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The Impact of Import Competition from China on the Skill-Bias of Manufacturing Employment across South African Regions between 2001 and 2011

South Africa and China established their first official diplomatic ties in 1998. A decade later in 2008 China had become South Africa’s largest bilateral trade partner which presents both complementary and competitive outcomes for the South African labour market. This study explores the competitive...

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Main Author: Matumba, Diana Mukovhe
Other Authors: Edwards, Lawrence
Format: Thesis
Language:English
Published: School of Economics 2020
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access_status_str Open Access
author Matumba, Diana Mukovhe
author2 Edwards, Lawrence
author_browse Edwards, Lawrence
Matumba, Diana Mukovhe
author_facet Edwards, Lawrence
Matumba, Diana Mukovhe
author_sort Matumba, Diana Mukovhe
collection Thesis
description South Africa and China established their first official diplomatic ties in 1998. A decade later in 2008 China had become South Africa’s largest bilateral trade partner which presents both complementary and competitive outcomes for the South African labour market. This study explores the competitive outcomes, particularly the impact that China has had on the skill bias of manufacturing employment within South Africa’s local municipalities between 2001 and 2011. The study follows on from two theories of trade: the Heckscher-Ohlin theory with its Stopler-Samuelson theorem, and specific factor theories. The identification method employed in this study was developed by Autor, Dorn and Hansen (2013) and seeks to exploit variation across South African municipalities which stems from initial differences in industry specialisation and instrumenting for South African imports using changes in Chinese imports by other low- and middle-income countries. The data used in the current study is from the UN Comtrade as well as South African population census data from 1996, 2001 and 2011. This study makes two main contributions to the literature by looking at the impact that import competition has on manufacturing employment in local labour markets, and how this impact varies by skill set and gender. The main finding of the study was that Chinese import exposure was biased against low-skilled workers as it resulted loss of employment for the low-skilled workers, and had a minimal effect on the employment of high-skilled workers.
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institution University of Cape Town (South Africa)
language eng
last_indexed 2026-06-10T12:32:56.154Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2020
publishDateRange 2020
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publisher School of Economics
publisherStr School of Economics
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source_str UCTD — University of Cape Town Open Access Repository
spelling oai:open.uct.ac.za:11427/31688 The Impact of Import Competition from China on the Skill-Bias of Manufacturing Employment across South African Regions between 2001 and 2011 Matumba, Diana Mukovhe Edwards, Lawrence Lepelle, Refilwe International trade Skill bias South Africa China Local labour market South Africa and China established their first official diplomatic ties in 1998. A decade later in 2008 China had become South Africa’s largest bilateral trade partner which presents both complementary and competitive outcomes for the South African labour market. This study explores the competitive outcomes, particularly the impact that China has had on the skill bias of manufacturing employment within South Africa’s local municipalities between 2001 and 2011. The study follows on from two theories of trade: the Heckscher-Ohlin theory with its Stopler-Samuelson theorem, and specific factor theories. The identification method employed in this study was developed by Autor, Dorn and Hansen (2013) and seeks to exploit variation across South African municipalities which stems from initial differences in industry specialisation and instrumenting for South African imports using changes in Chinese imports by other low- and middle-income countries. The data used in the current study is from the UN Comtrade as well as South African population census data from 1996, 2001 and 2011. This study makes two main contributions to the literature by looking at the impact that import competition has on manufacturing employment in local labour markets, and how this impact varies by skill set and gender. The main finding of the study was that Chinese import exposure was biased against low-skilled workers as it resulted loss of employment for the low-skilled workers, and had a minimal effect on the employment of high-skilled workers. 2020-04-23T19:00:01Z 2020-04-23T19:00:01Z 2019 2020-04-23T18:59:21Z Master Thesis Masters MCom https://hdl.handle.net/11427/31688 eng application/pdf School of Economics Faculty of Commerce
spellingShingle International trade
Skill bias
South Africa
China
Local labour market
Matumba, Diana Mukovhe
The Impact of Import Competition from China on the Skill-Bias of Manufacturing Employment across South African Regions between 2001 and 2011
thesis_degree_str Master's
title The Impact of Import Competition from China on the Skill-Bias of Manufacturing Employment across South African Regions between 2001 and 2011
title_full The Impact of Import Competition from China on the Skill-Bias of Manufacturing Employment across South African Regions between 2001 and 2011
title_fullStr The Impact of Import Competition from China on the Skill-Bias of Manufacturing Employment across South African Regions between 2001 and 2011
title_full_unstemmed The Impact of Import Competition from China on the Skill-Bias of Manufacturing Employment across South African Regions between 2001 and 2011
title_short The Impact of Import Competition from China on the Skill-Bias of Manufacturing Employment across South African Regions between 2001 and 2011
title_sort impact of import competition from china on the skill bias of manufacturing employment across south african regions between 2001 and 2011
topic International trade
Skill bias
South Africa
China
Local labour market
url https://hdl.handle.net/11427/31688
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