The Economic Contribution of Copyright-Based Industries · PDF fileThe Economic Contribution...

The Economic Contribution of Copyright-Based Industries in

South Africa

The Economic Contribution of Copyright-Based Industries in South Africa

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

WORLD INTELLECTUAL PROPERTY ORGANIZATION (WIPO)IN COOPERATION WITH THE REPUBLIC OF SOUTH AFRICA

Prof. Anastassios Pouris andMrs Roula Inglesi-Lotz

2011

Institute for Technological InnovationUniversity of Pretoria

Department of Trade and

Industry Ministry


1

Ta b l e o f C o n t e n t s

Foreword 4

Executive Summary 5

1. IntroductIon 10

2. copyrIght In South AFrIcA 12

2.1 TheSouthAfricanFilmandTelevisionIndustryReport 15

2.2 TheSouthAfricanPublishingIndustryReport 16

2.3 TheSouthAfricanMusicIndustry 16

3. IntErnAtIonAl StudIES: EStImAtIng thE EconomIc contrIbutIon oF copyrIght-bASEd InduStrIES 18

4. mEthodology 22

5. thE contrIbutIon oF copyrIght-bASEd InduStrIES to thE South AFrIcAn Economy 25

5.1 ThePerformanceofCopyright-BasedIndustries 25

5.2 ComparisonwithOtherEconomicSectors 30

5.3 CoreCopyright-BasedIndustries 32

5.4 InterdependentCopyright-BasedIndustries 36

5.5 PartialCopyright-BasedIndustries 40

5.6 Non-DedicatedCopyright-BasedIndustries 44

6. dIScuSSIon 47

6.1 CopyrightinTrade 48

6.2 Recommendations 52

AppEndIx 1 54

AppEndIx 2 IntErnAtIonAl StudIES dAtA 55

AppEndIx 3 clASSIFIcAtIon oF InduStrIES 61

AppEndIx 4 Input-output multIplIErS 66

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

2

Ta b l e s

table A: RealValue-Added,Employment,ExportsandImportsforallCopyright-BasedIndustriesfor2008 7

table b: Production-InducedEffectofCopyright-BasedIndustries(Input-Output2009) 8

table 1: Copyright-BasedIndustriesUsedintheSouthAfricanStudy 22

table 2: SouthAfricanCopyrightFactors 23

table 3: RealValue-Added,Employment,ExportsandImportsforallCopyright-BasedIndustriesfor2008 26

table 4A: Value-Added,Employment,ImportsandExportsGrowthofCopyright-BasedIndustriesin%1970to2008 27

table 4b: Copyright-BasedIndustriestoValue-Added,Employment,ImportsandExports:1970to2008 29

table 5: Value-Added,Employment,ImportsandExportsGrowthofCoreCopyright-BasedIndustriesin%1970to2008 32

table 6: Value-Added,Employment,ImportsandExportsGrowthofInterdependentCopyright-BasedIndustriesin%from1970to2008 36

table 7: Value-Added,Employment,ImportsandExportsGrowthofPartialCopyright-BasedIndustriesin%1970to2008 40

table 8: Value-Added,Employment,ImportsandExportsGrowthofNon-DedicatedSupportCopyright-BasedIndustriesin%1970to2008 44

table 9: Production-InducedEffectofCopyright-BasedIndustries(Input-Output2009) 47

table 10: TradeinCopyrightDependentGoods 50

table 11: PaymentsandReceiptsinCopyrightServices 52

table 12: HighestandLowerPiracyRatesInternationally 54

table 13: SummaryofSelectedStudies:ContributionoftheCoreCopyright-BasedIndustries 56

table 14: SummaryofSelectedStudies:ContributionofInterdependentCopyright-BasedIndustries 57

table 15: SummaryofSelectedStudies:ContributionofPartialCopyright-BasedIndustries 58

table 16: SummaryofSelectedStudies:ContributionofNon-DedicatedSupportCopyright-BasedIndustries 59

table 17: InternationalStudies:CopyrightFactors 59

table 18: CategoriesofCoreCopyright-BasedIndustries 61

table 19: CategoriesofInterdependentCopyright-BasedIndustries 62

table 20: CategoriesofPartialCopyright-BasedIndustries 63

table 21: CategoriesofNon-DedicatedCopyright-BasedIndustries 64

table 22: OutputMultipliers2009 68

table 23: IncomeMultipliers2009 70

table 24: EmploymentMultipliers2009 72

table 25: ImportMultipliers2009 74


3

F i g u r e s

Figure A: ContributionofCopyright-BasedIndustriestotheSouthAfricanEconomyin2008 6

Figure b: EvolutionofContributionofCopyright-BasedIndustriestoTotalValue-Added,Employment,ImportsandExports 7

Figure 1: InternationalPropertyRightsIndex:RankingbyQuintiles2008 14

Figure 2: InternationalContributionofCopyright-BasedIndustries(GDPandEmployment)WIPOSupportedStudies 19

Figure 3: ContributionofCopyright-BasedIndustriesinEuropeanCountries 20

Figure 4: ContributionofCopyright-BasedIndustriesin2008 25

Figure 5: EvolutionofContributionofCopyright-BasedIndustriestoTotalValue-Added,Employment,ImportsandExports 28

Figure 6: Value-AddedContribution:ComparisonwithOtherSectors–2008 30

Figure 7: EmploymentContribution:ComparisonwithOtherSectors–2008 31

Figure 8: ImportsContribution:ComparisonwithOtherSectors–2008 31

Figure 9: ExportsContribution:ComparisonwithOtherSectors–2008 32

Figure 10: CoreCopyright-BasedIndustries:ContributiontoTotalValue-Added 34

Figure 11: TotalCoreCopyright-BasedIndustries:ContributiontoEmployment 35

Figure 12: CoreCopyright-BasedIndustries:ContributiontoImportsandExports 36

Figure 13: InterdependentCopyright-BasedIndustries:ContributiontoValue-Added 38

Figure 14: InterdependentCopyright-BasedIndustries:ContributiontoEmployment 39

Figure 15: InterdependentCopyright-BasedIndustries:ContributiontoImportsandExports 40

Figure 16: PartialCopyright-BasedIndustries:ContributiontoValue-Added 42

Figure 17: PartialCopyright-BasedIndustries:ContributiontoEmployment 43

Figure 18: PartialCopyright-BasedIndustries:ContributiontoImportsandExports 43

Figure 19: Non-DedicatedCopyright-BasedIndustries:ContributiontoValue-Added 45

Figure 20: Non-DedicatedCopyright-BasedIndustries:ContributiontoEmployment 46

Figure 21: Non-DedicatedCopyright-BasedIndustries:ContributiontoImportsandExports 46

Figure 22: SouthAfricaPrinting,PublishingandRecordedMediaExports:SharetoTotalExports 49

Figure 23: SouthAfricaPrinting,PublishingandRecordedMediaImports:SharetoTotalImports 50

Figure 24: TradeBalance:SouthAfricaPrinting,PublishingandRecordedMedia1970to2008 51

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

4

F o r e w o r d

by Dr. Rob Davies, Minister of Trade and Industry

In 2010 the Department of Trade and Industry (the DTI) commissioned a study through theWorld Intellectual Property Organization (WIPO). The research study would indicate whetherthereareanybenefitscomingfromcopyright-basedindustries inSouthAfrica.The reasonforcommissioning these studieswas solelybasedon the fact thatSouthAfricawants toaccedeto treaties in theareaofcopyrightandtheSouthAfricanParliament indicatedthatbeforeanytreaty couldbeacceded to thecountryneeds toknowwhatbenefits come from these treatiesasbecomingasignatorytoatreatyentailsattractingobligationsandamendingthelegislation.

WiththefinalreportofthestudiesbeingsubmittedbyWIPO,Iamoftheviewthat:

ThestudiesgiveaclearindicationonwhetherornotthereisanybenefitforSouthAfricainjoiningornotjoininginternationaltreaties.

• ItisclearthatSouthAfricashouldimproveitsinternalcopyrightlegislationasitisoverthreedecades-old.

• ThemethodologyusedinconductingthestudyisnotdisputedbytheDTI.• TheabsenceofdatafromStatisticsSouthAfricaisproblematicespeciallywiththereliance

ondata fromprivatelymanageddatabasesmaybemisleadingasthisdatahasnotbeenproventobereliable.

• The treatment of Intellectual Property (IP) as a non-sector renders the recognition ofcopyrightasasub-sectorofIPnon-existentorsterile.

Notwithstandingtheabove:

• Thereport isaneyeopener. Itwillassistthecountry intreating IPasasectorandthiswillbejudgedbyitscontributiontotheeconomyaslaidoutinthereport.

• This is an indictment to the state to put systems in place that will assist in improving thecontributionofcopyright/IPtotheGrossDomesticProduct.

• StatisticsSouthAfrica,theSouthAfricanRevenueServicesandprivatelyownedassociationsthatcollectdataonIPshouldstriveforperfect/properdatagatheringinthissector.

• The report enables the state toallow innovation in tradeandeducationaswell asprofitmakingandthedevelopmentofincentiveschemesintheareaofcopyrighte.g.filmandmusicandtoallowlimitationsandexceptions.

Itismyviewthatwhenallisdone,therewillbeeconomicgrowth,jobcreationandrespectforIPasitcontributestothesocialgood.InregardstotheaboveitisinthebestinterestoftheDTItonotethefindingsofthestudy.

ThepublicationofthefindingsofthisstudyrepresentsaveryimportantmilestoneforSouthAfricaas it clearly indicates theareasweneed to improveon in termsoflegislationontheprotectionandenforcementofcopyright.

It is with great pleasure therefore that I present to you the findings of the commissioned study on“Benefits coming from Copyright-Based Industries”. TheDTI and relevant stakeholders willengageinaconsultativeprocessthatwillconsidertherecommendations.

January4th,2012


5

E x e c u t i v e S u m m a r y

The creation of new knowledge in a competitive economy is dependent to a significant extent on theprotectionoftheintellectualproperty(WIPO,20041).Copyrightlawshouldbeeffectiveinpromotingandencouragingthecreationofandinvestmentincreativeworks.

Copyrightlawprotectsspecificexpression,notgeneralideas,andappliestoliterary,artistic,dramaticandmusicalworks,soundrecordings,broadcastsandfilms.Copyrightlawprotectsthewayinwhichtheworkisexpressed,ratherthantheideabehindthework.DanBrown’sThe Da Vinci Code(2003)2wasrecentlyfoundnottohaveinfringedthecopyrightofanearlierbookwhichcontainedmanyofthetheoriesfoundinThe Da Vinci Code.Drawingonideasofothercopyrightedworksdoesnotinfringethosecopyrights.

Industriesbasedoncopyrightandrelatedrightsarebelievedtohaveconsiderableimpactonthenationaleconomies.However,measuringtheir relevantcontribution isonlya recentphenomenon.ThisdocumentreportsanefforttoestimatethecontributionofthecopyrightindustriesinSouthAfrica.TheinvestigationhasbeenrequestedbythegovernmentofSouthAfrica(DepartmentofTradeandIndustry(DTI))withfinancialandtechnicalsupportfromWIPOandinlightoftheincreasingimportanceofcopyrightgoodsandservicestothecountry’seconomy.ItisimportanttoemphasisethatthisinvestigationisthefirstusingWIPO-basedmethodologytobeconductedinSouthAfricaandthesecond,afterKenya,tobecompletedintheAfricaregion.

Itisexpectedthattheresultsoftheinvestigationwillproviderobustdataontheactualeconomiccontributionofthecopyright-basedactivities,whichcanserveasabasisforadjustingpoliciesandstrategiesaimedatpromotinggrowthanddevelopmentinthecountry’scopyright-basedsectors.

Similarinvestigationsquantifyingtheeconomiccontributionofthecopyright-basedindustriesofdevelopedanddevelopingeconomiesindicatetheimportanceoftheseindustries.Thetotaleconomiccontributionofcopyright-basedindustriesasapercentagetoGDPvariesfrom2.81%inBulgariato11.70%inPhilippines.Similarly the indicator ratio of persons employed in the copyright-based sector to the total number ofemployeesintheeconomyvariesfrom3.03%inJamaicato11.17%inLatvia.

TheresultsofthisinvestigationindicatethattheindicatorsfortheSouthAfricancopyright-basedindustriesfallwithintheoverallrangeoftheinternationalstudies,albeitinthelowrange.TheSouthAfricancopyright-basedindustriescontributiontoGDPis4.11%andtoemployment4.08%.Neverthelesstheresultsofthisstudyshowthattheoverallcontributionofthecopyright-basedindustriesissubstantialenoughtostipulateincreasedattentionbytheSouthAfricanpolicy-makers.FigureApresentstheoverallcontributionofcopyright-basedindustriesinSouthAfricain2008withregardtotheirvalue-added,employment,importsandexports.

1WorldIntellectualPropertyOrganization(WIPO),2006“National Studies on Assessing the Economic Contribution of the Copyright-Based Industries No1: the economic contribution of copyright-based industries.”WIPO:Switzerland.Countries:Latvia(2000),Singapore(2004),Canada(2004),Hungary(2005).

2BrownD.(2003)“The Da Vinci Code”,Doubleday,USA.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

6

Figure A: Contribution of Copyright-Based Industries to the South African Economy in 2008

Source:Authors’calculationswithdatafromtheDepartmentofLabour(DoL),theDepartmentofArtsandCulture(DAC),Quantecdatabases,theSouthAfricanReserveBank(SARB)andtheSouthAfricanRevenueService(SARS).

In 2008, with regards to value-added, the copyright-based industries in total are responsible for almost4.11%ofthetotaleconomy,withthecorecopyright-basedindustriesbeingthehighestcontributor(2.05%)andthenon-dedicatedcopyright-basedfollowingwith1.29%.Asfarasemploymentisconcerned,4.08%oftheworkforceisemployedinthecopyright-basedindustries,themajorityofwhichisemployedinthecoreand non-dedicated copyright-based industries (2.31% and 1.03%). The interdependent copyright-basedindustriesshowahighcontributionintheexportsoftheeconomy(2.77%)andanevenhighercontributiontothetotalimports(7.85%).

Apart from the high growth of the specific industries’ value-added, their contribution also presented asignificantincreaseuntilthe1980s.Fromthatpointonwards,thetrendvariedlittlemovingintherangefrom4to4.5%(figureB).


7

Figure B: Evolution of Contribution of Copyright-Based Industries to Total Value-Added, Employment, Imports and Exports


Thepercentageofworkforceemployedinthecopyright-basedindustriestothetotalhasalmostdoubledintheperiodfrom1970to2008,fromlessthan2%atthebeginningoftheperiodtoalmost4%in2008(figureB).Thecopyright-based industrieswereresponsibleforaround8to10%ofthecountry’s imports(figureB),presentingaspikein1983butcomingbackintherangeafterwards.Thesector’sexportsshowedasignificantrisesincetheendofthe1980s.

TableApresents the valuesof all the copyright-based sectors examined in this study for four indicators:realvalue-added,employment,exportsand imports,after the implementationofcopyright factors in thecalculations.

Table A: Real Value-Added, Employment, Exports and Imports for all Copyright-Based Industries for 2008

Year 2008

Real value-added

Employment Exports Imports

R millions (2005=100)

Number of employees



TOTAL ECONOMY 1,620,139 10,376,881 495,382 572,354

Total CBI 66,101 422,974 20,168 48,051Core Copyright-Based Industries 32,670 239,959 1,954 2,359Printing, Publishing and Recorded Media 7,588 53,465 790 2,009Film and Television Industry 6,811 30,899 – –Photography, Software and Databases, Advertising 18,271 155,595 1,165 350Interdependent Copyright-Based Industries 9,091 52,620 13,745 43,324Photographic and Cinematographic Instruments 15 – – –

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

8

Table A: Real Value-Added, Employment, Exports and Imports for all Copyright-Based Industries for 2008 (Continued)

Television, Radio and Communication Equipment 944 2,632 994 9,557Computers and Equipment, Photocopiers 5,442 40342 11,138 33,767Paper and Paper Products 2705.55 9646 1,612 1,595Partial Copyright-Based Industries 3,426 23,879 1,767 1,321Apparel, Textiles and Footwear 45 472 8 72Furniture and Other Manufacturing 2,418 9,405 1,755 1,237Crafts 949 13,938 – –Glass and Glass Products 14 63 3 11Non-Dedicated Copyright-Based Industries 20,913 106,516 2,702 1,046General Wholesale and Retailing 11,685 85,796 1,049 5Transport, Storage and Communication 9,229 20,720 1,654 1,041


ThisstudyusesacompleteInput-Output(I-O)analysiscalculatingmultiplierstoshownotonlythedirecteffectsofthecopyright-basedindustriesbutalsotheirindirecteffectstotheeconomy’soutput,income,employmentandimports.Theresults,aspresentedintableAandindetailinappendix4,depictsignificanteffectsofthecorecopyright-basedindustriestotheabove-mentionedindicatorswiththeexceptionofimports.Thetotaldirecteffect(contribution)ofthecopyright-basedindustries intermsofvalue-addedis4.11%whiletheirtotal3indirecteffect(contribution)intermsofoutputwouldbe5.49%(production-inducedeffect4).Ontheotherhand,withregardstoemployment,thetotaldirecteffectis4.08%,whileitsproduction-inducedeffect(contribution)wouldbe14.52%(sumofthefirst-roundandtheindustrialsupporteffects).5

Table B: Production-Induced Effect of Copyright-Based Industries (Input-Output 2009)

IndustryProduction-

induced effect

Adjusted for

copyright factors

Production-induced effect

Adjusted for

copyright factors

Outcome EmploymentCommunication 1.18% 1.18% 2.73% 2.73%

Crafts* 0.76% 0.04% 2.87% 0.16%

Film and television* 1.60% 0.67% 2.98% 1.25%

Footwear 2.08% 2.08% 6.23% 6.23%

Furniture 1.93% 0.01% 6.48% 0.03%

Glass and glass products 1.49% 0.15% 4.89% 0.49%

Computers and equipment/ photocopiers 1.70% 0.00% 4.93% 0.00%

Other manufacturing 1.23% 0.43% 3.65% 1.28%

Photography/ Software and Databases/ Advertising 1.13% 0.00% 2.97% 0.00%

Paper and paper products 2.02% 0.50% 5.77% 1.44%

Printing, publishing and recorded media 1.79% 1.79% 5.17% 5.17%

3Itshouldbenotedthattheanalysisoftheindirecteffectincludesallthecopyright-basedindustriesexceptfor‘filmandtelevision’and‘crafts’forwhichwemadeappropriateassumptions.

4Production-inducedeffectisthecombinationoffirst-roundandindustrialsupporteffects.First-roundeffectishowmuchanindustrymustincreaseitsinputsfromotherindustriesandfromitself,inordertoproduceanextraunitofoutputtomeetaZAR1.00increaseinfinaldemand.Industrialsupporteffectishowmuchotherindustrieswillneedtoincreasetheirpurchasestoexpandtheiroutputtomeetthefirst-roundrequirements.

5Input-Outputanalysisportraystheresultsofachangeinthewholeeconomyuntilequilibriumisrestoredagain.Thetimeperiodisnotdetermined.


9

Table B: Production-Induced Effect of Copyright-Based Industries (Input-Output 2009) (Continued)

Television, radio and communication equipment 1.64% 0.57% 4.75% 1.66%

Textiles 1.81% 0.01% 6.05% 0.02%

Transport and storage 1.19% 0.07% 3.02% 0.17%

Wearing apparel 1.59% 0.01% 6.19% 0.02%

Wholesale and retail trade 1.00% 0.06% 2.63% 0.15%

Total 7.56% 20.81%

Where*denotesindustrieswithfiguresbyextrapolation.Source:Authors’calculationswithdatafromtheSupplyandUseTables(SUT)ofStatisticsSouthAfrica(StatsSA).

Anexampleisthe‘printing,publishingandrecordedmedia’–oneofthemostinfluentialcopyright-basedindustries:althoughitsdirecteffect(contribution)tototalvalue-addedwouldbe0.47%,itsindirecteffectwouldbe1.8%(production-inducedeffect).Thesameindustry’sdirecteffect(contribution)toemploymentis0.52%whileitsindirecteffectwouldbe5.17%.Themultiplierswillassistthepolicymakerstoevaluatetheimpactofpromotingcopyright-basedindustries.

Ifappropriatepoliciesareimplementedresultinginanincreaseofthedemandforproducts,forinstanceofthesamesectorasinthepreviousexample‘printing,publishedandrecordedmedia’,aseriesoflinkswilloccuraffecting,throughindividualsectors,theeconomyinitsentirety.Ifthedemandfor‘printing,publishedand recordedmedia’products increasesbyZAR100,000 the industrymust increase its inputs fromotherindustriesandfromitselfbyR69,000(first-roundeffectsmultiplier).

Anincreaseinthe‘printing,publishedandrecordedmedia’industrywillalsoinfluenceothersectorsintheeconomy.Amongthe inputsthat ‘printing,publishedandrecordedmedia’willneed inordertomeetanincreaseinthedemandisforexamplesomeformofenergy, i.e.electricity.Tocoverthenewdemandforitsproduct,thesector‘electricity,gasandsteam’willhavetoincreasetheir inputsbyZAR0.465foreveryZAR1.00ofdemand.Similareffectswillbeexperiencedwiththeemploymentandtradeofthesectorswhicharetryingtomeettheincreaseddemand,theywillaffectvariousotherindustriesbyaskingforinputs.

