Finance and Industrial Development: Convergent or Divergent Trajectories? Dr Justin Visagie and Prof Ivan Turok

PowerPoint Presentation Finance and Industrial Development: Convergent or Divergent Trajectories? Dr Justin Visagie and Prof Ivan Turok Human Sciences Research Council TIPS Forum 2018 Finance and Industrial Development: Convergent or Divergent Trajectories? • Apparent rise of financial/business services in SA is in tandem with a weakened manufacturing base: • Questions over divergence: • Does grow. [...] • Role of ‘fourth industrial revolution’: digitalisation/standardisation of service inputs; use of big data flows; reduced friction of physical distance. [...] • Importance of services as a global export • Critical to dig deeper to understand which sub-sectors explain growth in the service economy – are these ‘tradable’? Dataset: Exploring the PALMS • Post-Apartheid Labour Market Series (PALMS) • October Household Surveys, Labour Force Surveys and Quarterly Labour Force Surveys • We examine pooled annual cross-sections where applicable: significantly boo. [...] • Interested in formal sector employment • Note: analysis preliminary – differences in the ways in which questions are asked; may be issues with capturing agricultural workers (Neyens and Wittenberg, 2016) • Different spatial-scales: importance of regional clustering and agglomeration economies Change in structure of the economy in post-apartheid SA: Share of jobs by sector 1997 – 2017 100 90 22,2. [...] Better to think about ‘Business and financial services’? • Finance did not account for much job creation outside of Gauteng • Important to consider substantial number of security workers • Importance of ‘tradable/non-tradable’ distinctions • Spatial lens merits further interrogation: very different types of economic change by region Questions for discussion • Can Gauteng be supported as a regional.