Globalisation, Industrial Development and the Plastic Industry in South Africa

Through a study of the plastics sector in South Africa, the article critically examines the pro-globalisation position that greater openness yields gains from exports and foreign direct investment. Analysis of firm-level data reveals that the depth and extent of the internationalisation of production depends on the production capabilities of firms and their position and bargaining power within the supply-chain. It is argued that liberalisation does not necessarily mean that international relationships will be deepened, and that a coherent industrial policy is important in the realisation of the potential gains from such internationalisation.