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Exploring macroeconomic frameworks conducive to structural transformation of sub-Saharan African economies

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  • Nissanke, Machiko

Abstract

The conventional macroeconomic policy framework, with its focus on maintaining macro stability is inadequate for the purpose of accelerating the structural transformation of African economies. This ‘policy position’ paper explores an alternative framework, wherein macroeconomic policies are applied coherently to one another and in coordination with other policies, and a resolution of the short-run trade-off between the macroeconomic policy objectives of stabilisation and development is sought in terms of a long-term development approach for enhancing both aggregate demand and supply capacity as an anchor for navigating a path towards structural transformation. After presenting a working definition of structural transformation, the paper presents the core elements of such a framework and discusses the corresponding policy agenda under five headings. Using this agenda as a benchmark, it discusses how to approach the debates on fiscal, monetary and financial policies, avoiding the limitations of standard macroeconomic literature, in order to make those policies conducive to Africa’s structural transformation.

Suggested Citation

  • Nissanke, Machiko, 2019. "Exploring macroeconomic frameworks conducive to structural transformation of sub-Saharan African economies," Structural Change and Economic Dynamics, Elsevier, vol. 48(C), pages 103-116.
    • Handle: RePEc:eee:streco:v:48:y:2019:i:c:p:103-116
    DOI: 10.1016/j.strueco.2018.07.005
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    Cited by:

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    2. Norbu, Nyingtob Pema & Tateno, Yusuke & Bolesta, Andrzej, 2021. "Structural transformation and production linkages in Asia-Pacific least developed countries: An input-output analysis," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 510-524.
    3. Yimin Chen & Yulin Liu & Xin Fang, 2021. "The new evidence of China’s economic downturn: From structural bonus to structural imbalance," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-25, September.
    4. Jonathan Bashi Rudahindwa & Sophie van Huellen, 2020. "Regional developmentalism in West Africa: The case for commodity-based industrialisation through regional cooperation in the cocoa-chocolate sector," Working Papers 239, Department of Economics, SOAS University of London, UK.
    5. Sena Kimm Gnangnon, 2022. "Effect of Structural Economic Vulnerability on the Participation in International Trade," JRFM, MDPI, vol. 15(9), pages 1-36, September.
    6. Richard Itaman & Christina Wolf, 2021. "Industrial Policy and Monopoly Capitalism in Nigeria: Lessons from the Dangote Business Conglomerate," Development and Change, International Institute of Social Studies, vol. 52(6), pages 1473-1502, November.
    7. Jonathan Bashi Rudahindwa & Sophie Huellen, 2021. "Regional Developmentalism in West Africa: The Case for Commodity-based Industrialization through Regional Cooperation in the Cocoa—Chocolate Sector," Journal of African Trade, Springer, vol. 8(1), pages 82-95, December.
    8. Wolf, Christina, 2023. "Demand-growth in support of structural change: Evidence from Nigeria's formal manufacturing sector," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 347-358.
    9. Aleksandr V. Gevorkyan, 2022. "Diaspora and Economic Development: A Systemic View," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(3), pages 1522-1541, June.

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    Keywords

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    JEL classification:

    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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