Africa's Manufacturing Puzzle: Evidence from Tanzanian and Ethiopian Firms

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dc.creatorDiao, Xinshen
dc.creatorEllis, Mia
dc.creatorMcMillan, Margaret
dc.creatorRodrik, Dani
dc.date2025-06-18T17:39:28Z
dc.date2025-06-18T17:39:28Z
dc.date2025-05-26
dc.date.accessioned2026-07-01T00:32:02Z
dc.descriptionRecent growth accelerations in Africa are characterized by declining shares of the labor force employed in agriculture, increasing labor productivity in agriculture, and declining labor productivity in modern sectors such as manufacturing. To shed light on this puzzle, this study disaggregates firms in the manufacturing sector by average size, using two newly created firm-level panels covering Tanzania (2008-2016) and Ethiopia (1996-2017). The analysis identifies a dichotomy between larger firms with superior productivity performance that do not expand employment and small firms that absorb employment but do not experience much productivity growth. Large, more productive firms use highly capital-intensive techniques, in line with global technology trends, but significantly greater than what would be expected based on these countries’ income levels or relative factor endowments.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/099155005022535017
dc.identifierThe World Bank Economic Review
dc.identifierhttps://hdl.handle.net/10986/43353
dc.identifier.urihttp://hdl.handle.net/123456789/405494
dc.languageEnglish
dc.languageen_US
dc.publisherPublished by Oxford University Press on behalf of the World Bank
dc.relationWorld Bank Economic Review
dc.rightsCC BY 3.0 IGO
dc.rightshttps://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectMANUFACTURING
dc.subjectSTRUCTURAL TRANSFORMATION
dc.subjectGROWTH
dc.subjectPRODUCTIVITY
dc.titleAfrica's Manufacturing Puzzle: Evidence from Tanzanian and Ethiopian Firms
dc.typeJournal Article

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