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STRUCTURAL CHANGE IN SELECTED AFRICAN COUNTRIES

Year 2023, Volume: 10 Issue: 4, 506 - 519, 18.10.2023

Maya Moalla

Abstract

Structural change is defined as the shift of resources from primary sectors to those boasting high value-added. If productivity elevates owing to structural change, then economic advancement becomes more vigorous and steadier. This study's goal is to examine structural change and the sources of labor productivity evolution in selected African countries from 1990 to 2018. Therefore, the Shift-Share Analysis method was employed in the study. The insights unveiled that the within-sector mien is the dominant driver of productivity growth in the selected countries. For policymakers, both internal productivity improvements and structural transformation need to coexist harmoniously.

Keywords

Growth structural changes Productivity African countries shift-share analysis

References

  • Acemoglu, D., & Guerrieri, V. (2006). Capital Deepening and Non-Balanced Economic Growth. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.924498
  • Ayed Mouelhi, R. B., & Ghazali, M. (2020). Structural transformation in Egypt, Morocco and Tunisia: Patterns, drivers and constraints. Economics of Transition and Institutional Change, 29(1), 35–61. https://doi.org/10.1111/ecot.12258
  • Berthelemy, J.-c., & Soderling, L. (2001). The Role of Capital Accumulation, Adjustment and Structural Change for Economic Take-Off: Empirical Evidence from African Growth Episodes. World Development, 29(2), 323–343. https://doi.org/10.1016/s0305-750x(00)00095-4
  • Bilenko, Y. (2022). Labor productivity in the agriculture, structural shifts and economic growth in the Central and Eastern European countries. Agricultural and Resource Economics: International Scientific E-Journal, 8(4), 5–32. https://doi.org/10.51599/are.2022.08.04.01
  • Chenery, H., Robinson, S., Syrquin, M., (1986), Industrialization and Growth, Oxford University Press.
  • Cravino, J., & Sotelo, S. (2019). Trade-Induced Structural Change and the Skill Premium. American Economic Journal: Macroeconomics, 11(3), 289–326. https://doi.org/10.1257/mac.20170434
  • de Vries, G., Timmer, M., & de Vries, K. (2015). Structural Transformation in Africa: Static Gains, Dynamic Losses. The Journal of Development Studies, 51(6), 674–688. https://doi.org/10.1080/00220388.2014.997222
  • Diao, X., McMillan, M., & Rodrik, D. (2017). The Recent Growth Boom in Developing Economies: A Structural Change Perspective. National Bureau of Economic Research. https://doi.org/10.3386/w23132
  • Doğruel, A. S., & Doğruel, F. (2018). Türkiye'de yapısal ve teknolojik değişme. In N. Engin, E. Aslanoğlu,
  • O.Erdoğam, B. C. Karahasan and K. Tata (Ed.). Türkiye Ekonomisinde Kalkınma ve Dönüşüm: Taner Berksoy'a Armağan (pp. 267-286). Ankara: İmge Kitabevi.
  • Fagerberg, J. (2000). Technological progress, structural change and productivity growth: a comparative study. Structural Change and Economic Dynamics, 11(4), 393–411. https://doi.org/10.1016/s0954-349x(00)00025-4
