n South African Journal of Economic and Management Sciences - The impact of economic globalisation on the South African auto industry

Volume 6, Issue 1
  • ISSN : 1015-8812
  • E-ISSN: 2222-3436



This paper assesses the impact of economic globalisation on the South African auto industry. First, a duopoly model of differentiated products is used, which allows the determination of the free trade and protection dividing line. This determines the stay-exit function, which shows the profitability level of the domestic industry. Second, to determine the relationship between employment, profitability and export in the auto industry, a log-linear equation is estimated in which the logarithm of employment is expressed as a function of the logarithm of the distance between the stay-exit function and the trade line and the logarithm of export. These estimates suggest that policy makers take measures to either prevent the destruction of the domestic industry and the decrease in employment in the auto industry, or increase its profitability and employment.

Loading full text...

Full text loading...


Article metrics loading...


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error