Incentives and South Africa's automotive industry performance : a system dynamics approach

dc.contributor.authorKaggwa, M.
dc.contributor.authorSteyn, Jasper L.
dc.contributor.emailjasper.steyn@up.ac.zaen_ZA
dc.date.accessioned2016-07-04T09:13:00Z
dc.date.available2016-07-04T09:13:00Z
dc.date.issued2015-09
dc.description.abstractInvestment in robotic automotive manufacturing and inherent electronics has played a pivotal role in the growth and competitiveness of the South African automotive industry. Government's offering of incentives was intended to lessen the cost of local industry’s expensive, but necessary investment. Despite the growth, industry trade balance has been declining systematically. To explain the apparent contradiction in industry performance, a model of South Africa’s automotive incentives – including the Productive Asset Allowance (PAA) and the Import-Export Complementation (IEC) – was developed. Model simulations reveal that, while the IEC had a significant effect on the industry trade balance, the role of the PAA in this regard is trivial. Ultimately, the study reveals that combining strictly investment incentives with other ‘non-investment’ incentives can have unintended consequences for the local automotive industry.en_ZA
dc.description.departmentGraduate School of Technology Management (GSTM)en_ZA
dc.description.librarianam2016en_ZA
dc.description.urihttp://www.saiee.org.za/DirectoryDisplay/DirectoryCMSPages.aspx?name=Publications#id=1588&dirname=ARJ&dirid=337en_ZA
dc.identifier.citationKaggwa, M & Steyn, JL 2015, 'Incentives and South Africa's automotive industry performance : a system dynamics approach', SAIEE Africa Research Journal, vol. 106, no. 3, pp. 152-161.en_ZA
dc.identifier.issn1991-1696
dc.identifier.urihttp://hdl.handle.net/2263/53612
dc.language.isoenen_ZA
dc.publisherSouth African Institute of Electrical Engineersen_ZA
dc.rights© 2015 South African Institute of Electrical Engineersen_ZA
dc.subjectInvestment incentivesen_ZA
dc.subjectRobotic automotive manufacturingen_ZA
dc.subjectSystem dynamicsen_ZA
dc.subjectCompetitivenessen_ZA
dc.titleIncentives and South Africa's automotive industry performance : a system dynamics approachen_ZA
dc.typeArticleen_ZA

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