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Never been industrialized: A tale of African structural change

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  • Carmignani, Fabrizio
  • Mandeville, Thomas

Abstract

Africa is a case of structural change without industrialization and without diversification. Agriculture's decline was matched by an increase in services and non-manufacturing industry, with manufacturing remaining low and stagnant throughout the post-colonial period. To what extent do these patterns of structural change account for the weak growth dynamics observed in the continent? We provide evidence that what is damaging for growth in Africa is not the expansion in services, but rather the reallocation of economic activity from agriculture to non-manufacturing industry. Because non-manufacturing industry is mainly mining, our results point to a form of resource curse.

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  • Carmignani, Fabrizio & Mandeville, Thomas, 2014. "Never been industrialized: A tale of African structural change," Structural Change and Economic Dynamics, Elsevier, vol. 31(C), pages 124-137.
    • Handle: RePEc:eee:streco:v:31:y:2014:i:c:p:124-137
    DOI: 10.1016/j.strueco.2014.09.002
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    More about this item

    Keywords

    Structural change; Growth dynamics; Service sector;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic 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

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