During the process of our investigation a number of questions were raised which lead to a number ofrecommendationsattheendofthestudy.Indicatively,itissuggestedthatWIPOshouldidentifyinternationalbestpractice inthepromotionofcopyright-based industriesanddisseminatethe informationtomemberstates.Also,itisproposedthattheDepartmentofTradeandIndustry(DTI)andtheDepartmentofArtsandCulture(DAC)requestfromStatisticsSAandtheReserveBanktoseparatethestatisticsrelatedtocopyright-based industriesandpublishthemregularly.Amongothers, it isalsoadvisablethatDTIshoulddeveloparesearchprogrammesupportingresearcher initiatedprojectsrelatedto IntellectualPropertyRights (IPR) ingeneralandcopyrightinparticular.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

10

1 . I n t r o d u c t i o n

Copyrightexiststoencouragethecreationof,andinvestmentin,creativeworks.Itprotectsspecificexpression,notgeneralideas,andappliestoliterary,artistic,dramaticandmusicalworks,soundrecordings,broadcastsandfilms.Copyrightlawprotectsthewayinwhichtheworkisexpressed,ratherthantheideabehindthework,e.g.in2006acourtintheUnitedKingdomruledthatDanBrown’sThe Da Vinci Code(2003)6didnotinfringethecopyrightofanearlierbook,TheHolyBloodandtheHolyGrail,whichcontainedsomeofthetheoriesfoundinThe Da Vinci Code.Drawingonideasofothercopyrightedworksdoesnotinfringethosecopyrights.

Copyright rights are inextricably linked to limitations7, exceptions8 and “compulsory” or “obligatory”licences9.Limitations,exceptionsandlicencesexistinordertofacilitateconsumeraccess,theuseforsociallydesirablepurposesandtoencouragefurthercreativity.

TheWorldIntellectualPropertyOrganization10states“thejuridicalandpolicybasisforeachkindofprovisionisdifferent.The limitationsproceedontheassumptionthatthereareclearpublicpolicygroundsandthatcopyrightprotectionshouldnotexistintheworksinquestion,forexamplebecauseoftheimportanceoftheneedforreadyavailabilityofsuchworksfromthepointofviewofthegeneralpublic.Theexceptionsrepresentamorelimitedconcessionthatcertainkindsofusesofworksthatareotherwiseprotectedshouldbeallowed: there isapublic interestpresentherethat justifiesoverridingtheprivaterightsofauthors intheirworksintheseparticularcircumstances.Inthelicences theauthor’srightscontinuetobeprotectedbutaresignificantlyabridged:publicintereststilljustifiesthecontinuanceoftheuse,regardlessoftheauthor’sconsent,butsubjecttothepaymentofappropriateremuneration”.

Indeterminingwheretheappropriatebalanceliesbetweenrightsandexceptions,itisabasicprincipleoftheIntellectualPropertypolicythattheresultshouldbeinthepublicinterest.Indeterminingwhatisinthepublicinterestthegovernmentmustbalanceanumberofoftenoverlappingpolicygoalsincludingeconomic,social,politicalandlegalobjectivesandconstraints.

Exceptionsareofinterestbecauselikerightstheyhavethepotentialtocreatevalue,employmentandenhancetheeconomicwelfareofsociety.

Recently,theGowersReview(2006)11proposedanumberofrecommendationsfortheimprovementoftheIPsystem.Inthisreport,theUKarguedthatexceptions–amongothers–havethepotentialstocreatevalue.ThestudysuggeststhatthebroaderapproachappliedintheUSAtocopyrightexceptionshasopenedupacommercialspaceforotherstocreatevalue.Forinstance,itreferstoGoogle’sabilityto‘cache’websites,effectivelycopyingcontentwithouthavingtoseekpermissionfirst; formanythat isconsideredanunfairuseofotherpeople’scopyrightedmaterial.Inthisstudy,Google’sexplanationtotheCallofEvidencecanbefoundstating:“TheexistenceofageneralfairuseexceptionthatcanadapttonewtechnicalenvironmentsmayexplainwhythesearchenginesfirstdevelopedintheUSA,whereuserswereabletorelyonflexiblecopyrightexceptions,andnotintheUK,wheresuchuseswouldhavebeenconsideredinfringement”.

6BrownD.(2003)“The Da Vinci Code”,Doubleday,USA.7Provisionsthatexcludeorallowfortheexclusionofprotectionforparticularcategoriesofworksormaterialmaybedescribedas“limitations”onprotection,inthesensethatnoprotectionisrequiredfortheparticularkindofsubjectmatterinquestion.ThereareseveralinstancesofsuchprovisionsintheBerneConventionfortheprotectionofliteraryandartisticworks:forofficialtextsofalegislative,administrativeandlegalnature(Article2(4)),newsoftheday(Article2(8))andspeechesdeliveredinthecourseoflegalproceedings(Article2bis (1)).

8Provisionsthatallowforthegivingofimmunity(usuallyonapermissive,ratherthanmandatorybasis)frominfringementproceedingsforparticularkindsofuse,forexample,wherethisisforthepurposesofnewsreportingoreducation,whereparticularconditionsaresatisfiedcanbetermed“permitteduses”orexceptionstoprotection,inthattheyallowfortheremovalofliabilitythatwouldotherwisearise.

9“Compulsory”or“obligatory”licencesallowaparticularuseofcopyrightmaterial,subjecttothepaymentofcompensationtothecopyrightowner.PermissionsarefoundinArticles11bis(2)and13andtheAppendixoftheBerneConventionfortheProtectionofLiteraryandArtisticWorks.

10WIPO(2003)“WIPO Study on Limitations and Exceptions of Copyright and Related Rights in the Digital Environment”.StandingCommitteeonCopyrightandRelatedRights,NinthSession,Geneva,June23rd–27th,2003.

11GowersReview(2006)“Gowers Review of Intellectual Property”,HMSO,Norwich,NR31BQ.


11

Anotherexampleof‘fairuses’ofcopyrightthatcancreateeconomicvaluewithoutdamagingtheinterestsofcopyrightowners is thefilmWest Side Story thatgrossed$43.7million ($39.9millionwhenadjustedforinflation).AlthoughthefilmmaybeconsideredareworkingofRomeo and Juliet, itssuccessindicatesthatworkswhichbuildonothers(andarenotnecessarilysubstitutesoftheoriginalwork)canbeextremelyvaluable. Indeed, it isnot thecase thatWest Side StoryhasmadeRomeo and Juliet lesspopularor lesscommerciallysuccessful”12.

The value of copyright has traditionally been observed both in social and cultural terms. Also, with thecontinuousrisingoftheservicessector,globalisationandthedevelopmentofknowledgeeconomy,theneedforacopyrightlawandinfrastructureunderpinninganumberofindustrieshasbeenmoreimperativethanever.

CopyrightinSouthAfricaislegislatedbytheCopyrightActNo.98of197813anditsamendments.

Furthermore, the need to protect, support and promote the copyright-based industries has been re-emphasisedinthestrategicplanfor“CulturalIndustries”14.

The“Cultural Industries” identifiedbytheDepartmentofArts,Culture,ScienceandTechnology(DACST)includesthemusicindustry,thecraftindustry,thepublishingindustryandthefilmandtelevisionindustry(themostessentialcorecopyright-basedindustries).“TheirselectionwasbasedonanumberofcriteriaincludingtherecognitionthatthesesectorswereidentifiableindustriesinSouthAfrica,arepotentiallyinternationallycompetitiveandhavethepotentialtocreateemploymentandofferopportunitiesforruralandurbanjobcreation”15.

DespitetheimportanceoftheculturalindustriesforSouthAfricatherehasbeenlittle,ifany,analysisoftheeconomiccontributionandvalueofthecountry’scopyrightindustriesasawhole.

Theobjectiveofthisstudyistoquantifytheimportanceofcopyright-basedindustriesinSouthAfricaandsettheminaninternationalcontext.Morespecificallythestudyaimstoestimatethe:

• contributionofthecopyright-basedindustriestoSouthAfrica’sGrossDomesticProduct,• share of national employment related to the country’s copyright-based industries, participation of

copyright-basedindustriesininternationaltrade.

Thereportisstructuredasfollows:thenextchapterprovidesanoverviewofthecopyrightactivitiesinSouth

Africa, thechapter“InternationalStudiesEstimating theEconomicContributionofCopyright Industries”

providesaliteraturereviewemphasisingthefindingsofWIPO’ssupportedstudies,thenextchapterdiscusses

the methodological as well as data selection and collection issues, while the chapter “The contribution

of Copyright-Based Industries to the South African Economy” presents the findings of our analysis. The

nextsectionfocusesontheInput–Outputmethodologyandtheresultsofsuchananalysis,whilethenext

chapterfocusesonthetradeofcopyright-basedindustriesinSouthAfrica.Finally,thelastchapterprovides

adiscussionandanumberofpolicyrecommendationsforthefutureoftheSouthAfricancopyright-based

industries.

12Ibid.13RepublicofSouthAfrica(1978)“Copyright Act of South Africa, No. 98, as amended through No.9 (2002)”,availableathttp://portal.

unesco.org/culture/en/ev.php-URL_ID=15486&URL_DO=DO_TOPIC&URL_SECTION=201.html14DACST(1998)“CulturalIndustriesGrowthStrategy”DepartmentofArtsCultureScienceandTechnology,Pretoria.15Ibid.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

12

2 . C o p y r i g h t i n S o u t h A f r i c a

CopyrightinSouthAfricaislegislatedbytheCopyrightActNo.98of197816anditsamendments.

Section2oftheActidentifiesthatthefollowingworksareeligibleforcopyright:

(a) literaryworks,(b) musicalworks,(c) artisticworks;,(d) cinematographicfilms,(e) soundrecordings,(f) broadcasts,(g) programme-carryingsignals,(h) publishededitions,(i) computerprograms.

Morespecifically,forliterary,musicalandartisticworks,exceptforphotographs,thecopyrightterminSouthAfricaisoffiftyyearsfromtheendoftheyearoftheauthor’sdeath,orfiftyyearsfrompublicationifitisfirstpublishedaftertheauthor’sdeath.Forphotographs,filmsandcomputerprograms,thetermisfiftyyearsfromfirstpublication,orfiftyyearsfromcreationifnotpublishedwithinfiftyyears.Forsoundrecordings,broadcasts, programme-carrying signals and published editions, it is fifty years from first publication ortransmission.

Anonymousworksareprotectedforshorterthanfiftyyearsfromfirstpublicationandfiftyyearsfromtheyearwhenitisreasonabletopresumetheauthorisdead.Forworkswithmultipleauthors,thefiftyyearsfromdeatharecalculatedfromthedeathofthelastauthortodie.Finally,governmentworksareprotectedforfiftyyearsfromfirstpublication.

Section12“Generalexceptionsfromprotectionofliteraryandmusicalworks”(appendix2)providesforanumberofexceptions.

TheActhasbeencriticised(Nicholson et al.,2008)17inthat:

• It does not have any provisions for persons with visual, aural or learning disabilities, or for distancelearnersandliteracytrainingpurposes.

• ItdoesnotaddressdigitisationorpreservationandcurationinthedigitalenvironmenttoenablelibrariesandarchivestocarryouttheirmandatesintermsofotherActsofParliament.

• Ithasnoprovisionsforadaptations,translations,parodies,broadcastsorpublicperformancesfornon-commercialoreducationalpurposes.

TheauthorsexpressedtheirconcernsonseveralshortcomingsoftheCopyrightActwhichincludeitsconflictswithArticle32oftheConstitutionrelatingtorighttoaccessofstateheldinformation,absenceofprovisionscateringfortherightstoinformationofindividualswithsensory-disabilitiesandthelongandcumbersomeprocessthatanindividualwouldneedinordertoreproducemultiplecopiesofgovernmentdepartmentalpublicationswhichincludepublichealthrelated,publicsafetyandsecuritypublications18.

They suggest that “government departmental publications are subject to copyright, which means thatthe public would need copyright permission to reproduce multiple copies, beyond what is permitted insection13.Thismeansthatthecopyright lawwouldrequirethat importantdocumentsonhealth issues,suchasHIV/AIDS,tuberculosis,malaria,hepatitisandotherseriousdiseases,beclearedforcopyrightby,orthrough,relevantgovernmentdepartments,beforebeingabletobereproducedforusebyhealthworkersinruralareas.Inapandemic,suchasAIDS,thisinformationshouldbeinthepublicdomain.Similarly,inviewofthehighlevelsofcrimeinthiscountry,documentspublishedbytheDepartmentofSafetyandSecurity,

16CopyrightAct98of1978RegulationsasamendedbyNoticeGovernmentGazetteR.12119775,June,7th1985.17NicholsonR.D.andKawooyaD.(2008)“The Impact of Copyright on Access to Public Information in African Countries: a Perspective

from Uganda and South Africa”.WorldLibraryandInformationCongress:74thIFLAGeneralConferenceandCouncil,August10th–14th,2008,Québec,Canada,http://www.ifla.org/IV/ifla74/index.htm

18Ibid.


13

theSouthAfricanPoliceServiceandothergovernmentsecurityenforcementagenciesshouldbeinthepublicdomain.”19Hence,itappearsthattheyarguethattheremayalsobediscriminationagainstothersectorsofsociety.

TheWIPOstudy20(2008)oncopyrightlimitationsandexceptionsforlibrariesandarchivessummarisedSouthAfrica’slimitationsandexceptions.

South Africa has introduced anti-circumvention provisions in its Electronic Communications andTransactionsActNo.25of2002(Chapterxiii:Cybercrime,Clause86).TheActismanagedbytheMinisterofCommunications. It isof importance,however,thattheActdoesnotprovideexceptionsforlegitimatepurposes.Unliketraditionalcopyrightlaw,whichlimitsthetermofprotection,thereisnolimittothetermofprotectionaccordedtoaTechnologicalProtectionMeasure(TPM),effectivelyextendingthetermofprotectionforworksprotectedbyaTPMindefinitely.

Inaninternationalcontext,SouthAfricaisapartytotheBerneConventionfortheProtectionofLiteraryandArtisticworksandtheTrade-Relatedaspectsof IntellectualPropertyRights (TRIPS).Also,SouthAfricahassignedtheWIPOCopyrightTreatybutnotratifiedityet.

SouthAfricaappearstohaveahighstandinginthefieldofprotectionofintellectualpropertyrightsingeneralandcopyrightinparticular.The2008InternationalPropertyRightsIndex(IPRI)isaninternationalcomparativeindicatorthatmeasuresthesignificanceofbothphysicalandintellectualpropertyrightsandtheirprotectionforeconomicwell-being.ThePropertyRightsAlliance21initiatedtheIPRIstudiesfortheHernandodeSotoFellowshipProgramtocontributetodevelopingaccurateandcomprehensivemeasuresregardingPropertyRights(PR)onaninternationalscale.TheIPRIprovidesatoolforcomparativeanalysisandresearchonglobalproperty rights. The Index focuses on three areas: Legal and Political Environment (LP), Physical PropertyRights(PPR)andIntellectualPropertyRights(IPR).

TheIPRcomponentconsidersfouraspectsofintellectualproperty:

• ProtectionofIPRaccordingtoopinionsofexpertparticipantsineachcountry.• Patent protection as is manifested in coverage, membership in international treaties, restrictions on

patentrights,enforcementanddurationofprotection.• Trademarkprotectioncoveringtheregistration,maintenanceandenforcementoftrademarkrights.• Copyrightpiracycoveringpiracylevelsmainlyinbusinesssoftware,recordsandmusic,motionpictures

andentertainmentsoftware.

ThePropertyRightsAlliance(PRA)studyanalysesdatafor115countriesaroundtheglobe,representing96%ofworldGDP.Ofgreat importance,the2008gaugeincorporatesdataofpropertyrightsprotectionfromvarioussources,oftendirectlyobtainedfromexpertsurveyswithintheevaluatedcountries.

Figure1showsamapoftheworldwherecountrieswithsimilarpropertyrightsindicesarecolouredsimilarly.SouthAfricabelongstothesamegroupasNorthAmerica,EuropeandAustralia.

IntheIPR,SouthAfricascores7andisinthe12thposition(intermsofmarks).IntermsofcountriesSouthAfrica is ranked22ndoutof115countries.The topcountry in the index is Finlandwitha scoreof8.5.CountrieslikeSouthKorea(6.7),Italy(6.5),Israel(6.3),India(5.2),Brazil(5.1)andothersarebelowSouthAfrica.

SouthAfrica’sIPRscoreissubstantiallyhigherfromwhatisexpectedfromitsGDPpercapita(anindicatordiscussedinthePropertyRightsAlliance(2008)report).SouthAfrica’sscorewasexpectedtobearound5.

19Ibid.20KennethCrew,studycommissionedbyWIPO(2008)“Study on Copyright Limitations and Exceptions for Libraries and Archives”.

StandingCommitteeonCopyrightandRelatedRights,SeventeenthSession,Geneva,November3rd–7th,2008.21PropertyRightsAlliance(2008)“International Property Rights Index 2008 Report”,WashingtonDC.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

14

Figure 1: International Property Rights Index: Ranking by Quintiles 2008

Source:PropertyRightsAlliance2008

Zoomingintothepiracyratesinternationally(appendix1,table12)leadsustothesameconclusion.SouthAfricahasoneofthelowestpiracyrates.TheBusinessSoftwareAlliancestates:“SouthAfricaisamongthecountrieswiththelowestpiracyrates(35%)inAfricaandtheMiddleEast.”22

SouthAfricahasidentifiedtheneedtoprotect,supportandpromotethecopyright-basedindustriessince1998.ThethenDepartmentofArts,Culture,ScienceandTechnology(DACST)publishedastrategicplanfor“CulturalIndustries”23asthedepartment’scontributiontowardsthegovernment’sGrowth,EmploymentandRedistribution(GEAR)strategy.

The “Cultural Industries” identified by the DACST included the music industry, the craft industry, thepublishingindustryandthefilmandtelevisionindustry(themostessentialcorecopyright-basedindustries).“Their selection was based on a number of criteria including the recognition that these sectors wereidentifiableindustriesinSouthAfrica,arepotentiallyinternationallycompetitiveandhavethepotentialtocreateemploymentandofferopportunitiesforruralandurbanjobcreation.”24

22BusinessSoftwareAlliance:NewsReleaseMay12th2009IllegalSoftwareuseisup1%inSouthAfrica,accessedduringMarch2010athttp://global.bsa.org/globalpiracy2008/pr/pr_southafrica.pdf

23DACST(1998)“Creative South Africa: A Strategy for Realising the Potential of the Cultural Industries”,DepartmentofArts,Culture,ScienceandTechnology,Pretoria.

24Ibid.


15

Havinginvestigatedtheimportanceofthe“CulturalIndustries”,thereportmakessomekeyrecommendationsforthefutureoftheseindustries:

• designingandimplementingaCulturalIndustriesDevelopmentProgramme(CIDP),• settingupaCIDPregulatoryframework,• creatingaCulturalIndustriesDevelopmentFund,• promotingtheindustriesinternationallyandsettingupanexportprogramme,• co-ordinatingcopyrightlegislationtoprotectthelocalculturalproducts,• developinghumanresourcesandskillsappropriatetoculturalindustries,• adoptingandco-ordinatinggovernmentsupplysidemeasures,• designingandimplementinganawarenesscampaignfocusedonaudiencedevelopment,• collectingandmonitoringstatistics,• co-ordinatinginitiativesinotherdepartments,• establishingaCulturalIndustriesDevelopmentAgency.

The DACST report looked at the cultural industries not only holistically as an important sector of SouthAfricabutalsoperindividualindustry.Thefollowingreportsfocusedonthemainculturalindustries:filmandtelevision,publishingandthemusicindustry.

2.1 the South African Film and television Industry report25

TheSouthAfricanfilmandtelevisionindustryreportispartoftheCulturalIndustriesGrowthStrategy(CIGS)conductedbytheDACST,whosepurposewastodevelopastrategyofthefilm,craftandpublishingindustries.

Thereportsummarisesthesignificanceofthefilmandtelevisionindustryinthreemainpillars:

• Itisamediumofcommunicationofideas,informationandideology.• Itprovidesopportunityfordebateanddiscussionforparticipationinthesocialandpoliticallife.• Globally,theparticularindustrycreatesmillionsofjobsandcontributessignificantlytothetotaleconomy.

Past mismanagement of funding and lack of equity have been two of the main reasons that the SouthAfricanfilmandtelevisionindustrystrugglestoovercomeotherimportantpredicamentstothegrowthoftheindustrywhichhavebeenidentifiedbythereportasfollows:

• Limitedaccesstofinancingandfacilities,• Insufficientaudiencedevelopment,• Fewtrainingopportunities,onlydomesticinterestfortheindustrywithlimitedopportunitiesforexports

and• AlackofunderstandingoftheneedsofthemarketbySouthAfricanfilmmakers.

ThesepredicamentsremainedforthenextyearsasconfirmedbytheIndustrialPolicyActionPlan(IPAP)26.Thisreportconfirmedthatsomekeyconstraintstothesector’sgrowthare:

• Limitedaccesstofinance,• Limitedaccesstodistributionandexhibition,• Lackoftrainingopportunities,• Lackofopportunitiestoexportthesector’sproductsand• Insufficientcoordination.

25DACST(1998)“The South African Film and Television Industry Report”in“Cultural Industries Growth Strategy (CIGS)”,DepartmentofArts,Culture,ScienceandTechnology,Pretoria.

26DTI(2007)“Industrial Policy Action Plan”,DepartmentofTradeandIndustry,Pretoria.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

16

Duringthelate1990s,importantdevelopmentspromisedabetterfutureforthefilmandtelevisionindustryinSouthAfrica:

• Formal acknowledgement of the significance of the industry by the South African government andimplementation of initiatives and developments such as establishing the National Film and VideoFoundatirealignmentofownershipstructures. ItbeganwithPrimedia’sacquisitionof theSter-KinekordistributionandexhibitionbusinessinJuly1997andthesubsequentestablishmentofanentertainmentdivision.

• RecommendationsbytheWhitePaperonBroadcastingwithregardstochangesinthebroadcastindustry,suchascommercialisationofvariousSABCoperationsandintroductionofsatelliteanddigitaltechnology,

• EstablishmentoftheInternationalSouthernAfricanFilmandTelevisionMarkettoprovideopportunitiesfornetworkinganddeal-makingbetweenkeyplayersoftheindustry.

