The evolution of manufacturing in the Gauteng city-region: From de-industrialization to re-industrialization?

Ashman, Sam; Newman, Susan

Abstract

The South African economy has long been dominated by what Fine and Rustomjee (1996) call the “Minerals-Energy Complex” (MEC). Much South African ‘manufacturing’ has been connected to this capital intensive MEC core of the economy, with manufacturing outside the MEC core relatively weak. This chapter situates manufacturing in the Gauteng City-Region within the overall development of the MEC, South Africa’s distinctive system of accumulation. It situates the discussion also within the ongoing debate about the significance of manufacturing, and whether or not manufacturing should be regarded as an economic sector of particular importance, or ‘engine of growth’. If regarded as such, deindustrialization is of specific concern. Empirically, the chapter identifies and traces the evolution of the most important sectors of manufacturing within Gauteng. It demonstrates the concentration of employment and of capital stock in particular sectors and both declining manufacturing employment and year on year declining fixed capital investment. De-industrialization in the Gauteng City-Region has national significance because of the economic importance of the region. Whilst policy discussion reflects this, the specific importance of manufacturing can easily be lost amongst many competing policy objectives.

• Publication Date: Nov 20, 2018
• Deposit Date: Oct 13, 2017
• Peer Reviewed: Peer Reviewed
• Book Title: The Changing Space Economy of City-Regions: The Gauteng City-Region, South Africa
• ISBN: 9783319674827
• Keywords: de-industrialisation, South Africa
• Public URL: https://uwe-repository.worktribe.com/output/856943
• Publisher URL: http://www.springer.com/in/book/9783319674827
• Contract Date: Oct 13, 2017