It is early in 2016 and we are happy to already make a research post!
Our Research posts are about the latest academic research being done in the School of Economics. This week:
Identifying the comparative advantage of products and industries of South Africa’s Mpumalanga Province
by Monique Visser, Noleen Pisa, Prof. Ewert Kleynhans & Dr. R. Wait
Knowledge of a region’s comparative advantage may dictate its industrial development agenda and realistic export opportunities. Through the effective targeting of specific sectors and industries within the South African provinces, provincial government entities can determine which sector or industry could gain the most from effective targeting for industrial development, development planning and export promotion. This study determined the comparative advantage of South Africa’s Mpumalanga province by estimating the Revealed Comparative Advantage Index (RCA). The study revealed that the products with the highest comparative advantage (RCA) and realistic export opportunities (REO) are manganese products, salted meat (beef), frozen fish, chewing gum, tomatoes, soups and broths. In addition, the results of the RCA analysis were matched to the export opportunities identified by the decision support model (TRADE-DSM) to determine which of the comparative advantage products have realistic export opportunities. Eight of the top 15 comparative advantage products were found to have realistic export opportunities according to the TRADE-DSM.
This research is published in the Southern African Business Review. 19(2): 27-50