Industries Without Smokestacks and Structural Transformation in Africa: Overview
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An early stylized fact of development economics is that low-income countries have large differences in output per worker across sectors, and the movement of workers from low- to high-productivity sectors—structural transformation—is a key driver of growth. Historically, manufacturing has been the key driver of structural transformation. It can employ large numbers of unskilled workers, is capable of productivity gains and produces tradeable products allowing economies of scale and specialization. But manufacturing growth in Africa has lagged behind other regions, leading some observers to question Africa’s ability to catch up. This view overlooks such emerging industries as ICT, tourism, food processing, horticulture, and new services exports, which share many characteristics with manufacturing. These “industries without smokestacks” are beginning to propel growth in Africa much as traditional manufacturing did in other, fast growing regions.
Original language | English |
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Title of host publication | Industries without Smokestacks : Industrialization in Africa Reconsidered |
Editors | Richard Newfarmer, John Page, Finn Tarp |
Publisher | Oxford University Press |
Publication date | Nov 2018 |
Pages | 1-26 |
Chapter | 1 |
ISBN (Print) | 9780198821885 |
DOIs | |
Publication status | Published - Nov 2018 |
Series | WIDER Studies in Development Economics |
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- Faculty of Social Sciences - Africa, structural transformation, manufacturing, growth worker output, industries without smokestacks
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