Structural Transformation and its Relevance for Economic Growth in Sub‐Saharan Africa

21 Pages Posted: 28 Jan 2019

See all articles by Matthias Busse

Matthias Busse

Ruhr-University Bochum

Ceren Erdogan

Ruhr University of Bochum

Henning Mühlen

University of Hohenheim

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Date Written: February 2019

Abstract

In this paper, we analyze the role of structural transformation in view of the remarkable growth performance of Sub‐Saharan African countries since the late 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 period 1980‐2014.

Suggested Citation

Busse, Matthias and Erdogan, Ceren and Mühlen, Henning, Structural Transformation and its Relevance for Economic Growth in Sub‐Saharan Africa (February 2019). Review of Development Economics, Vol. 23, Issue 1, pp. 33-53, 2019, Available at SSRN: https://ssrn.com/abstract=3322787 or http://dx.doi.org/10.1111/rode.12543

Matthias Busse (Contact Author)

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

University of Hohenheim ( email )

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

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