Input-output linkages and interdependence between countries in the southern African development community (SADC)

Phumzile Ncube () and Fiona Tregenna ()
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Phumzile Ncube: DSI/NRF South African Research Chair in Industrial Development, College of Economics and Business, University of Johannesburg.
Fiona Tregenna: DSI/NRF South African Research Chair in Industrial Development, College of Economics and Business, University of Johannesburg.

No 2021-04, SARChI-ID Working Papers from SARChI Industrial Development (SARChI-ID), University of Johannesburg (UJ)

Abstract: Regional industrialisation and integration form part of the policy priorities in a number of countries in southern African and those of the Southern African Development Community (SADC). Manufacturing can be seen as a key driver of domestic and regional industrialisation and growth, given its ability to exhibit high backward and forward input-output linkages. While most input-output research for African countries explores domestic input-output linkages, this paper investigates inter-country intersectoral linkages among five southern African countries for the years 2000 and 2015. We find that linkages tend to be highest in the manufacturing sector, particularly in ‘food and beverages’, across the countries in the study. We also find that the highest inter-country linkages are found between neighbouring countries. These findings suggest that regional industrialisation may benefit from focusing on manufacturing, especially agro-processing sectors. Regional integration may benefit from a specific focus on bilateral relationships between neighbouring countries.

Keywords: Inter-country input-output linkages; regional industrialisation; regional value chains (search for similar items in EconPapers)
JEL-codes: C67 D57 F15 O14 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2021-06, Revised 2021-06
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