Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms

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dc.creatorDiao, Xinshen
dc.creatorEllis, Mia
dc.creatorMcMillan, Margaret S.
dc.creatorRodrik, Dani
dc.date2021-05-05
dc.date2024-05-22T12:13:43Z
dc.date2024-05-22T12:13:43Z
dc.date.accessioned2026-06-27T15:42:32Z
dc.descriptionRecent growth accelerations in Africa are characterized by increasing productivity in agriculture, a declining share of the labor force employed in agriculture and declining productivity in modern sectors such as manufacturing. To shed light on this puzzle, we disaggregate firms in the manufacturing sector by size using two newly created panels of manufacturing firms, one for Tanzania covering 2008-2016 and one for Ethiopia covering 1996-2017. Our analysis reveals a dichotomy between larger firms that exhibit superior productivity performance but do not expand employment much, and small firms that absorb employment but do not experience any productivity growth. We suggest the poor employment performance of large firms is related to use of capital-intensive techniques associated with global trends in technology.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/143378
dc.identifier.urihttp://hdl.handle.net/123456789/112401
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.relationhttps://doi.org/10.3386/w28344
dc.relationhttps://www.theigc.org/blogs/bread-conference-economics-africa/bread-2021-insights-labour-and-markets
dc.rightsOpen Access
dc.sourceDiao, Xinshen; Ellis, Mia; McMillan, Margaret S.; and Rodrik, Dani. 2021. Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms. IFPRI Discussion Paper 2020. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.134392.
dc.subjectinnovation
dc.subjectstructural transformation
dc.subjecttechnology
dc.subjectenterprises
dc.subjectlabour
dc.subjectlabour productivity
dc.subjectproductivity
dc.subjectmanufacturing
dc.subjectgrowth
dc.titleAfrica’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms
dc.typeWorking Paper

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Instituto Internacional de Investigación sobre Políticas Alimentarias (IFPRI)