We would like to thank the Trade & Industry Policy Strategies for making available the data. The South African National Treasury and USAID provided financial assistance for the project. The first author gratefully acknowledges the intellectual and financial support of Nuffield College, Oxford, and Economic Research Southern Africa (ERSA). The second author gratefully acknowledges partial financial support from the ESRC (Grant No. RES-000-22-3161). We are grateful to the editor and two anonymous referees, Matthew Greenwood-Nimmo, Stephen Hall, David Hendry, Merle Holden, Ravi Kanbur, Richard Ketley, Chris Loewald, David Loughran, Chris Milner, Christophe Muller, Marc Nerlove, Kevin Reilly, Adrian Wood and Robert Wright for helpful comments on an earlier version of this article. Views expressed in the article should not be taken to reflect the views of the above institutions. The usual disclaimer applies.
Trade, Technology and the Labour Market: The Case of South Africa*
Version of Record online: 21 DEC 2011
© Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2011
Oxford Bulletin of Economics and Statistics
Volume 74, Issue 6, pages 808–830, December 2012
How to Cite
Fedderke, J., Shin, Y. and Vaze, P. (2012), Trade, Technology and the Labour Market: The Case of South Africa. Oxford Bulletin of Economics and Statistics, 74: 808–830. doi: 10.1111/j.1468-0084.2011.00685.x
- Issue online: 26 OCT 2012
- Version of Record online: 21 DEC 2011
- Final Manuscript Received: October 2011
This study advances previous work on the effects of trade and technological change on labour markets within the framework of Heckscher–Ohlin trade theory. We provide evidence for an unskilled labour abundant developing country by employing dynamic heterogeneous panel estimation techniques. For South African manufacturing, trade-mandated increases in earnings are positive for labour and negative for capital whilst technology-mandated increases are negative for both factors. We also find it important to take account of endogeneity issues in analysing the impact of technology and price changes on factor returns and in isolating factor- and sector-bias of technological changes.