Employment creation and economic growth in South Africa: an analysis of manufacturing and services

SOURCE: South African Journal of Economics
OUTPUT TYPE: Journal Article
PUBLICATION YEAR: 2008
TITLE AUTHOR(S): F.M.Tregenna
KEYWORDS: EMPLOYMENT, MANUFACTURING INDUSTRY, SOUTH AFRICA
DEPARTMENT: Economic Perfomance and Development (EPD)
Print: HSRC Library: shelf number 5161

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Abstract

This study examines the linkages between the manufacturing and services sectors, and between each of them and the rest of the domestic economy, based on analysis of input-output tables and employment trends. This reveals that manufacturing is particularly important as a source of demand for the services sector as well as the rest of the economy through its strong backward linkages, which suggests that in this respect a decline in manufacturing could negatively affect future growth. Services are especially important in terms of employment creation, both direct and indirect.