2.2 the South African publishing Industry report27

TheSouthAfricanpublishingindustryreportwasalsopartofthebiggestinitiativebytheDACSTundertheCulturalIndustriesGrowthStrategy(CIGS)in1998.MainareasoftheSouthAfricansocietyarelinkedandsignifytheimportanceofthepublishingindustry:

• Educationandtraining,• Awarenessof,andparticipationincurrentaffairs,• Culturalexpressionandentertainment,• Researchandinnovation,• Critiqueandcommentaryand• Communications.

Thepublishingindustryalsoactsasthecentralcoreofanentirenetworkofrelatedindividualsandindustries,suchaspapermanufacturers,educationalinstitutions,inkproducers,authors,printers,designers,bookbinders,illustrators,booksellers,distributorsandCDmanufacturers.TheindustryisthereforeanimportantsourceofrevenueandemploymentinSouthAfrica.

However,variousproblemshavelimitedthegrowthoftheindustryasfollows:

• A limitedbuyingmarket forpublishedmaterial,governmentprioritisesbasicneedsbeforepublishingproducts,

• Lackoftrainingopportunities,advancesininformationtechnologyaffectingthemoretraditionalformsofpublishing,highlycompetitiveforeignpublishersimpactingonlocalindustryand

• Inadequatemotivationforlocalwriters.

2.3 the South African music Industry28

Thisreport,alsopartoftheCulturalIndustriesGrowthStrategy(CIGS)in1998,focusesonthemusicindustryofSouthAfricawhich isa complicatedcombinationofdifferent industriesproducinga rangeofmusicalproducts.Theindustry,accordingtothereport,includes:

• Creators:musiciansandcomposers,• Agents,• Recordcompaniesand• Retailoutlets.

ThemusicindustryisresponsibleforthecreationofjobsandincomeintheSouthAfricaneconomy.ASWOTanalysiswasconductedforthemusicindustrysummarisedasfollows.

27DACST(1998)“The South African Publishing Industry Report”in“Cultural Industries Growth Strategy (CIGS)”,DepartmentofArts,Culture,ScienceandTechnology,Pretoria.

28DACST(1998)“The South African Music Industry Report”in“Cultural Industries Growth Strategy (CIGS)”,DepartmentofArts,Culture,ScienceandTechnology,Pretoria.


17

Strengths

• Multinationalrecordingcompaniesinvolvedinthedomesticmarket• Widespreadretailandbroadcastnetworkandagencies• Growthincommunityradiobroadcasting• Cooperationbothbetweenlocalmusiciansandbetweenlocalandinternationalmusicians• Growthintherecording,marketingandsalesofdomesticcollection

Weaknesses

• Limitedfinancing• Limitedinvestmentandpromotionoflocalartists• Highpiracylevelsinthemusicindustry• Lackofcoordinatedstrategy

Opportunities

• Growthofinternationalmusicindustry• Exposureofthelocalmusicindustry

Threats

• Lackofnecessarycommitment• Lackofresourcesfromseveralkeyplayers

Recently,morepublicationswerereleasedwithinformationoncreativeindustriesaswellasspecificsectors:

• TheIndustrial Policy Action Plan,bytheDepartmentofTradeandIndustry(Availableathttp://www.dti.gov.za/DownloadFileAction?id=561)

• TheAnnual Book Publishing Industry Survey Report 2008bytheDepartmentofArtsandCulturethroughtheSouthAfricanBookDevelopmentCouncil(SABDC)andthePublishers’AssociationofSouthAfrica(PASA).Availableat:http://www.publishsa.co.za/downloads/industry-statistics/2008_industry_survey.pdf.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

18

3 . I n t e r n a t i o n a l S t u d i e s : E s t i m a t i n g t h e E c o n o m i c C o n t r i b u t i o n o f C o p y r i g h t - B a s e d I n d u s t r i e s

Aliteraturereviewwascarriedoutidentifyingtheresultsandthemethodologiesemployedbyotherstudiesinternationally. Compatibility with other investigations will provide the basis for comparisons and thedevelopmentofrelevantrecommendationsfortheSouthAfricancopyright-basedindustries.

The WIPO “Guide on Surveying the Economic Contribution of the Copyright-Based Industries”29 statesthattheeconomiccontributionofthecopyright-basedindustrieshasexceededexpectationsinthelasttwodecades.

Inordertofacilitatetheundertakingofacomparativeanalysis,WIPOdevelopeda“GuideonSurveyingtheEconomicContributionoftheCopyright-Basedindustries”.Theguideprovidesamethodologyandindicatorstobeemployed.TheexistingWIPOstudiesinothercountriesfollowtheguideinitsrecommendationofthemainindicatorstobeanalysed:thesectors’value-addedasa%ofGDP,thesectors’employmentas%oftotalemploymentinthecountryandtoalimitedextentthetradeperformanceofthesectors.

Asummaryofaselectionofstudies30,31dealingwiththesignificanceofthecopyrightindustriesinanumberofcountries ispresentedinfigure2.Thefigureshowsthatthetotaleconomiccontributionofcopyright-basedindustriesasa%toGDPvariesfrom2.81%inBulgariato11.70%inthePhilippines(figure2).Theaverageunweightedshareofthecopyright-basedindustriestoGDPintheseninecountriesis6.35%.

Similarly the indicator ratio of persons employed in the copyright-based sector to the total number ofemployees in the economy varies from 3.03% in Jamaica to 11.17% in Latvia. Latvia’s copyright-basedindustriesare responsible for theemploymentof11.17%ofthetotalemploymentof thecountry, this ismuchhigherthantheaverageoftheninecountries(7.21%).

Similarfindingsareidentifiedbyotherstudies.AccordingtoSiwek(2004)32,theUScopyright-basedindustriesaccountedfor7.75%totheUSGDPand5.9%ofthetotalworkforce,in2001.

29WorldIntellectualPropertyOrganization(WIPO),2003“Guide on surveying the economic contribution of the copyright-based industries”.WIPO:Geneva.

30WorldIntellectualPropertyOrganization(WIPO),2006“National Studies on Assessing the Economic Contribution of the Copyright-Based Industries No1: the economic contribution of copyright-based industries.”WIPO:Switzerland.Countries:Latvia(2000),Singapore(2004),Canada(2004),Hungary(2005).

31WorldIntellectualPropertyOrganization(WIPO),2008“National Studies on Assessing the Economic Contribution of the Copyright-Based Industries No2: the economic contribution of copyright-based industries”.WIPO:Switzerland.Countries:Philippines,Mexico(2006),Jamaica(2007),Bulgaria(2007),Lebanon(2007).

32Siwek,S.E.,2004“The measurement of “copyright” industries: the US experience”.ReviewofEconomicResearchonCopyrightIssues,1(1)pp.17-25.


19

Figure 2: International Contribution of Copyright-Based Industries (GDP and Employment) WIPO Supported Studies

Source:DataderivedfromWorldIntellectualPropertyOrganization(WIPO)(2006and2008)33,34

A study conducted by the Media Group35 for the European countries showed that the copyright-basedindustrieshaveanimportantcontributingroleintheGDPandemploymentofEuropeaswell(figure3).

33Seefootnote25.34Seefootnote26.35MediaGroup,2003“The Contribution of Copyright and Related Rights to the European Economy”.BusinessResearchand

DevelopmentCentreTurkuSchoolofEconomicsandBusinessAdministration.Finland.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

20

Figure 3: Contribution of Copyright-Based Industries in European Countries

Source:DataderivedfromMediaGroup(2003)36

Thecontributionofthecopyright-basedindustriestothecountries’GDPwasintherangeof1.5%to7%whilethecopyright-basedindustriesemploy2%to4.3%ofthetotalworkforce.

Basedon theguidanceofWIPO’sGuide, the studiesmentioned infigure2 classified the total copyrightindustryintofourcategories:core,interdependent,partialandnon-dedicatedsupportcopyrightindustries.

Itisshownintable13(appendix2)thatthecorecopyright-basedindustriesmadeasignificantcontributiontothetotaleconomy.IntermsoftheirshareintotalGDP,thecorecopyright-basedindustries’contributionvariesfrom1.57%inBulgariato8.59%inthePhilippines,thesearethecountrieswiththehighestandlowestshareoftotalcopyright-basedindustries’contribution.Withregardstoemployment,theaveragecontributionofthecorecopyright-basedindustriesinthecountriesinquestionis3.74%,halfofthecontributionofthetotalcopyright-basedindustries(7.21%).

Two sub-sectors play a significant role in the overall economic contribution of the core copyright-basedindustriestoGDP,namely‘pressandliterature’and‘softwareanddatabases’.Fromtheemployment’spointofview,however,‘pressandliterature’and‘radioandtelevision’providetoahighpercentageofcopyright-basedindustries’employees.

Comparedtothecorecopyright-basedIndustries,theinterdependentcopyright-basedindustriescontributelesstothetotaleconomicactivityandtotalemployment.Theaverageofthesummarisedstudies’sharetoGDPis1.42%,whiletheiraveragecontributiontothetotalemploymentis1.26%(table14,appendix2).Morethanhalfoftheinterdependentcopyright-basedindustries’contributionisderivedfromtwomainsub-sectors:‘TVsets,radios,VCRsandDVDplayers’and‘computersandequipment’.

Themajorityofthestudiessummarisedconcludesthatthepartialcopyright-basedindustriesdonotcontributemorethan1%ofthetotaleconomicactivitiesandemployment.TheexceptionsaretheMexicanandtheLatvianpartialcopyright-basedindustrieswhichcontribute1.11%and2.81%ofthetotalGDP,respectivelyand2.53%and5.29%ofthetotalemploymentrespectively(table15,appendix2).

36Ibid.


21

Fiveoutofeightstudies’resultsshowedthatthenon-dedicatedsupportindustriesdonotcontributemorethan1%to the totaleconomy,while the rest (Hungary,Mexicoand Jamaica)presentacontributionnothigher than2%.Regardingemployment, thecontributionof thenon-dedicatedsupport industriesvariesfrom0.28%inBulgariato1.48%inLatvia(table16,appendix2).

Inconclusion,anumberofinternationalstudiesidentifythehighsignificanceofthecopyright-basedindustriestothecountries’totaleconomicactivities,asrepresentedbythevalue-addedoftheseindustriesandtheiremploymentlevels.Moreparticularly,thecorecopyright-basedindustriesarethemostimportantcategorybasedontheirlevelofcontribution.’Pressandliterature’,‘softwareanddatabases’,‘radioandtelevision’and‘computersandequipment’aswellasaninterdependentcopyright-basedindustrynamed,‘TVsets,radios,VCRsandDVDplayers’arenotablesourcesofeconomicactivityandjobpositions.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

22

4 . M e t h o d o l o g y

In this report we follow the WIPO methodology for the estimation of the contribution of the copyrightindustriesintheSouthAfricaneconomy.AccordingtoWIPO,copyright-basedindustriesarethoseengagedin creation, production and manufacturing, performance, broadcast, communication and exhibition ordistributionandsalesofworksandotherprotectedsubjectmatter37.TheWIPOGuidealsorecognisesthattheeconomicimpactcanberelatedtoboth“core”copyright-basedindustriesand“non-core”industries.Thesedifferentcategoriesproposedaredependentoncopyrightatdifferentlevels,representedintheWIPOGuidebythecopyright factors.

In our study, we deal with “core” and “non-core” industries separately by measuring their value-addedcontributionaswellasemploymentandtradelevels.Inthissection,theoverallmethodology,datacollectionissuesandselectionofcopyrightfactorsaredescribedindepth.

TheWIPOGuidecategorisesthecopyright-basedindustriesintofourmaincategoriesbasedontheirtypeofassociationtocopyright.Theyare:

• core copyright industries: industries wholly engaged in creation, production and manufacturing ofperformance, broadcast, communication and exhibition or distribution and sales of works and otherprotectedsubjectmatter

• interdependent copyright industries:industriesengagedinproduction,manufactureandsaleofequipmentwhosefunction iswhollyorprimarily tofacilitatethecreation,productionoruseofworksandotherprotectedsubjectmatter

• partial copyright industries: industries in which a portion of the activities is related to works and otherprotected subject matter and may involve creation, production and manufacturing, performance,broadcast,communicationandexhibitionordistributionandsales

• non-dedicated support industries: industries in which a portion of the activities is related to facilitating,broadcast,communication,distributionorsalesofworksorotherprotectedsubjectmatterandwhoseactivitieshavenotbeenincludedinthecorecopyrightindustries.

ThespecificSouthAfricanindustriesforeachoftheabovecategoriesweredeterminedbasedontheWIPOGuide and the availability of data in the country, as presented in table 1. In appendix 3 (tables 18-21),weindicatethesub-categories inwhicheachofthemainindustries iscomprised, inaccordancewiththeclassificationbytheWIPOGuide.

Table 1: Copyright-Based Industries Used in the South African Study

Core Interdependent Partial Non-dedicatedPrinting, publishing and recorded media

Television, radio and communication equipment

Apparel, textiles and footwear

General wholesale and retailing

Film and television industry Computers and equipment, photocopiers

Furniture, jewellery, musical instruments, games and toys

Transport, storage and communication

Photography, software and databases, advertising

Paper and paper products Crafts

Copyright collecting societies Glass and glass products

Industrialsectorssuchas‘photography,softwareanddatabases,advertising’, ‘computersandequipment,photocopiers’,and‘furniture,jewellery,musicalinstruments,gamesandtoys’werederivedfromthefollowingsectors: ‘businessservices’, ‘machineryandequipment’and‘furnitureandothermanufacturing’. Inthesecases,weusedapercentage that represents theappropriate copyright industries. For instance, ‘businessandservices’includestwosignificantsub-sectors(‘advertising’and‘softwareanddatabases’)amongothersmaller copyright-based industries, suchas ‘photographicactivities’.Ouranalysisof theoutputsof these

37WorldIntellectualPropertyOrganization(WIPO),2003“Guide on surveying the economic contribution of the copyright-based industries”.WIPO:Geneva.


23

twoindustriesindicatesthattheycontributealmost8.7%ofthe‘businessservices’sector’soutputfor2008[advertising R3 billion, software R38 billion]. Hence, 10% of the ‘business services’ sector statistics wasestimatedtorepresentallthecopyright-basedindustriesincludedinit.

Thebasicsourceswheredatawereobtainedfromarethefollowing:

• BusinessMonitorInternationalLtd,• theDepartmentofArts,Culture,ScienceandTechnology,• theDepartmentofLabour,• theEconomistIntelligenceUnit,• theNationalOrganisationforReproductionRightsinMusicinSouthernAfrica(NORM),• thePublishersAssociation,• Quantecdatabases,• SARecordingRightsAssociationLtd(SARRAL),• theSouthAfricanBookDevelopmentCouncil(SABDC),• theSouthAfricanReserveBank,• theSouthAfricanRevenueService(SARS),• theSouthernAfricanMusicRightsOrganisation(SAMRO)and• StatisticsSouthAfrica.

Anumberofinternationalstudiesusetheso-calledcopyright factor,whichisapercentageratioexpressingtheshareofcopyrightactivitiesinagivenindustry.Itisusedasaweightwhich–accordingtotheindustryinquestion–takesvaluesbetween0and1:1forindustriesthatonlyproduceproductsandworksrelatedtocopyrightwhile0fortheindustriesthathavenothingtodowithcopyright.

Bymultiplyingtheindicatorschosen(e.g.value-added)bythecopyrightfactoroftheindustry,researchersestimate the contribution of the copyright content. Estimating the copyright factors is challenging anddifferentinvestigationsemploydifferentmethodologiesfortheirestimation.Forinstance,thestudyonthecontributionofcopyright-basedindustriesinMexicousedtheaverageoftheUSandHungariancopyrightfactorswhilethestudyonSingaporeproducedthecopyrightweightsbyusingtheUScopyrightfactors.Asummaryofcopyrightfactorsusedinvariousstudiesisgivenasanindicationintable17,appendix2.

Inourstudy,wehaveemployedthecopyrightfactorsusedinthestudyforSingapore38(seetable2).Singaporewas selected because it is a newly industrialised economy with high dependence on trade, tourism andotherrelatedcopyright-basedindustries.Inaddition,SouthAfricaandSingaporearecloseintermsoftheircopyrightlegislation,piracyrates(seeappendix1,table12)andintheindexofintellectualpropertyrights.

Table 2: South African Copyright Factors

Core Copyright-Based Industries

Printing, publishing and recorded media 1.000

Film and television industry 1.000

Photography, software and databases, advertising 1.000

Copyright collecting societies 1.000

Interdependent Copyright-Based Industries

Television, radio and communication equipment 0.350

Computers and equipment, photocopiers 0.350

Paper and paper products 0.250

Photographic and cinematographic instruments 0.300

38WorldIntellectualPropertyOrganization(WIPO),2006“National Studies on Assessing the Economic Contribution of the Copyright-Based Industries No. 1: the economic contribution of copyright-based industries in Singapore 2004”.WIPO:Switzerland.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

24

Table 2: South African Copyright Factors (Continued)

Partial Copyright-Based Industries

Apparel, textiles and footwear 0.004

Furniture, jewellery, musical instruments, games and toys 0.100

Crafts 0.420

Glass and glass products 0.006

Non-Dedicated Copyright-Based Industries

General wholesale and retailing 0.057

Transport, storage and communication 0.057

Source:WorldIntellectualPropertyOrganization(WIPO)39

39Ibid.


25

5 . T h e C o n t r i b u t i o n o f C o p y r i g h t - B a s e d I n d u s t r i e s t o t h e S o u t h A f r i c a n E c o n o m y

This chapter presents the results of the quantitative analysis conducted aiming to estimate the totalcontributionof thecopyright-based industries,aswell as thecontributionof the individual categoriesofcopyright-basedindustries(i.e.core,interdependent,partial,non-dedicatedsupportindustries).Theanalysisfocusesontheestimationofvalue-added,employment,exportsandimports.

5.1 the performance of copyright-based Industries Theoverallcontributionofthecopyright-basedindustriesin2008ispresentedinfigure4.Thecopyright-basedindustriesareresponsibleforalmost4.11%ofthetotaleconomyintermsofvalue-added,withcorecopyright-basedindustriesbeingthehighestcontributor(2.05%)andthenon-dedicatedcopyrightindustriesfollowingwith1.29%.

Figure 4: Contribution of Copyright-Based Industries in 2008


Asfarasemploymentisconcerned,4.08%oftheworkforceisemployedinthecopyright-basedindustries,themajorityofwhich isemployed in thecoreandnon-dedicatedcopyright-based industries (2.31%and1.03%,respectively).Theinterdependentcopyright-basedindustriesshowahighcontributiontotheexportsoftheeconomy(2.77%)andanevenhighercontributiontothetotalimports(7.85%).

Table3presents the valuesof all the copyrightbased sectors examined in this study for four indicators:realvalue-added,employment,exportsand imports,after the implementationofcopyright factors in thecalculations.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

26

Table 3: Real Value-Added, Employment, Exports and Imports for all Copyright-Based Industries for 2008

Year 2008Real value-

addedEmployment Exports Imports


Number of employees



TOTAL ECONOMY 1,620,139 10,376,881 495,382 572,354

Total CBI 66,101 422,974 20,168 48,051

Core Copyright–Based Industries 32,670 239,959 1,954 2,359

Printing, publishing and recorded media 7,588 53,465 790 2,009

Film and television Industry 6,811 30,899 – –

Photography, software and databases, advertising 18,271 155,595 1,165 350

Interdependent Copyright–Based Industries 9,091 52,620 13,745 43,324

Photographic and cinematographic instruments 15 – – –

Television, radio and communication equipment 944 2,632 994 9,557

Computers and equipment, photocopiers 5,442 40342 11,138 33,767

Paper and paper products 2705.55 9646 1,612 1,595

Partial Copyright–Based Industries 3,426 23,879 1,767 1,321

Apparel, textiles and footwear 45 472 8 72

Furniture and other manufacturing 2,418 9,405 1,755 1,237

Crafts 949 13,938 – –

Glass and glass products 14 63 3 11

Non–Dedicated Copyright–Based Industries 20,913 106,516 2,702 1,046

General wholesale and retailing 11,685 85,796 1,049 5

Transport, storage and communication 9,229 20,720 1,654 1,041


Intable4,weanalysethegrowthofcontributionofthefourmaincategoriesofcopyright-basedindustriestototalvalue-added,employment,importsandexports.Thefiguresarecalculatedasthepercentagechangebetween thefirst and last year for eachperiod. For example, after theuseof the copyright factors, thevalue-addedofthetotalcopyright-basedindustriesin2000wasZAR49,970.74millionwhilein2008,itwasR66,615.58million:achangeof33%.

Table 4 shows that all the different divisions of copyright-based industries have increased substantiallythrough the last fourdecades,with theoverall contributionof copyright-based industries to the totalofvalue-addedhavinggrownby33%inthelastdecade.Onlythepartialcopyright-basedindustriesshowedanegativegrowthoftheirvalue-addedinthe1990s.Thistrendincombinationwiththesharpincreaseofimports(165%)andslowerincreaseofexports(18%)inthesameperiodcanbeinterpretedasaresultofthelackofcomparativeadvantageoftheSouthAfricanpartialcopyright-basedindustries,incomparisonwiththerestoftheworld.Asaresultofthisdecrease,theemploymentgrowthofthenextperiod(2000to2008)wasaffected.


