Manufacturing Sector and Economic Growth: A Panel Study of Selected African Countries

Moyo, Clement; Jeke, Leward

doi:10.35609/jber.2019.4.3(1)

Cited by 11 publications

(7 citation statements)

References 30 publications

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“…The results suggest that despite slow growth, manufacturing remains an important sector for boosting economic growth in Tanzania. This result is consistent with what has been found in other developing and African countries [2,[31][32][33][34][35]. However, most studies in Africa recommend that strengthening institutional quality, adopting appropriate industrial policies, technologies, and innovations, increasing trade openness, attracting FDIs and developing infrastructure can remove some of the barriers to manufacturing sector development.…”

Section: Discussion Of the Resultssupporting

confidence: 90%

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Effects of industrialization on Tanzania’s economic growth: a case of manufacturing sector

2022

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This article examines the impact of industrialization on economic growth in Tanzania focusing on the drivers of structural changes in the manufacturing sector. We apply the vector error correction model based on a parsimonious model covering the period from 1970 to 2017. Our results demonstrate the existence of a positive relationship between the manufacturing sector through its value added and economic growth in Tanzania. We have also observed a similar pattern of relationship in other sectors of the economy such as construction, agriculture, and services. Furthermore, the interaction model shows that foreign direct investment inflows and net domestic credit are the drivers of manufacturing growth. However, the real exchange rate coefficient is negative and significant, suggesting that it has had a negative impact on manufacturing output. The results are consistent with postulations of economic models found in economic growth theories. The article also presents some policy implications regarding the need for consistent policy implementation in the manufacturing sector and further improvement of the investment climate.

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Section: Discussion Of the Resultssupporting

confidence: 90%

“…In the African context, Moyo and Jeke [33] examined the relationship between manufacturing and economic growth in 37 selected African countries. The results show that manufacturing value has a positive impact on economic growth in African countries.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

Effects of industrialization on Tanzania’s economic growth: a case of manufacturing sector

2022

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“…A booming manufacturing sector is not only crucial for sustainable job creation, economic growth and productivity in other sectors of the economy. The observed high growth rates in African countries over the last few years have not translated into the desired decline in poverty and unemployment level (Moyo and Jeke, 2019).…”

Section: Manufacturingmentioning

confidence: 98%

Potentials, drivers and barriers to green economy transition: Implications for Africa

Chukwu

2020

Adv. J. Plant Biol.

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African countries depend majorly on natural resources for livelihood sustenance. Despite many untapped potentials in some sectors of Africa's economy, the continent is still faced with several social, economic and environmental problems. Green economy presents an appealing policy framework to help the continent overcome these challenges and transit to a more environmentally-friendly, low-carbon and resource-efficient economy. Achieving this socially-inclusive viable economy is limited by weak institutions and political will, human and institutional capacity gaps, a paucity of data for impact assessment, poor awareness of the benefits of green economy concepts and poor coordination among green economy actors. This review identifies the potentials, drivers and barriers to a green economy in Africa. Some countries recognised the role of the green economy in sustainable development. However, mainstreaming the right policy mix into national plans across the sectors of society remains a big challenge. This review thus recommends strengthening both public institutions and political will that will help to prioritise policy frameworks, mainstream private sector involvement, close capacity gaps, create sufficient public awareness and build sectoral synergy among green economy actors for an environmentally-sustainable, low-carbon and resource-efficient economy.

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“…In the absence of investment in plant and machinery, capacity and people, the economy of today will not be bigger than the economy of tomorrow. Manufacturing value has been proven to have a positive effect on economic growth in African and European countries (Saliminezhad and Bahramain, 2020; Karami et al , 2019; Moyo and Jeke, 2019; Umezurike and Mthimkhulu, 2019).…”

Section: Introductionmentioning

confidence: 99%

Corporate shareholder value creation as contributor to economic growth

Hall

2023

SEF

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Purpose The purpose of this paper is to determine if there is a link between corporate shareholder value creation and economic growth. The first objective of this paper is to determine which specific shareholder value measurement best explains shareholder value creation for a particular industry. The next objective of the study is to establish, for each of nine different categories of firms examined, a set of value drivers that are unique and significant in expressing shareholder value for that particular category of firms. Lastly, the relationship between shareholder value creation and economic growth is tested. Design/methodology/approach To quantify and measure value creation, the paper investigates the various value creation measurements that are being applied. The next step is to ascertain whether various industries have different value creation measures that best explain value creation for the respective industries. Then, the value drivers of these specific value creation measures can be determined and their relationship with economic growth tested. Findings The results of this study indicate that each industry does have a specific shareholder value creation measurement that best explains shareholder value creation for that industry; for example, for five of the nine categories (industries) that were analyzed, market value added was found to be the best shareholder value creation measurement, but for capital-intensive firms and manufacturing firms, the Qratio is the best measure, while for the food and beverage industry, the market to book ratio was found to be a better measure of shareholder value creation than other measures tested. It was further found that an increase in corporate shareholder value creation is to the detriment of economic growth. Originality/value The contribution of the present study is its determination of a unique shareholder value creation measurement for particular industries. In addition, a specific set of variables per industry that create shareholder value is identified. Lastly, the important link between shareholder value creation and economic growth is exposed.

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Manufacturing Sector and Economic Growth: A Panel Study of Selected African Countries

Cited by 11 publications

References 30 publications

Effects of industrialization on Tanzania’s economic growth: a case of manufacturing sector

Effects of industrialization on Tanzania’s economic growth: a case of manufacturing sector

Potentials, drivers and barriers to green economy transition: Implications for Africa

Corporate shareholder value creation as contributor to economic growth

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