Globalization, Structural Change, and Productivity Growth, with an Update on Africa

McMillan, Margaret; Rodrik, Dani; Verduzco-Gallo, Íñigo

doi:10.1016/j.worlddev.2013.10.012

Cited by 636 publications

(560 citation statements)

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“…Rodrik (2012) reports that manufacturing industries tend to converge across countries in their labor productivity, which implies that having a large manufacturing sector will help lowincome countries grow more quickly. According to McMillan, Rodrik and Verduzco-Gallo (2014), trade openness leads some countries to specialize in raw materials exports, which limits their incentive to diversify into the export of higher-valued products, such as manufactured goods. This may cause the country to forgo the benefits of structural change that come from the transition into export-oriented manufacturing.…”

Section: What Are the Effects Of Oil Dependence?mentioning

confidence: 99%

“…First, that hydrocarbon-rich nations should get their fiscal and monetary policies in order (Sachs, 2007;De Melo, Diop, and Marotta, 2011;Gelb, 2012;McMillan, Rodrik and Verduzco-Gallo, 2014;Cherif, Hasanov, and Zhu, 2016). Fiscal discipline can help keep labor costs from rising too quickly, and help avoid the crowding out of private sector investment.…”

Section: Policies To Mitigate Oil Dependencementioning

confidence: 99%

“…Some oil-dependent countries report impressive growth in their manufacturing exports because their governments misclassify refined oil products as "manufactured goods" (Battaille and Mishra 2015, 16). As McMillan, Rodrik and Verduzco-Gallo (2014) note, employment data by sector -which is necessary to estimate employment diversificationtends to be sparse, inconsistent, and difficult to obtain, particularly in sub-Saharan Africa. Their important analysis, using a cross-national database on employment, value added, and labor productivity disaggregated into nine economic sectors, covers just 38 countries, only seven of them significant oil producers.…”

Section: Introductionmentioning

confidence: 99%

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What Do We Know About Economic Diversification in Oil-Producing Countries?

Ross

2017

SSRN Journal

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The programme is funded by the UK Government, through UK Aid. Over the course of five years, EEG will commission rigorous research exploring the links between energy economic growth, and poverty reduction in low-income countries. This evidence will be specifically geared to meet the needs of decision makers and enable the development of large-scale energy systems that support sustainable, inclusive growth in low income countries in South Asia and Sub-Saharan Africa.The EEG Working Paper Series showcases the 18 State-of-Knowledge papers produced in Phase 1 of the EEG programme. These papers address gaps in knowledge and data in six critical themes related to energy and economic growth: the links between electricity supply and growth, finance and governance aspects, large scale renewables, sustainable urbanization and energy efficiency, the role of extractives, and design of energy systems. Cross-cutting themes of gender, climate change, and data are also addressed in dedicated papers.The views expressed in this paper do not necessarily reflect the UK Government's official policies. This paper is posted at the eScholarship Repository, University of California. Copyright © 2017 by the author(s). Abstract: countries dependent on oil and mineral exports are often advised to diversify their economies, yet surprisingly little is known about how this can be done. This paper reviews the recent literature on diversification in resource-dependent states and suggests it has been constrained by missing and inconsistent data, and a reliance on diversification measures that are relatively uninformative for resource-rich states. It then uses an improved measure of export concentration from Papageorgiou and Spatafora to document three empirical patterns over the last half-century: the divergence between oil-producing states and non-oil states; the reconcentration of exports in most oil and mineral producing states since 1998, caused by the boom in commodity prices; and the heterogeneity of the oil producers, marked by greater diversification in Latin America and Southeast Asia, mixed performances in the Middle East, and greater concentration in Africa and the former Soviet Union. While change in the former Soviet Union was spurred by large new discoveries, the diversification failure of all oilproducing states in both North and sub-Saharan Africa is striking, and stands in contrast to the region's non-oil producers. The paper concludes with a research agenda for deepening our understanding of this issue.

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Section: What Are the Effects Of Oil Dependence?mentioning

confidence: 99%

Section: Policies To Mitigate Oil Dependencementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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What Do We Know About Economic Diversification in Oil-Producing Countries?

