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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Policy in the South African motor industry: goals, incentives, and outcomes
Authors:Black, A.ISNI
Mitchell, S.
Year:2002
Periodical:South African Journal of Economics
Volume:70
Issue:8
Pages:1273-1296
Language:English
Geographic term:South Africa
Subjects:industrial policy
automobiles
External link:https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2002.tb00066.x/pdf
Abstract:The incentive structure facing firms in South Africa's automotive industry has shifted dramatically as policy has moved from heavy protection to liberalization combined with export support. This paper provides a framework to analyse the impact of these shifts on the behaviour of firms and on welfare more generally. It examines developments in the South African motor industry from its beginnings in the 1920s onward, paying attention to the series of so-called local content programmes which started in 1961; Phase VI of the local content programme, which was initiated in 1989 and brought a major change in direction of policy; and the introduction of the Motor Industry Development Programme (MIDP) in 1995. In conclusion, price distortions in the market and the welfare effects of the MIDP are discussed. Bibliogr., notes, ref. [ASC Leiden abstract]
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