Trade‐Induced Unemployment: The Case of Post‐Apartheid S outh A frica

This paper analyses the link between changes in trade flows and labour demand in post‐apartheid S outh A frica (1994–2006). Although this is not the first research with regard to this topic, it is one of the few that uses a consistent trade framework. Based on a three‐dimensional H eckscher– O hlin trade model, a theoretical framework is constructed to analyse this link. Whereas it is impossible to test the theoretical link directly because of data limitations, an indirect econometric test supports the findings of the model. This implies that the combination of increased trade and labour market rigidities was unfavourable for labour opportunities.