Drivers of Structural Transformation : The Case of the Manufacturing Sector in Africa

This paper analyzes the driving factors of manufacturing development in Africa. Using the system-GMM technique with four-year average panel data over the period 1995–2014, including 53 African countries, the paper finds four main results. (1) There is a U-shaped relationship between the manufacturin...

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Main Author:	Mijiyawa, Abdoul' Ganiou
Format:	Journal Article
Published:	Elsevier 2018
Subjects:	INDUSTRIAL POLICY MANUFACTURING STRUCTURAL TRANSFORMATION INDUSTRIALIZATION ECONOMIC DEVELOPMENT
Online Access:	http://hdl.handle.net/10986/29150

id	okr-10986-29150
recordtype	oai_dc
spelling	okr-10986-291502021-05-25T10:54:42Z Drivers of Structural Transformation : The Case of the Manufacturing Sector in Africa Mijiyawa, Abdoul' Ganiou INDUSTRIAL POLICY MANUFACTURING STRUCTURAL TRANSFORMATION INDUSTRIALIZATION ECONOMIC DEVELOPMENT This paper analyzes the driving factors of manufacturing development in Africa. Using the system-GMM technique with four-year average panel data over the period 1995–2014, including 53 African countries, the paper finds four main results. (1) There is a U-shaped relationship between the manufacturing share of GDP and per capita GDP. (2) Exchange rate depreciation stimulates Africa’s manufacturing sector. (3) Good governance, especially a low level of corruption and better government effectiveness contribute to Africa’s manufacturing development. (4) The size of domestic market positively affects the manufacturing share of GDP. On the other hand, the paper finds no significant effects of FDI and urbanization on manufacturing development. The implication of these findings is that improving the level of competitiveness, expanding the size of domestic market, combating corruption as well as improving government effectiveness are key for Africa’s manufacturing sector development. Moreover, the U-shaped relationship between the manufacturing share of GDP and per capita GDP, implies that African countries should not expect industrialization to automatically happen with income increase, but rather, they should proactively tackle key obstacles to the development of the manufacturing sector. 2018-01-11T21:56:57Z 2018-01-11T21:56:57Z 2017-11 Journal Article World Development 0305-750X http://hdl.handle.net/10986/29150 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article Publications & Research Africa Africa Sub-Saharan Africa
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	INDUSTRIAL POLICY MANUFACTURING STRUCTURAL TRANSFORMATION INDUSTRIALIZATION ECONOMIC DEVELOPMENT
spellingShingle	INDUSTRIAL POLICY MANUFACTURING STRUCTURAL TRANSFORMATION INDUSTRIALIZATION ECONOMIC DEVELOPMENT Mijiyawa, Abdoul' Ganiou Drivers of Structural Transformation : The Case of the Manufacturing Sector in Africa
geographic_facet	Africa Africa Sub-Saharan Africa
description	This paper analyzes the driving factors of manufacturing development in Africa. Using the system-GMM technique with four-year average panel data over the period 1995–2014, including 53 African countries, the paper finds four main results. (1) There is a U-shaped relationship between the manufacturing share of GDP and per capita GDP. (2) Exchange rate depreciation stimulates Africa’s manufacturing sector. (3) Good governance, especially a low level of corruption and better government effectiveness contribute to Africa’s manufacturing development. (4) The size of domestic market positively affects the manufacturing share of GDP. On the other hand, the paper finds no significant effects of FDI and urbanization on manufacturing development. The implication of these findings is that improving the level of competitiveness, expanding the size of domestic market, combating corruption as well as improving government effectiveness are key for Africa’s manufacturing sector development. Moreover, the U-shaped relationship between the manufacturing share of GDP and per capita GDP, implies that African countries should not expect industrialization to automatically happen with income increase, but rather, they should proactively tackle key obstacles to the development of the manufacturing sector.
format	Journal Article
author	Mijiyawa, Abdoul' Ganiou
author_facet	Mijiyawa, Abdoul' Ganiou
author_sort	Mijiyawa, Abdoul' Ganiou
title	Drivers of Structural Transformation : The Case of the Manufacturing Sector in Africa
title_short	Drivers of Structural Transformation : The Case of the Manufacturing Sector in Africa
title_full	Drivers of Structural Transformation : The Case of the Manufacturing Sector in Africa
title_fullStr	Drivers of Structural Transformation : The Case of the Manufacturing Sector in Africa
title_full_unstemmed	Drivers of Structural Transformation : The Case of the Manufacturing Sector in Africa
title_sort	drivers of structural transformation : the case of the manufacturing sector in africa
publisher	Elsevier
publishDate	2018
url	http://hdl.handle.net/10986/29150
_version_	1764468620061048832

Drivers of Structural Transformation : The Case of the Manufacturing Sector in Africa

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