TRENDS, PATTERNS AND KEY DRIVERS OF SECTORAL MANUFACTURING DEVELOPMENT IN AFRICA
- John C. Anyanwu
- Benedict Ozurumba
- ( paper pages. 1 - 32 )
Abstract
This paper extends and contributes to the literature on the drivers of structuralcomponents of manufacturing value added development in Africa. Given theproblem of possible endogeneity, the estimation technique is the IV-SLS estimationprocedure, with year fixed and sub-regional effects. It found that the key drivers ofthe sectoral MVA (as % of total MVA) differed substantially across the sectors intheir impact in terms of sign and significance. A key finding is that, apart fromchemical manufacturing that is linearly and negatively affected by the level ofeconomic development, food, beverages and tobacco; machinery; textiles andclothing; and ‘other’ manufacturing were significantly affected by economicdevelopment to the third degree polynomial, with the first two with positive leadingcoefficient and the last two with negative leading coefficient. There was also astrong support for a non-monotonic, inverted U-shaped relationship between food,beverages and tobacco, textiles and clothing and other manufacturing MVA withtertiary education. Other drivers with differential impacts included primary andsecondary education, natural resources dependence, FDI stock, science andtechnology proxy, ICT, social and political globalization, and energy use intensity.The paper thus offered some policy suggestions based on the conclusion.
Citation
John C. Anyanwu, Benedict Ozurumba.
2018.
"TRENDS, PATTERNS AND KEY DRIVERS OF SECTORAL MANUFACTURING DEVELOPMENT IN AFRICA"
The Nigerian Journal of Economic and Social Studies,
60 (3): 1 - 32.
JEL Classification
L16, L62, L64, L65, L66, L67, L69, O14, O55
