Structural Transformation in Sub-Saharan Africa

Economic development is typically accompanied by the movement of labor from agriculture to the non-agricultural sector, a pattern commonly referred to as structural transformation. This note aims to better understand the ongoing structural transfor...

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Bibliographic Details
Main Authors: Deudibe, Gildas, Merfeld, Joshua, Ndoutamou, Justin, Newhouse, David
Format: Brief
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/848321581049030560/Structural-Transformation-in-Sub-Saharan-Africa
http://hdl.handle.net/10986/33327
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Summary:Economic development is typically accompanied by the movement of labor from agriculture to the non-agricultural sector, a pattern commonly referred to as structural transformation. This note aims to better understand the ongoing structural transformation in Sub-Saharan Africa. It finds that: (i) the structural transformation is occurring more slowly, and is much less variable across countries, than prevailing estimates suggest; (ii) there is a weak relationship between initial agricultural employment shares and the pace of transformation, suggesting little convergence across regions; and (iii) movement out of agricultural employment is clearly but only modestly correlated with poverty reduction.