An evaluation of the price structure in South Africa

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Periodical article

Title:	An evaluation of the price structure in South Africa
Authors:	Van Seventer, D.E.N. Van Niekerk, F.D.
Year:	1991
Periodical:	South African Journal of Economics
Volume:	59
Issue:	1
Pages:	45-57
Language:	English
Geographic term:	South Africa
Subjects:	prices market
External link:	https://doi.org/10.1111/j.1813-6982.1991.tb00963.x
Abstract:	This paper analyses market imperfections in the economy of South Africa on a sectoral level using a procedure that has recently been proposed by F. Seton (1985). The procedure employs an input-output table as a basis and it attempts to incorporate 'price or use-side' arguments with the usual 'cost-side' arguments in order to determine a single value-measure. Seton's procedure is introduced in section 1. General characteristics of the procedure are highlighted in section 2, after which the relevant South African data are discussed in section 3. In section 4 the results of the application are presented and compared with other countries where possible. In section 5 it is concluded that market clearing forces are relatively underdeveloped in South Africa. On a sectoral level, the effects of government intervention can to some extent be noted in agriculture, food processing and electricity, and might have resulted in consistent undervaluation for their commodities. Situations of overvaluation have been suggested for commodities of the sectors trade, finance, basic metals, community services and construction. App., bibliogr., notes.