Employment and productivity growth in Tanzania’s service sector

During 2002–12, Tanzania’s economy grew more rapidly than at any other time in its history. More than three-quarters of its labour productivity growth is accounted for by structural change; the remainder is largely attributable to within-sector productivity growth in agriculture. The growth attribut...

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Bibliographic Details
Main Authors: Ellis, Mia, McMillan, Margaret S., Silver, Jed
Format: Book Chapter
Language:Inglés
Published: Oxford University Press 2019
Subjects:
Online Access:https://hdl.handle.net/10568/146859
Description
Summary:During 2002–12, Tanzania’s economy grew more rapidly than at any other time in its history. More than three-quarters of its labour productivity growth is accounted for by structural change; the remainder is largely attributable to within-sector productivity growth in agriculture. The growth attributable to structural change is almost entirely explained by a rapid decline in the agricultural employment share and an increase in the non-agricultural private sector employment share—with 11.4% of employment growth in the private non-agricultural economy due to the expansion of the formal private sector; the remaining 88.6% occurred in the informal sector. This chapter assesses the role that services have played in Tanzania’s recent growth and the role that they could play in its economic future.