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Structural transformation of Sub-Saharan Africa: Does the quality of institutions matter in its industrialization process?

Author

Listed:
  • Armand TOTOUOM

    (University of Dschang, Cameroon)

  • Hervé FOTIO KAFFO

    (University of Dschang, Cameroon)

  • Fabien SUNDJO

    (St. Monica University, University of Bamenda, Cameroon)

Abstract

Structural transformation seems to have "bypassed" the secondary sector in Africa. Unfor-tunately, the national experiences of “factory less” development are very scarce and idio-syncratic to serve as a model (Cadot et al., 2016). This study contributes to a better un-derstanding of the structural transformation of Sub-Saharan African countries by evaluat-ing the impact of institutions on their industrial performances. Data used to estimate the different dynamic panel models specified within the period 1997-2016 are from the Worldwide Development Indicators and the World Governance Indicators. The results of this study shed light on the role of institutions as key determinants of industrial perfor-mances of African countries. The strong relationship found between the two variables is robust to various specifications and institutional measures. The following institutional measures seem to have the highest impacts on industrialization: Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality and Rule of Law. Improving the quality of African institutions will therefore allow the continent to perform better than its current 1.6% share of the world wide’s manufacturing value add-ed.

Suggested Citation

  • Armand TOTOUOM & Hervé FOTIO KAFFO & Fabien SUNDJO, 2019. "Structural transformation of Sub-Saharan Africa: Does the quality of institutions matter in its industrialization process?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 50, pages 119-136.
    • Handle: RePEc:tou:journl:v:50:y:2019:p:119-136
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    Citations

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    Cited by:

    1. Fotio, Hervé Kaffo & Poumie, Boker & Baida, Louise Angèle & Nguena, Christian Lambert & Adams, Samuel, 2022. "A new look at the growth-renewable energy nexus: Evidence from a sectoral analysis in Sub-Saharan Africa," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 61-71.
    2. Guivis Zeufack Nkemgha & Tii N. Nchofoung & Fabien Sundjo, 2022. "Financial development and human capital thresholds for the infrastructure development-industrialization nexus in Africa," Working Papers 22/091, European Xtramile Centre of African Studies (EXCAS).

    More about this item

    Keywords

    Institutions ; Industrialization ; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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