Abstract
Empirical evidence points to a mismatch between the growth of population and the growth of manufacturing activity among the metropolitan centres of South Africa. While the coastal metropoles lag behind the PWV and certain secondary cities and towns in terms of manufacturing growth, the opposite applies to urbanization. Various market failures and policy‐induced distortions may have contributed to the relatively poor per‐formance of manufacturing in the coastal cities. Until such time as these distortions have been completely removed by suitable changes to government policy, temporary subsidies to offset the disadvantages of the coastal areas may be advisable.

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