The Contribution of Manufacturing and Services to Employment Creation and Growth in South Africa

by TREGENNA, F. , 2008
South African Journal of Economics Vol. 76 August 2008

Tregenna examines the linkages between the manufacturing and services sectors. It also looks at linkages between these two sectors and the rest of the domestic economy. Tregenna does this by analysing input-output tables and employment trends. This reveals that manufacturing is particularly important as a source of demand for the services sector as well as the rest of the economy through its strong backward linkages, which suggests that in this respect a decline in manufacturing could negatively affect future growth. Services are especially important in terms of employment creation, both direct and indirect