Mark-up Pricing in South African Industry
Publication date: April 2005
Journal: 2007, Journal of African Economies, 16(1), 28-69
This paper investigates the extent of the mark-up of the South African manufacturing sector, taking into account a number of characteristics of its component industries. We find significant mark-ups to be present in the South African manufacturing industry. In comparative terms, the mark-up is approximately twice that found for the US manufacturing sector. We find that industry concentration exerts a positive influence on the mark-up over marginal cost whilst an indicator of competitiveness suggests that an increase in an industry’s competitiveness relative to other industries allows it to raise its mark-up. However, within-industry increases in competitiveness reduces the mark-up. We also analyze the impact of import and export penetration. Both import and export penetration serve to lower the mark-up. The impact of the business cycle on mark-up indicates that the mark-up is countercyclical. Finally, accounting for intermediate inputs significantly lowers the absolute size of the mark-up, controlling for the industry’s concentration ratio. However, relative to findings on the US manufacturing sectors, SA manufacturing mark-ups remain approximately twice as large.
Total downloads: 633
Has transition improved well-being? An analysis based on income, inequality-adjusted income, nonincome, and subjective well-being measures
Publication date: May 2005
In this paper we examine trends in economic well-being in transition countries from 1988-2002. To do this, we examine economic performance, inequality-adjusted well-being measures, subjective well-being measures, and non-income dimensions of well-being. While for some of the transition countries in Central Europe, the level of well-being is now higher than prior to transition, it is far below those levels in most other transition countries. The only indicator which has shown consistent improvements are measures of political and civil liberties.
Total downloads: 373
Using Fractionalization Indexes: deriving methodological principles for growth studies from time series evidence
Publication date: January 2008
Journal: Social Indicators Research, 85, 257-78
Recent cross country growth studies have found that ethnolinguistic fractionalization is an important explanatory variable of long-run growth performance. This paper highlights some limitations of cross country studies by focusing on the time series evidence for South Africa. In presenting variation over time in a number of social, political and economic dimensions, this paper adds longitudinal evidence on a range of dimensions that have been linked to long run economic development. Given South Africa’s history of ethnic and racial politics, it constitutes a useful case study to explore the dynamics of the possible effects of ethnolinguistic fractionalization on growth. We introduce three new sets of fractionalization indicators for South Africa and one set of political indicators. The results of this study provide important nuance to the existing body of evidence, for the use of fractionalization indices in growth studies.
Total downloads: 414