Advanced Research in Economics and Business Strategy Journal
Volume 7, Numéro 1, Pages 178-204
2026-06-30
The Productivity Effects Of Technological Globalisation In South Africa: Evidence From Dynamic Ardl Modelling
Authors : Msimanga Nompumelelo . De Jongh Jacques .
Abstract
Globalization has profoundly shaped modern economic and social life. Its far-reaching impact has redefined international trade landscapes, innovation, and socio-economic circumstances. In South Africa, characterized by its unique post-1994 democratic era, technological globalization though seems to have functioned as a double-edged sword. On the one hand, it has shown strong linkages to promoting innovation and knowledge transfers. Though on the other, it has presented challenges within the labor market, exacerbating notably high inequality levels and signs of noticeable job displacement. The primary objective of this study was to examine the impact of technological globalization on labor productivity in South Africa. Using secondary time series data, the study utilized Autoregressive Distributed Lag (ARDL) and Error Correction models (ECM) to examine both long and short run relationships. The findings present an interesting picture with notable positive long and short run elasticities reported. The study provides evidence on how technological integration and penetration have driven enhancements in the efficiency in South African labor inputs even when accounting for possible temporal dynamics. Moreover, based on the de facto and de jure disaggregation, results suggest that de jure impulses exhibit only short-term gains in labor efficiency. Though, important questions still linger on whether these effects hold uniform across different skill levels. The findings point to the need for better aligned institutional frameworks which support impulses from the country’s technological adoption, the support of a more flexible labor market and the drive for greater digital infrastructure development to address associated digital divide barriers for productivity gains.
Keywords
Technological globalization ; labor productivity ; South Africa ; canonical cointegration ; ARDL
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