Corporate Structure, Industrial Development, and Structural Change in South Africa

Abstract

The orientation of large corporations is at the heart of how countries develop. These firms make large-scale investments and realize economies of scale and scope, as well as make long-term commitments to the learning and research necessary to build capabilities required for industrial development. In many industries and sectors the large firms have key technologies, govern access to markets, and control material inputs which can shape the structure of an economy. The chapter reviews the changing corporate structure in South Africa focusing on the implications for industrial development, the evolving internationalization of South African businesses, and the political economy of economic policy. While the South African economy has remained highly concentrated, the corporate structure has altered in fundamental ways. The chapter identifies key elements of continuity and change to explain the implications of the continued high levels of economic concentration for the economy through the lens of the corporate structure.