Abstract
M. Comm.
The aim of this study was to analyse the trade between South Africa
and Thailand. The relation between factor endowments and
comparative advantage of the Heckscher-Ohlin (H-O) theory as well
as the alternative theory of the modern international trade theory
were used in the analysis. The trade opportunities and the future
trade prospectives of both countries were being presented according
to the theory on international trade.
The relation between factor endowments and comparative advantage
of Thailand and South Africa were presented in the case of labour
cost, labour productivity, skilled labour, economic indicators,
natural resources as well as technology, research and development.
The methodology of the study was based on statistics obtained from
different sources in South Africa and in Thailand. These included
information from The Royal Thai Embassy in Pretoria. The data were
obtained from institution like the Bank of Thailand, the South
African National Productivity Institute and the Central Statistic
Service of South Africa.
The comparative advantage of factor endowments according to the
H-O theory and the alternative theory were used in the comparison of
both Thailand and South Africa. The result of this comparison
clearly points to the fact that Thailand has a comparative advantage
in labour intensive manufactures and agricultural land intensive
products, while South Africa has a comparative advantage in
minerals and higher technology.
It is true to state that according to the findings of this study,
Thailand has the potential to export labour intensive manufactures
and agricultural land intensive products such as garments, fabrics,
footwear & parts, computer & parts, rice and natural rubber. South
Africa has the potential to export minerals and high technology
products (raw material products, mineral products, steel & iron, pipe
& parts, chemical products) to Thailand.
The study succeeds in confirming the relation between comparative
advantage and factor endowments of the H-O theory and the
alternative theory. It is also clear that future trade prospects of the
two countries are based on comparative advantage and factor
endowment. Furthermore, the trade opportunities identified will be
beneficial to South African and Thai businessmen.