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

Dalila Chenaf-Nicet
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Dalila Chenaf-Nicet: Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - UB - Université de Bordeaux

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Abstract: Within the framework of a panel model of 74 developing countries for the period 1984–2013, we show that structural change can be impacted by the quality of institutions. We use two subsamples: the first composed of countries of Sub-Saharan Africa (SSA), and the second composed of the other developing countries included in the sample. We show that international integration confines the countries of SSA to low-value-added production. It appears that, for these countries, low levels of institution quality and resource-based specialization hinder structural change and prevent them from benefiting from the positive effects of international trade. For the countries of SSA, international trade has a deleterious effect.

Keywords: Developing countries; Structural change; Quality of institutions; Sub-Saharan countries; Panel data (search for similar items in EconPapers)
Date: 2019-11-13
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Citations: View citations in EconPapers (1)

Published in European Journal of Development Research, 2019, 32, pp.998-1037. ⟨10.1057/s41287-019-00250-2⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03895942

DOI: 10.1057/s41287-019-00250-2

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