Agricultural Trade and Employment in South Africa
- Authors:
- Ron Sandrey1, Cecilia Punt2, Hans Grinsted Jensen2, Nick Vink3
- Author Affiliations
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- 1: TRALAC (Trade Law Centre for Southern Africa), South Africa
- 2: National Agricultural Marketing Council, South Africa
- 3: University of Stellenbosch, South Africa
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Publication Date
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19 Oct 2011
- Bibliographic information
-
- No.:
- 130
- Pages
- 34
- DOI
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10.1787/5kg3nh58nvq1-en
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Abstract
This report provides an overview of policy changes in South African agriculture over the past three decades, and of some of the associated impacts on output, trade patterns and employment. In agriculture, the story is one of widespread substitution of labour for capital. While the sector has shed more than a million jobs over the past four decades, the paper highlights its continuing role as an employment creator in rural areas, albeit mainly in low-wage occupations. As for its principal analytical contribution, this paper considers future trade liberalisation in the agricultural sector. Using two different economic models, we find a remarkably consistent pattern whereby agricultural trade liberalisation in the region is predicted to increase agricultural employment.
- Keywords:
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wages,
inclusive growth,
employment,
trade
- JEL Classification:
- F16: International Economics / Trade / Trade and Labor Market Interactions