The dynamics of regional economic integration: a system dynamics analysis of pathways to the development of value chains in the Southern African Customs Union

Date
2017
Journal Title
Journal ISSN
Volume Title
Publisher
Southern African Institute for Industrial Engineering
Abstract
Despite progress towards improved cooperation within the Southern African Customs Union (SACU), it can be argued that real economic integration is still lacking. Cross-border value chain (VC) development has been proposed as a potential enabler of regional economic integration. This article draws on a systems thinking process to explore the dynamic process of regional economic integration and value chain development. Through an inductive approach, we consider pathways for value chain development using the agro-processing and automotive sectors within SACU as case studies. The outcome of the dynamic hypothesis is to inform a framework for strategic decision-making to support policy action towards developing cross-border value chains in SACU.
AFRIKAANSE OPSOMMING: Ten spyte van vooruitgang in beter samewerking binne die Suider-Afrikaanse Doeane-Unie (SADU), kan dit aangevoer word dat ware ekonomiese integrasie nog ontbreek. Die ontwikkeling van oorgrens-waardekettings word beskou as 'n moontlike drywer van plaaslike ekonomiese integrasie. Hierdie artikel maak gebruik van 'n stelseldenke proses om die dinamiese proses van streekswye ekonomiese integrasie en waardeketting ontwikkeling te ondersoek. Ons gebruik ‘n induktiewe benadering om roetes tot waardeketting ontwikkeling deur middel van gevallestudies in landbou-verwerking en die motorsektor, te ondersoek. Die uitkoms van die dinamiese hipotese is om 'n raamwerk te ontwikkel om strategiese besluitneming en beleidsaksie vir die ontwikkeling van oorgrens-waardekettings in SADU te ondersteun.
Description
CITATION: Grobbelaar, S. S. & Meyer, Isabel A. 2017. The dynamics of regional economic integration: a system dynamics analysis of pathways to the development of value chains in the Southern African Customs Union. South African Journal of Industrial Engineering, 28(1):73-89, doi:10.7166/28-1-1613.
The original publication is available at http://sajie.journals.ac.za
Keywords
Southern Africa -- Economic integration, Customs unions -- Southern Africa, Value analysis (Cost control)
Citation
Grobbelaar, S. S. & Meyer, Isabel A. 2017. The dynamics of regional economic integration: a system dynamics analysis of pathways to the development of value chains in the Southern African Customs Union. South African Journal of Industrial Engineering, 28(1):73-89, doi:10.7166/28-1-1613