Agricultural Labour Productivity and Industrialisation: Lessons for Africa

Governance, capital flight and industrialisation in Africa

“…Moreover, whilst there is a substantial body of literature on governance (Musila and Sigué 2010;Kangoye 2013) and capital flight (Ndiaye and Siri 2016;Mpenya et al 2016;Asongu and Amankwah-Amoah 2018) in Africa, we know very little about how governance modulates the effect of capital flight on macroeconomic outcomes. We improve the extant literature by focusing on industrialisation as a macroeconomic outcome owing to the growing relevance of African industrialisation in policy and academic circles (Asche and Grimm 2007;Tchamyou 2017;Diao et al 2017;Ssozi et al 2019). To make this assessment, governance indicators are bundled and unbundled.…”

Empirical evidence of a long-run relationship between agriculture and manufacturing industry output in Nigeria

“…Some scholars have argued that the transformation from agriculture to industry is a movement from traditional to modern, Zeira and Zoabi (2015) contends that rising productivity of modern sectors drives economic growth, however, this claim is on the assumption of a rising marginal opportunity costs in the desire to create new modern sectors. In the same vein, Diao, McMillan, and Wangwe (2018) finds a positive correlation between labour productivity growth in agriculture and employment in the manufacturing sector in Africa. The study demonstrates that positive technological change in agriculture feeds into increasing productivity and growth of the industrial sector.…”

“…In developing countries, many industries are agro-based, given that agricultural produce are largely used as raw material for manufacturing. On the other hand, use of manufactured goods by agro and allied outlets increases the tendency of linkage between agriculture and manufacturing industry interaction (Diao et al 2018). In the short run estimate, we see a positive and significant relationship between agriculture and manufacturing industry output, which supports the observation of many of the sampled countries in Tiffin and Irz (2006).…”

“…In the argument, whether labour productivity in the agricultural sector has any significant effect on industrialization in Africa, Diao et al (2018) posit that the synergy between labor productivity in agriculture and industrial sector signifies only a necessary but not sufficient condition for improvements in industrialization. The link between rural income through agriculture and the demand for manufactured goods in Africa account for why increases in agricultural labor productivity could lead to positive changes in employment in agro-based manufacturing.…”

Premature Deindustrialization through The Lens of Occupations: Which Jobs, Why, and Where?

“…TheFigure connectsand labels observations from the 10 countries which experienced the largest decrease in machine operators and elementary employment, and the 10 countries experiencing the largest increase. 6 of the 10 countries with the largest decreases were classied as middle income countries in 1990 (such as South Africa/ZAF, Costa Rica/CRI and Jamaica/JAM), whereas 7 of the 10 countries with the largest increases were classied as low income countries (such as China/CHN, Cambodia-/KHM and Ethiopia/ETH) 26 Diao et al (2017b). argue that in Ethiopia, employment gains in light manufacturing since the early 1990s26 Moroever, the data for Bangladesh (`BGD'), a low income country for which the Figure suggests strongly decreasing manufacturing employment in elementary or operator occupations, appears dubious: the surveys suggest increasing total manufacturing employment between both years (2000 and 2013), driven by strongly increasing craftsman employment.…”