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Stages of diversification in Africa

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  • Clark, Don P.
  • Lima, Luiz Renato
  • Sawyer, W. Charles

Abstract

This paper investigates the relationship between manufacturing diversification and level of economic development for 29 African countries. Three diversification stages are identified. Considerable differences in diversification are found over the first stage at the low end of the per capita income scale. Diversification alone will not encourage development in poorer countries until obstacles such as weak institutions, poor governance and a lack of infrastructure are addressed. Diversification slows down over the remaining stages as countries develop. Results show countries further along the African economic development path successfully diversified manufacturing.

Suggested Citation

  • Clark, Don P. & Lima, Luiz Renato & Sawyer, W. Charles, 2016. "Stages of diversification in Africa," Economics Letters, Elsevier, vol. 144(C), pages 68-70.
    • Handle: RePEc:eee:ecolet:v:144:y:2016:i:c:p:68-70
    DOI: 10.1016/j.econlet.2016.05.001
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    More about this item

    Keywords

    African economic development; Manufacturing diversification; Industrialization; Industrial policy;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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