n Studies in Economics and Econometrics - A framework for South African industrial cluster identification and analysis

Volume 37, Issue 2
  • ISSN : 0379-6205


This paper seeks to detect whether a statistically significant relationship can be established between cluster growth and the degree of cluster specialisation and the level of cluster competition in the Eastern Cape Province. It firstly establishes a national industrial clusters framework for the South African economy, based on an analysis of functional inter-industry relationships. Through top-down cluster applications, groups of industries with linked value chains are detected. Secondly, the relationship between cluster growth and economic structure in the Eastern Cape Province is analysed. The findings indicate that a relationship exists between the level of value chain cluster concentration and the ability to outperform its less concentrated cluster counterparts in the rest of the country. The empirical assessment of the impact of competition on value chain cluster performance reveals that neither the differential, nor the total value chain cluster growth variables exhibit a significant relationship with the level of intra-cluster competitiveness.

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