usually their relatively lower wages. As China’s wage rates continue their upward trajectory, this is an important consideration for Chinese investors when choosing a Zone in which to invest. However, in many African countries there are often poor educational facilities resulting in the labour market being primarily low-skilled; or if there is access to higher education, skills mismatches sometimes occur. The result may be that investors in special economic zones have to pay a premium wage for critical skills for local labour or Chinese labour. This chapter considers the complex debates in this regard and provides some insights from Chinese investors on how this influences their decision to invest, and their decision to employ local or Chinese labour. A South African case study is also presented to explore these issues as well as consider Special Economic Zone policy, in addition to labour policy, legislation, trade union activity and labour volatility, and the consequence this has on attracting investors to the country.

Suggested Citation

  • Bryan Robinson, 2022. "Labour: Obstacles and Opportunities," Springer Books, in: African Special Economic Zones, chapter 0, pages 175-223, Springer.
    • Handle: RePEc:spr:sprchp:978-981-16-8105-9_7
    DOI: 10.1007/978-981-16-8105-9_7
    as

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