27

Table 4a: Value-Added, Employment, Imports and Exports Growth of Copyright-Based Industries in % 1970 to 2008

Value-added

Core Interdependent Partial Non-dedicated Total

1970-1979 28% 63% 36% 44% 37%

1980-1989 3% 20% 94% 18% 8%

1990-1999 17% 15% -6% 31% 16%

2000-2008 24% 40% 24% 45% 33%

Employment


1970-1979 33% 23% 29% 21% 33%

1980-1989 36% 16% 30% 10% 23%

1990-1999 51% -5% 12% 4% 26%

2000-2008 30% -6% -13% 17% 21%

Imports


1970-1979 9% -28% -31% -20% -7%

1980-1989 -17% 5% -9% 49% -5%

1990-1999 21% 231% 175% 27% 104%

2000-2008 -29% 72% 160% 8% 46%

Exports


1970-1979 -55% 10% 93% 1% 15%

1980-1989 -14% 130% 101% 40% 84%

1990-1999 202% 97% 18% 100% 82%

2000-2008 108% 4% 23% 50% 31%


Also,thegrowthofemploymentincopyright-basedindustriesispresented.Itisnoticedthattheemploymentin interdependent copyright-based industries has decreased in the last two decades and employment ofpartialcopyright-basedindustrieshasdecreasedintheperiod2000to2008.Thenumberofemployeesincopyright-based industries has increasedby21%during theperiod2000 to2008.Although, the value-added of the interdependent industries kept increasing through the years, their employment decreasedduringtheperiod1990to2008.Itcanbespeculatedthatthisdecreasingtrendcanbeattributedtothefactthattheproductionmighthavebecomemorecapitalintensive–hence,lesslabourintensive.40Thiscanbelinkedtotheopeningofthecountrytotheinternationalmarketsaswellasthephenomenonofglobalisationandtransferofknowledge.Therestoftheindustrieswerenotaffectedbecausetheyarelesstechnology-drivenindustries.Inaddition,thistrendcanbesupportedbythefactthatthesameperiodalsowitnessedasignificantdropinthegrowthofimportsoftheinterdependentindustries.

Thetradeofcopyright-basedindustrieshasfollowedtheoveralltrendoftheSouthAfricantrade,showinghighincreasesinthe1990saftertheendofsanctions.Thecorecopyright-basedindustries’importsshowedasignificantdecrease(-29%)whiletheirexportsshowedahighincreasebetween2000and2008(108%);anindicationthatthistypeofindustrieseitherhadthecomparativeadvantageandbenefitedfromtheendofsanctionsor/andtheSouthAfricanconsumershad little interest for internationalproductsof thecore

40Thejointlabourintensityof‘television,radioandcommunication’,‘computersandequipment/photocopiers’and‘paperandpaperproducts’(themaininterdependentcopyright-basedindustries)decreasedby20%from2000to2008whileitscapitalintensityincreasedby1%(QuantecStandardisedIndustryDatabase(www.quantec.co.za/data/easydata-rsa-standardised-industry)).

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

28

copyright-industries.Thetotalcopyright-basedindustries’importsandexportsroseinthelast8yearsofthesampleby46%and31%respectively.

Figure 5: Evolution of Contribution of Copyright-Based Industries to Total Value-Added, Employment, Imports and Exports

Source:Authors’calculationswithdatafromtheDepartmentofLabour,theDepartmentofArtsandCulture(DAC),Quantecdatabases,theSouthAfricanReserveBank(SARB)andtheSouthAfricanRevenueService(SARS).

Figure5 shows the evolutionof the contributionof the total copyright-based industries to value-added,employment,importsandexportsfortheperiod1970to2008,whiletable4presentstheexactfigures.Eventhoughthegrowthofvalue-addedofthespecificindustrieswashigh,theircontributiontototalvalue-addedpresentedanincreaseuntilthebeginningofthe1980s.Fromthatpointonwards,thetrendvariedlittleintherangefrom4%to4.5%.

Thepercentageofworkforceemployedincopyright-basedindustriestothetotalhasalmostdoubledintheperiod1970to2008(lessthan2.3%in1970andalmost4.1%in2008),asshowninfigure5.Thecopyright-basedindustrieswereresponsibleforbetween8%and10%ofthecountry’simports,rangethatremainedrelativelyconstantwithasignificantspikeinthemiddleofthe1980s.Ontheotherside,thesector’sexportsshowedanoteworthyriseattheendofthe1980s.


29

Table 4b: Copyright-Based Industries to Value-Added, Employment, Imports and Exports: 1970 to 2008

Value-added Employment Imports Exports

Units Rand million (2005=100) Number of employees Rand million (2005=100) Rand millions (2005=100)

1970 26,017 158,957 16,370 1,886

1971 27,621 166,305 16,978 3,528

1972 28,848 173,118 14,843 4,233

1973 30,098 180,671 17,260 3,969

1974 31,583 189,801 16,087 3,527

1975 31,608 198,524 18,308 3,760

1976 32,593 204,593 15,592 3,173

1977 31,678 205,084 11,870 3,785

1978 33,016 206,606 12,561 3,398

1979 35,543 212,198 12,976 3,047

1980 38,241 224,266 14,477 3,380

1981 41,417 235,598 16,777 3,240

1982 40,403 240,443 15,378 3,043

1983 39,616 240,172 15,634 2,837

1984 41,629 243,993 17,665 2,864

1985 40,865 246,132 14,433 3,470

1986 40,194 247,512 11,463 3,422

1987 40,185 253,199 12,424 4,146

1988 40,695 262,870 15,339 5,350

1989 41,299 270,180 14,213 5,541

1990 41,075 274,187 12,971 5,475

1991 40,599 276,915 13,673 5,590

1992 40,319 279,997 14,119 6,233

1993 41,585 279,880 15,759 7,489

1994 42,612 283,109 19,790 7,461

1995 43,671 293,405 22,855 10,562

1996 44,422 307,175 28,515 11,533

1997 45,619 315,569 28,223 11,700

1998 46,305 321,466 32,242 13,038

1999 47,648 336,375 25,700 12,050

2000 49,971 347,906 26,060 13,093

2001 50,283 357,886 26,027 14,266

2002 53,427 371,428 27,514 13,705

2003 54,058 383,586 27,977 14,119

2004 56,430 389,654 31,762 13,708

2005 58,840 389,480 38,645 16,080

2006 61,688 404,635 47,281 19,346

2007 64,693 420,615 49,203 22,209

2008 66,616 422,974 49,646 20,168


The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

30

5.2 comparison with other Economic SectorsTo put in context the findings of the analysis on the contribution of the copyright-based industries, wecompare their contribution to the total economy with that of other major sectors of the South Africaneconomy.

With regards tovalue-added,figure6 shows that thecopyright sectorhas contributedmore (4.11%) tothetotaleconomyin2008than‘agriculture’ (2.51%)and‘food,beveragesandtobacco’(3.09%).SouthAfrica’seconomy,however,isbasedmainlyonits‘manufacturing’and‘mining’sectors.Hence,asexpected,thecopyrightsectorcontributedsignificantlylessthanthe‘manufacturing’(18.36%)and‘mining’(6.15%)sectors.

Figure 6: Value-Added Contribution: Comparison with Other Sectors – 2008

Source:Authors’calculationswithdatafromtheDepartmentofArtsandCulture(DAC),QuantecdatabasesandtheSouthAfricanReserveBank(SARB).

Incontrast,asshowninfigure7,thenumberofemployeesinthecopyrightsector(4.08%)incomparisonwiththetotaleconomyislowerthanintheminingsector(4.96%)andsignificantlylowerthaninthe‘agriculture’(7.27%)and‘manufacturing’(12.47%)sectors.However,thesectoremploysmorethandoublethenumberofpeoplethanthe‘food,beveragesandtobaccosector’(1.96%).


31

Figure 7: Employment Contribution: Comparison with Other Sectors – 2008

Source:Authors’calculationswithdatafromtheDepartmentofLabour,theDepartmentofArtsandCulture(DAC),QuantecdatabasesandtheSouthAfricanReserveBank(SARB).

Regardingthetradeofthecopyrightsector,theimportscontributiontothetotaleconomyis8.67%–muchhigherthanthe‘agriculture’and‘food,beveragesandtobacco’industries(1.09%and3.31%).Butasseeninfigure8,the‘manufacturing’and‘mining’sectorswerethemainimportersoftheeconomyin2008.Thepictureisnotdissimilarintheanalysisoftheexportsoftheeconomy(figure9).Itshouldbenotedthatthecopyrightsectorcontributes4.07%ofthecountry’sexportactivity,while‘food,beveragesandtobacco’andthe‘agriculture’sectorsarebelowthe4%markand‘mining’and‘manufacturing’sectorswerethedominantexportersofthecountryin2008.

Figure 8: Imports Contribution: Comparison with Other Sectors – 2008

Source:Authors’calculationswithdatafromtheDepartmentofArtsandCulture(DAC),theSouthAfricanReserveBank(SARB),theSouthAfricanRevenueService(SARS)andQuantecdatabases.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

32

Figure 9: Exports Contribution: Comparison with Other Sectors – 2008


5.3 core copyright-based IndustriesCore copyright industries includeactivities/industries engaged in creation,productionandmanufacturingperformance,broadcast,communicationandexhibitionordistributionandsalesofworksandotherprotectedsubjectmatter. In2008,theeconomicperformanceofcorecopyright-basedindustrieswasapproximately2%oftheentirenationaleconomy.Theircontributiontoemploymentwas2.3%whiletheirexportsandimportswereresponsiblefornotmorethan0.5%ofthenationaleconomy.

Asshownintable5,thevalue-addedofthetwomajorindustriesthatareincludedinthecorecopyright-based industries (‘film and television’ and ‘photography, software and databases, advertising’) increaseddrasticallythelasteightyears,affectingtheoveralltrendofthecorecopyright-basedindustriesthatincreasedsubstantiallyduringthe1990sandthe2000s(17%and24%respectively).

Withregardstoemployment,corecopyright-basedindustrieshavekeptrisingsincethe1970swithahigherincrease in the1990s.Employmentof ‘Photography, softwareanddatabases,advertising’hasknownanimpressiveincreasethroughthelast40years,morethandoublingduringthe1980s(table5).

Table 5: Value-Added, Employment, Imports and Exports Growth of Core Copyright-Based Industries in % 1970 to 2008

Value-added

Printing, publishing and recorded media

Film and television


Core

1970-1979 30% 33% 23% 28%1980-1989 -1% 2% 9% 3%1990-1999 -2% 7% 39% 17%2000-2008 -6% 30% 40% 24%


33

Table 5: Value-Added, Employment, Imports and Exports Growth of Core Copyright-Based Industries in % 1970 to 2008 (Continued)

Employment

Printing, publishing and recorded media

Film and television


Core

1970-1979 20% 21% 79% 33%

1980-1989 8% 9% 106% 36%

1990-1999 6% 32% 98% 51%

2000-2008 10% 10% 45% 30%

Imports

Printing, publishing and recorded media Photography, software and databases, advertising

Core

1970-1979 12% -13% 9%

1980-1989 -18% -12% -17%

1990-1999 24% -2% 21%

2000-2008 -31% -8% 29%

Exports Printing, publishing and recorded media Photography, software and

databases, advertisingCore

1970-1979 -56% -55% -55%

1980-1989 -59% 127% -14%

1990-1999 308% 116% 202%

2000-2008 36% 228% 108%


Asfarastradeofcorecopyright-basedindustriesisconcerned,theyexperiencedanincreaseoftheirimportsduringthe1990sasaresultofthere-openingoftheeconomytotherestoftheworld,howevertheimportsdecreasedby29%inthe2000s(table5).Fromtheexportspointofview,thefactthatexportsofthetotalcorecopyright-basedindustrieshaveincreasedby202%and108%inthe1980sand1990s,respectively,isveryencouragingforthesectors.

Exceptforthesectors’growththroughouttheperiod,itisofhighimportancetoexaminetheevolutionoftheircontributiontothetotaleconomy.Althoughthegrowthofvalue-addedwassignificant,thecontributionofcorecopyright-basedindustriestototalvalue-addedoftheeconomyhasshownadecreasingtrendsince1970.Anaverageincreaseof2.74%ofthetotalvalued-addedfortheperiod1970to2008incombinationwithamuchloweraverageincreaseofthevalue-addedofthecorecopyright-basedindustries(1.99%),leadtoanoveralldecreaseofthecontributionofthecoreindustriesasdefinedbytheratiocore copyright-based industries’ value-added/total economy’s value-added.Amongthemainsub-categoriesonlythecontributionof‘Photography,softwareanddatabases,advertising’presentedaminorincreaseintheperiod1970to2008.

Onthecontrary,the‘printing,publishingandrecordedmedia’ industryhasexperiencedarisingdecreasesince1980.Thistrendcanbelinkedtotwomainfacts,asalsomentionedinthesectiondealingwithtradeofthecorecopyright-basedindustries.ItiseitherindicativeoflowinterestoftheSouthAfricanconsumersfortheproductsoftheseindustriesoralowercomparativeadvantagetotherestoftheworldleadingtolessdemandoftheproductsoftheparticularindustry.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

34

Figure 10: Core Copyright-Based Industries: Contribution to Total Value-Added


Infigure10,itisshownthatthecontributionofcorecopyright-basedindustrieshasdecreasedinthestudiedperiodbuthasalwaysremainedwithintherangeof2to3%.Themainsectorsthatareincludedinthecorecopyright-basedindustriesshowedstabilitywithverysmallfluctuations,forinstance‘printing,publishingandrecordedmedia’presentedarelativedecreasefrom1970to2008.

Infigure11,it isshownthatthecontributionofcorecopyright-basedindustriestototalemploymenthasincreasedconsiderablyfrom0.81%in1970to2.31%in2008.Thisincreasecanbeattributedmainlytotherisingcontributionofthe‘Photography,softwareanddatabases,advertising’totheeconomyinitsentirety.


35

Figure 11: Total Core Copyright-Based Industries: Contribution to Employment


Infigure12,thecontributionofcorecopyright-basedindustriestothetotaltradeofSouthAfricaispresented.Thecontributiontoimportshasexperiencedanoveralldecreasingtrendwithabighikeinthemiddleofthe1980swhichlater,attheendofthe1980s,wasneutralisedbyahighdeclinewhileontheothersidethecontributiontoexportshasincreasedtoasmallextentremaininghowever,atlevelslowerthan0.5%.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

36

Figure 12: Core Copyright-Based Industries: Contribution to Imports and Exports


5.4 Interdependent copyright-based IndustriesInterdependentcopyrightindustriesincludethoseengagedinproduction,manufactureandsaleofequipmentwhosefunctioniswhollyorprimarilytofacilitatethecreation,productionoruseofworksandotherprotectedsubject matter. In 2008, the economic performance of interdependent copyright-based industries wasapproximately0.5%oftheentirenationaleconomy.Theircontributiontoemploymentwas0.5%whiletheirexportscontributionwasalmost7.9%ofthenationaleconomy.Theirimportswereresponsiblefor2.7%ofthetotalimportsinSouthAfrica.

Table 6: Value-Added, Employment, Imports and Exports Growth of Interdependent Copyright-Based Industries in % from 1970 to 2008

Value-added

Television, radio and

communication

Computers and equipment,

photocopiers

Photographic and cinematographic

instruments

Paper and paper products

Interdependent

1970-1979 125% 58% 75% 65% 63%

1980-1989 11% -17% 0% 35% 20%

1990-1999 8% -14% 0% 14% 15%

2000-2008 29% 70% 199% 33% 40%


37

Table 6: Value-Added, Employment, Imports and Exports Growth of Interdependent Copyright-Based Industries in % from 1970 to 2008 (Continued)

Employment


communication


photocopiers

Paper and paper products Interdependent

1970-1979 110% 36% 2% 31%

1980-1989 -2% 3% 30% 8%

1990-1999 19% -6% -14% -5%

2000-2008 -46% 30% 2% 16%

Imports


communication


photocopiers


1970-1979 -15% -35% -31% -33%

1980-1989 54% 2% -31% 3%

1990-1999 454% 92% 50% 128%

2000-2008 56% 136% 81% 111%

Exports


communication


photocopiers


1970-1979 7% -44% -17% 133%

1980-1989 149% 31% 151% 70%

1990-1999 274% 219% 54% 155%

2000-2008 29% 88% -27% 54%


All the sub-categories that are included in the interdependent copyright-based industries experienced asignificant increase in their value-added,especially in theperiod2000 to2008 (table6). In the1990s,adeceleration was experienced – presented either by a decrease (‘computers and equipment’) or a lowerincreasethanthepreviousyears(‘television,radioandcommunication’and‘paper’).However,theindustrieswiththenegativegrowthinvalue-addedduringthe1990salmostcaughtupwiththerestbyshowingahighincreaseinthe2000s(‘computersandequipment,photocopiers’=70%,’photographicandcinematographicinstruments’=199%).

Ascanbeseenintable6,thegrowthofemploymentofthetotalinterdependentcopyright-basedindustrieswasnegative in the1990sbut recovered in the2000s.Thisdecrease canbeattributed toadecrease in‘computersandequipment,photocopiers’and‘paperandpaperproducts’’employment,-6%and-14%,respectively, while the ‘television, radio and communication equipment’ enjoyed a 19% growth. On thecontrary, in the2000s ‘television, radio and communication equipment’ showedadifferent picturewitha decrease of 46% that was not however, able to influence the overall increase of the interdependentindustries’employment(16%).Thisdecreasingtrendcanbeattributedtothefactthattheproductionmighthaveturnedtomorecapitalintensive–hence,lesslabourintensive–methods.

Thegrowthoftheinterdependentcopyright-basedindustrieswithregardstotradehasbeensignificantfortheyearsaftertheendofsanctions.Bothimportsandexportsincreasedsubstantiallyinthe2000s(table6)withtheexceptionof‘paperandpaperproducts’whoseexportsdeclinedby27%duringtheperiod2000to2008.Asexpected,thehighestincreaseswereexperiencedinthe1990s.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

38

Asfarastheevolutionoftheinterdependentcopyright-basedindustries’contributionisconcerned,figure13showsadecreaseinthecontributionofinterdependentcopyright-basedindustriestothetotalvalue-added.However, putting that into perspective, the total interdependent copyright-based industries have nevercontributedmore than0.9%to the totaleconomy.Therefore, thedecrease–althoughsignificant–wasnotmajor.Alltheindependentsub-categories,exceptfrom‘computersandequipment,photocopiers’,haveremainedconstantduringtheperiod1970to2008.

Figure 13: Interdependent Copyright-Based Industries: Contribution to Value-Added

Source:Authors’calculationswithdatafromQuantecdatabases,theDepartmentofArtsandCulture(DAC)andtheSouthAfricanReserveBank(SARB).


39

Figure 14: Interdependent Copyright-Based Industries: Contribution to Employment


Thecontributionoftheinterdependentcopyright-basedindustriestoemploymenthasremainedinverylowlevels–below0.6%.Thecontributionoftheinterdependentcopyright-basedindustriesseparatelyhasnotexceeded0.4%ofthetotalemploymentandremainedrelativelyconstantthroughtheyears(figure14).

The contribution of the interdependent copyright-based industries to the overall trade is presented infigure15.Bothcontributiontoexportsandimportsshowasimilarincreasingtrendduringthelast40years.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

40

Figure 15: Interdependent Copyright-Based Industries: Contribution to Imports and Exports


5.5 partial copyright-based IndustriesPartialcopyrightindustries includethoseinwhichaportionoftheactivities isrelatedtoworksandotherprotectedsubjectmatterandmayinvolvecreation,productionandmanufacturing,performance,broadcast,communicationandexhibitionordistributionandsales.In2008,theircontributiononallindicatorsanalysedwasapproximately0.2%withtheexceptionofimports(0.36%).

Table 7: Value-Added, Employment, Imports and Exports Growth of Partial Copyright-Based Industries in % 1970 to 2008

Value-added


Furniture, jewellery, musical instruments, games

and toys

Crafts Glass and glass products

Partial

1970-1979 53% 28% 48% 38% 36%

1980-1989 2% 124% 60% 25% 94%

1990-1999 -13% -5% -8% 15% -6%

2000-2008 18% 25% 22% 71% 24%


41

Table 7: Value-Added, Employment, Imports and Exports Growth of Partial Copyright-Based Industries in % 1970 to 2008 (Continued)

Employment



and toys

Crafts Glass and glass products

Partial

1970-1979 20% 34% 28% -3% 29%

1980-1989 1% 47% 24% 20% 30%

1990-1999 -24% 5% 19% -11% 12%

2000-2008 -36% 0% -20% 11% -13%

Imports



and toys

Glass and glass products Partial

1970-1979 -53% -27% -49% -31%

1980-1989 -22% -8% 1% -9%

1990-1999 109% 183% 85% 175%

2000-2008 114% 164% 111% 160%

Exports



and toys

Glass and glass products Partial

1970-1979 15% 91% 174% 93%

1980-1989 -20% 108% 13% 101%

1990-1999 33% 18% 40% 18%

2000-2008 -72% 25% -22% 23%


Thevalue-addedofthepartialcopyright-basedindustriesincreasedsignificantlyfrom1970to1989,declinedby6%inthe1990sandhasincreasedsince2000by24%(table7).Allthesub-categoriesshowedadeclinein theperiodfrom1990to1999,with theexceptionof ‘glassandglassproducts’.Thisdecreasecanbeattributedtothecomparativedisadvantageoftheparticularproducts,alsoexpressedinthehighincreaseof imports and lower increaseof exportsduring the1990sandafter theopeningof the country to theinternationalmarkets.

Theemploymentofthepartialcopyright-basedindustriesshowedadecliningtrendinthelastdecadewith‘apparel,textilesandfootwear’employing36%lessemployeesintheperiod2000to2008asaresultofthedeclineoftheproduction(value-added)inthe1980sand1990s(table7).

Contrarytoothercopyright-basedindustries,theimportsofthepartialcopyright-basedindustriesincreasedgreatlyinthelasttwodecades(table7).However,theexportsshowedasmallbutnotunimportantincrease(23%)duringthe2000s(table7)whilethe‘apparel,textilesandfootwear’exportedalmost72%lessin2008thanin2000.Thegrowthofexportsinthe1990swiththeopeningoftheeconomywasnotashighasinothersectorswith‘glassandglassproducts’increasingbyalmost40%and‘apparel,textilesandfootwear’by33%.

