Links to share

Even now that I am stuck at home the recommended reading comes in from all over and I want to share a couple of links to posts that I have liked.

• An interesting one at the NewGeography was on the size of manufacturing establishments in the US. It seems that work sites are getting smaller, firms are starting smaller and staying smaller. The average manufacturing establishment was home to 35 jobs in 2012.
• Linking on to that, a new paper in the Journal of African Economies asks whether Africa can industrialise - in other words "what will it take for the typical low-income economy in Africa to accelerate the shift of labor from low productivity jobs in agriculture and the informal sector to higher productivity jobs in agro-industry, manufacturing or tradable services?" The paper goes on to argue that the required structural change has not taken place and that Africa faces a different industrialisation challenge to the one that earlier entrants into manufacturing did. It recommends three interrelated initiatives: "tilting towards exports, encouraging agglomerations and building capabilities—as essential complements to investment climate reforms".

Support of manufacturing

Yesterday I wrote that the Budget 2012 is noteworthy for its focus on the drivers of growth and support of business. It feels like there is a plan and the Minister has promised funding for a manufacturing competitiveness enhancement programme, industrial development incentives, special economic zones and a lot of infrastructure.

Internationally, specifically in the US, there is a significant debate about whether manufacturing matters and deserves special treatment. I'm slowly starting to read up on this to prepare a SA paper. In the meantime I'll be posting links following the story:

• To recap, my post: Industrial policy on my mind
• Christina Romer said: Manufacturers don't deserve special treatment.
• Laura Tyson argued: Why manufacturing still matters.
• The Brooking Institution agreed: Why does manufacturing matter? and hosted a whole event about it yesterday.
• Then Ryan Avent provided the rebuttal: Manufacturing concerns.

It makes for interesting reading.