IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/114860.html
   My bibliography  Save this paper

Convergence Heterogeneity at the Local Level in Sub-Saharan Africa

Author

Listed:
  • Charpe, Matthieu

Abstract

This paper tests for convergence in labor productivity at the local level in 10 Sub-Saharan countries, disaggregated into 1136 administrative entities. This work combines nighttime lights data and a unique set of population censuses to produce local measures of growth, employment and sectoral shares. We find evidence of unconditional convergence across sectors in the range of 2\%. However, convergence is heterogeneous and conditional on both manufacturing and services employment shares. Convergence is also associated with proximity to the main city, moderate population density, low land suitability and relatively moderate temperature. Lastly, the within effect dominates the between effect.

Suggested Citation

  • Charpe, Matthieu, 2022. "Convergence Heterogeneity at the Local Level in Sub-Saharan Africa," MPRA Paper 114860, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:114860
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/114860/1/MPRA_paper_114860.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Robert C. Feenstra & Robert Inklaar & Marcel P. Timmer, 2015. "The Next Generation of the Penn World Table," American Economic Review, American Economic Association, vol. 105(10), pages 3150-3182, October.
    2. McMillan, Margaret & Rodrik, Dani & Verduzco-Gallo, Íñigo, 2014. "Globalization, Structural Change, and Productivity Growth, with an Update on Africa," World Development, Elsevier, vol. 63(C), pages 11-32.
    3. Remi Jedwab & Alexander Moradi, 2016. "The Permanent Effects of Transportation Revolutions in Poor Countries: Evidence from Africa," The Review of Economics and Statistics, MIT Press, vol. 98(2), pages 268-284, May.
    4. Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 365-384, Oct.-Dec..
    5. Douglas Gollin & Remi Jedwab & Dietrich Vollrath, 2016. "Urbanization with and without industrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 35-70, March.
    6. Gaaitzen de Vries & Marcel Timmer & Klaas de Vries, 2015. "Structural Transformation in Africa: Static Gains, Dynamic Losses," Journal of Development Studies, Taylor & Francis Journals, vol. 51(6), pages 674-688, June.
    7. John Gibson & Susan Olivia & Geua Boe‐Gibson, 2020. "Night Lights In Economics: Sources And Uses," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 955-980, December.
    8. Edilberto Tiago de Almeida & Raul da Mota Silveira Neto & Roberta de Moraes Rocha, 2022. "Manufacturing location patterns in Brazil," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 839-873, August.
    9. Adam Storeygard, 2016. "Farther on down the Road: Transport Costs, Trade and Urban Growth in Sub-Saharan Africa," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(3), pages 1263-1295.
    10. William Y. N. Suzuki & Marcio P. Laurini & Luciano Nakabashi, 2022. "Spatial heterogeneities, institutions, and income: Evidence for Brazil," Papers in Regional Science, Wiley Blackwell, vol. 101(3), pages 537-571, June.
    11. Michael Kremer & Jack Willis & Yang You, 2021. "Converging to Convergence," NBER Chapters, in: NBER Macroeconomics Annual 2021, volume 36, pages 337-412, National Bureau of Economic Research, Inc.
    12. repec:oup:qjecon:v:128:y:2012:i:1:p:165-204 is not listed on IDEAS
    13. Mc Millan,Margaret & Rodrik,Dani & Sepulveda,Claudia Paz, 2017. "Structural change, fundamentals, and growth : a framework and case studies," Policy Research Working Paper Series 8041, The World Bank.
    14. Chanda, Areendam & Kabiraj, Sujana, 2020. "Shedding light on regional growth and convergence in India," World Development, Elsevier, vol. 133(C).
    15. Jefferson Ricardo Bretas Galetti & Milene Simone Tessarin & Paulo Cesar Morceiro, 2021. "Skill relatedness, structural change and heterogeneous regions: evidence from a developing country," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1355-1376, December.
    16. Nathan Nunn & Diego Puga, 2012. "Ruggedness: The Blessing of Bad Geography in Africa," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 20-36, February.
    17. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    18. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
    19. McMillan, Margaret S. & Rodrik, Dani & Sepúlveda, Claudia (ed.), 2017. "Structural change, fundamentals, and growth: A framework and case studies," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-89629-214-7.
    20. Hagen Kruse & Emmanuel Mensah & Kunal Sen & Gaaitzen de Vries, 2021. "A manufacturing renaissance? Industrialization trends in the developing world," WIDER Working Paper Series wp-2021-28, World Institute for Development Economic Research (UNU-WIDER).
    21. N. Gregory Mankiw & David Romer & David Weil, 1990. "A Contribution to the Empirics of Economic Growth," Working Papers 1990-24, Brown University, Department of Economics.
    22. Lessmann, Christian & Seidel, André, 2017. "Regional inequality, convergence, and its determinants – A view from outer space," European Economic Review, Elsevier, vol. 92(C), pages 110-132.
    23. Rappaport, Jordan & Sachs, Jeffrey D, 2003. "The United States as a Coastal Nation," Journal of Economic Growth, Springer, vol. 8(1), pages 5-46, March.
    24. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    25. Hu, Yingyao & Yao, Jiaxiong, 2022. "Illuminating economic growth," Journal of Econometrics, Elsevier, vol. 228(2), pages 359-378.
