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

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  • Busse, Matthias
  • Erdogan, Ceren
  • Mühlen, Henning

Abstract

In this paper, we analyse the role of structural transformation in view of the remarkable growth performance of sub-Saharan African countries since the mid-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 past decades.

Suggested Citation

  • Busse, Matthias & Erdogan, Ceren & Mühlen, Henning, 2017. "Structural transformation and its relevance for economic growth in Sub-Saharan Africa," Hohenheim Discussion Papers in Business, Economics and Social Sciences 23-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
  • Handle: RePEc:zbw:hohdps:232017
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    More about this item

    Keywords

    Sub-Saharan Africa; structural transformation; economic growth; growth regressions; dualistic approach;

    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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