Sources of Manufacturing Productivity Growth in Africa
This paper investigates the sources of growth in manufacturing productivity in Cote D’Ivoire, Ethiopia and Tanzania in comparison with the case of Bangladesh. Based on the analysis of establishment census data since the mid-1990s, it finds that rea...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/991451566238875955/Sources-of-Manufacturing-Productivity-Growth-in-Africa http://hdl.handle.net/10986/32313 |
| Summary: | This paper investigates the sources of
growth in manufacturing productivity in Cote D’Ivoire,
Ethiopia and Tanzania in comparison with the case of
Bangladesh. Based on the analysis of establishment census
data since the mid-1990s, it finds that reallocation of
market share between firms contributed substantially to
productivity growth in each of the four countries, although
to a varying extent. In Ethiopia, the impact of market share
reallocations among survivors tended to be larger than those
associated with increases in within-plant productivity. In
addition, plant closure (or exit) boosted productivity more
than new plant openings (or entry) did in the sense that the
relative productivity of survivors (or continuing plants)
was higher relative to that of closing plants (or exit
cases) than it was relative to the productivity of newly
opening plants (or new entrants). Reallocation of market
share plays an important role in raising aggregate
productivity in Côte d’Ivoire as well. But the pattern here
is opposite to that in Ethiopia in that in Côte d’Ivoire
entering (or newly opening) plants have larger impact on
aggregate productivity growth than closing (or exiting)
plants. Unlike the case with Cote D’Ivoire and of Ethiopia,
the reallocation of market share among surviving plants is a
smaller source of manufacturing productivity growth in
Tanzania than the new plant openings and plant closure. The
data suggest that the reallocation of market share among
surviving plants and exiting plants has larger impact on
productivity growth in Bangladesh than the productivity gap
between new plants and survivors, as in the case of Ethiopia. |
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