scholarly journals The Product Space: What Does it Say About the Opportunities for Growth and Structural Transformation of Sub-Saharan Africa?

Author(s):  
Arnelyn Abdon ◽  
Jesus Felipe
Economies ◽  
2019 ◽  
Vol 7 (4) ◽  
pp. 111 ◽  
Author(s):  
Ssozi ◽  
Bbaale

Structural transformation is one of the processes of productivity growth urgently needed in Sub-Saharan Africa (SSA). This study uses the catch-up mechanism to analyze how international contacts and domestic absorptive capacity constraints are shaping the pattern of structural transformation in SSA. Using a two-step Generalized Method of Moments on 2000–2015 data for 29 SSA countries, the paper finds that SSA is undergoing a non-classical structural transformation led by the service sector instead of manufacturing. Import penetration, a key variable of international contact, has negative coefficients for both the agricultural and manufacturing shares of gross domestic product (GDP) but is positively associated with both the services shares of employment and GDP. A test of Kaldor’s third law finds that if growth in employment outside manufacturing is in services, it can also increase economy-wide productivity. Hence, it is the international constraints, such as import penetration and foreign direct investment, that are making the structural transformation of SSA non-classical. Services that involve transfer of skills and technology, such as international tourism and information and communications technology services exports, provide opportunities for structural change and productivity growth.


1970 ◽  
Vol 8 (3) ◽  
pp. 471-477
Author(s):  
Patrick J. Gormely

As the economic development of a country occurs, and its income per capita rises, an economic transformation takes place. The importance of both production and employment in agriculture, as proportions of total production and total employment, declines. This structural transformation of the less-developed economy from one dominated by agriculture to one dominated by non-agriculture has occurred in every country which has experienced a sustained rise in income per capita. Because the transformation has occurred in every successful development effort so far, we have reason to suspect that structural transformation is a concomitant of economic development, and will occur in the future as the less-developed countries experience economic development.


2021 ◽  
Vol 13 (24) ◽  
pp. 13620
Author(s):  
Adesoji Adelaja ◽  
Justin George ◽  
Louise Fox ◽  
Keith Fuglie ◽  
Thomas Jayne

Evidence of how resilience factors mitigate the adverse effects of shocks on individuals, households and communities is clearly established. However, such evidence at the macro level is limited, especially on the pace of structural transformation. This paper explores whether the growing incidence of terrorism, armed conflicts and natural disasters in SSA impeded the pace of structural transformation. We conceptualize the notion of macro-resilience and test whether resilience factors mitigate the adverse effects of shocks on two measures of structural transformation: agriculture’s share of GDP and of national employment. We find that structural transformation is impeded by armed conflict and terrorism-related shocks but not natural disasters and that resilience factors enhance the pace of agricultural transformation. This implies that, while agriculture is often destroyed in conflict-affected areas, the broader impacts are even more negative for other sectors of the economy. However, surprisingly, we find negative or insignificant interaction terms between the shock and resilience variables, implying no mitigative role of resilience capacities. This may suggest, in the case of conflicts and terrorism, the presence of major, debilitating effects which limit the mitigative capacity of resilience factors. We further explore the implications for future research and possible strategies to address the growing threats from shocks.


2018 ◽  
Vol 10 (1) ◽  
pp. 287-314 ◽  
Author(s):  
J. Vernon Henderson ◽  
Sebastian Kriticos

Sub-Saharan Africa has experienced high urban population growth over the past half century, dramatically reshaping the economic and spatial profile of the region. Simultaneously, this process has challenged the conventional view that countries urbanize alongside structural transformation, as urbanization in Africa has occurred despite low productivity gains in agriculture and very limited industrialization. While there are large household income gaps between urban and rural areas that induce migration, most cities have very high agricultural employment, blurring the connection between structural transformation and urbanization. Urban income premiums apply equally to farm and nonfarm families. Looking across the urban hierarchy, we discuss how high urban primacy presents problems for economic growth in Africa, how secondary cities are faltering with a lack of industrialization, and how growth of employment in tradable services may signal a different path to structural transformation.


2018 ◽  
Vol 23 (1) ◽  
pp. 33-53 ◽  
Author(s):  
Matthias Busse ◽  
Ceren Erdogan ◽  
Henning Mühlen

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