Sustainability of Local Labour Market in South Africa: The Implications of Imports Competition from China

Muftah Faraj and Murad Bein
Additional contact information
Muftah Faraj: Faculty of Economics and Administrative Sciences, Cyprus International University, North Cyprus, Mersin 10, Turkey

Sustainability, 2022, vol. 14, issue 12, 1-18

Abstract: Using South African manufacturing and non-manufacturing industry employment, imports from China, growth in manufacturing and non-manufacturing industry, and workers’ earning data, we examined the impact of imports from China, growth in manufacturing and non-manufacturing industry on manufacturing and non-manufacturing industry employment and workers’ earnings. This study employed a Bayer and Hanck cointegration test to examine the cointegration among the variables, which found the existence of cointegration. In addition, the ARDL approach was employed to ascertain the long-run effect of the import from China, growth in manufacturing and non-manufacturing industry on the manufacturing and non-manufacturing industry employment and workers’ earning, while “Fully Modified Ordinary Least Square (FMOLS)”, “Dynamic Ordinary Least Square (DOLS)”, and “Canonical Cointegrated Regression (CRR)” estimators were employed for robustness. We found a negative long-run effect of imports from China on manufacturing sectors’ employment and workers’ earnings, while a positive of its effect was found on service industry employment. Moreover, growth in the manufacturing industry was found to have a positive long-run effect on manufacturing industry employment and workers’ earnings, while it has a negative long-run effect on service industry employment. As for the growth in the service industry, it was demonstrated to have a negative and positive long-run effect on manufacturing industry employment and non-manufacturing industry employment.

Keywords: sustainability; labour market; import shock; international trade; South Africa (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/12/7168/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/12/7168/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:12:p:7168-:d:836530

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().