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Industrialization and Economic Growth in Sub-Saharan Africa: The Role of Human Capital in Structural Transformation

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  • Kwami Ossadzifo WONYRA

Abstract

The objective of this paper is to analyze the impact of the manufacturing sector on economic growth through the role of human capital. Our data cover Sub-Saharan African (SSA) countries from 1990 to 2015. We use fixed effects, random-effects and Hausman-Taylor estimators. We take into account the unobservable characteristics of countries by including fixed effects or random effects in the model. Our results show that the manufacturing sector through its value added has a positive impact on economic growth in SSA countries. In addition, the interacting models show that the quality of human capital is an accelerator of the role of the manufacturing sector. The coefficient of the catch-up term is negative and significant in all models indicating that countries with a larger productivity gap relative to China are developing faster than countries closer to China. This finding is consistent with the convergence effects usually found in growth model estimates, which are either related to convergences towards a stable state or to a catching-up of growth linked to the international diffusion of knowledge.

Suggested Citation

  • Kwami Ossadzifo WONYRA, 2018. "Industrialization and Economic Growth in Sub-Saharan Africa: The Role of Human Capital in Structural Transformation," Journal of Empirical Studies, Conscientia Beam, vol. 5(1), pages 45-54.
    • Handle: RePEc:pkp:joestu:v:5:y:2018:i:1:p:45-54:id:2486
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    Cited by:

    1. Nurul Fadly Habidin & Suzaituladwini Hashim & Nursyazwani Mohd Fuzi & Mad Ithnin Salleh & Wan Salmuni Wan Mustaffa & Norlaile Salleh Hudin, 2019. "The Implemention of Total Productive Maintenance in Malaysia Automotive Industry," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(5), pages 89-95, December.
    2. Syamsul Huda & Wiwin Priana & Zumrotul Fitriyah, 2019. "Regional Financial Model Mapping Independence to Fiscal in East Java," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 411-419, August.
    3. Weiping Li & Saite Lu, 2024. "Assessing Structural Transformation and the Potential Impacts of Belt and Road Initiative Projects in Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 548-570, June.
    4. Harman Preet Singh & Ajay Singh & Fakhre Alam & Vikas Agrawal, 2022. "Impact of Sustainable Development Goals on Economic Growth in Saudi Arabia: Role of Education and Training," Sustainability, MDPI, vol. 14(21), pages 1-25, October.
    5. Muhammad Shahrin Hashim & Azizan Mohamed Isa & Ami Suhana Menon & Norwani Mohd Nazari, 2019. "The Effect of Tourism Towards the Food Security Issues to the Urban Poor in Sarawak, Malaysia: A Conceptual Approach," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 241-249, August.
    6. Noorul Azwin binti Md Nasir & Muhammad Jahangir Ali & Noorshella binti Che Nawi, 2019. "Studies on Earnings Management and Financial Statement Fraud in Corporate Firms," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(2), pages 15-19, July.
    7. Ekene ThankGod Emeka & Jonathan E. Ogbuabor & Emmanuel O. Nwosu, 2024. "Effects of public infrastructural development and industrialization on economic complexity in Africa: Emerging insight from panel data analysis," African Development Review, African Development Bank, vol. 36(1), pages 97-110, March.
    8. Gniniguè, Moukpè & Abalo, Bidé Félicité Awoki & Paroubénim, Tchilalo & Heyou, Méhèza Reine, 2022. "The Impact of Agricultural Structural Transformation on Economic Growth in Africa," African Journal of Economic Review, African Journal of Economic Review, vol. 10(2), March.
    9. Nur Fitriyah, 2019. "Financial Development and Environmental Degradation in Indonesia: Evidence from Auto Regressive Distributed Lag Bound Testing Method," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 394-400.

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