Structural transformation, openness, and productivity growth in sub-Saharan Africa

This paper examines the connections of structural change and economic openness to labour productivity growth using a panel data set of 41 countries in sub-Saharan Africa for the period 1991-2015. A dynamic panel model of cross-country productivity growth is estimated using the least squares with dummy variables approach. The results suggest that growth of labour productivity is negatively related to initial levels of labour productivity. Labour productivity growth is also positively related to the shares of labour in industry and services. However, the share of labour in agriculture has no statistically significant relationship with labour productivity growth. Economic openness also appears to have a weak relationship with labour productivity growth.