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GTAP Resources: Resource Display

GTAP Resource #4396

"Diversification and Sophistication as drivers of structural transformation for Africa: The economic complexity of African countries"
by Yameogo, Nadege Desiree, Tiguéné Nabassaga, Bassirou Amadou Diallo, Abebe Shimeles and Mthuli Ncube

African countries have achieved impressive growth performance during the recent years, driven mainly by the extractive industry. It is estimated that Africa has achieved an average growth rate of about 5% in 2000-2008 and in 2012-2013, and forecasts indicate that it will remain the same level at 5.3%, in 2014 (African Economic Outlook, 2013 and African Development Report, 2012). This good performance of African economies is the result of two major factors: (i) government reforms undertaken by many African governments, (especially in the area of governance and macroeconomic stabilization) and (ii) a significant increase in the exploitation and export of natural resources as a consequence of the recent high commodity prices.

However, this economic performance has been done to the detriment of the industrial and manufacturing sectors which contribution has even stagnated during the last fifteen years to less than 10% of the continent’s GDP. Its contribution has even slowed down between 2006-2011 by about one percentage point. The decline is more pronounced in some countries such as South Africa with about 5% decline (from 17.5% to 13.4%), Ghana more than 3% (10% to 7%), Lesotho with a decrease of more than 8% (from 21% to 13%), Madagascar from 14% to 8%, and Zimbabwe with the worst decline of 13% from 28% to 15% (African Economic Outlook 2013). Much of the efforts were put into the extractive industry which is capital-intensive. As a result, in most African countries, productive structures have remained weakly sophisticated and diversified and created few jobs.

Yet, it is acknowledge in the literature that development and growth are a process of structural transformation whereby resources are transformed from lower productive activities to higher productive activities. And this transformation has not yet been taken place in African societies. To be able to structurally transform their productive structures, countries have to exploit the capabilities or knowl...

Resource Details (Export Citation) GTAP Keywords
Category: 2014 Conference Paper
Status: Published
By/In: Presented at the 17th Annual Conference on Global Economic Analysis, Dakar, Senegal
Date: 2014
Created: Yameogo, N. (4/11/2014)
Updated: Yameogo, N. (4/11/2014)
Visits: 2,366
- Economic development
- Technological change
- Other data bases and data issues
- Africa (Central)
- Africa (East)
- Africa (North)
- Africa (Southern)
- Africa (West)
- Asia (East)

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