Development as Diffusion: Manufacturing Productivity and Sub-Saharan Africa’s Missing Middle - Working Paper 357

Alan Gelb
Authors registered in the RePEc Author Service: Christian Johannes Meyer

No 357, Working Papers from Center for Global Development

Abstract: We consider economic development of Sub-Saharan Africa from the perspective of slow convergence of productivity, both across sectors and across firms within sectors. Why have “productivity enclaves”, islands of high productivity in a sea of smaller low-productivity firms, not diffused more rapidly? We summarize and analyze three sets of factors: First, the poor business climate, which constrains the allocation of production factors between sectors and firms. Second, the complex political economy of business-government relations in Africa’s small economies. Third, the distribution of firm capabilities. The roots of these factors lie in Africa’s geography and its distinctive history, including the legacy of its colonial period on state formation and market structure.

Keywords: Productivity; Manufacturing; Dualism; Firms; Africa (search for similar items in EconPapers)
JEL-codes: D24 L25 O11 O14 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2014-02
New Economics Papers: this item is included in nep-afr, nep-dev, nep-eff, nep-his and nep-iue
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:cgd:wpaper:357

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