IDEAS home Printed from https://ideas.repec.org/p/adb/adbwps/2486.html
   My bibliography  Save this paper

Working Paper 360 - Total factor productivity and growth strategy in Cabo-Verde

Author

Listed:

Abstract

In the mid-2010s, Cabo Verde embarked on a growth paradigm shift, positioning the private sector as the key driver of economic activity. For this policy to succeed, productivity considerations are key. This paper estimates and analyses the evolution of Total Factor Productivity (TFP) for Cabo Verde. Our analysis shows that both physical capital and labour have had a positive contribution to growth, but during 1980– 1987 and 2007–2014 the contribution of TFP was negative. In addition, it underscores the importance of private sector competitiveness for TFP. If productivity concerns are not addressed, Cabo Verde can expect growth to decline in the long term. But the policies presented in the country’s latest development strategy seem adequate to respond to structural challenges.

Suggested Citation

  • Cassandro Mendes & Yannis Arvanitis, 2021. "Working Paper 360 - Total factor productivity and growth strategy in Cabo-Verde," Working Paper Series 2486, African Development Bank.
    • Handle: RePEc:adb:adbwps:2486
    as

    Download full text from publisher

    File URL: https://www.afdb.org/sites/default/files/documents/publications/wps_no_360_total_factor_productivity_and_growth_strategy_in_cabo-verde_.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Chali Nondo & Juan R. Jaramillo, 2018. "Analyzing Africa's Total Factor Productivity Trends: Evidence from the DEA Malmquist Approach," International Journal of Sustainable Economies Management (IJSEM), IGI Global, vol. 7(4), pages 45-61, October.
    3. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    4. Schiff, Maurice & Wang, Yanling, 2009. "North-South Trade-related Technology Diffusion, Brain Drain and Productivity Growth: Are Small States Different?," Policy Research Working Paper Series 4828, The World Bank.
    5. David Fadiran & Olusegun A. Akanbi, 2017. "Institutions and Other Determinants of Total Factor Productivity in Sub-Saharan Africa," Working Papers 714, Economic Research Southern Africa.
    6. Pierre-Richard Agénor & Otaviano Canuto & Michael Jelenic, 2012. "Avoiding Middle-Income Growth Traps," World Bank - Economic Premise, The World Bank, issue 98, pages 1-7, November.
    7. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    8. Richard G. Lipsey & Kenneth Carlaw, 2000. "What Does Total Factor Productivity Measure?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 1, pages 31-40, Fall.
    9. Cantore, Nicola & Calì, Massimiliano & Velde, Dirk Willem te, 2016. "Does energy efficiency improve technological change and economic growth in developing countries?," Energy Policy, Elsevier, vol. 92(C), pages 279-285.
    10. Douglas Gollin, 2002. "Getting Income Shares Right," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 458-474, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sarath Delpachitra & Pham Van Dai, 2012. "The Determinants of TFP Growth in Middle Income Economies in ASEAN: Implication of Financial Crises," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 11(1), pages 63-88, June.
    2. Kumar, Ronald Ravinesh & Kumar, Radika Devi & Patel, Arvind, 2015. "Accounting for telecommunications contribution to economic growth: A study of Small Pacific Island States," Telecommunications Policy, Elsevier, vol. 39(3), pages 284-295.
    3. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    4. Klenow, Peter J. & Rodriguez-Clare, Andres, 2005. "Externalities and Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 11, pages 817-861, Elsevier.
    5. Johanna Vogel, 2015. "The two faces of R&D and human capital: Evidence from Western European regions," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 525-551, August.
    6. Jones, C.I., 2016. "The Facts of Economic Growth," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 3-69, Elsevier.
    7. Kumar, Ronald Ravinesh & Stauvermann, Peter Josef & Samitas, Aristeidis, 2016. "The effects of ICT⁎ on output per worker: A study of the Chinese economy," Telecommunications Policy, Elsevier, vol. 40(2), pages 102-115.
    8. Ronald Ravinesh Kumar & Peter Josef Stauvermann & Syed Jawad Hussain Shahzad, 2017. "Can technology provide a glimmer of hope for economic growth in the midst of chaos? A case of Zimbabwe," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(2), pages 919-939, March.
    9. Boucekkine, Raouf & del Rio, Fernando & Licandro, Omar, 2005. "Obsolescence and modernization in the growth process," Journal of Development Economics, Elsevier, vol. 77(1), pages 153-171, June.
    10. Kawalec Paweł, 2020. "The dynamics of theories of economic growth: An impact of Unified Growth Theory," Economics and Business Review, Sciendo, vol. 6(2), pages 19-44, June.
    11. Kar, Sabyasachi & Pritchett, Lant & Raihan, Selim & Sen, Kunal, 2013. "Looking for a break: Identifying transitions in growth regimes," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 151-166.
    12. Carine Nourry, 2012. "Dasgupta, D.: Modern growth theory," Journal of Economics, Springer, vol. 105(1), pages 97-100, January.
    13. Orlando Gomes, 2005. "Knowledge creation and technology difusion: a framework to understand economic growth," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 20(2), pages 41-61, December.
    14. Aykut Kibritçioglu, 2002. "On the Smithian origins of "new" trade and growth theories," Economics Bulletin, AccessEcon, vol. 2(1), pages 1-15.
    15. Bakker, Bas & Ghazanchyan, Manuk & Ho, Alex & Nanda, Vibha, 2020. "The Lack of Convergence of Latin-America Compared with CESEE: Is Low Investment to Blame?," MPRA Paper 101287, University Library of Munich, Germany.
    16. David, Oladipo Olalekan, 2019. "Nexus between telecommunication infrastructures, economic growth and development in Africa: Panel vector autoregression (P-VAR) analysis," Telecommunications Policy, Elsevier, vol. 43(8), pages 1-1.
    17. Amal MATALLAH & Amal MATALLAH, 2017. "Does fiscal policy spur economic growth? Empirical evidence from Algeria," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(612), A), pages 125-146, Autumn.
    18. Ayoki, Milton & Tumwebaze, Henry & Bbaale, Edward, 2018. "Innovation and employment in Sub-Saharan Africa: Evidence from Uganda Microdata," MPRA Paper 109278, University Library of Munich, Germany.
    19. Jacobo Campo Robledo & Juan Pablo Herrera Saavedra, 2016. "Patentes y crecimiento económico: ¿innovación de residentes o no residentes?," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 76, February.
    20. Diana Dimitrova, 2018. "The 2018 Nobel Prize in Economics," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 98-152.

    More about this item

    Keywords

    Total factor productivity; Growth strategy; Competitiveness; Government Policy; Cabo Verde JEL classification: O38; O40; O55;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adb:adbwps:2486. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adeleke Oluwole Salami (email available below). General contact details of provider: https://edirc.repec.org/data/afdbgci.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.