Dynamics of Structural Change in a Globalized World: What Is the Role Played by Institutions in the Case of Sub-Saharan African Countries?

Chenaf-Nicet, Dalila

doi:10.1057/s41287-019-00250-2

Cited by 10 publications

(2 citation statements)

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“…In particular, the bell curve phenomena can be observed in Ghana, Kenya, Mauritius, Nigeria, Senegal, South Africa, and Zimbabwe 1 . Several explanations for this phenomenon can be found in the literature, in particular the observation that the rise in commodity prices over the last few decades has led countries to a reprimarization (Chenaf-Nicet, 2019). Countries are trapped by their comparative advantages and their strong specialization in the resource sector (Hausmann and Rodrik, 2003;Kangning and Jian, 2006;Dasgupta et al2008 andRodrik, 2011.…”

Section: Introductionmentioning

confidence: 99%

“…Urbanization and industrialization go hand in hand, and cities that follow this pattern of development are called "production cities" (Gollin et al, 2016). However, some empirical studies (Gollin et al, 2016;Chenaf-Nicet, 2019) show that in resourceproducing countries, this link does not always exist. Urbanization is explained by a growing proportion of the population not seeking urban employment but purchasing non-tradable goods and services, which are mainly found in cities.…”

Section: Introductionmentioning

confidence: 99%

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Premature deindustrialization and development without factories. Are services sectors a new path for the development of sub-Saharan African countries?

Chenaf-Nicet¹,

Asse²

2021

Preprint

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For some authors (Rodrik, 2015 and 2017) deindustrialization process is premature in sub-Saharan countries. This means that the period of industrialization has been too short, with too little job creation and growth to guarantee a development trajectory. For these authors, the consequences for development are necessarily negative. However, in this work, the economic causes are: the global demand for services is growing faster than the demand for manufactured goods. This growth would leave too few development opportunities for industries in these countries that suffer from narrow domestic markets. Global demand for services and weak domestic demand are the causes of this deindustrialization. However, according to other authors (Loungani et al. 2017), if sub-Saharan African countries (SSA) deindustrialize, they should still be able to benefit from development opportunities through the services sector, which will be a new development path without factories (Ghani and O’Connel, 2014; Dihel and Grover, 2016). This article is part of the controversy. It tests the impacts of different sectors on growth, for a sample of 57 developing countries (Asia, SSA, and Latin America) in a panel data model over the period from 1984 to 2017. Our work shows that the services sector generates few spill-over effects on the income of SSA, which remains highly specialized in low-knowledge-intensive services.

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Section: Introductionmentioning

confidence: 99%