Benchmarking Structural Transformation Across the World

Abstract

This paper documents stylized facts on the process of structural transformation around the world and empirically analyzes its determinants using data on real value added by sector of economic activity (agriculture, manufacturing and services) for a panel of 168 countries over the period 1970-2010. The analysis points to large differences in sector shares both across and within regions as well as for countries at similar levels of economic development. Using both linear and quantile regression methods, it finds that a large proportion of the crosscountry variation in sector shares can be accounted for by country characteristics, such as real GDP per capita, demographic structure, and population size. It also finds that policy and insitutional variables, such as product market reforms, openness to trade, human and physical capital, and finance improve the baseline model's ability to account for the variation in sectoral shares across countries. JEL Classification Numbers: O14, O24, O40

Does Human Capital Matter in Manufacturing Value Added Development in Africa?

“…Our IV estimates suggest that, on average, increase in tertiary enrolment ratio by one is associated with about a 0.27 increase in MVA in Africa. This result is in tune with that of Dabla-Norris et al (2013) who find positive and statistically significant relationship between secondary education and above-median real value added manufacturing shares, which suggests that more sophisticated manufacturing products require higher levels of education. They also find positive and statistically significant relationship between tertiary education and real value added manufacturing shares in quantile regressions (quantiles 75 and 90) for a panel of 168 countries over the period, 1970-2010.…”

“…Anyanwu and Kponnou (2017) find that secondary education enrollment is positive and statistically significantly correlated with food, beverages and tobacco MVA in North Africa but the reverse is true for SubSaharan Africa. Also, secondary education enrollment is positive and statistically significantly correlated with total MVA in North Africa (Anyanwu, 2017) in line with the results of Dabla-Norris et al (2013).…”

“…UNIDO (2012) and Dabla-Norris et al (2013). The positions of countries like Nigeria, Congo Republic, Angola, Botswana, Gabon and Libya in Figure 9 evidently confirm these findings.…”

“…Our IV estimates indicate that a one percentage point increase in domestic credit to the private sector is associated with an increase in MVA by 0.07 percentage points in the continent. Dabla-Norris et al (2013) find significantly positive effect for domestic credit in their quantile 10 regression but a weakly significant effect in their quantile 90 regression results -other quantile results are insignificant. Also, find that the availability of credit is only positive and significant for the lower end of the manufacturing distribution.…”

Terciarización económica y productividad agregada: un análisis para economías desarrolladas y en desarrollo

“…Más aún, permiten que los factores puedan ser empleados de maneras más eficientes en las economías. Por tanto, lo que el argumento plantea es que la terciarización permite incrementar la productividad agregada y por añadidura, el crecimiento económico porque facilita la re asignación de los factores de la producción (Kuznets, 1966;Hsieh y Klenow, 2009;Dabla-Norris et al, 2013). Así, y con base en la argumentación planteada, hay quienes creen que los procesos de terciarización debieran ser incentivados para promover el desarrollo económico.…”