Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms

Recent growth accelerations in Africa are characterized by increasing productivity in agriculture, a declining share of the labor force employed in agriculture and declining productivity in modern sectors such as manufacturing. To shed light on this puzzle, we disaggregate firms in the manufacturing...

Descripción completa

Detalles Bibliográficos
Autores principales: Diao, Xinshen, Ellis, Mia, McMillan, Margaret S., Rodrik, Dani
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/143378
_version_ 1855541122246377472
author Diao, Xinshen
Ellis, Mia
McMillan, Margaret S.
Rodrik, Dani
author_browse Diao, Xinshen
Ellis, Mia
McMillan, Margaret S.
Rodrik, Dani
author_facet Diao, Xinshen
Ellis, Mia
McMillan, Margaret S.
Rodrik, Dani
author_sort Diao, Xinshen
collection Repository of Agricultural Research Outputs (CGSpace)
description Recent growth accelerations in Africa are characterized by increasing productivity in agriculture, a declining share of the labor force employed in agriculture and declining productivity in modern sectors such as manufacturing. To shed light on this puzzle, we disaggregate firms in the manufacturing sector by size using two newly created panels of manufacturing firms, one for Tanzania covering 2008-2016 and one for Ethiopia covering 1996-2017. Our analysis reveals a dichotomy between larger firms that exhibit superior productivity performance but do not expand employment much, and small firms that absorb employment but do not experience any productivity growth. We suggest the poor employment performance of large firms is related to use of capital-intensive techniques associated with global trends in technology.
format Artículo preliminar
id CGSpace143378
institution CGIAR Consortium
language Inglés
publishDate 2021
publishDateRange 2021
publishDateSort 2021
publisher International Food Policy Research Institute
publisherStr International Food Policy Research Institute
record_format dspace
spelling CGSpace1433782025-12-02T21:02:52Z Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms Diao, Xinshen Ellis, Mia McMillan, Margaret S. Rodrik, Dani innovation structural transformation technology enterprises labour labour productivity productivity manufacturing growth Recent growth accelerations in Africa are characterized by increasing productivity in agriculture, a declining share of the labor force employed in agriculture and declining productivity in modern sectors such as manufacturing. To shed light on this puzzle, we disaggregate firms in the manufacturing sector by size using two newly created panels of manufacturing firms, one for Tanzania covering 2008-2016 and one for Ethiopia covering 1996-2017. Our analysis reveals a dichotomy between larger firms that exhibit superior productivity performance but do not expand employment much, and small firms that absorb employment but do not experience any productivity growth. We suggest the poor employment performance of large firms is related to use of capital-intensive techniques associated with global trends in technology. 2021-05-05 2024-05-22T12:13:43Z 2024-05-22T12:13:43Z Working Paper https://hdl.handle.net/10568/143378 en https://doi.org/10.3386/w28344 https://www.theigc.org/blogs/bread-conference-economics-africa/bread-2021-insights-labour-and-markets Open Access application/pdf International Food Policy Research Institute Diao, Xinshen; Ellis, Mia; McMillan, Margaret S.; and Rodrik, Dani. 2021. Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms. IFPRI Discussion Paper 2020. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.134392.
spellingShingle innovation
structural transformation
technology
enterprises
labour
labour productivity
productivity
manufacturing
growth
Diao, Xinshen
Ellis, Mia
McMillan, Margaret S.
Rodrik, Dani
Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms
title Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms
title_full Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms
title_fullStr Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms
title_full_unstemmed Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms
title_short Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms
title_sort africa s manufacturing puzzle evidence from tanzanian and ethiopian firms
topic innovation
structural transformation
technology
enterprises
labour
labour productivity
productivity
manufacturing
growth
url https://hdl.handle.net/10568/143378
work_keys_str_mv AT diaoxinshen africasmanufacturingpuzzleevidencefromtanzanianandethiopianfirms
AT ellismia africasmanufacturingpuzzleevidencefromtanzanianandethiopianfirms
AT mcmillanmargarets africasmanufacturingpuzzleevidencefromtanzanianandethiopianfirms
AT rodrikdani africasmanufacturingpuzzleevidencefromtanzanianandethiopianfirms