Transformation structurelle des pays à revenu faible et intermédiaire en Afrique Sub-saharienne: quels rôles des flux des capitaux internationaux ?

Structural transformation of low- and middle-income countries in Sub-saharan Africa: what role for international capital flows?

Georges Dieudonné Mbondo and Duclo Bouwawe

MPRA Paper from University Library of Munich, Germany

Abstract: The industrial emergence of African countries has been a central concern for many decades. Knowing that the volume of international capital flows to Sub-Saharan African countries has been steadily increasing, this study has analysed the effect of this international capital on structural transformation. We consider a sample of 30 African countries between 1995 and 2018, focusing on industrialization as a driver of structural transformation in the context of economic development. Using a dynamic panel model by the method of generalized moments in system, the results show that the effect of international capital on structural transformation depends on the type of external financial flows. The results show that official development assistance is positively correlated with the dynamics of industrialisation, whereas the stock of FDI and the volume of remittances from international migrants are negatively correlated. However, the interaction between FDI and human capital is positively and significantly correlated with growth in the manufacturing sector. FDI is therefore a channel for the dissemination of international knowledge, and human capital in all its dimensions serves as an absorptive capacity for transforming this knowledge from abroad into competitive use - the basis for successful structural transformation.

Keywords: international capital; structural transformation; industrialization; sectoral interaction (search for similar items in EconPapers)
JEL-codes: F21 F24 F35 L16 (search for similar items in EconPapers)
Date: 2023-03-29, Revised 2023-07-11
New Economics Papers: this item is included in nep-fdg
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