GTAP Resources: Resource Display
| GTAP Resource #4773 |
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"SERVICE INNOVATION THROUGH INDUSTRIAL CLUSTER FORMATION AND BOLSTERED VIA THE PROMOTION OF ASSOCIATED EXPORT OPPORTUNITIES" by Pisa, Noleen, Sonja Grater and Riaan Rossouw Abstract Services and service innovation have become key drivers of economic growth in many countries. Service innovation and greater outward orientation can also transform the entire value chain, strengthen the industrial base and stimulate the development of new sectors and industries. Given the leverage that global markets can exert on an economy, this may lead to extensive structural change. The economy of the North West Province (NWP) of South Africa is highly dependent on only a few resource-based sectors and is vulnerable to external shocks and currency fluctuations. The aim of the paper is to illustrate how industrial cluster formation and focussed export promotion can be used as a strategy to enhance service innovation and competitiveness in the NWP. By applying the structural path analysis (SPA) and the Power of Pull (PoP) methods to a 2006 provincial social accounting matrix (SAM) of the province, it was possible to identify four service-specific industrial clusters with strong, existing inter-industry linkages. These four clusters are: communication, real estate, building and construction and retail and wholesale trade. In addition, the paper identified realistic export opportunities (REOs) using the TRADE - Decision Support Model (TRADE-DSM), for the identified industrial clusters. The TRADE-DSM for services, is a model that was developed to identify potential export opportunities for a specific country, in this case South Africa. The TRADE-DSM for services uses a scientifically designed filtering process to reveal which services have the greatest export potential in a range of viable markets. By matching service clusters to the TRADE-DSM REOs, the results revealed that two of the four clusters have significant export potential. |
| Resource Details (Export Citation) | GTAP Keywords | ||||||||||||||||
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- Economic growth - Trade in services - Other data bases and data issues - Africa (Southern) |
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Public Access No documents have been attached. Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