Theseresultsshowoncemorethecomparativedisadvantageofthepartialcopyright-basedindustriesintheperiodwhenthesanctionsendedandtheSouthAfricaneconomyopenedtotheworld.TheimportsoftheindividualindustriesweresubstantiallyhigherthantheirexportsshowingaclearinterestoftheSouthAfricanconsumersforinternationalproductsofthepartialcopyright-basedindustries.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

42

Withregardstothepartialcopyright-basedindustries’contribution,eventhoughthegrowthof‘glassandglassproducts’value-addedwassubstantial, itscontributiontothetotalvalue-addedwasnegligible.Theminorriseofthecontributionofthetotalpartialcopyright-basedindustriesattheendof1980sdidnotlastlong.Itreturnedtoitsinitiallevelsof0.05%attheendof1990s.

Figure 16: Partial Copyright-Based Industries: Contribution to Value-Added


Theircontributiontothetotalworkforceofthecountrystarteddecliningin1996,afterasteepincreaseintheperiod1994to1996.Onlythe ‘crafts’ industryfollowstheoverall trend,showingthat it is themaincontributortopartialcopyright-basedindustries,withregardstoemployment.


43

Figure 17: Partial Copyright-Based Industries: Contribution to Employment


Asfaraspartialcopyright-basedindustriescontributiontotradeisconcerned,bothcontributiontoexportsandimportsshowedanincreasingtrend.Thenagain,thecontributiontotradewasneverhigherthan0.05%,nothavingasignificantimpactinthecountry’strade.

Figure 18: Partial Copyright-Based Industries: Contribution to Imports and Exports


The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

44

5.6 non-dedicated copyright-based IndustriesNon-dedicatedcopyrightindustriesincludethoseinwhichaportionoftheactivitiesisrelatedtofacilitating,broadcast, communication, distribution or sales of works or other protected subject matter and whoseactivitieshavenotbeen included inthecorecopyright industries. In2008, theeconomicperformanceofnon-dedicated copyright-based industrieswasapproximately1.3%of theentirenational economy. Theircontributiontoemploymentwas1.03%whiletheirexportscontributionwaslessthan0.2%ofthenationaleconomy.Theirimportswereresponsibleforonly0.55%ofthetotalimportsinSouthAfrica.

Table 8: Value-Added, Employment, Imports and Exports Growth of Non-Dedicated Support Copyright-Based Industries in % 1970 to 2008

Value-added

Wholesale and retail trade Transport, storage and communication

Non-dedicated support

1970-1979 35% 63% 44%

1980-1989 20% 15% 18%

1990-1999 21% 50% 31%

2000-2008 36% 57% 45%

Employment



1970-1979 30% 48% 21%

1980-1989 18% -3% 10%

1990-1999 21% -28% 4%

2000-2008 21% 2% 17%

Imports



1970-1979 52% -20% -20%

1980-1989 10% 49% 49%

1990-1999 17% 27% 27%

2000-2008 -11% 9% 8%

Exports



1970-1979 -18% 13% 1%

1980-1989 105% 18% 40%

1990-1999 158% 70% 100%

2000-2008 34% 62% 50%


Thevalue-addedofthenon-dedicatedcopyright-basedindustrieshasbeencontinuallyincreasingsince1970.Morespecifically,the‘transport,storageandcommunication’sector’svalue-addedincreasedby57%inthe2000sandthe‘wholesaleandretailtrade’by36%(table8).

With regards to employment, the non-dedicated copyright-based industries increased their number ofemployeesoverall(17%inthe2000s).However,theincreaseinthe‘transport,storageandcommunication’wasatthelowlevelof2%(table8).


45

Thenon-dedicatedcopyright-basedindustriesimportshaveshownanincreaseinthe2000sof8%whiletheoneofthetwomainsub-categories’(‘wholesaleandretailtrade’) importshavedecreasedby11%inthesameperiod.Theexportsofthisgrouphaveincreasedsubstantiallythroughthelast30years(40%in1980s,100%in1990sandalmost50%in2000s)(table8).

Theircontributiontotheeconomy’svalue-addedhasshownarisingtrendfrom0.93%in1970to1.29%in2008(figure19).Thisincreasemaybeaccreditedtotheincreaseofthecontributionofthe‘transport,storageandcommunication’sector,whilethe‘wholesaleandretailtrade’contributionremainedmoreorlessstableintherangebetween0.6and0.8%.

Figure 19: Non-Dedicated Copyright-Based Industries: Contribution to Value-Added


Thenon-dedicatedcopyright-basedindustries’contributiontothetotallabourofthecountryhasincreasedfrom0.79%in1970to1.026%in2008,notadrasticincreasebutonethatshouldbetakenintoconsideration(figure20).However,the‘transport,storageandcommunication’sector’scontributiontothetotalworkforcehasexperiencedadecreasingtrendafter1984,from0.325%in1984to0.2%in2008.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

46

Figure 20: Non-Dedicated Copyright-Based Industries: Contribution to Employment


Infigure21,itcanbeseenthatthecontributiontoimportsofthenon-dedicatedcopyright-basedindustrieshasbeendecreasingsincethe1990swhileitscontributiontoexportshasshownanincreasingtrendsince1988.Althoughthetrendshavechangedincomparisonwiththe1970s,thecontributionofnon-dedicatedcopyright-basedindustriesinthetotaltradehasnotexceeded0.7%forexportsand0.5%forimports.

Figure 21: Non-Dedicated Copyright-Based Industries: Contribution to Imports and Exports



47

6 . D i s c u s s i o n

Thepurposeof this studywas to investigate thecontributionof copyright-based industries to theSouthAfricaneconomy.Theresultsoftheanalysisshowthatthecopyright-basedindustriescontributesignificantlyto the total value-added, employment and trade. The results show that the copyright-based industriescontributemorethantheagricultureandfoodandbeveragesectors,howevertheircontribution is lowerthantraditionallybigcontributorssuchas‘mining’and‘manufacturing’.

Thecopyright-based industriesareresponsibleforalmost4.11%ofthetotaleconomy intermsofvalue-added,withcorecopyright-basedindustriesbeingthehighestcontributor(2.05%)andthenon-dedicatedcopyrightindustriesfollowingwith1.29%.Asfarasemploymentisconcerned,4.08%oftheworkforceisemployedinthecopyright-basedindustries,themajorityofwhichisemployedinthecoreandnon-dedicatedcopyright-basedindustries(2.31%and1.03%).Theinterdependentcopyright-basedindustriesshowahighcontributionintheexportsoftheeconomy(2.77%)andanevenhighercontributiontothetotalimports(7.85%).

Thecontributionofthetotalcopyright-basedindustriesinSouthAfricaintermsofvalue-added(4.11%)issignificantlylowerthantheothercountries,whosestudieswerereviewed.OnlyBulgaria’soverallcontributionofcopyright-basedindustriestototalvalue-addedwaslowerthanSouthAfrica’s(2.38%).Therestofourresultsare inagreementwith international standards thatalso indicateahighercontributionof thecorecopyright-basedindustriesforall indicators.Followingthecomparison, inSouthAfricathenon-dedicatedsupport copyright-based industriespresentahigher contribution to the total economy than in theotherinternationalstudies.

ThisstudyusesacompleteInput-Outputanalysiscalculatingmultiplierstoshownotonlythedirecteffectsofthecopyright-basedindustriesbutalsotheindirecteffectstotheeconomy.Intable9,theproduction-inducedeffectofanumberofindustriesontotaloutputispresented.Thismultipliersumsupfirst-roundeffects(howmuchanindustrymustincreaseitsinputsfromotherindustriesandfromitself,inordertoproduceanextraunitofoutputtomeetaZAR1.00increaseinfinaldemand)andindustrialsupporteffects(howmuchotherindustrieswillneedtoincreasetheirpurchasestoexpandtheiroutputtomeetthefirst-roundrequirements).

TheonlyindustriesmissingfromtheInput-Outputanalysisare‘filmandtelevision’and‘crafts’.Inordertoestimatethetotalproduction-inducedeffectweassumethattheirindirecteffectswouldbeproportionatelydependentontheirdirectcontributionof2008andtherelativeindirecteffectsof‘printing,publishingandrecordedmedia’and‘furniture’industriesrespectively.Forexample,the‘filmandtelevision’directcontributionwas0.42%, the ‘printingpublishingand recordedmedia’was0.47%and the latestproduction-inducedeffectwas1.79%.Basedonthisweassumethat‘filmandtelevision’s’production-inducedeffectwas1.6%.

Table 9: Production-Induced Effect of Copyright-Based Industries (Input-Output 2009)


Adjusted for copyright

factors


Adjusted for copyright

factorsIndustry Outcome Employment

Photography, software and databases, advertising 1.13% 0.11% 2.97% 0.30%

Communication 1.18% 0.07% 2.73% 0.16%

Crafts* 0.76% 0.32% 2.87% 1.21%

Film and television* 1.60% 1.60% 2.98% 2.98%

Footwear 2.08% 0.01% 6.23% 0.02%

Furniture 1.93% 0.19% 6.48% 0.65%

Glass and glass products 1.49% 0.01% 4.89% 0.03%

Computers and equipment, photocopiers 1.70% 0.06% 4.93% 0.17%

Other manufacturing 1.23% 0.12% 3.65% 0.37%

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

48

Table 9: Production-Induced Effect of Copyright-Based Industries (Input-Output 2009) (Continued)

Paper and paper products 2.02% 0.50% 5.77% 1.44%

Printing, publishing and recorded media 1.79% 1.79% 5.17% 5.17%

Television, radio and communication equipment 1.64% 0.57% 4.75% 1.66%

Textiles 1.81% 0.01% 6.05% 0.02%

Transport and storage 1.19% 0.07% 3.02% 0.17%

Wearing apparel 1.59% 0.01% 6.19% 0.02%

Wholesale and retail trade 1.00% 0.06% 2.63% 0.15%

Total 5.49% 14.52%

Where*denotesindustrieswithfiguresbyextrapolationSource:Authors’calculationswithdatatheSupplyandUseTables(SUT)ofStatisticsSouthAfrica(StatsSA).

The resultspresented in table9 illustrate the importanceof thecopyright-based industries for theSouthAfrican economy. The overall production-induced effect in terms of value-added is 5.49% while theproduction-inducedeffecttototalemploymentis14.52%.

Ifappropriatepoliciesareimplementedresultinginanincreaseofthedemandforproductsforinstanceofthesector‘printing,publishingandrecordedmedia’aseriesoflinkswilloccuraffectingthroughindividualsectors theeconomy in itsentirety. If thedemand for ‘printing,publishedand recordedmedia’productsincreases by ZAR 100 000 the industry must increase its inputs from other industries and from itself byR69000(first-roundeffectsmultiplier).

Thisneedwillincreasethedemandofproductsofotherindustriessuchasforexampleanothercopyright-basedindustry:‘paperandpaperproducts’,amongothers.Now,the‘paperandpaperproducts’industryneeds to increase its supplyofproducts tocover theneedsof ‘printing,publishingand recordedmedia’industry.Todoso,itwillneedtoincreaseitsinputsbyZAR0.78foreveryZAR1.00ofdemand.

Butalsosuchanincreaseinthe‘printing,publishedandrecordedmedia’industrywillalsoinfluenceothersectorsintheeconomy.Amongtheinputsthat‘printing,publishedandrecordedmedia’willneedinordertomeetanincreaseinthedemandisforexamplesomeformofenergy,i.e.electricity.Tocoverthenewdemandforitsproduct,thesector‘electricity,gasandsteam’willhavetoincreasetheirinputsbyZAR0.465foreveryZAR1.00ofdemand.

Similareffectswillbeexperiencedwiththeemploymentandtradeofthesectorsthataretryingtomeettheincreaseddemand,theywillaffectvariousotherindustriesbyaskingforinputs.

Animportantissuenotcoveredontheaboveanalysisistheconcernsrelatedtothedeficitofcopyrightroyaltyflows.Wediscusstheissuebelow.

6.1 copyright in tradeAn important concern is related to theargument that copyrightbenefits exporting countries at the costofcountrieslikeSouthAfricawhicharenetimportersofcopyrightmaterial.Theissuehasbeenstudiedinthe“GowersReviewofIntellectualProperty(2006)41intheUK,bytheOfficeofRegulationReview(1995)in Australia and others. More recently, IPO (2009)42 took this study a step further and according to theAustraliangovernmentthemajorityoftherecommendationswillsoonbeimplemented.43

41GowersReview(2006).“Gowers Review of Intellectual Property”.HMSO,Norwich,NR31BQ42IntellectualPropertyOffice(IPO),2009,“Taking forward the Gowers Review of Intellectual Property: Second Stage Consultations on

Copyright Exceptions”.IPO,UnitedKingdom.Availableat:www.ipo.gov.uk/consult-gowers2.pdf43Ibid.


49

TheargumentisthatsinceSouthAfricahasanetdeficitofcopyrightroyaltywhichflowsoutofthecountry,thecountrymaybenefitfromfreeridingontheinnovativeactivitiesoftherestoftheworld.Australiaforexamplehasarguedthatthecountryshouldnotextendcopyrightprotectionbeyondthelimitsdemandedbytheinternationaltreatiesobligationsbecauseofthenetcostsofsuchprotection44.

ThemaintenanceoftheexistingstandardswerebasedonthefactthatanyreductioninthescopebeyondtheminimumstandardsprovidedinBerneandTRIPswouldentailcoststoreciprocaltreatmentofAustraliancopyright producers under those conventions and the generally good reputation that Australia has as aresponsiblememberoftheinternationalcommunityofnations.

Itwasalsoarguedthatsuchchangesmayhavelabourmarketimplicationsforcopyrightindustriesastheycanmovetheiroperationsabroadwheretheconditionsmaybemorefavourable.

WhilewepresentevidenceoftheSouthAfricantrade incopyrightmaterialswewould liketoemphasisethattheargumentatstakeisthebenefitsandcostsofprotectionismversusfreetradewhichTRIPsandWIPOhavebeensoconcernedtopromote.Richardsonet al. (2000)45argue that theargument reflects theoldmercantilistfallacythatexportsaregoodandimportsarebad.TheargumenthasbeenattackedbyAdamSmith inhisWealthofNations46 (1776).“WhatSmithshowed is thatmercantilismprovidesavehicle forsubsidisingtheinefficienteffortsoflocalproducers,whoseektopreventcompetitionfromcheaperimportstotheultimatedetrimentofconsumers.Economistshaveacceptedforover200yearsthatmercantilismisafallacywhenappliedtoindustriessuchastextiles,shoesandmeat.Thelogicalandrationalpositionwithrespecttocopyrightindustriesisexactlythesame”(Richardsonet al.,2000)47.

Tradeincopyrightconsistsoftwocomponents.Thefirstcomponentispartofthemerchandisetradeandincludestradeincommoditiessuchasbooks,newspapers,periodicals,soundrecordingsandotherrecordedtapes and disks passing through merchandise trade. The second component is made up of licence feesandroyaltiespaidfortheuseofproductssuchascomputerandinformationservices,software,films,TVprogrammesandsoundrecordings.Theseroyaltiesareincludedintradeinservicesinthebalanceofpayments.

Figures22and23showthesharesofimportedandexportedtradedcopyrightmaterialinthetotalimportsandexportsofthecountryfortheperiod1970to2008.

Figure 22: South Africa Printing, Publishing and Recorded Media Exports: Share to Total Exports

Source:Authors’calculationswithdatafromtheSouthAfricanReserveBank(SARB),theSouthAfricanRevenueService(SARS)andQuantecdatabases.

44ORR(1995)“An Economic Analysis of Copyright Reform”(submissiontothecopyrightlawreviewcommittee’sreviewofthecopyrightact1968)OfficeofRegulationReview,Australia.

45RichardsonM.,GansJ.,HanksF.andWilliamsP.(2000)“The Benefi ts and Costs of Copyright: An Economic Perspective”CentreforCopyrightStudiesLtd,DiscussionPaper,Australia.

46SmithA.(1776)“An Inquiry into the Nature and Causes of the Wealth of Nations”,asquotedinRichardsonetal.(2000)47Seefootnote39.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

50

Theshareof‘printing,publishingandrecordedmedia’exportswas0.158%during2008whiletheirshareofimportshasbeenreducedfrommorethan5%inthe1980sto0.351%in2008.

The SouthAfrican shareof ‘printing, publishing and recordedmedia’ exports (0.15%) is lower than theaverageinEurope(table10),whiletheshareofimports(0.35)isjustbelowthoseappearingintable10.

Figure 23: South Africa Printing, Publishing and Recorded Media Imports: Share to Total Imports


Table 10: Trade in Copyright Dependent Goods

Share of copyright material in merchandise exports (%)

Share of copyright material in merchandise imports (%)

Australia 1996 to 1997 0.5 2.2EU-12 0.8 0.7Belgium – Luxembourg 0.5 0.8Denmark 0.9 0.8Germany 0.8 0.7Greece 0.2 0.5Spain 0.6 0.6France 0.6 0.8Ireland 4.9 1.0Italy 0.4 0.5the Netherlands 1.0 0.9Portugal 0.2 0.6the UK 1.1 0.9the EFTA 0.4 1.1the USA 1.1 0.5Japan 0.8 0.4


51

Table 10: Trade in Copyright Dependent Goods (Continued)

Korea (South) 1.3 0.2Brazil 0.1 0.7India 0.1 0.4

Source:Revesz(1999)48

Figure24showsthetradebalanceofthe‘printing,publishingandrecordedmedia’industryinSouthAfrica.ThetradebalancehasbeenreducedfromjustbelowZAR8billioninthe1980stojustaboveZAR1billionin2008,in2005values.

Figure 24: Trade Balance: South Africa Printing, Publishing and Recorded Media 1970 to 2008


Tradeincopyrightservicesstatistics(thesecondcomponentoftradeincopyright)isnotavailableinSouthAfrica.Inordertohaveanestimateweassumethat50%ofreceiptsandpaymentsregisteredunderroyaltiesandlicencefeesand10%ofthoseunder‘architectural,engineeringandothertechnicalservices’arecopyrightrelated.Table11showsthepaymentsandreceiptsincopyrightservices.

48ReveszJ.(1999)“Trade Related Aspects of Intellectual Property Rights”ProductivityCommissionStaffResearchPaper,AGPS,Canberra.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

52

Table 11: Payments and Receipts in Copyright Services

Year Payments (ZAR million current)

Receipts (ZAR million current)

Balance (ZAR million current)

2000 115.70 75.80 -39.90

2001 138.00 80.00 -58.00

2002 184.40 88.20 -96.20

2003 180.00 90.80 -89.20

2004 202.00 98.40 -103.60

2005 293.80 115.60 -178.20

2006 604.10 104.30 -499.80

2007 688.00 186.70 -501.30

2008 815.10 271.35 -543.75

Source:TheReserveBank–personalcommunication.

Thesumofthebalancesincopyrightservicesandinmerchandisetradeshowsthetotaleffectofcopyrightinthecountry’simportsandexports.ItbecomesapparentthatthesizeofdeficitsbothinthetradeandthebalanceofpaymentsinSouthAfricaaremuchsmallerthanthoseinothercountriesandhencetheissueofdeficitsdoesnotwarrantfurtherdiscussion.

6.2 recommendationsDuring the process of our investigation a number of questions were raised which lead to a number ofrecommendations.

From a methodological prospective WIPO’s guidelines49 identify the industries affected by copyright andsuggestcertaincopyrightcoefficients.Thecoefficients reflect thecopyrightcomponentswithinparticularindustriesandhencethepercentageofvalue-addedthatshouldbeallocatedtocopyrightcontribution.Theguidestates:“Forarchitecture,forexample,variousstudiestakebetween65%and75%ofthearchitecturalindustry as having a copyright component”50. Further the guide suggests that “an approximate averageof the contribution of the non-core groups, based on the results from the past studies, would indicatethat this contribution is around 30% of the entire contribution of all copyright-based industries”51. Theguideconcludesthat“theprocedureofestablishingtheweightingswouldcombineseveralapproachesortechniques…”52.AsthecopyrightcoefficientsmaychangeovertimeandmaydifferfromcountrytocountrywesuggestthatWIPOconsidersdevelopingguidelinesfortheestimationofcopyrightcoefficients.

WIPO’sinterestinpromotingthecopyrightindustriesiscurrentlyfocusedinthemeasurementoftherelevantimpact on the economy. However, the impact of the copyright-based industries is dependent mainly onthestructureoftheeconomyandtheimportance/incentivesprovidedforthedevelopmentandgrowthoftherelevantclusters.WesuggestthatWIPOshouldidentifyinternationalbestpracticeinthepromotionofcopyright-basedindustriesanddisseminatetheinformationtomemberstates.

The South African authorities provide limited information related to copyright industries. As a result thecopyright-based industries are not in the radar of the policy-makers. Furthermore, the lack of relevantinformationimpedesthecountry’slimitedresearchexpertiseininvestigatingtherelevanteconomicclusters.WesuggestthattheDepartmentofTradeandIndustry(DTI)andtheDepartmentofArtsandCulture(DAC)requestfromStatisticsSAandtheReserveBanktoseparatethestatisticsrelatedtocopyright-basedindustriesandpublishthemregularly.

49WIPO(2003)“Guide on Surveying the Economic Contribution of the Copyright-Based Industry”.WorldIntellectualPropertyOrganization,Geneva.

50Ibid.p.34.51Ibid.p.59.52Ibid.p.59.


53

TheSouthAfricancopyright regimedoesnot includeexceptionsand limitations for thevisually impairedorforthebenefitofpeoplewithanyotherdisability(e.g.dyslexics)aswellasfortechnologicalprotectionmeasures(suchasencryptionoftheprotectedmaterial)andelectronicrightsmanagementinformation(suchasdigitalidentifiers).Furthermore,despitetheexistenceofexceptionsforpurposesofillustration,forteachingandresearch,thelegaluncertaintysurroundingtheuseofworkshasledtotheconclusionofagreementsbetweenthecollectingsocietiesandeducationalestablishmentstothefinancialdetrimentofthelatter.Asexceptionshavethepotentialstocreatevalue(GowersReview,2006)53wesuggestthatDTIshouldreviewtheCopyrightActinordertointroducelimitationsinaccordancewiththeBerneConventionthreestepstest(article9(2))andwiththefairuseprovisionandtoclarifyclausesasnecessary.

