South Africa's International Competitiveness: A Product Level Analysis

Abstract

As South Africa emerges from its Apartheid period, the evolution of its international trade is vital to the growth of the economy. This paper evaluates South Africa's trade performance in three essential markets, namely United States, Europe and Japan. It examines the nation's flexibility in the face of fluctuations in relative exchange rates in its markets. Using the Constant Market Share (CMS) model of international trade and the "Rising Stars" model, the particular areas of industrial structure in which South Africa is positioned to succeed are identified on the market as well as the product levels.

Keywords: Apartheid, South Africa, Southern African Development Community (SADC), United States, Japan, European Union, International Competitiveness, Entrepreneurship, Exchange Rate Responsiveness, Constant Market Share (CMS) Model

JEL Classification: F1, F4