  • Foellmi, R., & Zweimüller, J. (2008). Structural change, Engel's consumption cycles and Kaldor's facts of economic growth. Journal of Monetary Economics, 55(7), 1317–1328. https://doi.org/10.1016/j.jmoneco.2008.09.001
  • Gerschenkron A (1962). Economic Backwardness in Historical Perspective. Cambridge. Massachussets: The Belknap Press of Harward University
  • Haile, F. (2018a). Structural Change in West Africa: A Tale of Gain and Loss. World Bank, Washington, DC. https://doi.org/10.1596/1813-9450-8336
  • Harchaoui, T. M., & Üngör, M. (2015). Sectoral sources of sub-Saharan Africa’s convergence. Applied Economics Letters, 23(9), 642–651. https://doi.org/10.1080/13504851.2015.1095994
  • Herrendorf, B., R. Rogerson, and A. Valentinyi (2013). “Growth and Structural Transformation”. NBER Working Paper.
  • Hirschman, A.O. (1958). The strategy of economic development. New Haven, CT: Yale University Press.
  • Hoffmann, W. ([1931]/1958), ‘The Pattern of Industrial Growth’, in Hagemann, H. Landesmann, M., Scazzieri, R., The Economics of Structural Change, Volume III, Critical Writings, Aldershot: Edward Elgar.
  • Ju, J., Lin, J. Y., & Wang, Y. (2009). Endowment Structures, Industrial Dynamics, and Economic Growth. The World Bank. https://doi.org/10.1596/1813-9450-5055
  • Kaymaz, V. (2022). Sektörel ayrışma ve emek verimliliği. Trends in business and economics, 36(1), 93-101. doi:10.54614/TBE.2022.951336
  • Kehoe, T. J., Ruhl, K. J., & Steinberg, J. B. (2018). Global Imbalances and Structural Change in the United States. Journal of Political Economy, 126(2), 761–796. https://doi.org/10.1086/696279
  • Krugman, P. (1994). The Myth of Asia's Miracle. Foreign Affairs, 73(6), 62. https://doi.org/10.2307/20046929
  • Kuznets, S. (1961). Quantitative Aspects of the Economic Growth of Nations: VI. Long-Term Trends in Capital Formation Proportions. Economic Development and Cultural Change, 9(4, Part 2), 1-124. doi: 10.1086/449936.
  • Kuznets, S. (1971). Economic Growth of Nations: Total Output and Production Structure. Harvard University Press, Cambridge, MA.
  • Lewis, W. (1954). Economic Development with Unlimited Supplies of Labour. The Manchester School, 22(2), 139-191. doi: 10.1111/j.1467-9957. 1954.tb00021.x
  • Lopez, R. (2003). The Policy Roots of Socioeconomic Stagnation and Environmental Implosion: Latin America 1950–2000. World Development, 31(2), 259–280. https://doi.org/10.1016/s0305-750x(02)00187-0
  • López, R.E., 2007. Structural change, poverty and natural resource degradation. In: Atkinson, G., Dietz, S., Neumayer, E. (Eds.), Handbook of Sustainable Development. Edwards Elgar, Cheltenham, UK/Northampton, MA, USA.
  • Lucas, R. E. (1993). Making a Miracle. Econometrica, 61(2), 251. https://doi.org/10.2307/2951551
  • Marx, K. (1885). III: Schematic presentation of accumulation and supplementary remarks. In: Hagemann, H., Landesmann, M., Scazzieri, R. (Eds.), The Economics of Structural Change, Vol. I, Critical Writings. 2003, Edward Elgar, Aldershot.
