Structural transformation of Sub-Saharan Africa: Does the quality of institutions matter in its industrialization process?

Armand Totouom (), Hervé FOTIO Kaffo () and Fabien Sundjo ()
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Armand Totouom: University of Dschang, Cameroon
Hervé FOTIO Kaffo: University of Dschang, Cameroon
Fabien Sundjo: St. Monica University, University of Bamenda, Cameroon

Region et Developpement, 2019, vol. 50, 119-136

Abstract: Structural transformation seems to have "bypassed" the secondary sector in Africa. Unfor-tunately, the national experiences of “factory less” development are very scarce and idio-syncratic to serve as a model (Cadot et al., 2016). This study contributes to a better un-derstanding of the structural transformation of Sub-Saharan African countries by evaluat-ing the impact of institutions on their industrial performances. Data used to estimate the different dynamic panel models specified within the period 1997-2016 are from the Worldwide Development Indicators and the World Governance Indicators. The results of this study shed light on the role of institutions as key determinants of industrial perfor-mances of African countries. The strong relationship found between the two variables is robust to various specifications and institutional measures. The following institutional measures seem to have the highest impacts on industrialization: Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality and Rule of Law. Improving the quality of African institutions will therefore allow the continent to perform better than its current 1.6% share of the world wide’s manufacturing value add-ed.

Keywords: Institutions; Industrialization; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: C23 E02 O14 O55 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:tou:journl:v:50:y:2019:p:119-136

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