TheDTIshoulddeveloparesearchprogrammesupportingresearcherinitiatedprojectsrelatedtoIPRingeneralandcopyright inparticular. Thisprogrammewillprovidecontinuous researchand intelligence supportingtheneedsoftheDTIrelatedtoIPRsandsimultaneouslywilldeveloprelevantexpertiseinthecountry.TheNationalResearchFoundationmayundertaketoimplementsuchaprogrammeontheinstructionsoftheDTI.

53GowersReview(2006).“Gowers Review of Intellectual Property”.HMSO,Norwich,NR31BQ.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

54

A p p e n d i x 1

Table 12: Highest and Lower Piracy Rates Internationally

Highest Piracy Lowest PiracyGeorgia 95% United States 20%Bangladesh 92% Japan 21%Armenia 92% Luxembourg 21%Zimbabwe 92% New Zealand 22%Sri Lanka 90% Austria 24%Azerbaijan 90% Belgium 25%Moldova 90% Denmark 25%Yemen 89% Sweden 25%Libya 87% Switzerland 25%Pakistan 86% Australia 26%Venezuela 86% Finland 26%Indonesia 85% Germany 27%Vietnam 85% United Kingdom 27%Iraq 85% Netherlands 28%Ukraine 84% Norway 28%Algeria 84% Israel 32%Montenegro 83% Canada 32%Paraguay 83% Ireland 34%Cameroon 83% South Africa 35%Nigeria 83% Singapore 36%Zambia 82% UAE 36%Bolivia 81% Czech Republic 38%Guatemala 81% Taiwan 39%China 80% Réunion 40%El Salvador 80% France 41%

Source:BSA-IDC200954

54BSA-IDC2009“Sixth Annual BSA-IDC Global Software: 08 Piracy Study”BusinessSoftwareAlliancehttp://global.bsa.org/globalpiracy2008/studies/globalpiracy2008.pdf


55

A p p e n d i x 2 I n t e r n a t i o n a l S t u d i e s D a t a

Thesourcesoftheinternationaldataarethefollowing:

• World Intellectual Property Organization (WIPO), 2006, National Studies on Assessing the Economic Contribution of the Copyright-Based Industries No. 1: The economic contribution of copyright-based industries in Singapore 2004.WIPO:Switzerland.

• World Intellectual Property Organization (WIPO), 2006, National Studies on Assessing the Economic Contribution of the Copyright-Based Industries No. 1: The economic contribution of copyright-based industries in Canada 2004.WIPO:Switzerland.

• World Intellectual Property Organization (WIPO), 2006, National Studies on Assessing the Economic Contribution of the Copyright-Based Industries No. 1: The economic contribution of copyright-based industries in Latvia 2000.WIPO:Switzerland.

• World Intellectual Property Organization (WIPO), 2006, National Studies on Assessing the Economic Contribution of the Copyright-Based Industries No. 1: The economic contribution of copyright-based industries in Hungary 2005.WIPO:Switzerland.

• World Intellectual Property Organization (WIPO), 2008, National Studies on Assessing the Economic Contribution of the Copyright-Based Industries No. 2: The economic contribution of copyright-based industries in the Philippines.WIPO:Switzerland.

• World Intellectual Property Organization (WIPO), 2008, National Studies on Assessing the Economic Contribution of the Copyright-Based Industries No. 2: The economic contribution of copyright-based industries in Mexico 2006.WIPO:Switzerland.

• World Intellectual Property Organization (WIPO), 2008, National Studies on Assessing the Economic Contribution of the Copyright-Based Industries No. 2: The economic contribution of copyright-based industries in Jamaica 2007. WIPO:Switzerland.

• World Intellectual Property Organization (WIPO), 2008, National Studies on Assessing the Economic Contribution of the Copyright-Based Industries No. 2: The economic contribution of copyright-based industries in Bulgaria 2007.WIPO:Switzerland.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

56

Table 13: Summary of Selected Studies: Contribution of the Core Copyright-Based Industries

Country (Year) Singapore (2001) the Philippines (2003) Hungary (2002) Mexico (2003)

% of GDP

% of employment

% of GDP

% of employment

% of GDP

% of employment

% of GDP

% of employment

Press and Literature 0.94% 1.16% 5.17% 6.22% 1.45% 1.56% 0.86% 1.22%

Music Theatrical Productions Operas

0.20% 0.49% 0.96% 0.81% 0.42% 0.64% 0.26% 0.38%

Motion Picture and Video 0.05% 0.10% 0.18% 0.11% 0.19% 0.16% 0.12% 0.28%

Radio and Television 0.15% 0.27% 1.11% 0.45% 0.50% 0.23% 0.74% 0.33%

Photography 0.03% 0.08% 0.01% 0.04% 0.05% 0.09% 0.05% 0.17%

Software and Databases 1.22% 1.13% 0.93% 0.97% 0.98% 1.16% 0.26% 0.44%

Visual and Graphic Arts 0.06% 0.13% 0.00% 0.00% 0.08% 0.16%

Advertising Services Agencies, Buying Services

0.20% 0.27% 0.24% 0.23% 0.29% 0.31% 0.25% 0.41%

Copyright Collecting Societies

0.01% 0.01% 0.07% 0.00% 0.00% 0.00%

Core Copyright Industries 2.85% 3.64% 8.59% 8.81% 3.95% 4.15% 2.62% 3.40%

Country (Year) Jamaica (2005) Bulgaria (2005) Lebanon (2005) Latvia (2000)

Press and Literature 0.51% 0.61% 0.52% 1.03% 0.75% 0.83% 1.40% 1.70%


0.21% 0.27% 0.04% 0.05% 0.33% 0.22% 0.00% 0.10%

Motion Picture and Video 0.03% 0.05% 0.10% 0.09% 0.29% 0.25% 0.00% 0.30%

Radio and Television 0.59% 0.48% 0.19% 0.14% 0.34% 0.35% 0.10% 0.90%

Photography 0.09% 0.12% 0.02% 0.08% 0.04% 0.04%

Software and Databases 0.11% 0.12% 0.51% 0.49% 0.39% 0.22% 0.60% 0.40%

Visual and Graphic Arts 0.05% 0.05% 0.01% 0.04% 0.23% 0.13%

Advertising Services Agencies, Buying Services

0.12% 0.11% 0.16% 0.38% 0.15% 0.07% 0.80% 0.30%

Copyright Collecting Societies

0.00% 0.00% 0.01% 0.00% 0.00% 0.00%

Core Copyright Industries 1.71% 1.80% 1.57% 2.30% 2.52% 2.11% 2.90% 3.70%

Source:DataderivedfromtheWorldIntellectualPropertyOrganization(WIPO),2006and200855

55Seefootnotes25and26.


57

Table 14: Summary of Selected Studies: Contribution of Interdependent Copyright-Based Industries

Country (Year) Singapore (2001) the Philippines (2003) Hungary (2002) Mexico (2003)

% of GDP

% of employment

% of GDP

% of employment

% of GDP

% of employment

% of GDP

% of employment

TV sets, Radios, VCRs and DVD Players

0.27% 0.26% 0.38% 0.20% 0.62% 0.67% 0.99% 1.09%

Computers and Equipment 1.32% 0.78% 0.52% 0.42% 0.20% 0.43% 0.90% 0.72%

Musical Instruments 0.01% 0.01% 0.00% 0.01% 0.01% 0.02% 0.03% 0.05%

Photographic and Cinematographic Instruments

0.07% 0.08% 0.05% 0.09% 0.02% 0.02% 0.17% 0.10%

Photocopiers 0.07% 0.06% 0.01% 0.01% 0.07% 0.31%

Blank Recording Material 0.01% 0.01% 0.01% 0.01% 0.06% 0.03%

Paper 0.03% 0.04% 0.11% 0.10% 0.64% 1.35%

Other 1.37% 0.72% 0.14%Interdependent Copyright industries

1.76% 1.24% 2.32% 1.44% 1.25% 1.25% 2.86% 3.65%

Country (Year) Jamaica (2005) Bulgaria (2005) Lebanon (2005) Latvia (2000)

TV sets, Radios, VCRs and DVD Players

0.00% 0.01% 0.11% 0.19% 0.01% 0.02% 0.00% 0.00%

Computers and Equipment 0.02% 0.19% 0.21% 0.01% 0.04% 0.20% 0.00%

Musical Instruments 0.31% 0.01% 0.01% 0.00% 0.00%


0.01% 0.02% 0.05% 0.00% 0.01% 0.50% 0.60%

Photocopiers

Blank Recording Material 0.05% 0.01%

Paper 0.02% 0.25% 0.27% 0.00% 0.01%

Other 0.70% 0.29% 0.67% 0.65% 0.40% 0.10%

Interdependent Copyright industries

0.74% 0.31% 0.63% 0.73% 0.71% 0.73% 1.10% 0.70%



The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

58

Table 15: Summary of Selected Studies: Contribution of Partial Copyright-Based Industries

Country (Year) Singapore (2001) the Philippines (2003) Hungary (2002) Mexico (2003)% of GDP

% of employment

% of GDP

% of employment

% of GDP

% of employment

% of GDP

% of employment

Apparel, textiles and footwear 0.00% 0.01% 0.01% 0.03% 0.03% 0.07% 0.00% 0.72%Jewellery and coins 0.02% 0.03% 0.01% 0.02% 0.01% 0.02% 0.03% 0.06%Other crafts 0.01% 0.04% 0.07% 0.14% 0.01% 0.04%Furniture 0.02% 0.03% 0.04% 0.10% 0.02% 0.04% 0.02% 0.04%Household goods, china and glass

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.44% 0.72%

Wall coverings and carpets 0.00% 0.00% 0.00% 0.00% 0.00% 0.01%Toys and games 0.01% 0.03% 0.02% 0.06% 0.01% 0.04% 0.07% 0.15%Architecture, engineering and surveying

0.02% 0.03% 0.00% 0.00% 0.23% 0.24% 0.54% 0.80%

Interior design 0.01% 0.01%Other 0.01% 0.01% 0.08% 0.07% 0.00% 0.01%Partial copyright industries 0.09% 0.18% 0.09% 0.22% 0.45% 0.62% 1.11% 2.53%Country (Year) Jamaica (2005) Bulgaria (2005) Lebanon (2005) Latvia (2000)Apparel, textiles and footwear 0.00% 0.00% 0.01% 0.05% 0.02% 0.03% 2.15% 4.27%Jewellery and coins 0.01% 0.00% 0.00% 0.01% 0.12% 0.04%Other crafts 0.01% 0.03% 0.79%Furniture 0.02% 0.01% 0.02% 0.06% 0.02% 0.03% 0.53%Household goods, china and glass

0.00% 0.00% 0.00% 0.01% 0.01% 0.02%

Wall coverings and carpets 0.00% 0.00% 0.00% 0.00%Toys and games 0.01% 0.04% 0.00% 0.01% 0.05% 0.08%Architecture, engineering and surveying

0.12% 0.07% 0.04% 0.07% 0.27% 0.26%

Interior design 0.00% 0.00%Other 0.33% 0.15% 0.00% 0.01% 0.18% 0.31% 0.08% 0.15%Partial copyright industries 0.49% 0.24% 0.09% 0.28% 0.62% 0.70% 2.81% 5.29%




59

Table 16: Summary of Selected Studies: Contribution of Non-Dedicated Support Copyright-Based Industries

Country (Year) Singapore (2001) the Philippines (2003) Hungary (2002) Mexico (2003)% of GDP

% of employment

% of GDP

% of employment

% of GDP

% of employment

% of GDP

% of employment

General wholesale and retail 0.34% 0.37% 0.18% 0.25% 0.56% 0.63% 0.50% 1.05%

General transportation 0.48% 0.33% 0.20% 0.29% 0.45% 0.45% 0.32% 0.31%

Telephony and internet 0.14% 0.04% 0.32% 0.09% 0.33% 0.05%

Non-dedicated support copyright industries

0.97% 0.74% 0.70% 0.63% 1.01% 1.08% 1.15% 1.41%

Country (Year) Jamaica (2005) Bulgaria (2005) Lebanon (2005) Latvia (2000)General wholesale and retail 1.20% 0.35% 0.07% 0.22% 0.60% 0.72% 0.41% 0.53%

General transportation 0.70% 0.34% 0.10% 0.16% 0.30% 0.22% 0.37% 0.23%

Telephony and internet 0.10% 0.01% 0.73%

Non-dedicated support copyright industries

1.90% 0.68% 0.09% 0.28% 0.90% 0.94% 0.77% 1.48%


Table 17: International Studies: Copyright Factors

Lebanon Jamaica the Philippines Singapore HungaryCore Press and Literature 1.000 1.000 1.000 1.000 1.000


1.000 1.000 1.000 1.000 1.000

Radio and Television 1.000 1.000 1.000 1.000 1.000

Photography 1.000 1.000 1.000 1.000 1.000

Software and Databases 1.000 1.000 1.000 1.000 1.000

Visual and Graphic Arts 1.000 1.000 1.000 1.000 1.000

Advertising Services 1.000 1.000 1.000 1.000 1.000

Copyright Collecting Societies 1.000 1.000 1.000 1.000 1.000

Motion Picture and Video 1.000 1.000 1.000 1.000 1.000

Interdependent TV sets, Radios, VCRs, CD Players, DVD Players, Cassette Players, Electronic Game Equipment, Other Similar Equipment

1.000 1.000 0.350 0.350 1.000

Computers and Equipment 1.000 1.000 0.350 0.350 1.000

Musical Instruments 1.000 1.000 0.200 0.200 1.000


1.000 1.000 0.300 0.300 1.000

Photocopiers 1.000 1.000 0.300 0.300 1.000

Blank Recording Material 1.000 1.000 0.250 0.250 1.000

Paper 1.000 1.000 0.250 0.250 1.000


The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

60

Table 17: International Studies: Copyright Factors (Continued)

Lebanon Jamaica the Philippines Singapore Hungary

Partial Apparel, textiles and footwear 0.020 0.005 0.004 0.000 0.005

Jewellery and coins 0.250 0.005 0.083/0.42 0.083/0.42 0.250

Other crafts 0.420 0.420 0.400

Furniture 0.050 0.050 0.002 0.083/0.017 0.050

Household goods, china and glass

0.025 0.005 0.006 0.001 0.005

Wall coverings and carpets 0.025 0.020 0.002 0.002 0.020

Toys and games 0.500 0.500 0.420 0.420 0.500

Architecture, engineering and surveying

0.100 0.008 0.100

Interior design 0.020 0.008

Museums 0.500 0.500 0.500


General wholesale and retailing 0.038 0.057 0.057 0.057 0.057

General transportation 0.041 0.057 0.057 0.057 0.057

Telephony and internet 0.057 0.057 0.057



61

A p p e n d i x 3 C l a s s i f i c a t i o n o f I n d u s t r i e s

The categories of the industries were provided by Statistics SA and the classification is according to theStandard Industrial Classification of all economic activities (SIC). The SIC is a classification of economicactivitiesofindustries.Anindustryconsistsofestablishmentsengagedinthesameoracloselyrelatedkindofeconomicactivitybasedmainlyontheprincipalclassofgoodsproducedorservicesrendered.Theterm“industry”isusedinthewidestsensetocoveralleconomicactivityfromtheprimaryindustriesofagriculture,forestry,fishingandminingtotherenderingofsocial,recreational,culturalandpersonalservices.

Table 18: Categories of Core Copyright-Based Industries

Core Copyright Industries

1 3 Manufacturing: Printing, Publishing and Recorded Media

324 Publishing

3241 Publishing of books, brochures, musical books and other publications

3242 Publishing of newspapers, journals and periodicals

3243 Publishing of recorded media

3249 Other publishing

3251 Printing

3252 Service activities related to printing

3260 Reproduction of recorded media

2 Film and Television Industry

3 8 Financial Intermediation, Insurance, Real Estate And Business Services: Photography/Software and Databases/Advertising

831 Activities auxiliary to financial intermediation, except insurance and pension funding

8311 Administration of financial markets

8312 Security dealing activities

8319 Activities auxiliary to financial intermediation n.e.c.59

8320 Activities auxiliary to insurance and pension funding

841 Real estate activities with own or rented property

842 Real estate activities on a fee or contract basis

8511 Renting of land transport equipment

8512 Renting of water transport equipment

8513 Renting of air transport equipment

8521 Renting of agricultural machinery and equipment

8522 Renting of construction and civil engineering machinery and equipment

8523 Renting of office machinery and equipment (including computers)

8529 Renting of other machinery and equipment n.e.c.36

8530 Renting of personal and household goods n.e.c. 36

8610 Hardware consultancy

8620 Software consultancy and supply

8630 Data processing

8640 Data base activities

8650 Maintenance and repair of office, accounting and computing machinery

8690 Other computer related activities

59n.e.c.=notelsewhereclassified.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

62

Table 18: Categories of Core Copyright-Based Industries (Continued)

87 Research and development

871 Research and experimental development on natural sciences and engineering

8720 Research and experimental development on social sciences and humanities

8811 Legal activities

8812 Accounting, book-keeping and auditing activities; tax consultancy

8813 Marketing research and public opinion polling

8814 Business and management consultancy activities

8821 Architectural and engineering activities and related technical consultancy

8822 Technical testing and analysis

883 Advertising

8891 Labour recruitment and provision of personnel

8892 Investigation and security activities

8893 Building and industrial plant cleaning activities

8894 Photographic activities

8895 Packaging activities

8899 Other business activities n.e.c. 36

4 Copyright Collecting Societies

Source:StatisticsSouthAfrica(StatsSA).

Table 19: Categories of Interdependent Copyright-Based Industries

Interdependent Copyright Industries

1 3 Manufacturing: Television, Radio and Communication Equipment

3710 Manufacture of electronic valves, tubes and other electronic components

3720 Manufacture of television, radio transmitters and apparatus for line telephony and line telegraphy

3730 Manufacture of television and radio receivers, sound or video recording or reproducing apparatus and associated goods

2 3 Manufacturing: Computers and equipment/ photocopiers

3561 Manufacture of engines and turbines, except aircraft, vehicle and motor cycle engines

3562 Manufacture of pumps, compressors, taps and valves

3563 Manufacture of bearings, gears, gearing and driving elements

3564 Manufacture of ovens, furnaces and furnace burners

3565 Manufacture of lifting and handling equipment

3569 Manufacture of other general purpose machinery

3571 Manufacture of agricultural and forestry machinery

3572 Manufacture of machine-tools

3573 Manufacture of machinery for metallurgy

3574 Manufacture of machinery for mining, quarrying and construction

3575 Manufacture of machinery for food, beverage and tobacco processing

3576 Manufacture of machinery for textile, apparel and leather production

3577 Manufacture of weapons and ammunition

3579 Manufacture of other special purpose machinery

3580 Manufacture of household appliances n.e.c. 36

3590 Manufacture of office, accounting and computing machinery


63

Table 19: Categories of Interdependent Copyright-Based Industries (Continued)

3 3 Manufacturing: Paper and Paper Products

3231 Manufacture of pulp, paper and paper board

3232 Manufacture of corrugated paper and paper board and of containers of paper and paper board

3239 Manufacture of other articles of paper and paper board


Table 20: Categories of Partial Copyright-Based Industries

Partial Copyright Industries1 3 Manufacturing: Apparel, textiles and footwear

Wearing apparel

3130 Manufacture of knitted and crocheted fabrics and articles

3140 Manufacture of wearing apparel, except fur apparel

3150 Dressing and dyeing of fur; manufacture of articles of fur

Textiles

3111 Preparation and spinning of textile fibres, weaving of textiles

3112 Finishing of textiles

3121 Manufacture of made-up textile articles, except apparel

3122 Manufacture of carpets, rugs and mats

3123 Manufacture of cordage, rope, twine and netting

3129 Manufacture of other textiles n.e.c. 36

Footwear

2 3 Manufacturing: Furniture and other manufacturing

3910 Manufacture of furniture

3921 Manufacture of jewellery and related articles

3922 Manufacture of musical instruments

3923 Manufacture of sports goods

3924 Manufacture of games and toys

3929 Other manufacturing n.e.c. 36

3951 Recycling of metal waste and scrap n.e.c. 36

3952 Recycling of non-metal waste and scrap n.e.c36.

3 Crafts

4 Glass and glass products


The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

64

Table 21: Categories of Non-Dedicated Copyright-Based Industries

Non-dedicated Copyright Industries

1 6 Wholesale and Retail Trade, Repair of Motor Vehicles, Motor Cycles and Personal and Household Goods, Hotels and Restaurants, General wholesale and retailing

61: Wholesale trade and commission trade, except of motor vehicles and motor cycles

6110 Wholesale trade on a fee or contract basis

6121 Wholesale trade in agricultural raw materials and livestock

6122 Wholesale trade in food, beverages and tobacco

61221 Wholesale trade in foodstuffs

61222 Wholesale trade in beverages

61223 Wholesale trade in tobacco products

6131 Wholesale trade in textiles, clothing and footwear

6139 Wholesale trade in other household goods

61391 Wholesale trade in household furniture, requisites and appliances

61392 Wholesale trade in books and stationery

61393 Wholesale trade in precious stones, jewellery and silverware

61394 Wholesale of pharmaceuticals and toiletries

61399 Wholesale trade in other household goods n.e.c. 36

6141 Wholesale trade in solid, liquid and gaseous fuels and related products

6142 Wholesale trade in metals and metal ores

6143 Wholesale trade in construction materials, hardware, plumbing and heating equipment and supplies

6149 Wholesale trade in other intermediate products, waste and scrap

61501 Office machinery and equipment, including computers

61509 Other machinery

61901 General wholesale trade

61909 Other wholesale trade n.e.c. 36

62: Retail trade, except of motor vehicles and motor cycles, repair of personal and household goods

6211 Retail trade in non-specialised stores with food, beverages and tobacco predominating

6219 Other retail trade in non-specialised stores

62201 Retail trade in fresh fruit and vegetables

62202 Retail trade in meat and meat products

62203 Retail trade in bakery products

62204 Retail trade in beverages (bottle stores)

62209 Other retail trade in food, beverage and tobacco n.e.c36

623 Other retail trade in new goods in specialised stores

6231 Retail trade in pharmaceutical and medical goods, cosmetic and toilet articles

6232 Retail trade in textiles, clothing, footwear and leather goods

62321 Retail trade in men’s and boys’ clothing

62322 Retail trade in ladies’ and girls’ clothing

62323 Retail trade by general outfitters and by dealers in piece goods, textiles, leather and travel accessories


65

Table 21: Categories of Non-Dedicated Copyright-Based Industries (Continued)

Non-dedicated Copyright Industries (continued)

62324 Retail trade in shoes

6233 Retail trade in household furniture, appliances, articles and equipment

6234 Retail trade in hardware, paint and glass

62391 Retail trade of reading matter and stationery

62392 Retail trade in jewellery, watches and clocks

62393 Retail trade in sports goods and entertainment requisite

62399 Retail trade by other specialised stores

6240 Retail trade in second-hand goods in stores

6251 Retail trade via mail order houses

6252 Retail trade via stalls and markets

6259 Other retail trade not in store

6260 Repair of personal and household goods

63: Sale, maintenance and repair of motor vehicles and motor cycles, retail trade in automotive fuel

631 Sale of motor vehicles

6320 Maintenance and repair of motor vehicles

633 Sale of motor vehicle parts and accessories

6340 Sale, maintenance and repair of motor cycles and related parts and accessories

6350 Retail sale of automotive fuel

2 7: Transport, storage and communication

7111 Railway transport

712 Other land transport

7121 Other scheduled passenger land transport

7122 Other non-scheduled passenger land transport

7123 Freight transport by road

7130 Transport via pipelines

72 Water transport

7211 Sea and coastal water transport

7220 Inland water transport

7300 Air transport

7411 Cargo handling

7412 Storage and warehousing

7413 Other supporting transport activities

7414 Travel agency and related activities

7419 Activities of other transport agencies

7511 National postal activities

7512 Courier activities other than national postal activities

7520 Telecommunications


The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

66

A p p e n d i x 4 I n p u t - O u t p u t M u l t i p l i e r s

TheInput-OutputanalysisiscreditedtoW.Leontief(1905-1999)[NobelPrizelaureate1973]whodevelopedthefirstInput-Output(IO)table60.Intheliterature,thefirststudiesonapplicationsofLeontief’sanalysiswereconductedduringthe1950sand1960s61,62.However,theIOanalysishasbeenevennowpreferredintheinternationalliteratureinthe1980s,1990sand2000swithspecificinterestontheimpactofenvironmentalchangestotheeconomies63,64,65,66.