  • McMillan, M., Rodrik, D. (2011). Globalization, structural change and productivity growth. In M. Bacchetta, & M. Jense (Eds.), Making globalization socially sustainable (pp. 49–84). Geneva: International Labour Organization and World Trade Organization.
  • McMillan, M., Rodrik, D., & Verduzco-Gallo, Í. (2014). Globalization, Structural Change, and Productivity Growth, with an Update on Africa. World Development, 63, 11–32. https://doi.org/10.1016/j.worlddev.2013.10.012
  • Missio, F., Jayme JR, F, G., and Oreiro, J. L. (2015). The structuralist tradition in economics: methodological and macroeconomics aspects. Rev. Econ. Polit., 35(2). http://dx.doi.org/10.1590/0101-31572015v35n02a03
  • Nas, Ş., Maya, M., & Tuncer, İ. (2023). Structural Change and Growth Prospects in The Turkish Economy: A Demand-Side Decomposition Analysis. E+M Ekonomie a Management, 26(1), 25–44. https://doi.org/10.15240/tul/001/2023-1-002
  • Ngai, R., Pissarides, C., 2007. Structural change in a multi-sector model of growth. American Economic Review 97, 429–443.
  • Nurkse, R. (1953). Problems of capital formation in underdeveloped countries. Oxford: Oxford University Press.
  • Ricardo, D. (1817). On rent. In: Hagemann, H., Landesmann, M., Scazzieri, R. (Eds.), The Economics of Structural Change, Vol. I, Critical Writings. 2003, Edward Elgar, Aldershot.
  • Rodrik, D. (2010). Structural transformation and economic development. Ankara: TEPAV Economic Policy Research Foundation of Turkey. www.tepav.org.tr/en
  • Rosenstein-Rodan, P. (1943). Problems of Industrialisation of Eastern and South-Eastern Europe. The Economic Journal, 53(210/211), p.202.
  • Rosenstein-Rodan, P. (1961). Notes on the theory of the big-push. In: Ellis, H.S., Wallich, H.C. (Eds.), Economic Development for Latin America. Macmillan, London.
  • Rostow, W.W. (1960). The Stages of Economic Growth: A Non-communist Manifesto. Cambridge University Press, Cambridge.
  • Sposi, M. J. (2015). Evolving Comparative Advantage, Sectoral Linkages, and Structural Change. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2643957
  • Smith, A. (1776). In: Campbell, R.H., Skinner, A.S., Todd, W.B. (Eds.), An Inquiry into the Nature and Causes of the Wealth of Nations. Oxford, Clarendon Press, 1976.
  • Święcki, T. (2017). Determinants of structural change. Review of Economic Dynamics, 24, 95–131. https://doi.org/10.1016/j.red.2017.01.007
  • Timmer, Marcel P. and Szirmai, A. (2000). Productivity growth in Asian manufacturing: the structural bonus hypothesis examined. Structural Change and Economic Dynamics, 11, 371–392.
  • Tuncer, İ., and Altiok, M. (2011). Türkiye imalat sanayinde yapısal değişim ve “retkenlik: 1980 - 2008 dönemi. Anadolu Üniversitesi Sosyal Bilimler Dergisi.
  • Tuncer, İ. & Moalla, M., (2020). Structural Change and Growth Prospects in the Turkish Manufacturing Industry. Bulletin of Economic Theory and Analysis, 5(1), pp.1-20.

