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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Trade and Industrial Policy on an Uneven Playing Field: The Case of the Deciduous Fruit Canning Industry in South Africa
Author:Kaplan, David E.
Year:1999
Periodical:World Development
Volume:27
Issue:10
Period:October
Pages:1787-1801
Language:English
Geographic term:South Africa
Subjects:trade
fruits
food industry
Agriculture, Natural Resources and the Environment
Development and Technology
Economics and Trade
Link:https://doi.org/10.1016/S0305-750X(99)00085-6
Abstract:The deciduous fruit canning industry (DFCI) is a resource and labour-intensive industry with a high trade ratio. It offers the prospect of being a significant source of employment and export earnings for a number of southern hemisphere countries which enjoy a considerable comparative advantage. Yet, the global organization of production and exchange in this sector makes it difficult for producers in South Africa to realize their potential comparative advantage. This paper outlines the contribution of the DFCI to the South African economy; presents data to show that South Africa has a clear comparative advantage in this sector, but yet has experienced a marked loss in its share of global production and trade; provides an analysis of the market distortions that explain this 'perverse' outcome; and examines firm-level strategies in the context of these market distortions. In conclusion, the wider implications which can be drawn from this sectoral analysis are analysed. Bibliogr., notes, ref., sum.
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