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Sub-Saharan Africa’s Manufacturing Sector: Building Complexity

Author

Listed:
  • Kanbur, Ravi
  • Steenkamp, Francois
  • Rooney, Christopher
  • Bhorat, Haroon

Abstract

As Africa’s working age population continues to grow rapidly, the region needs to experience both economic growth and high levels of job creation before it can realize the demographic dividend. This paper uses economic complexity analytics to provide product-level insights into sub-Saharan Africa’s development path in comparison with that of the Eastern and Southern Asian regions. Specific emphasis is placed on the evolution of the manufacturing sector within these regions. The analysis from this study shows a sub-Saharan African (SSA) productive structure that is disconnected and characterized by products with low levels of economic complexity. The study further shows that the productive structure in SSA is inherently characterized by lower levels of economic complexity, which informed the notion of limited productive capabilities. This stands in contrast to the East and South Asian productive structure, which is connected and complex. This result implies that while the sheer scale and diversity of the manufacturing sector in Asia allows for the generation of a large number and diversity of employment opportunities that of the African manufacturing sector is marginal in nature and points to limited employment opportunities.

Suggested Citation

  • Kanbur, Ravi & Steenkamp, Francois & Rooney, Christopher & Bhorat, Haroon, 2017. "Sub-Saharan Africa’s Manufacturing Sector: Building Complexity," CEPR Discussion Papers 12073, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:12073
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    References listed on IDEAS

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    Cited by:

    1. Sehludi Molele & Thobeka Ncanywa, 2022. "Interrogating the association between current account and economic complexity: A selected Sub-Saharan Africa and BRICS comparative analysis," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(10), pages 160-170, December.
    2. Richard Chauke & Thobeka Ncanywa, 2021. "Infrastructure development and economic complexity in South Africa. Running title: Can infrastructure development influence economic complexity?," Technium Social Sciences Journal, Technium Science, vol. 26(1), pages 488-501, Decembrie.
    3. Hlalefang Khobai & Clement Moyo, 2021. "Trade openness and industry performance in SADC countries: is the manufacturing sector different?," International Economics and Economic Policy, Springer, vol. 18(1), pages 105-126, February.
    4. Alssadek, Marwan & Benhin, James, 2021. "Oil boom, exchange rate and sectoral output: An empirical analysis of Dutch disease in oil-rich countries," Resources Policy, Elsevier, vol. 74(C).

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    Keywords

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    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • N67 - Economic History - - Manufacturing and Construction - - - Africa; Oceania

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