Post-Apartheid South Africa: Poverty and Distribution Trends in an Era of Globalization

Servaas van der Berg, Megan Louw () and Ronelle Burger ()

MPRA Paper from University Library of Munich, Germany

Abstract: South Africa’s transition to democracy in 1994 created new possibilities for economic policy. Economic liberalization brought sustained, if unspectacular, growth that reversed the long decline in per capita incomes, but left its scars in much job shedding associated with business becoming internationally competitive. This accords with international evidence that trade liberalization takes time to realize positive employment effects. Disappointing employment growth in the face of an expanding labourforce fed rising unemployment. However, using poverty estimates from a combination of sources, this study demonstrates that poverty nevertheless declined quite substantially after the turn of the century. Poverty dominance testing shows this conclusion to be insensitive to the selection of poverty line or measure. But empirical analysis does not allow strong conclusions to be drawn on causal relationships between globalization and poverty trends.

Keywords: trade; labour; South Africa; globalization (search for similar items in EconPapers)
JEL-codes: F16 F14 I32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr and nep-int
Date: 2007-09
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Working Paper: Post-Apartheid South Africa: Poverty and Distribution Trends in an Era of Globalization (2007)
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