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What Explains the Firm Size Distribution in Sub-Saharan Africa and Why Does It Matter?

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  • Francis Teal

Abstract

In this issue of the Journal of African Economies we publish two papers concerned with the firm size distribution of manufacturing firms in Sub-Saharan Africa (SSA). One paper examines the changes in the firm size distribution for Ghana, Teal (this issue), the other for Ethiopia, Azmete et al. (this issue). This note is intended to introduce, and compare, the findings of these two papers and to place those findings in the wider policy debate as to what explains the performance of the manufacturing sector in SSA.

Suggested Citation

  • Francis Teal, 2023. "What Explains the Firm Size Distribution in Sub-Saharan Africa and Why Does It Matter?," Journal of African Economies, Centre for the Study of African Economies, vol. 32(2), pages 111-117.
    • Handle: RePEc:oup:jafrec:v:32:y:2023:i:2:p:111-117.
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    References listed on IDEAS

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    1. Kalina Manova, 2013. "Credit Constraints, Heterogeneous Firms, and International Trade," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(2), pages 711-744.
    2. Nezih Guner & Gustavo Ventura & Xu Yi, 2008. "Macroeconomic Implications of Size-Dependent Policies," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 721-744, October.
    3. McMillan, Margaret & Rodrik, Dani & Verduzco-Gallo, Íñigo, 2014. "Globalization, Structural Change, and Productivity Growth, with an Update on Africa," World Development, Elsevier, vol. 63(C), pages 11-32.
    4. Christopher Udry & Santosh Anagol, 2006. "The Return to Capital in Ghana," American Economic Review, American Economic Association, vol. 96(2), pages 388-393, May.
    5. Xavier Gabaix, 2009. "Power Laws in Economics and Finance," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 255-294, May.
    6. Andrew Kerr & Bruce McDougall, 2020. "What is a firm census in a developing country? An answer from Ghana," SALDRU Working Papers 262, Southern Africa Labour and Development Research Unit, University of Cape Town.
    7. Gollin, Douglas, 1995. "Do Taxes on Large Firms Impede Growth? Evidence from Ghana," Bulletins 7488, University of Minnesota, Economic Development Center.
    8. Douglas Gollin, 2014. "The Lewis Model: A 60-Year Retrospective," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 71-88, Summer.
    9. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    10. Christopher Blattman & Stefan Dercon, 2018. "The Impacts of Industrial and Entrepreneurial Work on Income and Health: Experimental Evidence from Ethiopia," American Economic Journal: Applied Economics, American Economic Association, vol. 10(3), pages 1-38, July.
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    More about this item

    Keywords

    African manufacturing firms; missing-middle; census data; JEL classification: O14; O17; O55; J21;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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