South Africa's dependence on mineral exports in its relations with China: the road to de-industrialization?

Abstract

This paper aims to introduce evidences that asymmetric commercial relations with China and the increasing mineral exports may be leading South Africa to a premature deindustrialization. Premature deindustrialization has occurred since the economic opening in African and Latin American countries, creating a scenario of reduction of the industrial sector share in the Gross Domestic Product (GDP) and the increasing predominance of primary products on exports. Data analysis show us the growing dependence of South Africa on minerals exportation, which leads us to consider that the natural resources exploitation has appreciated the exchange rate and affected the industrial development.