Ross

2017

SSRN Journal

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“…The resulting increase in international competitiveness and the development of information and communication technologies contribute to the process of globalization. McMillan et al (2014) found that governments play an important role in the globalization process, which takes place through the integration of countries through international groups and organizations, such as the General Agreement on Tariffs and Trade (GATT), the World Trade Organization (WTO), the International Monetary Fund (IMF), and the Organization for Economic Cooperation and Development (OECD).…”

Section: Introductionmentioning

confidence: 99%

The Slovakian Forest-Based Sector in the Context of Globalization

Hajdúchová¹,

Sedliačiková²,

Halaj³

et al. 2016

BioResources

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This paper investigates the impact of the global economy on the forestbased sector in Slovakia in the early years of the 21 st century. Indicators such as gross domestic product, production value of forestry-wood sectors, net exports, foreign direct investments, and the ratio indices of foreign direct investment to GDP in industrial production and foreign direct investment to production value were used to analyze this sector in the context of globalization. Multiple regression analysis was used to determine the factors that significantly affect the development of the forest-based sector and to shed light on how globalization impacts the analyzed sector. The results showed that the forest-based sector had a minor impact of the Slovak economy with less than 5% share on the whole GDP. Using multiple regression analysis it was found that globalization factors such as foreign direct investment and net export did not have a significant influence (p > 0.44175) on the forest-based sector during the investigated period. Nevertheless, the highest globalization indicators were detected by the pulp and paper industry ( ̅ = 2.72; 29.14) and the furniture manufacturing ( ̅ = 1.60; 27.57). The highest variability of FDI was identified in the forest sector (vx = 72.38%; 67.32%) by influence of zero FDI in the last three years and in the wood industry (vx = 38.90%; 38.51%).

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“…This aspect is also emphasized by most recent works, as can be observed at McMillan et al (2014), which analyze the evolution of productivity gaps in peripheral economies. Productive structures determine a commercial pattern that generates continuous external restrictions, consubstantiated in Balance Sheet difficulties.…”

Section: Specialization Structural Heterogeneity and Growthmentioning

confidence: 77%

Underdevelopment in contemporary world:is structuralism still relevant?

Vilaça

2017

Brazil. J. Polit. Econ.

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RESUMO: Este artigo pretende evidenciar que as concepções cepalinas originais ainda são muito relevantes para compreender o crescimento de países subdesenvolvidos e sua inserção nas cadeias globais de valor. É um trabalho teórico que busca avançar no constructo teórico do estruturalismo ao introduzir elementos de distintas abordagens econômicas para estabelecer um nexo teórico para a compreensão da dinâmica de acumulação de capital na periferia. Considerando a relevância da cumulatividade tecnológica, seus impactos sobre a estrutura produtiva e sobre a inserção internacional, procuramos analisar os fatores que perpetuam a divergência de renda em relação ao centro. Sob esta perspectiva, concluímos que as particularidades das economias periféricas modificaram a sua forma de manifestação sem efetivamente superar a relação de dependência perante o centro. PALAVRAS-CHAVE: Estruturalismo; desenvolvimento econômico; sistema centro-periferia.ABSTRACT: This paper intends to evaluate if the Latin American structuralist approach is still relevant to understand capital accumulation dynamics of peripheral countries and their insertion in the global value chains. It's a theoretical paper that strives to improve the building blocks of structuralism with the incorporation of elements from different approaches to establish a nexus to understand capital accumulation dynamics in the periphery. Considering the relevance of technological accumulation, its impacts over the productive structure and over the international insertion, we strive to analyze factors that perpetuate income diversion in relation to the center. Under this perspective, we conclude that the particularities of peripheral economies changed their form of manifestation without effectively overcome the dependence relation.

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Globalization, Structural Change, and Productivity Growth, with an Update on Africa

Cited by 636 publications

References 10 publications

What Do We Know About Economic Diversification in Oil-Producing Countries?

What Do We Know About Economic Diversification in Oil-Producing Countries?

The Slovakian Forest-Based Sector in the Context of Globalization

Underdevelopment in contemporary world:is structuralism still relevant?

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