Structural Transformation and Its Relevance for Economic Growth in Sub-Saharan Africa
28 Pages Posted: 5 Sep 2017
Date Written: August 30, 2017
In this paper, we analyse the role of structural transformation in view of the remarkable growth performance of sub-Saharan African countries since the mid-1990s. Our analysis covers 41 African countries over the period 1980 to 2014 and accounts for structural transformation by employing the analytical frameworks of (1) growth decomposition and (2) growth regression. Even though the low-productive agricultural sector continues to employ most of the African workforce, our results reveal that structural transformation has taken place and that it has contributed significantly to African growth in the past decades.
Keywords: Sub-Saharan Africa, structural transformation, economic growth, growth regressions, dualistic approach
JEL Classification: O11, O13, O47
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