Economic transformation in Africa from the bottom up: Evidence from Tanzania

At roughly 4% per annum, labor productivity in Tanzania has grown more rapidly over the past 14 years than at any other time in recent history. Employment growth has also been strong keeping up with population growth at roughly 2.2 percent per annum. However, the bulk of the employment growth – 88.6...

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Autores principales: Diao, Xinshen, Kweka, Josaphat, McMillan, Margaret S.
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2017
Materias:
Acceso en línea:https://hdl.handle.net/10568/147514
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author Diao, Xinshen
Kweka, Josaphat
McMillan, Margaret S.
author_browse Diao, Xinshen
Kweka, Josaphat
McMillan, Margaret S.
author_facet Diao, Xinshen
Kweka, Josaphat
McMillan, Margaret S.
author_sort Diao, Xinshen
collection Repository of Agricultural Research Outputs (CGSpace)
description At roughly 4% per annum, labor productivity in Tanzania has grown more rapidly over the past 14 years than at any other time in recent history. Employment growth has also been strong keeping up with population growth at roughly 2.2 percent per annum. However, the bulk of the employment growth – 88.6% - has been in the non-agricultural and largely informal private sector. Using Tanzania’s first nationally representative survey of micro, small and medium sized enterprises - we show that firms in the informal sector contributed roughly half a percentage point to economywide labor productivity growth in Tanzania between 2002 and 2012. However, virtually all of the labor productivity growth contributed by informal firms came from a small subset of firms we call the inbetween firms. We consider attributes of the inbetween firms that could be used for targeting financial and business services to firms with the potential to grow. We find two salient characteristics of firms in the inbetween sector that might lend themselves to targeting – their owners are more likely to keep written accounts and they are more likely to keep their savings in formal bank accounts.
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spelling CGSpace1475142025-11-06T05:35:07Z Economic transformation in Africa from the bottom up: Evidence from Tanzania Diao, Xinshen Kweka, Josaphat McMillan, Margaret S. structural adjustment informal sector business enterprises accounting enterprises banking labour productivity accounts finance At roughly 4% per annum, labor productivity in Tanzania has grown more rapidly over the past 14 years than at any other time in recent history. Employment growth has also been strong keeping up with population growth at roughly 2.2 percent per annum. However, the bulk of the employment growth – 88.6% - has been in the non-agricultural and largely informal private sector. Using Tanzania’s first nationally representative survey of micro, small and medium sized enterprises - we show that firms in the informal sector contributed roughly half a percentage point to economywide labor productivity growth in Tanzania between 2002 and 2012. However, virtually all of the labor productivity growth contributed by informal firms came from a small subset of firms we call the inbetween firms. We consider attributes of the inbetween firms that could be used for targeting financial and business services to firms with the potential to grow. We find two salient characteristics of firms in the inbetween sector that might lend themselves to targeting – their owners are more likely to keep written accounts and they are more likely to keep their savings in formal bank accounts. 2017 2024-06-21T09:22:58Z 2024-06-21T09:22:58Z Working Paper https://hdl.handle.net/10568/147514 en https://doi.org/10.3386/w22889 https://doi.org/10.1093/oxfordhb/9780198793847.013.27 https://hdl.handle.net/10568/148387 https://hdl.handle.net/10568/150482 Open Access application/pdf International Food Policy Research Institute Diao, Xinshen; Kweka, Josaphat; McMillan, Margaret S. 2017. Economic transformation in Africa from the bottom up: Evidence from Tanzania. IFPRI Discussion Paper 1603. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147514
spellingShingle structural adjustment
informal sector
business enterprises
accounting
enterprises
banking
labour productivity
accounts
finance
Diao, Xinshen
Kweka, Josaphat
McMillan, Margaret S.
Economic transformation in Africa from the bottom up: Evidence from Tanzania
title Economic transformation in Africa from the bottom up: Evidence from Tanzania
title_full Economic transformation in Africa from the bottom up: Evidence from Tanzania
title_fullStr Economic transformation in Africa from the bottom up: Evidence from Tanzania
title_full_unstemmed Economic transformation in Africa from the bottom up: Evidence from Tanzania
title_short Economic transformation in Africa from the bottom up: Evidence from Tanzania
title_sort economic transformation in africa from the bottom up evidence from tanzania
topic structural adjustment
informal sector
business enterprises
accounting
enterprises
banking
labour productivity
accounts
finance
url https://hdl.handle.net/10568/147514
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AT mcmillanmargarets economictransformationinafricafromthebottomupevidencefromtanzania