Identifying Potential Manufacturing Sectors in South Africa using Shift Share Analysis
by
Prof. E.P.J. Kleynhans*
ABSTRACT
This study evaluates the performance of the Platinum Spatial Development Initiative (SDI) development corridor in South Africa, which was initiated during 1996. Next to descriptive data, the paper employs shift-share analysis, often utilised in studies on economic geography, to investigate the economic growth and job creation potential of the manufacturing industries in the region and province. Analysis of the North West Province will also be done to enable comparison with the Platinum SDI. It will also be compared to the performance of the Southern District Municipality in the province. The objective is to ensure that the population would in the future not experience unemployment and poverty. The results revealed that little development occurred since 1996. Sectors with the highest potential are transport equipment, wood and paper products, electrical machines, and furniture, and they merit attention in future development initiatives. The results also indicates the national effect, effect of the industrial mix and the regional competitive share effects on employment and compares these with the results of the Platinum SDI, North West Province and the SDM Municipality.
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