Africa's manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms
Recent growth accelerations in Africa are characterized by declining shares of the labor force employed in agriculture, increasing labor productivity in agriculture, and declining labor productivity in modern sectors such as manufacturing. To shed light on this puzzle, this study disaggregates firms...
| Autores principales: | , , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
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Oxford University Press
2025
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| Acceso en línea: | https://hdl.handle.net/10568/152417 |
| _version_ | 1855529118861361152 |
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| 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 declining shares of the labor force employed in agriculture, increasing labor productivity in agriculture, and declining labor productivity in modern sectors such as manufacturing. To shed light on this puzzle, this study disaggregates firms in the manufacturing sector by average size, using two newly created firm-level panels covering Tanzania (2008–2016) and Ethiopia (1996–2017). The analysis identifies a dichotomy between larger firms with superior productivity performance that do not expand employment and small firms that absorb employment but do not experience much productivity growth. Large, more productive firms use highly capital-intensive techniques, in line with global technology trends but significantly greater than what would be expected based on these countries’ income levels or relative factor endowments. |
| format | Journal Article |
| id | CGSpace152417 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Oxford University Press |
| publisherStr | Oxford University Press |
| record_format | dspace |
| spelling | CGSpace1524172025-10-26T12:55:35Z Africa's manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms Diao, Xinshen Ellis, Mia McMillan, Margaret S. Rodrik, Dani growth manufacturing productivity transformation Recent growth accelerations in Africa are characterized by declining shares of the labor force employed in agriculture, increasing labor productivity in agriculture, and declining labor productivity in modern sectors such as manufacturing. To shed light on this puzzle, this study disaggregates firms in the manufacturing sector by average size, using two newly created firm-level panels covering Tanzania (2008–2016) and Ethiopia (1996–2017). The analysis identifies a dichotomy between larger firms with superior productivity performance that do not expand employment and small firms that absorb employment but do not experience much productivity growth. Large, more productive firms use highly capital-intensive techniques, in line with global technology trends but significantly greater than what would be expected based on these countries’ income levels or relative factor endowments. 2025-05-01 2024-09-26T18:43:05Z 2024-09-26T18:43:05Z Journal Article https://hdl.handle.net/10568/152417 en https://doi.org/10.3386/w28344 https://doi.org/10.2499/p15738coll2.134392 Limited Access Oxford University Press Diao, Xinshen; Ellis, Mia; McMillan, Margaret; and Rodrik, Dani. Africa's manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms. World Bank Economic Review 39(2): 308–340. https://doi.org/10.1093/wber/lhae029 |
| spellingShingle | growth manufacturing productivity transformation 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 | growth manufacturing productivity transformation |
| url | https://hdl.handle.net/10568/152417 |
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