STRUCTURAL CHANGE, TOTAL FACTOR PRODUCTIVITY AND SECTORAL LABOR PRODUCTIVITY IN SELECTED AFRICAN COUNTRIES
STRUCTURAL CHANGE, TOTAL FACTOR PRODUCTIVITY AND SECTORAL LABOR PRODUCTIVITY IN SELECTED AFRICAN COUNTRIES
The transition from low income to high-income countries requires a change in the production structure of an economy. This paper examines structural change and its implication on TFP growth and sectoral labor productivity for a sample of African countries (Burkina Faso, Ethiopia, Madagascar, Mozambique, Tanzania, and Uganda) for 1991-2017. Using the panel data fixed effects model with Driscoll-Kraay standard error estimation technique, we find that structural change has contributed significantly to the growth of TFP. But it didn’t have any effect on sectoral labor productivity. Therefore, countries should promote relocation of labor from agriculture sector to the modern sectors to increase TFP growth rate.
Keywords:
Structural change, Labor Relocation, Shift-Share Analysis, Total Factor Productivity Sectoral Labor Productivity,
___
Abizadeh, S. and Pandey, M. (2009). Trade Openness, Structural Change and Total Factor Productivity. International Economic Journal, 23(4): 545–559Bah, El‐H.M. (2014). Sectoral productivity in developing countries. Manuscript, University of Auckland. paper prepared for the IARIW-UNSW conference on productivity: measurement, drivers and trends sydney, Australia, November 26-27, 2013
Bah, E. and Brada, J.C. (2009). Total Factor Productivity Growth, Structural Change and Convergence in the New Members of the European Union. Comparative Economic Studies, 51(4):421–446
Cardarelli, R. and Lusinyan, L. (2015). U.S. Total Factor Productivity Slowdown: Evidence from the U.S. States. IMF working paper. No.15/ 116
Eshete, Z. and Kimuyu, P. (2016). In search of structural change surplus and perpetual growth in Ethiopia: Examining alternative sectoral growth options, an application of recursive dynamic CGE model. African Journal of Economic and Management Studies, 7(2):241-255
Hoechle, D. (2007). Robust standard errors for panel regressions with cross-sectional dependence. Stata Journal 7(3): 281–312.
Huffman, E.W. (2000). Human capital, education and agriculture. 24th international congress of Agricultural economics. Staff paper # 338.
Isaksson, A. (2007). Determinants of Total Factor Productivity: A Literature Review. United Nations Industrial Development Organization (UNIDO), staff working paper 02/2007, Vienna
Jajri, I. (2007). Determinants of Total Factor Productivity Growth in Malaysia. Journal of Economic Cooperation. 28(3):41-58
Kruger, J. (2008). Productivity and Structural Change: a Review of the Literature. Journal of Economic Surveys. 22(2):330-363.
Lewis, A. (1954). Economic development with unlimited supplies of labor. Manchester School of Economic and Social Studies, 22:139–191
Mallick, J. (2015). Globalization, Structural Change and Labour Productivity Growth in BRICS Economy. FIW Working Paper, No. 41.
Mariyono, J. (2018). Decomposed total factor productivity of Indonesian rice production. Economic Journal of Emerging Markets, 10(2): 121-127.
Markus, E. and Francis, T. (2013). Structural change and cross-country growth empirics. World Bank Economic Review, 27(2): 229-271.
Mastromarco, C. and Zago, A. (2012). On modeling the determinants of TFP growth. Structural Change and Economic Dynamics 23:373–382
McMillan, M. and Rodrick, D. (2011). Globalization, Structural Change and Productivity Growth. NBER Working Paper 17143
Medreseh S.C., Alavijeh, N.K. and Jalaee, S.A. (2018). The Impact of Government Economic Policies on Labour Productivity in Selected Countries of ECD. International Journal of Management, Accounting and Economics,5 (10):822-832
Moussir, C.E and Chatri, A. (2019). Structural change and labor productivity growth in Morocco. Structural Change and Economic Dynamics, 2019:1-6
Neuss, L.V. (2019). The Drivers of Structural Change. Journal of Economic Surveys, 33(1):309-349
Oyelaran-Oyeyinka, O. and Lal, K. (2016). Structural Transformation in Developing Countries: Cross Regional Analysis. United Nations Human Settlements Program (UN-Habitat), 1. Nairobi, Kenya
Plastina, A. and Lence, S. (2018). A parametric estimation of total factor productivity and its components in U.S. Agriculture. American Journal of Agricultural Economics,100(4): 1091-1119.
Rodrik, D., McMillan, M. and Sepúlveda, C. (2016). Structural Change, Fundamentals, and Growth: a framework and case studies. International Food Policy Research Institute. 2016:1-38
Thakur, S. (2011). Fundamental Economic Structure and Structural Change in Regional Economies: A Methodological Approach. Région et Développement, 33(4):9-38 The Conference Board. 2019. Total economy database: (Adjusted version) April 2019, https://www. conference-board.org/data/economydatabase/total-economy-database-productivity. Retrieved on 15 August 2019.
Vries, G.J., Erumban, A.A., Timmer, M.P., Voskoboynikov, I. and Wu, H.X. (2012). Deconstructing the BRICs: Structural transformation and aggregate productivity growth. Journal of Comparative Economics 40(2): 211–227
- ISSN: 2636-8307
- Başlangıç: 2016
- Yayıncı: Marmara Üniversitesi