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Structural change in the economy of Nigeria

Author

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  • Adeyinka, Adedeji
  • Salau, Sheu
  • Vollrath, Dietrich

Abstract

We document that structural change accounts for approximately one-fifth of the total change in labor productivity in Nigeria between 1996 and 2009. Labor moved out of the agricultural and wholesale and retail trade sectors into manufacturing, transportation and communications, business services, and general services. While structural change did occur in this period, significant gains to aggregate labor productivity are still available from further shifts of labor to higher-productivity sectors. We discuss the factors limiting structural change, which include poor agricultural productivity, insufficient infrastruc-ture to support high productivity sectors, and a lack of appropriate skills in the labor force. We calculate that the gains still available to Nigeria from structural change are equivalent to an increase in value-added of 25 percent, given the existing productivity levels of sectors in 2009.

Suggested Citation

  • Adeyinka, Adedeji & Salau, Sheu & Vollrath, Dietrich, 2013. "Structural change in the economy of Nigeria," NSSP working papers 24, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:nsspwp:24
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    File URL: https://hdl.handle.net/10568/153557
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    References listed on IDEAS

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    1. World Bank, 2008. "Ethiopia - Agriculture and Rural Development Public Expenditure Review 1997/98–2005/06," World Bank Publications - Reports 7985, The World Bank Group.
    2. World Bank, 2008. "Nigeria - Agriculture Public Expenditure Review," World Bank Publications - Reports 7923, The World Bank Group.
    3. Francisco Alvarez-Cuadrado & Markus Poschke, 2011. "Structural Change Out of Agriculture: Labor Push versus Labor Pull," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(3), pages 127-158, July.
    4. Areendam Chanda & Carl‐Johan Dalgaard, 2008. "Dual Economies and International Total Factor Productivity Differences: Channelling the Impact from Institutions, Trade, and Geography," Economica, London School of Economics and Political Science, vol. 75(300), pages 629-661, November.
    5. Mike Waugh & David Lagakos & Doug Gollin, 2011. "The Agricultural Productivity Gap in Developing Countries," 2011 Meeting Papers 1397, Society for Economic Dynamics.
    6. Gollin, Douglas & Parente, Stephen L. & Rogerson, Richard, 2007. "The food problem and the evolution of international income levels," Journal of Monetary Economics, Elsevier, vol. 54(4), pages 1230-1255, May.
    7. Vollrath, Dietrich, 2009. "How important are dual economy effects for aggregate productivity?," Journal of Development Economics, Elsevier, vol. 88(2), pages 325-334, March.
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    Cited by:

    1. Sam Jones & Finn Tarp, 2015. "Understanding Mozambique's growth experience through an employment lens," WIDER Working Paper Series 109, World Institute for Development Economic Research (UNU-WIDER).
    2. Forson, Joseph Ato & Opoku, Rosemary Afrakomah & Peng, Zhen, 2017. "Innovation, Institutions and Economic Growth in Sub-Sahara Africa – an IV Estimation of a Panel Threshold Model," MPRA Paper 103063, University Library of Munich, Germany, revised 15 Mar 2018.
    3. repec:kqi:journl:2017-1-4 is not listed on IDEAS
    4. Onikosi-Alliyu Saidat O. & Oyeniran Ishola Wasiu, 2019. "Determinants of Structural Changes in Manufacturing Sector in Nigeria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(1), pages 36-41, March.
    5. Prakash Kumar Shrestha, 2017. "Economic Liberalization in Nepal: Evaluating the Changes in Economic Structure, Employment and Productivity," Journal of Development Innovations, KarmaQuest International, vol. 1(1), pages 60-83, February.
    6. Sam Jones & Finn Tarp, 2015. "Understanding Mozambique's growth experience through an employment lens," WIDER Working Paper Series wp-2015-109, World Institute for Development Economic Research (UNU-WIDER).

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