Intra- versus inter-industry specialisation, labour market adjustment and poverty : implications for regional integration in Southern Africa

Date

2003

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Publisher

Rhodes University, Grahamstown, ZA

Abstract

This paper begins by surveying the long-run distributional consequences of trade from alternative theoretical perspectives. The focus of the paper is on the so-called “smooth adjustment hypothesis” that is, the idea that transitional adjustment is easier (or harder) to the extent that new trade is intra- (or inter-) industry in nature. Results confirm that a very small proportion of new trade between 1994 and 2000 within South African Development Community (SADC) was intra-industry, implying large dislocations. Regional integration could facilitate intra-industry trade expansion, particularly among developing countries, to ameliorate adverse poverty outcomes as a result of liberalisation.

Description

Keywords

LABOUR MARKET, POVERTY, INDUSTRIAL RESEARCH, INCOME DISTRIBUTION, TRADE, REGIONAL INTEGRATION, SOUTH AFRICA, POLICY MAKING, INDUSTRIAL POLICY, SOUTH OF SAHARA, REGIONAL TRADE AGREEMENTS, INTRAINDUSTRY TRADE, INTRAREGIONAL TRADE

Citation

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