Employment and productivity growth in Tanzania’s service sector

Ellis, Mia; McMillan, Margaret S.; Silver, Jed

Employment and productivity growth in Tanzania’s service sector

Autores

Ellis, Mia

McMillan, Margaret S.

Silver, Jed

Editor

Oxford University Press

Descripción

During 2002–12, Tanzania’s economy grew more rapidly than at any other time in its history. More than three-quarters of its labour productivity growth is accounted for by structural change; the remainder is largely attributable to within-sector productivity growth in agriculture. The growth attributable to structural change is almost entirely explained by a rapid decline in the agricultural employment share and an increase in the non-agricultural private sector employment share—with 11.4% of employment growth in the private non-agricultural economy due to the expansion of the formal private sector; the remaining 88.6% occurred in the informal sector. This chapter assesses the role that services have played in Tanzania’s recent growth and the role that they could play in its economic future.