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| Title: | Decentralisation incentives, industrialists' plans and the location of manufacturing activity |
| Author: | Addleson, M. |
| Year: | 1990 |
| Periodical: | South African Journal of Economics |
| Volume: | 58 |
| Issue: | 2 |
| Pages: | 173-186 |
| Language: | English |
| Geographic term: | South Africa |
| Subjects: | segregation industrial location |
| External link: | https://doi.org/10.1111/j.1813-6982.1990.tb00930.x |
| Abstract: | In order primarily to give effect to its policy of separate development, the South African State has attempted, since the early 1960s, to induce manufacturing industry to locate at designated growth points, either close to or within the homelands. This paper argues that this policy is an inappropriate means of providing jobs, and that it has a negligible impact on the overall location of manufacturing activity. It explains the response from the manufacturing sector to the decentralization incentives. The typical decentralized firm in South Africa is a small-scale operation, which offers little prospect for contributing to the growth of either the area in which it locates or of the manufacturing sector. The paper takes a critical look at the logic of using manufacturing as a 'lead sector' in developing new growth points; the rationale behind the creation of new growth points; and evidence from a number of separate surveys of industries located at growth points undertaken subsequent to the revision of decentralization policy in 1982. Next, it explains the problems of attempting to induce suitable firms to locate at designated growth points by dividing firms into different categories which essentially reflect different ways in which an industrialist may view the incentives offered in relation to his expectations about the firm's prospects. Finally, it reviews the advantages and disadvantages of core and peripheral locations, and discusses implications for the choice of location. Bibliogr., notes, ref. |
