The impact of Chinese textile imports on employment and value added in the manufacturing sector of the South African economy

Lumengo Bonga-Bonga and Mduduzi Biyase

MPRA Paper from University Library of Munich, Germany

Abstract: With the increased trade linkage between China and African economies, this paper endeavours to assess the dynamic impacts of Chinese textile imports on the employment and value added in the manufacturing sector of the South African economy. The paper makes use of the structural vector autoregressive (SVAR) methodology with sign restrictions. Moreover, based on this methodology, the paper conducts a counterfactual analysis to uncover what would have happened to employment and value added trends in the manufacturing sector in South African textile in the absence of trade with china. The results of the empirical analysis show that total employment responds negatively to shocks to import from China. Moreover, total value added in the manufacturing sector reacts negatively to positive shocks to textile imports from China.

Keywords: Textile industry; China; South Africa; SVAR; sign restrictions (search for similar items in EconPapers)
JEL-codes: C54 F14 F16 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-cna and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:88181

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