Input-Outputanalysisisawayofsystematicallyquantifyingthemutualinterrelationshipsamongthevarioussectorsoftheeconomicsystem.Theideaofthisanalysislieswiththefactthatitisimpossibletoanalysethesectoralcontributionofaspecificproductionsector(industry)tooverallaggregateproductionwithouttakingintoaccountitsconnectionwiththeothersectors.

TheIOtablesareusedforseveralanalyticalpurposessuchas:

• economicpolicy• forecasts• analysisoftheproductionstructure• productionfunctions

TheIOtablesareorganisedinabasicmatrixshowingtheinputsandoutputsofthevariouseconomicsectors.Thisrepresentationoftheeconomyisbasedonspecificassumptions.Forexampleallthetransactionsarereflectedinmonetarytermsandrecordedontheassumptionthatgeneralequilibriumexistsintheeconomy.Furthermore,onlycross-sectiondataareincludedinthetables,hence,IOtablesgiveusanopportunityfora static-dynamicanalysis. Eachyear recorded in the IO tablesgivesusa frozenpictureof theeconomy’sequilibriumatthatparticularyear(staticpartoftheanalysis).Theresearcher,however,canprogressfromoneequilibriumpositiontothenext(dynamicpartoftheanalysis).

ThemainapplicationofIOtablesisthederivationofmultipliersinordertoexaminetheeffectsonaneconomyofanexogenouschange infinaldemand.Thefourmostcommonlyusedmultipliersareoutput, income,employmentandimport.Theyprovide,respectively,ameasureoftheeffectsofanexogenouschangeinfinaldemandona)theoutputofindustriesintheeconomyb)incomeearnedbyhouseholdsc)employmenttobegeneratedandd)usageofimportsbyallindustries.

An IO model relates industry outputs to final demand. In matrix terminology, the model is expressed asX=(I-A)-1*Y,whereXisthecolumnvectorofindustryoutputs,Ythecolumnvectoroffinaldemand,ItheidentitymatrixandAthedirectrequirementscoefficientsmatrix.(I-A)-1isthe“open”(allfinaldemandsectorsareassumed tobeexogenous) Leontief inverse,usually referred toas the total requirements coefficientsmatrix.ThemultipliersderivedfromanopenIOmodelareknownassimplemultipliers.Thehouseholdsectorreceivesincomeforitsinvolvementintheproductionprocessandspendsitonproducts.Thiswillinfluencethedomesticconsumptionandconsequentlythelevelofoutputofeachdomesticindustry.Duetothis,thehouseholdsectorispreferredtobetreatedasendogenous.Therefore,withanexpansionofmatrixA,weclosethematrixwithrespecttohouseholds.Themultipliersderivedfromthisnewmatrixarecalledtotalmultipliers.

60LeontiefW.(1953)“Studies on the structure of the American economy”,NewYork:OxfordUniversityPress.61AdamsA.andStewartI.(1956)“Input-Output analysis: An application”,TheEconomicJournal,66(263),442-454.62ReyG.andTilanusC.(1963)“Input-Output Forecasts for the Netherlands, 1949-1958”,Econometrica,31(3),454-463.63DevisK.,deMeloJ.andRobinsonS.(1982)“General equilibrium models for development policy”,WashingtonD.C.:TheWorld

Bank.64DuchinF.andSteengeA.(1999)“Input-Output Analysis, technology and the environment”.InJ.vandenBergh,Handbookof

EnvironmentalandResourceeconomics.Northampton,USA:EdwardElgarPublishing.65HuppesG.,deKoningA.,SutiS.,HeijungsR.,vanOersL.,NielsenP.etal.(2008)“Environmental Impacts of Consumption in the

European Union: High-Resolution Input-Output Tables with Detailed Environmental Extensions”.JournalofIndustrialEcology,10(3),129-146.

66RichardsonH.(2006)“Input-Output and Economic Base Multipliers: Looking Backward and Forward”.JournalofRegionalScience,25(4),607-661.


67

AnumberofothermultiplierscanalsobeestimatedfromtheI-Oanalysis:

• Initial effects: AZAR1.00changeinoutputtomeetthechangeofR1.00infinaldemand.• First-round effects:Anindustrymustincreaseitsinputsfromotherindustriesandfromitself,inorderto

produceanextraunitofoutputtomeetaZAR1.00increaseinfinaldemand.• Industrial support effects:Otherindustrieswillneedtoincreasetheirpurchasestoexpandtheiroutputto

meetthefirst-roundrequirements.• Production-induced effects:Thecombinationoffirst-roundeffectswiththeindustrial-supporteffects.• Consumption induced effects:Itisequaltoitstotalmultiplierlessitssimplemultiplier.• Type 1A and 1B:Theyexpressthesimplemultiplierasaratiooftheinitialeffect.• Type 2A and 2B: Theyexpressthetotalmultiplierasaratiooftheinitialeffect.

Associatedwiththis,therewillalsobesimilareffectsonhouseholdincome,employmentandimports.ThefollowingtablespresentthemultipliersforSouthAfricaderivedfromtheI-Otablesfor2009.

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

68

Tabl

e 22

: O

utpu

t Mul

tiplie

rs 2

009

•Co

nsum

ptio

n in

duce

d ef

fect

s

Firs

t ro

und

effe

cts

Indu

stri

al

supp

ort

effe

ct

Prod

uctio

n in

duce

d ef

fect

Cons

umpt

ion

indu

ced

effe

cts

Sim

ple

Tota

l Ty

pe 1

ATy

pe 1

B

Type

2A

Type

2b

Agr

icul

ture

, for

estr

y an

d fis

hing

1.00

00.

578

0.86

31.

441

1.92

12.

441

4.36

31.

578

2.44

14.

363

3.36

3Co

al m

inin

g1.

000

0.50

00.

661

1.16

11.

585

2.16

13.

747

1.50

02.

161

3.74

72.

747

Gol

d an

d ur

aniu

m o

re m

inin

g 1.

000

0.29

50.

415

0.71

02.

782

1.71

04.

492

1.29

51.

710

4.49

23.

492

Oth

er m

inin

g 1.

000

0.45

40.

579

1.03

41.

587

2.03

43.

620

1.45

42.

034

3.62

02.

620

Food

1.00

00.

786

1.11

51.

902

2.25

12.

902

5.15

31.

786

2.90

25.

153

4.15

3B

ever

ages

1.00

00.

665

0.91

81.

584

2.30

42.

584

4.88

81.

665

2.58

44.

888

3.88

8To

bacc

o1.

000

0.63

30.

933

1.56

61.

697

2.56

64.

262

1.63

32.

566

4.26

23.

262

Text

iles

1.00

00.

729

1.07

91.

808

3.07

12.

808

5.87

91.

729

2.80

85.

879

4.87

9W

earin

g ap

pare

l1.

000

0.65

50.

930

1.58

53.

296

2.58

55.

881

1.65

52.

585

5.88

14.

881

Leat

her a

nd le

athe

r pro

duct

s1.

000

0.74

71.

208

1.95

62.

795

2.95

65.

751

1.74

72.

956

5.75

14.

751

Foot

wea

r 1.

000

0.77

31.

307

2.08

02.

778

3.08

05.

857

1.77

33.

080

5.85

74.

857

Woo

d an

d w

ood

prod

ucts

1.

000

0.69

71.

004

1.70

12.

546

2.70

15.

247

1.69

72.

701

5.24

74.

247

Pape

r and

pap

er p

rodu

cts

1.00

00.

778

1.23

72.

016

2.49

53.

016

5.51

11.

778

3.01

65.

511

4.51

1Pr

intin

g, p

ublis

hing

and

reco

rded

med

ia

1.00

00.

690

1.09

51.

785

3.11

02.

785

5.89

51.

690

2.78

55.

895

4.89

5Co

ke a

nd re

fined

pet

role

um p

rodu

cts

1.00

00.

748

0.83

91.

587

1.58

92.

587

4.17

51.

748

2.58

74.

175

3.17

5B

asic

che

mic

als

1.00

00.

780

1.08

21.

863

1.92

72.

863

4.79

01.

780

2.86

34.

790

3.79

0O

ther

che

mic

als

and

man

-mad

e fib

res

1.00

00.

736

1.12

21.

857

2.38

72.

857

5.24

51.

736

2.85

75.

245

4.24

5Ru

bber

pro

duct

s1.

000

0.77

71.

161

1.93

92.

367

2.93

95.

305

1.77

72.

939

5.30

54.

305

Plas

tic p

rodu

cts

1.00

00.

640

1.00

01.

640

3.03

62.

640

5.67

61.

640

2.64

05.

676

4.67

6G

lass

and

gla

ss p

rodu

cts

1.00

00.

652

0.83

51.

487

3.07

62.

487

5.56

41.

652

2.48

75.

564

4.56

4N

on-m

etal

lic m

iner

als

1.00

00.

659

0.79

21.

451

1.82

02.

451

4.27

11.

659

2.45

14.

271

3.27

1B

asic

iron

and

ste

el

1.00

00.

773

0.94

71.

719

2.23

52.

719

4.95

41.

773

2.71

94.

954

3.95

4B

asic

non

-fer

rous

met

als

1.00

00.

641

0.82

71.

468

1.60

82.

468

4.07

61.

641

2.46

84.

076

3.07

6


69

Tabl

e 22

: O

utpu

t Mul

tiplie

rs 2

009

(Con

tinue

d)

Indu

stry

Initi

al e

ffect

sFi

rst

roun

d ef

fect

s

Indu

stri

al

supp

ort

effe

ct

Prod

uctio

n in

duce

d ef

fect

Cons

umpt

ion

indu

ced

effe

cts

Sim

ple

Tota

l Ty

pe 1

ATy

pe 1

B

Type

2A

Type

2b

Met

al p

rodu

cts

excl

udin

g m

achi

nery

1.

000

0.69

61.

003

1.69

92.

644

2.69

95.

344

1.69

62.

699

5.34

44.

344

Mac

hine

ry a

nd e

quip

men

t 1.

000

0.69

31.

011

1.70

42.

797

2.70

45.

502

1.69

32.

704

5.50

24.

502

Elec

tric

al m

achi

nery

and

app

arat

us1.

000

0.73

31.

090

1.82

32.

684

2.82

35.

507

1.73

32.

823

5.50

74.

507

Tele

visi

on, r

adio

and

com

mun

icat

ion

equi

pmen

t 1.

000

0.67

00.

965

1.63

52.

992

2.63

55.

627

1.67

02.

635

5.62

74.

627

Prof

essi

onal

and

sci

entifi

c eq

uipm

ent

1.00

00.

717

0.98

81.

705

2.34

82.

705

5.05

31.

717

2.70

55.

053

4.05

3M

otor

veh

icle

s, p

arts

and

acc

esso

ries

1.00

00.

796

1.32

12.

117

2.91

73.

117

6.03

41.

796

3.11

76.

034

5.03

4O

ther

tran

spor

t equ

ipm

ent

1.00

00.

684

1.03

01.

714

3.20

32.

714

5.91

71.

684

2.71

45.

917

4.91

7Fu

rnitu

re

1.00

00.

764

1.16

51.

929

2.90

52.

929

5.83

41.

764

2.92

95.

834

4.83

4O

ther

man

ufac

turin

g 1.

000

0.56

00.

670

1.22

91.

729

2.22

93.

959

1.56

02.

229

3.95

92.

959

Elec

tric

ity, g

as a

nd s

team

1.

000

0.46

50.

587

1.05

11.

973

2.05

14.

024

1.46

52.

051

4.02

43.

024

Wat

er s

uppl

y 1.

000

0.62

70.

879

1.50

61.

631

2.50

64.

138

1.62

72.

506

4.13

83.

138

Bui

ldin

g co

nstr

uctio

n1.

000

0.68

71.

089

1.77

62.

023

2.77

64.

800

1.68

72.

776

4.80

03.

800

Civi

l eng

inee

ring

and

othe

r con

stru

ctio

n 1.

000

0.65

70.

923

1.58

01.

987

2.58

04.

567

1.65

72.

580

4.56

73.

567

Who

lesa

le a

nd re

tail

trad

e 1.

000

0.45

80.

545

1.00

32.

192

2.00

34.

195

1.45

82.

003

4.19

53.

195

Cate

ring

and

acco

mm

odat

ion

serv

ices

1.00

00.

604

0.83

11.

435

1.92

72.

435

4.36

21.

604

2.43

54.

362

3.36

2Tr

ansp

ort a

nd s

tora

ge

1.00

00.

510

0.67

51.

185

1.74

82.

185

3.93

31.

510

2.18

53.

933

2.93

3Co

mm

unic

atio

n1.

000

0.52

10.

656

1.17

71.

852

2.17

74.

029

1.52

12.

177

4.02

93.

029

Fina

nce

and

insu

ranc

e1.

000

0.40

00.

383

0.78

32.

293

1.78

34.

076

1.40

01.

783

4.07

63.

076

Bus

ines

s se

rvic

es

1.00

00.

518

0.60

81.

125

1.77

32.

125

3.89

81.

518

2.12

53.

898

2.89

8M

edic

al, d

enta

l and

vet

erin

ary

serv

ices

1.

000

0.58

80.

770

1.35

82.

279

2.35

84.

637

1.58

82.

358

4.63

73.

637

Excl

udin

g m

edic

al, d

enta

l and

vet

erin

ary

serv

ices

1.

000

0.60

40.

782

1.38

61.

993

2.38

64.

379

1.60

42.

386

4.37

93.

379

Oth

er p

rodu

cers

1.

000

0.21

50.

285

0.49

94.

442

1.49

95.

942

1.21

51.

499

5.94

24.

942

Gen

eral

gov

ernm

ent s

ervi

ces

1.00

00.

357

0.44

30.

800

3.58

91.

800

5.38

91.

357

1.80

05.

389

4.38

9

Sour

ce:A

utho

rs’c

alcu

latio

nsw

ithd

ata

from

the

Sup

ply

and

Use

Tab

les

(SU

T)o

fSt

atis

tics

Sout

hA

fric

a(S

tats

SA

).

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

70

Tabl

e 23

: In

com

e M

ultip

liers

200

9

Indu

stry

Initi

al

effe

cts

Firs

t ro

und

effe

cts

Indu

stri

al

supp

ort

effe

ct

Prod

uctio

n in

duce

d ef

fect

Cons

umpt

ion

indu

ced

effe

cts

Sim

ple

Tota

l Ty

pe 1

A

Type

1B

Ty

pe 2

A

Type

2b

Agr

icul

ture

, for

estr

y an

d fis

hing

0.14

00.

089

0.15

10.

239

0.24

40.

379

0.62

31.

634

2.71

24.

455

3.45

5Co

al m

inin

g0.

101

0.09

20.

119

0.21

20.

201

0.31

30.

514

1.91

23.

095

5.08

34.

083

Gol

d an

d ur

aniu

m o

re m

inin

g 0.

410

0.06

40.

075

0.13

90.

353

0.54

90.

902

1.15

71.

340

2.20

11.

201

Oth

er m

inin

g 0.

129

0.07

90.

104

0.18

40.

201

0.31

30.

514

1.61

52.

422

3.97

82.

978

Food

0.11

30.

137

0.19

40.

331

0.28

50.

444

0.72

92.

207

3.92

36.

445

5.44

5B

ever

ages

0.14

80.

138

0.16

80.

307

0.29

20.

455

0.74

71.

934

3.07

25.

047

4.04

7To

bacc

o0.

066

0.10

70.

162

0.26

90.

215

0.33

50.

550

2.62

15.

069

8.32

67.

326

Text

iles

0.25

10.

157

0.19

80.

354

0.38

90.

606

0.99

51.

624

2.41

03.

959

2.95

9W

earin

g ap

pare

l0.

303

0.16

80.

179

0.34

70.

418

0.65

01.

068

1.55

52.

145

3.52

42.

524

Leat

her a

nd le

athe

r pro

duct

s0.

207

0.13

10.

213

0.34

40.

354

0.55

10.

906

1.63

32.

661

4.37

13.

371

Foot

wea

r 0.

149

0.16

40.

235

0.39

90.

352

0.54

80.

900

2.10

53.

686

6.05

55.

055

Woo

d an

d w

ood

prod

ucts

0.

188

0.13

40.

180

0.31

40.

323

0.50

20.

825

1.71

32.

669

4.38

53.

385

Pape

r and

pap

er p

rodu

cts

0.13

80.

135

0.21

90.

355

0.31

60.

492

0.80

91.

984

3.57

85.

876

4.87

6Pr

intin

g, p

ublis

hing

and

reco

rded

med

ia

0.27

60.

138

0.19

90.

337

0.39

40.

614

1.00

81.

499

2.22

03.

646

2.64

6Co

ke a

nd re

fined

pet

role

um p

rodu

cts

0.06

00.

104

0.14

90.

253

0.20

10.

313

0.51

52.

722

5.18

88.

522

7.52

2B

asic

che

mic

als

0.08

00.

114

0.18

60.

300

0.24

40.

380

0.62

52.

432

4.76

77.

831

6.83

1O

ther

che

mic

als

and

man

-mad

e fib

res

0.15

30.

124

0.19

50.

318

0.30

30.

471

0.77

41.

812

3.08

85.

073

4.07

3Ru

bber

pro

duct

s0.

129

0.13

50.

203

0.33

80.

300

0.46

70.

767

2.04

73.

622

5.94

94.

949

Plas

tic p

rodu

cts

0.29

00.

130

0.17

80.

309

0.38

50.

599

0.98

41.

449

2.06

33.

389

2.38

9G

lass

and

gla

ss p

rodu

cts

0.29

90.

151

0.15

70.

308

0.39

00.

607

0.99

71.

505

2.03

03.

334

2.33

4N

on-m

etal

lic m

iner

als

0.10

70.

110

0.14

20.

252

0.23

10.

359

0.59

02.

024

3.35

35.

507

4.50

7B

asic

iron

and

ste

el

0.14

50.

127

0.16

90.

296

0.28

30.

441

0.72

41.

875

3.04

04.

993

3.99

3B

asic

non

-fer

rous

met

als

0.09

10.

089

0.13

70.

226

0.20

40.

317

0.52

11.

970

3.47

75.

712

4.71

2M

etal

pro

duct

s ex

clud

ing

mac

hine

ry

0.21

70.

129

0.17

60.

305

0.33

50.

522

0.85

71.

595

2.40

83.

956

2.95

6M

achi

nery

and

equ

ipm

ent

0.22

60.

142

0.18

40.

326

0.35

50.

552

0.90

71.

628

2.44

44.

014

3.01

4


71

Tabl

e 23

: In

com

e M

ultip

liers

200

9 (C

ontin

ued)

Indu

stry

Initi

al

effe

cts

Firs

t ro

und

effe

cts

Indu

stri

al

supp

ort

effe

ct

Prod

uctio

n in

duce

d ef

fect

Cons

umpt

ion

indu

ced

effe

cts

Sim

ple

Tota

l Ty

pe 1

ATy

pe 1

B

Type

2A

Type

2b

Elec

tric

al m

achi

nery

and

app

arat

us0.

200

0.13

80.

192

0.33

00.

340

0.52

90.

870

1.68

92.

650

4.35

33.

353

Tele

visi

on, r

adio

and

com

mun

icat

ion

equi

pmen

t 0.

