Foreign Firms, Technological Capabilities and Economic Performance Evidence from Africa, Asia and Latin America
Evidence from Africa, Asia and Latin America
Chapter 3: Technology, local sourcing and economic performance in South Africa
3. Technology, local sourcing and economic performance in South Africa Rajah Rasiah and Thabo Gopane 3.1 INTRODUCTION South Africa is the largest and richest economy in sub-Saharan Africa. It has enjoyed a long history of inward-oriented industrialisation where ﬁrms were forced to manufacture a number of critical goods during the apartheid regime following the imposition of economic sanctions. In addition, unlike most parts of Africa, South Africa enjoys fairly strong effective demand, and basic and science and technology (S&T) infrastructure. Since intensiﬁed liberalisation from the 1990s a number of ﬁrms have rationalised to orient manufacturing to global markets. Increasing liberalisation had forced considerable rationalisation in South Africa’s manufacturing industry. The auto parts industry has seen the closure of inefﬁcient ﬁrms but strong efﬁciency improvements in the surviving ﬁrms from external competition and the widening of markets from exports (Black, 2001). Wood (2003) argued that the liberalisation trend on balance has worked favourably for the textile and garment, auto parts and steel industries in South Africa, but that incoherent policy signals have reduced the potential for attracting FDI into the country. Gelb (2002) provided evidence of positive contributions from the operations of foreign ﬁrms. Barnes and Lorentzen (2003) discussed the signiﬁcance of foreign ﬁrms in automobile value chains. This chapter attempts to add to the above literature and offer an African example of a middle-income economy with fairly developed high-tech infrastructure by examining technology, local sourcing and performance of foreign and local ﬁrms in the auto...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.