Year 2023, Volume: 10 Issue: 4, 506 - 519, 18.10.2023

Maya Moalla

Abstract

References

  • Acemoglu, D., & Guerrieri, V. (2006). Capital Deepening and Non-Balanced Economic Growth. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.924498
  • Ayed Mouelhi, R. B., & Ghazali, M. (2020). Structural transformation in Egypt, Morocco and Tunisia: Patterns, drivers and constraints. Economics of Transition and Institutional Change, 29(1), 35–61. https://doi.org/10.1111/ecot.12258
  • Berthelemy, J.-c., & Soderling, L. (2001). The Role of Capital Accumulation, Adjustment and Structural Change for Economic Take-Off: Empirical Evidence from African Growth Episodes. World Development, 29(2), 323–343. https://doi.org/10.1016/s0305-750x(00)00095-4
  • Bilenko, Y. (2022). Labor productivity in the agriculture, structural shifts and economic growth in the Central and Eastern European countries. Agricultural and Resource Economics: International Scientific E-Journal, 8(4), 5–32. https://doi.org/10.51599/are.2022.08.04.01
  • Chenery, H., Robinson, S., Syrquin, M., (1986), Industrialization and Growth, Oxford University Press.
  • Cravino, J., & Sotelo, S. (2019). Trade-Induced Structural Change and the Skill Premium. American Economic Journal: Macroeconomics, 11(3), 289–326. https://doi.org/10.1257/mac.20170434
  • de Vries, G., Timmer, M., & de Vries, K. (2015). Structural Transformation in Africa: Static Gains, Dynamic Losses. The Journal of Development Studies, 51(6), 674–688. https://doi.org/10.1080/00220388.2014.997222
  • Diao, X., McMillan, M., & Rodrik, D. (2017). The Recent Growth Boom in Developing Economies: A Structural Change Perspective. National Bureau of Economic Research. https://doi.org/10.3386/w23132
  • Doğruel, A. S., & Doğruel, F. (2018). Türkiye'de yapısal ve teknolojik değişme. In N. Engin, E. Aslanoğlu,
  • O.Erdoğam, B. C. Karahasan and K. Tata (Ed.). Türkiye Ekonomisinde Kalkınma ve Dönüşüm: Taner Berksoy'a Armağan (pp. 267-286). Ankara: İmge Kitabevi.
  • Fagerberg, J. (2000). Technological progress, structural change and productivity growth: a comparative study. Structural Change and Economic Dynamics, 11(4), 393–411. https://doi.org/10.1016/s0954-349x(00)00025-4
  • Foellmi, R., & Zweimüller, J. (2008). Structural change, Engel's consumption cycles and Kaldor's facts of economic growth. Journal of Monetary Economics, 55(7), 1317–1328. https://doi.org/10.1016/j.jmoneco.2008.09.001
  • Gerschenkron A (1962). Economic Backwardness in Historical Perspective. Cambridge. Massachussets: The Belknap Press of Harward University
  • Haile, F. (2018a). Structural Change in West Africa: A Tale of Gain and Loss. World Bank, Washington, DC. https://doi.org/10.1596/1813-9450-8336
  • Harchaoui, T. M., & Üngör, M. (2015). Sectoral sources of sub-Saharan Africa’s convergence. Applied Economics Letters, 23(9), 642–651. https://doi.org/10.1080/13504851.2015.1095994
  • Herrendorf, B., R. Rogerson, and A. Valentinyi (2013). “Growth and Structural Transformation”. NBER Working Paper.
  • Hirschman, A.O. (1958). The strategy of economic development. New Haven, CT: Yale University Press.
  • Hoffmann, W. ([1931]/1958), ‘The Pattern of Industrial Growth’, in Hagemann, H. Landesmann, M., Scazzieri, R., The Economics of Structural Change, Volume III, Critical Writings, Aldershot: Edward Elgar.
  • Ju, J., Lin, J. Y., & Wang, Y. (2009). Endowment Structures, Industrial Dynamics, and Economic Growth. The World Bank. https://doi.org/10.1596/1813-9450-5055
  • Kaymaz, V. (2022). Sektörel ayrışma ve emek verimliliği. Trends in business and economics, 36(1), 93-101. doi:10.54614/TBE.2022.951336
  • Kehoe, T. J., Ruhl, K. J., & Steinberg, J. B. (2018). Global Imbalances and Structural Change in the United States. Journal of Political Economy, 126(2), 761–796. https://doi.org/10.1086/696279
  • Krugman, P. (1994). The Myth of Asia's Miracle. Foreign Affairs, 73(6), 62. https://doi.org/10.2307/20046929
  • Kuznets, S. (1961). Quantitative Aspects of the Economic Growth of Nations: VI. Long-Term Trends in Capital Formation Proportions. Economic Development and Cultural Change, 9(4, Part 2), 1-124. doi: 10.1086/449936.
  • Kuznets, S. (1971). Economic Growth of Nations: Total Output and Production Structure. Harvard University Press, Cambridge, MA.
