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Employment and productivity growth in Tanzania's service sector

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  • Mia Ellis
  • Margaret McMillan
  • Jed Silver

Abstract

Despite Tanzania's rapid recent growth, the vast majority of employment creation has been in informal services. This paper addresses the role that different subsectors of formal and informal services have played in Tanzania's growth. It finds that subsectors such as trade services contribute significantly to employment despite their relatively low productivity, while subsectors such as business and transportation services display higher productivity and improve the environment for other firms to operate.

Suggested Citation

  • Mia Ellis & Margaret McMillan & Jed Silver, 2017. "Employment and productivity growth in Tanzania's service sector," WIDER Working Paper Series wp-2017-16, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2017-16
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2017-16.pdf
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    References listed on IDEAS

    as
    1. Tan,Hong W. & Bashir,Sajitha & Tanaka,Nobuyuki, 2016. "Skill use, skill deficits, and firm performance in formal sector enterprises : evidence from the Tanzania enterprise skills survey, 2015," Policy Research Working Paper Series 7672, The World Bank.
    2. 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.
    3. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
    4. Xinshen Diao & Josaphat Kweka & Margaret McMillan, 2016. "Economic Transformation in Africa from the Bottom Up: Evidence from Tanzania," NBER Working Papers 22889, National Bureau of Economic Research, Inc.
    5. David McKenzie & Christopher Woodruff, 2014. "What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?," The World Bank Research Observer, World Bank, vol. 29(1), pages 48-82.
    6. Marcel Fafchamps & Christopher Woodruff, 2017. "Identifying Gazelles: Expert Panels vs. Surveys as a Means to Identify Firms with Rapid Growth Potential," The World Bank Economic Review, World Bank, vol. 31(3), pages 670-686.
    7. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969.
    8. Lewis, W Arthur, 1979. "The Dual Economy Revisited," The Manchester School of Economic & Social Studies, University of Manchester, vol. 47(3), pages 211-229, September.
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    Cited by:

    1. Jing, Chunxiao & Foltz, Jeremy D., 2024. "Can the Service Sector Lead Structural Transformation in Africa? Evidence from Côte d'Ivoire," 2024 Annual Meeting, July 28-30, New Orleans, LA 343566, Agricultural and Applied Economics Association.
    2. Mawejje Joseph & Odhiambo Nicholas M., 2020. "Fiscal Reforms and Deficits in Tanzania: An Exploratory Review," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(1), pages 57-75, March.

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