Understanding world and South African trade in services

 

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dc.contributor.advisor Hartzenberg, Trudi en_ZA
dc.contributor.author Hodge, James en_ZA
dc.date.accessioned 2016-02-24T11:17:05Z
dc.date.available 2016-02-24T11:17:05Z
dc.date.issued 1997 en_ZA
dc.identifier.citation Hodge, J. 1997. Understanding world and South African trade in services. University of Cape Town. en_ZA
dc.identifier.uri http://hdl.handle.net/11427/17237
dc.description Bibliography: pages 86-90. en_ZA
dc.description.abstract Services trade has become a significant component of world trade and has been given more academic profile since its inclusion in the Uruguay Round of GATT trade talks. However, the paucity of academic work means that services trade is still poorly understood and lacks significant statistical analysis. This research begins by analysing the characteristics of different service types using South African output, capital, employment and wage data. This demonstrates that consumer services tend to be labour-intensive while producer and community/social services tend to be capital- and skill- intensive. Then IMF balance of payments data and World Bank output data for all world regions is used to calculate the cause of growth in services trade, the product structure of traded services and the export and import performance of countries from different regions and development stages. It is found that producer services account for almost 2/3's of traded services followed by consumer services with around 30%. Industrial countries dominate services trade to a far greater extent than goods trade yet this dominance is diminishing due to the growing share of the Asian developing economies. Further analysis of service trade patterns finds that although traditional trade theory and its extensions account for much of what is observed, it needs to be augmented by the strong influences of geographical proximity, policy distortions and the level of other trade and investment that a country engages in. A mix of IMF and SARB data is used to construct a service trade data set for South Africa which complies with the new IMF BPM5 definitions. This data reveals the poor performance of South African service exports which have been stunted to a large degree by sanctions and geographic isolation from the large growth regions of the world. A closer inspection of the product mix reveals that exports are dominated by the labour-intensive travel sector with particularly poor performance within the business services sector. Imports are dominated by the capital-intensive transportation sector. A regional breakdown of trade reveals the dominance of trade with the African and European regions - signs of the importance of regional proximity and trade and investment links in services trade. en_ZA
dc.language.iso eng en_ZA
dc.subject.other Economics en_ZA
dc.title Understanding world and South African trade in services en_ZA
dc.type Master Thesis
uct.type.publication Research en_ZA
uct.type.resource Thesis en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Commerce en_ZA
dc.publisher.department School of Economics en_ZA
dc.type.qualificationlevel Masters
dc.type.qualificationname MCom en_ZA
uct.type.filetype Text
uct.type.filetype Image
dc.identifier.apacitation Hodge, J. (1997). <i>Understanding world and South African trade in services</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/17237 en_ZA
dc.identifier.chicagocitation Hodge, James. <i>"Understanding world and South African trade in services."</i> Thesis., University of Cape Town ,Faculty of Commerce ,School of Economics, 1997. http://hdl.handle.net/11427/17237 en_ZA
dc.identifier.vancouvercitation Hodge J. Understanding world and South African trade in services. [Thesis]. University of Cape Town ,Faculty of Commerce ,School of Economics, 1997 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/17237 en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Hodge, James AB - Services trade has become a significant component of world trade and has been given more academic profile since its inclusion in the Uruguay Round of GATT trade talks. However, the paucity of academic work means that services trade is still poorly understood and lacks significant statistical analysis. This research begins by analysing the characteristics of different service types using South African output, capital, employment and wage data. This demonstrates that consumer services tend to be labour-intensive while producer and community/social services tend to be capital- and skill- intensive. Then IMF balance of payments data and World Bank output data for all world regions is used to calculate the cause of growth in services trade, the product structure of traded services and the export and import performance of countries from different regions and development stages. It is found that producer services account for almost 2/3's of traded services followed by consumer services with around 30%. Industrial countries dominate services trade to a far greater extent than goods trade yet this dominance is diminishing due to the growing share of the Asian developing economies. Further analysis of service trade patterns finds that although traditional trade theory and its extensions account for much of what is observed, it needs to be augmented by the strong influences of geographical proximity, policy distortions and the level of other trade and investment that a country engages in. A mix of IMF and SARB data is used to construct a service trade data set for South Africa which complies with the new IMF BPM5 definitions. This data reveals the poor performance of South African service exports which have been stunted to a large degree by sanctions and geographic isolation from the large growth regions of the world. A closer inspection of the product mix reveals that exports are dominated by the labour-intensive travel sector with particularly poor performance within the business services sector. Imports are dominated by the capital-intensive transportation sector. A regional breakdown of trade reveals the dominance of trade with the African and European regions - signs of the importance of regional proximity and trade and investment links in services trade. DA - 1997 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 1997 T1 - Understanding world and South African trade in services TI - Understanding world and South African trade in services UR - http://hdl.handle.net/11427/17237 ER - en_ZA


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