Labor productivity growth and industrialization in Africa

Manufacturing has made an important contribution to raising living standards in many parts of the world. Concerns about premature deindustrialization have made some observers skeptical about the potential for manufacturing to play this role in Africa. But employment in African manufacturing has grow...

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Main Authors: McMillan, Margaret S., Zeufack, Albert
Format: Journal Article
Language:Inglés
Published: American Economic Association 2022
Subjects:
Online Access:https://hdl.handle.net/10568/141153
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author McMillan, Margaret S.
Zeufack, Albert
author_browse McMillan, Margaret S.
Zeufack, Albert
author_facet McMillan, Margaret S.
Zeufack, Albert
author_sort McMillan, Margaret S.
collection Repository of Agricultural Research Outputs (CGSpace)
description Manufacturing has made an important contribution to raising living standards in many parts of the world. Concerns about premature deindustrialization have made some observers skeptical about the potential for manufacturing to play this role in Africa. But employment in African manufacturing has grown rapidly over the past 20 years. These employment gains have been accompanied by: (i) large increases in the number of small manufacturing firms; (ii) limited employment gains in large firms; and (iii) robust labor productivity growth in Africa’s large firms. Limited employment growth in Africa’s large manufacturing firms is partly a result of the capital intensity of the manufacturing subsectors in which African countries are most engaged—the processing of resources—and partly a result of rising capital intensity in manufacturing. The potential for manufacturing to raise living standards in Africa depends on indirect job creation by large firms through backward and forward linkages and increasing labor productivity in small firms.
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spelling CGSpace1411532025-10-26T13:02:19Z Labor productivity growth and industrialization in Africa McMillan, Margaret S. Zeufack, Albert small enterprises standard of living resources employment labour productivity manufacturing deindustrialization linkages Manufacturing has made an important contribution to raising living standards in many parts of the world. Concerns about premature deindustrialization have made some observers skeptical about the potential for manufacturing to play this role in Africa. But employment in African manufacturing has grown rapidly over the past 20 years. These employment gains have been accompanied by: (i) large increases in the number of small manufacturing firms; (ii) limited employment gains in large firms; and (iii) robust labor productivity growth in Africa’s large firms. Limited employment growth in Africa’s large manufacturing firms is partly a result of the capital intensity of the manufacturing subsectors in which African countries are most engaged—the processing of resources—and partly a result of rising capital intensity in manufacturing. The potential for manufacturing to raise living standards in Africa depends on indirect job creation by large firms through backward and forward linkages and increasing labor productivity in small firms. 2022-02-01 2024-04-12T13:37:22Z 2024-04-12T13:37:22Z Journal Article https://hdl.handle.net/10568/141153 en Limited Access American Economic Association McMillan, Margaret S.; and Zeufack, Albert. 2022. Labor productivity growth and industrialization in Africa. Journal of Economic Perspectives 36(1): 3-32. https://doi.org/10.1257/jep.36.1.3
spellingShingle small enterprises
standard of living
resources
employment
labour productivity
manufacturing
deindustrialization
linkages
McMillan, Margaret S.
Zeufack, Albert
Labor productivity growth and industrialization in Africa
title Labor productivity growth and industrialization in Africa
title_full Labor productivity growth and industrialization in Africa
title_fullStr Labor productivity growth and industrialization in Africa
title_full_unstemmed Labor productivity growth and industrialization in Africa
title_short Labor productivity growth and industrialization in Africa
title_sort labor productivity growth and industrialization in africa
topic small enterprises
standard of living
resources
employment
labour productivity
manufacturing
deindustrialization
linkages
url https://hdl.handle.net/10568/141153
work_keys_str_mv AT mcmillanmargarets laborproductivitygrowthandindustrializationinafrica
AT zeufackalbert laborproductivitygrowthandindustrializationinafrica