TITLE:
Is Structural Transformation Generate Economic Growth in Sub-Saharan Africa?
AUTHORS:
Irene Tiako
KEYWORDS:
Economic Growth, Structural Transformation, Sub-Saharan Africa, GMM in System JEL Code: F14 F43 O11 C13 C33 C51
JOURNAL NAME:
Theoretical Economics Letters,
Vol.14 No.3,
May
28,
2024
ABSTRACT: This article examines the effect of structural transformation on the growth of sub-Saharan African economies. Thus, from a sample of 46 countries observed over the period 1995-2020, we estimate a model in panel data by the method of Generalized Moments in system. Overall, our results show that Structural Transformation (ST) contributes significantly to the growth of the economies under consideration. However, this effect is counterbalanced by the low share of high value-added activities. Human capital and infrastructure level minimally support the positive effect of ST on economic growth. The results remain broadly stable when checked for the different dimensions of the SC. In addition, they remain robust in the face of changing economic growth indicators and the use of competing estimators. We suggest a promotion of activities with higher local added value.