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Structural transformation and its relevance for economic growth in Sub‐Saharan Africa

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  • Matthias Busse
  • Ceren Erdogan
  • Henning Mühlen

Abstract

In this paper, we analyze the role of structural transformation in view of the remarkable growth performance of Sub‐Saharan African countries since the late 1990s. Our analysis covers 41 African countries over the period 1980 to 2014 and accounts for structural transformation by employing the analytical frameworks of (1) growth decomposition and (2) growth regression. Even though the low‐productive agricultural sector continues to employ most of the African workforce, our results reveal that structural transformation has taken place and that it has contributed significantly to African growth in the period 1980‐2014.

Suggested Citation

  • 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.
  • Handle: RePEc:bla:rdevec:v:23:y:2019:i:1:p:33-53
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    File URL: https://doi.org/10.1111/rode.12543
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    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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