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Factory Southern Africa : SACU in global value chains - summary report (English)

Once concentrated among a few large economies, global flows of goods, services, and capital now reach an ever-larger number of countries worldwide. Global trade in goods and in services both increased 10 times between 1980 and 2011, while foreign direct investment (FDI) flows increased almost 30-fold. A value chain is global when some of these stages are carried out in more than one country, most notably when discrete tasks within a production process are fragmented and dispersed across a number of countries. Southern African Customs Union (SACU) - region global value chains (GVCs) are both a new reality and significant opportunity for expanding non-commodity exports to support growth, diversification, and job creation in the region. The task-based nature of GVCs creates opportunities for developing countries to establish very quickly a position in global trade within a sector in which they may have had no previous experience. For South Africa, GVCs are seen as a route to higher manufacturing exports and greater value addition. For other SACU countries, GVCs are seen as a route to diversification and global integration, and to leverage the possibility of greater investment from South Africa itself. The main objectives of the study are as follows: (i) to understand trends of GVC participation and competitiveness of South Africa and the wider SACU region, the outcomes from this participation (exports, jobs, and productivity), and the factors that determine competitiveness; (ii) to map the extent of value chain integration across the region and identify barriers to deeper integration; and (iii) to identify policies and actions that will be required to develop a globally competitive, high value-adding factory Southern Africa.

Details

  • Author

    Farole,Thomas

  • Document Date

    2016/01/01

  • Document Type

    Working Paper

  • Report Number

    102850

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Southern Africa,

  • Region

    Africa,

  • Disclosure Date

    2016/01/20

  • Disclosure Status

    Disclosed

  • Doc Name

    Factory Southern Africa? : SACU in global value chains - summary report

  • Keywords

    regional value chain;Growth and Opportunity Act;regional and global value chains;sanitary and phytosanitary standards;information and communication technology;trade and investment policy;small and medium enterprise;foot and mouth disease;movement of natural persons;gross exports;foreign value added;domestic value added;intellectual property rights;foreign direct investment;rules of origin;automotive value chain;production network;special economic zone;Type of Investment;trade and transportation;global production network;movement of person;automotive sector;beef value chain;advanced producer service;number of jobs;domestic service infrastructure;internal trade barrier;availability of service;share of import;infant industry protection;implications for policy;inputs to production;trade in goods;combination of factor;proximity to market;social accounting matrix;trade facilitation issues;regional trade agreement;preferential trade agreement;business process outsourcing;Supply Chain Development;overseas development institute;access to import;supply chain efficiency;fragmentation of production;free trade agreement;bilateral investment treaty;share of trade;printed circuit board;source capital;productivity gain;nontariff barrier;production process;Job Creation;productivity spillovers;productivity growth;comparator country;indirect value;Trade Policies;Trade Policy;fiscal incentive;border post;Natural Resources;multinational corporation;factor mobility;regional context;surplus labor;natural capital;manufacturing jobs;imported inputs;nontariff measure;textile mill;wages rise;apparel sector;inclusive growth;trade preference;regional market;comparative advantage;clearance time;production cost;commodity export;work permit;knowledge exchange;open regionalism;cross-border trade;global trade;skilled labor;labor productivity;foreign source;global technology;wage restraint;intraregional trade;product-specific rule;intermediate product;wage growth;skill composition;labor value;global market;global context;scale economy;product standard;labor pool;country risk;short supply;international investment;financial capital;agribusiness sector;cross-border production;mercantilist approach;production chain;core competencies;regional competition;social standard;conceptual framework;freight movement;intermediate input;transport company;automotive industry;high tariff;freight flow;transport cost;economic geography;Investment Flow;logistics activity;metal product;market competition;dominant position;professional service;license requirement;physical link;manufacturing export;occupational standard;global integration;human capital;business case;deep integration;regulatory change;business environment;interaction effect;equipment manufacturer;policy variable;tariff escalation;relative labor;import ban;customs official;sell side;border delays;investment agreement;labor-intensive activities;static gains;business practice;domestic economy;job growth;regression equation;global city;international economics;auto industry;binding constraint;global supply;trade balance;rural transportation infrastructure;footwear export;sociological literature;manufacturing operation;firm level;agricultural product;geographical dispersion;ship technology;moving parts;national income;business service;foreign input;Public-Private Dialogue;vertical specialization;commodity sale;municipal government;regulatory environment;global standard;export share;Retail Sector;global flows;apparel trade;regional economy;productivity impact;industry concentration;high wage;knowledge infrastructure;foreign investor;reducing barriers;small country;Urban Infrastructure;industrial value;Regional Studies;regional benefits;business hub;management skill;

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Citation

Farole,Thomas

Factory Southern Africa : SACU in global value chains - summary report (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/973351468195001238/Factory-Southern-Africa-SACU-in-global-value-chains-summary-report