Industries Without Smokestacks and Structural Transformation in Africa: Overview

Richard Newfarmer, John Page, Finn Tarp

1 Citation (Scopus)
36 Downloads (Pure)

Abstract

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 languageEnglish
Title of host publicationIndustries without Smokestacks : Industrialization in Africa Reconsidered
EditorsRichard Newfarmer, John Page, Finn Tarp
PublisherOxford University Press
Publication date1 Jan 2018
Pages1-26
Chapter1
ISBN (Print)9780198821885
DOIs
Publication statusPublished - 1 Jan 2018
SeriesWIDER Studies in Development Economics

Keywords

  • Faculty of Social Sciences
  • Africa
  • structural transformation
  • manufacturing
  • growth worker output
  • industries without smokestacks

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