Improving Industrial Policy Intervention: The Case of Steel in South Africa |
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Authors: | Wouter Bam Karolien De Bruyne |
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Institution: | 1. Department of Industrial Engineering, Stellenbosch University, Stellenbosch, South Africa https://orcid.org/0000-0002-7465-9751;2. KU Leuven, Faculty of Economics and Business, Brussels, Belgium |
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Abstract: | We contribute to the lack of tools to support efficient industrial policy-making, especially in the mineral beneficiation policy literature. To address this vacuum, we adapt the product space analysis approach to incorporate an input-output value chain lens. This framework is applied to the case of steel in South Africa to derive novel insights regarding the (in)efficiency of implementing a downstream linkage-based beneficiation policy. Our dynamic analysis approach allows for interactions with the rest of the product space. We find that a ‘leap-frogging’ approach to development within the value chain may be more optimal than a strict beneficiation based industrial policy. |
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