Working Paper 360 - Total factor productivity and growth strategy in Cabo-Verde

Cassandro Mendes () and Yannis Arvanitis
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Cassandro Mendes: Economic Consultant, Cabo Verde

Working Paper Series from African Development Bank

Abstract: In the mid-2010s, Cabo Verde embarked on a growth paradigm shift, positioning the private sector as the key driver of economic activity. For this policy to succeed, productivity considerations are key. This paper estimates and analyses the evolution of Total Factor Productivity (TFP) for Cabo Verde. Our analysis shows that both physical capital and labour have had a positive contribution to growth, but during 1980– 1987 and 2007–2014 the contribution of TFP was negative. In addition, it underscores the importance of private sector competitiveness for TFP. If productivity concerns are not addressed, Cabo Verde can expect growth to decline in the long term. But the policies presented in the country’s latest development strategy seem adequate to respond to structural challenges.

Keywords: Total factor productivity; Growth strategy; Competitiveness; Government Policy; Cabo Verde JEL classification: O38; O40; O55 (search for similar items in EconPapers)
Date: 2021-11-22
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