Economic complexity and employment expansion : the case of South Africa

Abstract

This case study reveals a trade-off between building complexity and generating jobs, which points to a tension between the dual goals of growing exports and creating jobs in South Africa. One approach to determining the extent to which growth of a product is likely to generate jobs, is to consider the capital intensity of production associated with that product. Building economic complexity requires diversification into increasingly complex products. The paper is an in-depth study of the interconnectedness of various manufacturing and industrial sectors. It provides a glimpse into which industries exhibit the greatest employment potential.