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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?

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  • Dalila Chenaf-Nicet

    () (University of 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, 2020. "Dynamics of Structural Change in a Globalized World: What Is the Role Played by Institutions in the Case of Sub-Saharan African Countries?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 998-1037, September.
  • Handle: RePEc:pal:eurjdr:v:32:y:2020:i:4:d:10.1057_s41287-019-00250-2
    DOI: 10.1057/s41287-019-00250-2
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