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Dynamics of Structural Change in a Globalized World: What Is the Role Played by Institutions in the Case of Sub-Saharan African Countries?

Author

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  • Dalila Chenaf-Nicet

    (Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - UB - Université de Bordeaux)

Abstract

Within the framework of a panel model of 74 developing countries for the period 1984–2013, we show that structural change can be impacted by the quality of institutions. We use two subsamples: the first composed of countries of Sub-Saharan Africa (SSA), and the second composed of the other developing countries included in the sample. We show that international integration confines the countries of SSA to low-value-added production. It appears that, for these countries, low levels of institution quality and resource-based specialization hinder structural change and prevent them from benefiting from the positive effects of international trade. For the countries of SSA, international trade has a deleterious effect.

Suggested Citation

  • Dalila Chenaf-Nicet, 2019. "Dynamics of Structural Change in a Globalized World: What Is the Role Played by Institutions in the Case of Sub-Saharan African Countries?," Post-Print hal-03895942, HAL.
    • Handle: RePEc:hal:journl:hal-03895942
    DOI: 10.1057/s41287-019-00250-2
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    Cited by:

    1. Fatima Olanike Kareem & Inmaculada Martínez-Zarzoso & Bernhard Brümmer, 2023. "What Drives Africa’s Inability to Comply with EU Standards? Insights from Africa’s Institution and Trade Facilitation Measures," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(4), pages 938-973, August.

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