When did globalization begin in South Africa?
Stellenbosch Working Paper Series No. Wp10/2015Publication date: 2015
Author(s):
[protected email address] (Department of Economics, University of Stellenbosch)
Economic globalization is defined as the co-movement of prices across a large number of countries (O’Rourke and Williamson, 2002). This research note identifies the period when South African prices began to move in unison with those of the country’s lead trading partner or, in other words, when South Africa globalized. We find that South African wheat prices started reflecting UK trends soon after the discovery of diamonds and gold in the interior of the country. The mineral revolution, it seems, was responsible for integrating the broader South African economy – here proxied by agricultural prices – into the global economy. We further show that this integration was not confined to Cape Town; the coming of the railways ensured that markets in the larger Western and Eastern Cape and, importantly, the town of Kimberley, were well integrated with those in Cape Town. We therefore establish the start of South Africa’s globalization in the 1870s.
JEL Classification:F63, N17
Keywords:globalization, trade, periphery, colonialism, railways, Africa
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Monday 21 July 202512:00-13:00
Izak Odendaal: Old Mutual Wealth Chief Investment Strategist
Topic: "Diverging fiscal policies and what it means for markets"
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Dr Neil Rankin: Ceo Of Predictive Insights & Stellenbosch University
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Prof Willem Boshoff: Stellenbosch University
Topic: "Two competing approaches in South African competition policy: merger control and anti-cartel enforcement over the past 30 years"
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4 Jul 2025 One Big Beautiful Bill Act passes as tariff pause deadline loomsThis week brought a flurry of data releases alongside a heavy dose of political drama, both locally and globally. Yesterday’s stronger-than-expected US jobs report was the standout global data release. Domestically, tensions persisted in the DA-ANC relationship. On the international stage, headlines were dominated by the passage of the One Big Beautiful...
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