  • Lewis, W. (1954). Economic Development with Unlimited Supplies of Labour. The Manchester School, 22(2), 139-191. doi: 10.1111/j.1467-9957. 1954.tb00021.x
  • Lopez, R. (2003). The Policy Roots of Socioeconomic Stagnation and Environmental Implosion: Latin America 1950–2000. World Development, 31(2), 259–280. https://doi.org/10.1016/s0305-750x(02)00187-0
  • López, R.E., 2007. Structural change, poverty and natural resource degradation. In: Atkinson, G., Dietz, S., Neumayer, E. (Eds.), Handbook of Sustainable Development. Edwards Elgar, Cheltenham, UK/Northampton, MA, USA.
  • Lucas, R. E. (1993). Making a Miracle. Econometrica, 61(2), 251. https://doi.org/10.2307/2951551
  • Marx, K. (1885). III: Schematic presentation of accumulation and supplementary remarks. In: Hagemann, H., Landesmann, M., Scazzieri, R. (Eds.), The Economics of Structural Change, Vol. I, Critical Writings. 2003, Edward Elgar, Aldershot.
  • McMillan, M., Rodrik, D. (2011). Globalization, structural change and productivity growth. In M. Bacchetta, & M. Jense (Eds.), Making globalization socially sustainable (pp. 49–84). Geneva: International Labour Organization and World Trade Organization.
  • McMillan, M., Rodrik, D., & Verduzco-Gallo, Í. (2014). Globalization, Structural Change, and Productivity Growth, with an Update on Africa. World Development, 63, 11–32. https://doi.org/10.1016/j.worlddev.2013.10.012
  • Missio, F., Jayme JR, F, G., and Oreiro, J. L. (2015). The structuralist tradition in economics: methodological and macroeconomics aspects. Rev. Econ. Polit., 35(2). http://dx.doi.org/10.1590/0101-31572015v35n02a03
  • Nas, Ş., Maya, M., & Tuncer, İ. (2023). Structural Change and Growth Prospects in The Turkish Economy: A Demand-Side Decomposition Analysis. E+M Ekonomie a Management, 26(1), 25–44. https://doi.org/10.15240/tul/001/2023-1-002
  • Ngai, R., Pissarides, C., 2007. Structural change in a multi-sector model of growth. American Economic Review 97, 429–443.
  • Nurkse, R. (1953). Problems of capital formation in underdeveloped countries. Oxford: Oxford University Press.
  • Ricardo, D. (1817). On rent. In: Hagemann, H., Landesmann, M., Scazzieri, R. (Eds.), The Economics of Structural Change, Vol. I, Critical Writings. 2003, Edward Elgar, Aldershot.
  • Rodrik, D. (2010). Structural transformation and economic development. Ankara: TEPAV Economic Policy Research Foundation of Turkey. www.tepav.org.tr/en
  • Rosenstein-Rodan, P. (1943). Problems of Industrialisation of Eastern and South-Eastern Europe. The Economic Journal, 53(210/211), p.202.
  • Rosenstein-Rodan, P. (1961). Notes on the theory of the big-push. In: Ellis, H.S., Wallich, H.C. (Eds.), Economic Development for Latin America. Macmillan, London.
  • Rostow, W.W. (1960). The Stages of Economic Growth: A Non-communist Manifesto. Cambridge University Press, Cambridge.
  • Sposi, M. J. (2015). Evolving Comparative Advantage, Sectoral Linkages, and Structural Change. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2643957
  • Smith, A. (1776). In: Campbell, R.H., Skinner, A.S., Todd, W.B. (Eds.), An Inquiry into the Nature and Causes of the Wealth of Nations. Oxford, Clarendon Press, 1976.
  • Święcki, T. (2017). Determinants of structural change. Review of Economic Dynamics, 24, 95–131. https://doi.org/10.1016/j.red.2017.01.007
  • Timmer, Marcel P. and Szirmai, A. (2000). Productivity growth in Asian manufacturing: the structural bonus hypothesis examined. Structural Change and Economic Dynamics, 11, 371–392.
  • Tuncer, İ., and Altiok, M. (2011). Türkiye imalat sanayinde yapısal değişim ve “retkenlik: 1980 - 2008 dönemi. Anadolu Üniversitesi Sosyal Bilimler Dergisi.
  • Tuncer, İ. & Moalla, M., (2020). Structural Change and Growth Prospects in the Turkish Manufacturing Industry. Bulletin of Economic Theory and Analysis, 5(1), pp.1-20.
There are 46 citations in total.

Details

Primary Language English
Subjects Applied Economics (Other)
Journal Section Research Article
Authors

Maya Moalla

Publication Date October 18, 2023
Published in Issue Year 2023 Volume: 10 Issue: 4

Cite

APA Moalla, M. (2023). STRUCTURAL CHANGE IN SELECTED AFRICAN COUNTRIES. Avrasya Sosyal Ve Ekonomi Araştırmaları Dergisi, 10(4), 506-519.
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