    26. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    27. McMillan, Margaret S. & Rodrik, Dani & Sepúlveda, Claudia, 2017. "Structural change, fundamentals, and growth: A framework and case studies: Synopsis," IFPRI synopses 978-0-89629-978-8, International Food Policy Research Institute (IFPRI).
    28. Robert J. Barro, 2012. "Convergence and Modernization Revisited," NBER Working Papers 18295, National Bureau of Economic Research, Inc.
    29. Bibek Adhikari & Saroj Dhital, 2021. "Decentralization and regional convergence: Evidence from night‐time lights data," Economic Inquiry, Western Economic Association International, vol. 59(3), pages 1066-1088, July.
    30. Margaret S. McMillan & Dani Rodrik & Claudia Sepúlveda, 2017. "Structural Change, Fundamentals, and Growth," World Bank Publications - Books, The World Bank Group, number 26528, December.
    31. Ron Martin & Peter Sunley & Ben Gardiner & Emil Evenhuis & Peter Tyler, 2018. "The city dimension of the productivity growth puzzle: the relative role of structural change and within-sector slowdown," Journal of Economic Geography, Oxford University Press, vol. 18(3), pages 539-570.
    32. Keola, Souknilanh & Andersson, Magnus & Hall, Ola, 2015. "Monitoring Economic Development from Space: Using Nighttime Light and Land Cover Data to Measure Economic Growth," World Development, Elsevier, vol. 66(C), pages 322-334.
    33. Sarah J. Carrington & Pablo Jiménez‐Ayora, 2021. "Shedding light on the convergence debate: Using luminosity data to investigate economic convergence in Ecuador," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 200-227, February.
    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. Mensah, Emmanuel B. & Owusu, Solomon & Foster-McGregor, Neil, 2023. "Productive efficiency, structural change, and catch-up within Africa," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 78-100.
    2. Alexandre, Fernando & Bação, Pedro & Veiga, Francisco José, 2022. "The political economy of productivity growth," European Journal of Political Economy, Elsevier, vol. 75(C).
    3. Matthias Busse & Ceren Erdogan & Henning Mühlen, 2019. "Structural transformation and its relevance for economic growth in Sub‐Saharan Africa," Review of Development Economics, Wiley Blackwell, vol. 23(1), pages 33-53, February.
    4. Chanda, Areendam & Kabiraj, Sujana, 2020. "Shedding light on regional growth and convergence in India," World Development, Elsevier, vol. 133(C).
    5. Kunling Zhang, 2021. "Economic Structural Transformation in Emerging Market Countries," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 13(2), pages 216-238, May.
    6. Christian Düben & Melanie Krause, 2021. "Population, light, and the size distribution of cities," Journal of Regional Science, Wiley Blackwell, vol. 61(1), pages 189-211, January.
    7. Matthew Fisher-Post, 2020. "Examining the Great Leveling: New Evidence on Midcentury American Inequality," PSE Working Papers hal-02876981, HAL.
    8. 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.
    9. Andriansyah & Asep Nurwanda & Bakhtiar Rifai, 2023. "Structural Change and Regional Economic Growth in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 59(1), pages 91-117, January.
    10. Bertrand Candelon & Alina Carare & Jean-Baptiste Hasse & Jing Lu, 2020. "The post-crises output growth effects in a globalized economy," International Economics, CEPII research center, issue 161, pages 139-158.
    11. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    12. Frederik Wild & David Stadelmann, 2022. "Coastal proximity and individual living standards: Econometric evidence from georeferenced household surveys in sub‐Saharan Africa," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 1883-1901, November.
    13. Rok Spruk, 2019. "The rise and fall of Argentina," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-40, December.
    14. Kunling Zhang, 2023. "Can the Belt and Road Initiative Promote the Industrialization of Developing Countries?," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(2), pages 215-233, May.
    15. Escobar, Octavio & Mühlen, Henning, 2019. "Decomposing a decomposition: Within-country differences and the role of structural change in productivity growth," Hohenheim Discussion Papers in Business, Economics and Social Sciences 05-2019, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    16. Bluhm, Richard & Krause, Melanie, 2022. "Top lights: Bright cities and their contribution to economic development," Journal of Development Economics, Elsevier, vol. 157(C).
    17. Bluhm, Richard & Krause, Melanie, 2022. "Top lights: Bright cities and their contribution to economic development," Journal of Development Economics, Elsevier, vol. 157(C).
    18. Costa de Arguibel Facundo & Sánchez Vargas Isabela & González Fernando Antonio Ignacio & Dip Juan Antonio, 2023. "Convergencia entre distritos argentinos: Un enfoque de econometría espacial," Asociación Argentina de Economía Política: Working Papers 4638, Asociación Argentina de Economía Política.
    19. Naudé, Wim & Tregenna, Fiona, 2023. "Africa's Industrialization Prospects: A Fresh Look," IZA Discussion Papers 16043, Institute of Labor Economics (IZA).
    20. repec:esx:essedp:729 is not listed on IDEAS
    21. Paula Bustos & Juan Manuel Castro Vincenzi & Joan Monras & Jacopo Ponticelli, 2019. "Structural Transformation, Industrial Specialization, and Endogenous Growth," Working Papers wp2019_1906, CEMFI.

    More about this item

    Keywords

    Local convergence; nighttime lights; heterogeneity; local labour market; structural transformation; census;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:114860. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.