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Development as Diffusion: Manufacturing Productivity and Sub-Saharan Africa's Missing Middle

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  • Alan Gelb
  • Christian J. Meyer
  • Vijaya Ramachandran

Abstract

We consider economic development of sub-Saharan Africa from the perspective of slow convergence of productivity, both across sectors and firms within sectors. Why have 'productivity enclaves', islands of high productivity in a sea of smaller low-productivity firms, not diffused more rapidly? We summarize and analyse three sets of factors: First, the poor business climate, which constraints the allocation of production factors between sectors and firms.

Suggested Citation

  • Alan Gelb & Christian J. Meyer & Vijaya Ramachandran, 2014. "Development as Diffusion: Manufacturing Productivity and Sub-Saharan Africa's Missing Middle," WIDER Working Paper Series wp-2014-042, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2014-042
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2014-042.pdf
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