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<p>In countries initially lacking a comparative advantage in labor-intensive manufacturing agricultural growth can play an important role in the development of manufacturing. However, the process by which this occurs is indirect. Agricultural productivity growth initiates productivity growth in services, and this in turn lowers the cost of manufactured goods resulting in the expansion of manufacturing employment. The purpose of this paper is to test this hypothesis. The hypothesis is tested by using panel CS-ARDL estimation techniques utilizing data from seventeen countries in Sub-Saharan Africa. The results indicate that service sector productivity is positively associated with structural change involving an increase in manufacturing employment. In turn, agricultural productivity is positively associated with increases in service sector productivity.</p>

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A distinctive path of economic development in Africa

  • 期刊论文

  • 发表日期：

    2025年9月16日

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  • Richard Grabowski,
  • Sharmistha Self

摘要

In countries initially lacking a comparative advantage in labor-intensive manufacturing agricultural growth can play an important role in the development of manufacturing. However, the process by which this occurs is indirect. Agricultural productivity growth initiates productivity growth in services, and this in turn lowers the cost of manufactured goods resulting in the expansion of manufacturing employment. The purpose of this paper is to test this hypothesis. The hypothesis is tested by using panel CS-ARDL estimation techniques utilizing data from seventeen countries in Sub-Saharan Africa. The results indicate that service sector productivity is positively associated with structural change involving an increase in manufacturing employment. In turn, agricultural productivity is positively associated with increases in service sector productivity.