How can South Africa diversify its industrial sector so that it is less dependent on mineral
exports increases labour absorption and reduces unemployment? This book sheds more light on
the structure of South Africa's economy its industrial sector and inter-sectoral linkages by
simulating an economic geography model of the vertical linkages type by testing linkage
strength econometrically and by analysing industrial policy's role in shaping its development
path. It finds that linkages did play an important role in industrial development in South
Africa yet they have often been reinforced by policy interventions. Industrial policy is still
geared to benefit the sectors close to the country's mineral endowment and thus contributes to
South Africa's lopsided industrial development.
