Structural Transformation and Its Relevance for Economic Growth in Sub-Saharan Africa

28 Pages Posted: 5 Sep 2017

See all articles by Matthias Busse

Matthias Busse

Ruhr-University Bochum

Ceren Erdogan

Ruhr University of Bochum

Henning Mühlen

University of Hohenheim

Multiple version iconThere are 2 versions of this paper

Date Written: August 30, 2017

Abstract

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

Suggested Citation

Busse, Matthias and Erdogan, Ceren and Mühlen, Henning, Structural Transformation and Its Relevance for Economic Growth in Sub-Saharan Africa (August 30, 2017). Available at SSRN: https://ssrn.com/abstract=3029477 or http://dx.doi.org/10.2139/ssrn.3029477

Matthias Busse

Ruhr-University Bochum ( email )

Faculty of Management and Economics, GC 3/145
D-44780 Bochum, DE 44780
Germany

Ceren Erdogan

Ruhr University of Bochum ( email )

Universitätsstraße 150
Bochum, NRW 44780
Germany

Henning Mühlen (Contact Author)

University of Hohenheim ( email )

Institute of Economics (520E)
Schloss Hohenheim
Stuttgart, 70593
Germany

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