240

0.16

00.

190

0.35

00.

379

0.59

00.

969

1.66

62.

459

4.03

83.

038

Prof

essi

onal

and

sci

entifi

c eq

uipm

ent

0.14

20.

141

0.18

10.

321

0.29

80.

463

0.76

11.

993

3.26

65.

366

4.36

6M

otor

veh

icle

s, p

arts

and

acc

esso

ries

0.17

30.

157

0.24

60.

403

0.37

00.

575

0.94

51.

908

3.33

25.

474

4.47

4O

ther

tran

spor

t equ

ipm

ent

0.27

40.

158

0.20

00.

358

0.40

60.

632

1.03

81.

579

2.31

03.

794

2.79

4Fu

rnitu

re

0.20

50.

155

0.21

30.

368

0.36

80.

573

0.94

11.

756

2.79

24.

586

3.58

6O

ther

man

ufac

turin

g 0.

118

0.10

30.

119

0.22

30.

219

0.34

10.

560

1.87

22.

881

4.73

23.

732

Elec

tric

ity, g

as a

nd s

team

0.

208

0.07

50.

106

0.18

10.

250

0.38

90.

639

1.36

11.

872

3.07

42.

074

Wat

er s

uppl

y 0.

095

0.08

40.

143

0.22

70.

207

0.32

20.

529

1.87

83.

380

5.55

24.

552

Bui

ldin

g co

nstr

uctio

n0.

108

0.10

30.

189

0.29

10.

257

0.39

90.

656

1.95

33.

705

6.08

55.

085

Civi

l eng

inee

ring

and

othe

r con

stru

ctio

n 0.

122

0.10

60.

164

0.27

00.

252

0.39

20.

644

1.86

63.

212

5.27

64.

276

Who

lesa

le a

nd re

tail

trad

e 0.

246

0.08

50.

102

0.18

70.

278

0.43

20.

710

1.34

51.

759

2.89

01.

890

Cate

ring

and

acco

mm

odat

ion

serv

ices

0.13

50.

096

0.15

00.

246

0.24

40.

380

0.62

41.

711

2.82

64.

642

3.64

2Tr

ansp

ort a

nd s

tora

ge

0.13

20.

090

0.12

20.

212

0.22

20.

345

0.56

61.

679

2.60

34.

276

3.27

6Co

mm

unic

atio

n0.

149

0.09

30.

123

0.21

60.

235

0.36

50.

600

1.62

72.

450

4.02

43.

024

Fina

nce

and

insu

ranc

e0.

279

0.09

60.

078

0.17

40.

291

0.45

20.

743

1.34

31.

624

2.66

81.

668

Bus

ines

s se

rvic

es

0.13

60.

100

0.11

40.

214

0.22

50.

350

0.57

41.

737

2.57

64.

231

3.23

1M

edic

al, d

enta

l and

vet

erin

ary

serv

ices

0.

209

0.10

00.

140

0.24

00.

289

0.45

00.

739

1.47

92.

148

3.52

92.

529

Excl

udin

g m

edic

al, d

enta

l and

vet

erin

ary

serv

ices

0.

154

0.09

50.

145

0.23

90.

253

0.39

30.

646

1.61

72.

557

4.20

03.

200

Oth

er p

rodu

cers

0.

781

0.04

30.

052

0.09

50.

563

0.87

61.

440

1.05

51.

122

1.84

30.

843

Gen

eral

gov

ernm

ent s

ervi

ces

0.53

30.

092

0.08

40.

175

0.45

50.

708

1.16

31.

172

1.32

92.

184

1.18

4

Sour

ce:A

utho

rs’c

alcu

latio

nsw

ithd

ata

from

the

Sup

ply

and

Use

Tab

les

(SU

T)o

fSt

atis

tics

Sout

hA

fric

a(S

tats

SA

).

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

72

Tabl

e 24

: Em

ploy

men

t Mul

tiplie

rs 2

009

Indu

stry

Initi

al

effe

cts

Firs

t ro

und

effe

cts

Indu

stri

al

supp

ort e

ffect

Prod

uctio

n in

duce

d ef

fect

Cons

umpt

ion

indu

ced

effe

cts

Sim

ple

Tota

l Ty

pe 1

ATy

pe 1

BTy

pe 2

ATy

pe 2

B

Agr

icul

ture

, for

estr

y an

d fis

hing

7.90

01.

346

2.48

33.

829

4.26

311

.729

15.9

931.

170

1.48

52.

024

1.02

4Co

al m

inin

g1.

367

1.71

71.

747

3.46

33.

518

4.83

08.

348

2.25

63.

534

6.10

85.

108

Gol

d an

d ur

aniu

m o

re m

inin

g 7.

631

1.15

41.

148

2.30

26.

175

9.93

316

.108

1.15

11.

302

2.11

11.

111

Oth

er m

inin

g 2.

466

1.46

91.

508

2.97

83.

521

5.44

38.

965

1.59

62.

207

3.63

52.

635

Food

1.15

64.

405

3.30

67.

711

4.99

58.

867

13.8

624.

809

7.66

811

.987

10.9

87B

ever

ages

1.42

33.

047

2.80

25.

849

5.11

37.

272

12.3

863.

140

5.10

98.

701

7.70

1To

bacc

o0.

198

3.67

62.

528

6.20

43.

765

6.40

210

.167

19.5

7832

.354

51.3

8350

.383

Text

iles

3.86

02.

998

3.05

56.

053

6.81

69.

913

16.7

291.

777

2.56

84.

334

3.33

4W

earin

g ap

pare

l6.

025

3.36

82.

820

6.18

87.

314

12.2

1319

.527

1.55

92.

027

3.24

12.

241

Leat

her a

nd le

athe

r pro

duct

s1.

807

2.20

34.

064

6.26

76.

204

8.07

414

.278

2.22

04.

469

7.90

26.

902

Foot

wea

r 1.

946

2.27

43.

955

6.22

96.

165

8.17

514

.340

2.16

84.

201

7.36

86.

368

Woo

d an

d w

ood

prod

ucts

3.

274

3.44

33.

098

6.54

15.

650

9.81

515

.465

2.05

22.

998

4.72

43.

724

Pape

r and

pap

er p

rodu

cts

0.92

42.

332

3.43

55.

766

5.53

76.

690

12.2

273.

524

7.24

213

.237

12.2

37Pr

intin

g, p

ublis

hing

and

reco

rded

med

ia

2.39

92.

118

3.05

45.

172

6.90

27.

571

14.4

731.

883

3.15

56.

032

5.03

2Co

ke a

nd re

fined

pet

role

um p

rodu

cts

0.21

51.

876

2.32

24.

198

3.52

64.

412

7.93

89.

745

20.5

6837

.004

36.0

04B

asic

che

mic

als

0.39

71.

956

2.87

04.

826

4.27

75.

223

9.50

15.

926

13.1

5523

.927

22.9

27O

ther

che

mic

als

and

man

-mad

e fib

res

0.61

21.

868

2.95

84.

827

5.29

85.

438

10.7

364.

054

8.89

017

.550

16.5

50Ru

bber

pro

duct

s1.

443

2.48

53.

082

5.56

75.

253

7.01

112

.263

2.72

24.

857

8.49

67.

496

Plas

tic p

rodu

cts

1.27

41.

525

2.62

44.

149

6.73

85.

423

12.1

622.

197

4.25

59.

543

8.54

3G

lass

and

gla

ss p

rodu

cts

1.46

62.

507

2.38

04.

888

6.82

76.

354

13.1

802.

710

4.33

48.

990

7.99

0N

on-m

etal

lic m

iner

als

2.54

62.

100

2.16

44.

265

4.03

96.

810

10.8

491.

825

2.67

54.

262

3.26

2B

asic

iron

and

ste

el

0.77

12.

251

2.58

84.

839

4.95

95.

609

10.5

683.

920

7.27

713

.710

12.7

10B

asic

non

-fer

rous

met

als

0.78

01.

173

2.02

23.

195

3.56

83.

975

7.54

32.

503

5.09

59.

669

8.66

9M

etal

pro

duct

s ex

clud

ing

mac

hine

ry

3.01

61.

921

2.67

94.

600

5.86

87.

615

13.4

841.

637

2.52

54.

471

3.47

1M

achi

nery

and

equ

ipm

ent

2.50

82.

175

2.75

04.

925

6.20

87.

433

13.6

411.

867

2.96

45.

440

4.44

0


73

Tabl

e 24

: Em

ploy

men

t Mul

tiplie

rs 2

009

(Con

tinue

d)

Indu

stry

Initi

al

effe

cts

Firs

t rou

nd

effe

cts

Indu

stri

al

supp

ort e

ffect

Prod

uctio

n in

duce

d ef

fect

Cons

umpt

ion

indu

ced

effe

cts

Sim

ple

Tota

l Ty

pe 1

ATy

pe

1B

Type

2A

Type

2b

Elec

tric

al m

achi

nery

and

app

arat

us1.

205

1.83

92.

785

4.62

45.

956

5.82

811

.784

2.52

74.

838

9.78

28.

782

Tele

visi

on, r

adio

and

com

mun

icat

ion

equi

pmen

t 0.

963

2.12

72.

624

4.75

16.

639

5.71

512

.354

3.20

85.

932

12.8

2511

.825

Prof

essi

onal

and

sci

entifi

c eq

uipm

ent

1.63

62.

375

2.66

55.

040

5.21

16.

676

11.8

872.

452

4.08

17.

266

6.26

6M

otor

veh

icle

s, p

arts

and

acc

esso

ries

1.15

12.

240

3.61

65.

857

6.47

37.

008

13.4

812.

946

6.08

711

.711

10.7

11O

ther

tran

spor

t equ

ipm

ent

0.99

21.

600

2.67

04.

270

7.10

75.

263

12.3

702.

613

5.30

412

.467

11.4

67Fu

rnitu

re

2.92

32.

783

3.69

56.

478

6.44

69.

401

15.8

471.

952

3.21

65.

421

4.42

1O

ther

man

ufac

turin

g 2.

130

1.80

31.

850

3.65

43.

837

5.78

49.

621

1.84

62.

715

4.51

73.

517

Elec

tric

ity, g

as a

nd s

team

0.

825

0.83

61.

581

2.41

64.

378

3.24

17.

619

2.01

33.

930

9.23

98.

239

Wat

er s

uppl

y 0.

826

0.80

11.

796

2.59

73.

620

3.42

27.

042

1.97

04.

144

8.52

97.

529

Bui

ldin

g co

nstr

uctio

n3.

103

1.95

43.

067

5.02

14.

490

8.12

512

.615

1.63

02.

618

4.06

53.

065

Civi

l eng

inee

ring

and

othe

r con

stru

ctio

n 3.

733

1.85

52.

528

4.38

24.

409

8.11

512

.525

1.49

72.

174

3.35

52.

355

Who

lesa

le a

nd re

tail

trad

e 6.

438

1.23

31.

400

2.63

34.

865

9.07

113

.936

1.19

21.

409

2.16

41.

164

Cate

ring

and

acco

mm

odat

ion

serv

ices

7.46

21.

856

2.58

94.

445

4.27

611

.908

16.1

841.

249

1.59

62.

169

1.16

9Tr

ansp

ort a

nd s

tora

ge

2.26

51.

255

1.76

33.

018

3.87

95.

283

9.16

31.

554

2.33

34.

046

3.04

6Co

mm

unic

atio

n0.

565

1.05

31.

674

2.72

84.

110

3.29

27.

402

2.86

65.

831

13.1

1012

.110

Fina

nce

and

insu

ranc

e1.

002

0.70

30.

901

1.60

55.

088

2.60

77.

695

1.70

22.

601

7.67

86.

678

Bus

ines

s se

rvic

es

4.15

51.

401

1.56

62.

967

3.93

47.

122

11.0

561.

337

1.71

42.

661

1.66

1M

edic

al, d

enta

l and

vet

erin

ary

serv

ices

1.

959

1.81

62.

057

3.87

25.

057

5.83

110

.889

1.92

72.

977

5.55

84.

558

Excl

udin

g m

edic

al, d

enta

l and

vet

erin

ary

serv

ices

1.

393

2.08

02.

160

4.24

04.

422

5.63

310

.055

2.49

24.

043

7.21

66.

216

Oth

er p

rodu

cers

31

.002

0.70

20.

771

1.47

39.

858

32.4

7542

.333

1.02

31.

048

1.36

50.

365

Gen

eral

gov

ernm

ent s

ervi

ces

4.44

11.

014

1.18

92.

203

7.96

46.

644

14.6

081.

228

1.49

63.

290

2.29

0

Sour

ce:A

utho

rs’c

alcu

latio

nsw

ithd

ata

from

the

Sup

ply

and

Use

Tab

les

(SU

T)o

fSt

atis

tics

Sout

hA

fric

a(S

tats

SA

).

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

74

Tabl

e 25

: Im

port

Mul

tiplie

rs 2

009

Indu

stry

Initi

al

effe

cts

Firs

t ro

und

effe

cts

Indu

stri

al

supp

ort

effe

ct

Prod

uctio

n in

duce

d ef

fect

Cons

umpt

ion

indu

ced

effe

cts

Sim

ple

Tota

lTy

pe 1

A

Type

1B

Ty

pe 2

A

Type

2b

Agr

icul

ture

, for

estr

y an

d fis

hing

0.06

40.

125

0.19

40.

319

0.23

30.

382

0.61

62.

967

6.01

49.

678

8.67

8Co

al m

inin

g0.

021

0.13

50.

154

0.28

90.

192

0.31

10.

503

7.34

314

.599

23.6

3922

.639

Gol

d an

d ur

aniu

m o

re m

inin

g 0.

000

0.09

70.

094

0.19

10.

338

0.19

10.

528

--

--

Oth

er m

inin

g0.

564

0.09

70.

133

0.23

10.

192

0.79

50.

987

1.17

31.

410

1.75

10.

751

Food

0.09

90.

069

0.21

80.

287

0.27

30.

387

0.66

01.

696

3.90

16.

657

5.65

7B

ever

ages

0.08

90.

060

0.16

50.

225

0.28

00.

314

0.59

41.

678

3.52

56.

660

5.66

0To

bacc

o0.

032

0.05

60.

191

0.24

70.

206

0.27

90.

485

2.73

88.

698

15.1

1114

.111

Text

iles

0.38

20.

176

0.23

80.

414

0.37

30.

796

1.16

91.

461

2.08

53.

061

2.06

1W

earin

g ap

pare

l0.

566

0.14

10.

192

0.33

30.

400

0.90

01.

300

1.24

91.

589

2.29

41.

294

Leat

her a

nd le

athe

r pro

duct

s0.

327

0.12

00.

212

0.33

20.

339

0.65

90.

998

1.36

72.

015

3.05

32.

053

Foot

wea

r 0.

728

0.20

90.

242

0.45

10.

337

1.18

01.

517

1.28

71.

619

2.08

21.

082

Woo

d an

d w

ood

prod

ucts

0.

094

0.07

90.

193

0.27

20.

309

0.36

60.

675

1.83

43.

878

7.15

16.

151

Pape

r and

pap

er p

rodu

cts

0.12

70.

135

0.25

50.

391

0.30

30.

517

0.82

02.

067

4.07

96.

466

5.46

6Pr

intin

g, p

ublis

hing

and

reco

rded

med

ia

0.08

30.

131

0.22

40.

355

0.37

70.

438

0.81

52.

569

5.24

89.

768

8.76

8Co

ke a

nd re

fined

pet

role

um p

rodu

cts

0.23

20.

297

0.19

20.

489

0.19

30.

721

0.91

42.

281

3.10

63.

936

2.93

6B

asic

che

mic

als

0.37

60.

239

0.25

80.

497

0.23

40.

873

1.10

71.

636

2.32

02.

942

1.94

2O

ther

che

mic

als

and

man

-mad

e fib

res

0.38

40.

184

0.26

50.

449

0.29

00.

832

1.12

21.

479

2.16

92.

925

1.92

5Ru

bber

pro

duct

s0.

541

0.18

80.

270

0.45

80.

287

0.99

91.

286

1.34

81.

848

2.37

91.

379

Plas

tic p

rodu

cts

0.21

70.

161

0.22

80.

389

0.36

80.

607

0.97

51.

739

2.78

94.

483

3.48

3G

lass

and

gla

ss p

rodu

cts

0.20

30.

153

0.18

00.

333

0.37

30.

536

0.90

91.

754

2.63

84.

474

3.47

4N

on-m

etal

lic m

iner

als

0.19

50.

201

0.17

70.

377

0.22

10.

572

0.79

32.

030

2.93

74.

070

3.07

0B

asic

iron

and

ste

el

0.09

60.

245

0.21

30.

458

0.27

10.

554

0.82

53.

543

5.75

98.

577

7.57

7B

asic

non

-fer

rous

met

als

0.15

40.

157

0.19

00.

346

0.19

50.

500

0.69

52.

018

3.25

24.

520

3.52

0M

etal

pro

duct

s ex

clud

ing

mac

hine

ry

0.19

10.

093

0.23

50.

328

0.32

10.

519

0.84

01.

490

2.72

24.

405

3.40

5M

achi

nery

and

equ

ipm

ent

1.50

90.

319

0.25

80.

577

0.33

92.

086

2.42

51.

211

1.38

21.

607

0.60

7


75

Tabl

e 25

: Im

port

Mul

tiplie

rs 2

009

(Con

tinue

d)

Indu

stry

Initi

al

effe

cts

Firs

t ro

und

effe

cts

Indu

stri

al

supp

ort

effe

ct

Prod

uctio

n in

duce

d ef

fect

Cons

umpt

ion

indu

ced

effe

cts

Sim

ple

Tota

lTy

pe 1

A

Type

1B

Ty

pe 2

A

Type

2b

Elec

tric

al m

achi

nery

and

app

arat

us0.

541

0.18

00.

252

0.43

20.

326

0.97

31.

299

1.33

31.

799

2.40

11.

401

Tele

visi

on, r

adio

and

com

mun

icat

ion

equi

pmen

t 2.

919

0.86

10.

463

1.32

40.

363

4.24

34.

606

1.29

51.

453

1.57

80.

578

Prof

essi

onal

and

sci

entifi

c eq

uipm

ent

2.64

70.

297

0.22

10.

518

0.28

53.

165

3.44

91.

112

1.19

61.

303

0.30

3M

otor

veh

icle

s, p

arts

and

acc

esso

ries

0.54

10.

261

0.32

20.

583

0.35

41.

124

1.47

81.

482

2.07

82.

732

1.73

2O

ther

tran

spor

t equ

ipm

ent

0.95

70.

359

0.31

00.

670

0.38

91.

627

2.01

51.

375

1.69

92.

105

1.10

5Fu

rnitu

re

0.25

20.

107

0.22

30.

330

0.35

20.

582

0.93

41.

425

2.31

03.

710

2.71

0O

ther

man

ufac

turin

g 0.

172

0.17

70.

151

0.32

90.

210

0.50

00.

710

2.03

22.

915

4.13

83.

138

Elec

tric

ity, g

as a

nd s

team

0.

000

0.04

70.

122

0.16

90.

239

0.16

90.

408

--

--

Wat

er s

uppl

y 0.

000

0.06

40.

148

0.21

20.

198

0.21

20.

410

--

--

Bui

ldin

g co

nstr

uctio

n0.

002

0.09

90.

222

0.32

10.

245

0.32

30.

569

57.0

0818

2.68

932

1.50

432

0.50

4Ci

vil e

ngin

eerin

g an

d ot

her c

onst

ruct

ion

0.00

50.

134

0.20

40.

339

0.24

10.

343

0.58

528

.232

69.5

5611

8.37

111

7.37

1W

hole

sale

and

reta

il tr

ade

0.00

00.

030

0.11

10.

141

0.26

60.

141

0.40

710

1.28

147

6.99

813

75.4

2313

74.4

23Ca

terin

g an

d ac

com

mod

atio

n se

rvic

es0.

184

0.04

30.

142

0.18

40.

234

0.36

90.

602

1.23

11.

999

3.26

82.

268

Tran

spor

t and

sto

rage

0.

084

0.09

90.

161

0.26

00.

212

0.34

30.

556

2.17

44.

093

6.62

05.

620

Com

mun

icat

ion

0.04

80.

208

0.23

40.

442

0.22

50.

489

0.71

45.

370

10.2

7414

.991

13.9

91Fi

nanc

e an

d in

sura

nce

0.00

90.

013

0.05

30.

065

0.27

80.

074

0.35

22.

423

8.41

139

.952

38.9

52B

usin

ess

serv

ices

0.

012

0.05

50.

119

0.17

40.

215

0.18

60.

401

5.75

616

.083

34.7

1333

.713

Med

ical

, den

tal a

nd v

eter

inar

y se

rvic

es

0.00

30.

135

0.16

30.

298

0.27

60.

301

0.57

752

.199

114.

389

219.

624

218.

624

Excl

udin

g m

edic

al, d

enta

l and

vet

erin

ary

serv

ices

0.

015

0.17

60.

177

0.35

30.

242

0.36

80.

610

12.5

2424

.109

39.9

5438

.954

Oth

er p

rodu

cers

0.

098

0.03

40.

062

0.09

60.

539

0.19

50.

733

1.34

41.

980

7.46

46.

464

Gen

eral

gov

ernm

ent s

ervi

ces

0.00

00.

060

0.10

20.

162

0.43

50.

162

0.59

8-

--

-

Sour

ce:A

utho

rs’c

alcu

latio

nsw

ithd

ata

from

the

Sup

ply

and

Use

Tab

les

(SU

T)o

fSt

atis

tics

Sout

hA

fric

a(S

tats

SA

).

The E

cono

mic C

ontri

butio

n of

Copy

right

-Bas

ed In

dustr

ies i

n Sou

th A

frica

76

The Economic Contribution of Copyright-Based Industries · PDF fileThe Economic Contribution...

Documents

Transcript of The Economic Contribution of Copyright-Based Industries · PDF fileThe Economic Contribution...