A shift-share analysis of job creation in the Platinum SDI during its first decade (1996-2006)

Abstract

This study evaluates the performance of the Platinum Spatial Development Initiative (SDI) development corridor in South Africa, which was initiated during 1996. Next to descriptive data, the study employed shift-share analysis to investigate the economic growth and job creation potential of the manufacturing industries in the SDI region. Analysis of the North West Province was also done to enable comparison with the Platinum SDI. The results revealed that development in the Platinum SDI since 1996 was slightly better than the rest of the province. Sectors with the highest potential were wood and paper products, food and beverages, electronics, furniture and metal products, which merit attention in future development initiatives. Economic growth in the Platinum SDI was, in most cases, better than the rest of the province, and the industrial mix and regional competitive share effects had strong effect on employment and growth in specific sectors.