The changing structure of Africa’s economies

dc.creatorDiao, Xinshen
dc.creatorHarttgen, Kenneth
dc.creatorMcMillan, Margaret S.
dc.date2017
dc.date2024-06-21T09:24:33Z
dc.date2024-06-21T09:24:33Z
dc.date.accessioned2026-06-27T15:21:08Z
dc.descriptionIn recent years, some counties in Africa south of the Sahara (SSA) have experienced growth in their economies and improvements in living standards. Although there is some debate, it is clear that the share of the population living below the poverty line fell significantly over the past decade and a half; there has been a general decline in infant mortality rates and increased access to education; in some of the fastest-growing economies, average growth rates have been positive for the first time in decades; and since the early 1990s, real consumption in SSA has grown between 3.4 and 3.7 percent per year. The reasons behind this so-called “African growth miracle” are not well understood, and to our knowledge, this paper is the first to connect these improvements in living standards to important occupational changes. Using data from the Groningen Growth and Development Center’s Africa Sector Database and the Demographic and Health Surveys, we show that much of SSA’s recent growth and poverty reduction has been associated with a substantive decline in the share of the labor force engaged in agriculture. This decline is most pronounced for rural females over the age of 25 who have a primary education. This has been accompanied by a systematic increase in the productivity of the labor force, as it has moved from low productivity agriculture to higher productivity services and manufacturing. We also show that although the employment share in manufacturing is not expanding rapidly, in most of the low-income SSA countries, the employment share in manufacturing has not peaked and is still expanding, albeit from very low levels. Although these patterns are encouraging, more work is needed to understand the implications of these shifts in employment shares for future growth and development in SSA.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/148387
dc.identifier.urihttp://hdl.handle.net/123456789/101878
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.relationhttps://hdl.handle.net/10568/147514
dc.relationhttps://hdl.handle.net/10568/150482
dc.relationhttps://doi.org/10.3386/w23021
dc.rightsOpen Access
dc.sourceDiao, Xinshen; Harttgen, Kenneth; and McMillan, Margaret S. 2017. The changing structure of Africa’s economies. IFPRI Discussion Paper 1598. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/148387
dc.subjectstructural adjustment
dc.subjectgender
dc.subjecteconomic development
dc.subjectemployment
dc.subjectlabour
dc.subjectproductivity
dc.subjectwomen
dc.titleThe changing structure of Africa’s economies
dc.typeWorking Paper

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