scholarly journals Transformation: From Sustainably Productive Agriculture to Industry?

2021 ◽  
pp. 61-138
Author(s):  
Uma Lele ◽  
Manmohan Agarwal ◽  
Sambuddha Goswami
Keyword(s):  
Structural Transformation ◽  
Low Income ◽  
Productivity Growth ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Small Farms ◽  
Transformation Theory ◽  
Factors Of Production ◽  
Sub Saharan ◽  
Large Farms

The chapter explores issues of farm size, productivity, and structural transformation, as well as the reasons underlying performance. Productivity growth is crucial to structural transformation, and conventional wisdom held that small farms were more productive than large farms, in terms of yields per hectare. Increasingly, however, there is evidence that farms of all sizes can perform well, particularly when total factor productivity is measured in terms of all factors of production—that is, for farmers of large, medium, and small farms—rather than in terms of land productivity. Similarly, transformation theory has held that manufacturing tends to be more productive than agriculture, explaining migration from agriculture to industry and manufacturing being seen as the escalator of growth, but some evidence suggests agricultural productivity growth can be greater than growth of productivity in the manufacturing sector. Some have questioned the role of smallholder farms, suggesting development policy, particularly in sub-Saharan Africa, needs to foster medium and large farms, reallocating factors of production in their favor, as the only way to achieve an increase in overall levels of productivity and food for the burgeoning urban population. The chapter also tests the hypothesis of premature deindustrialization in many low-income and low-middle-income developing countries, including relative rates of growth in agriculture, manufacturing, and the service sector.

scholarly journals The Effects of the Catch-Up Mechanism on the Structural Transformation of Sub-Saharan Africa

Economies ◽  
2019 ◽  
Vol 7 (4) ◽  
pp. 111 ◽  
Author(s):  
Ssozi ◽  
Bbaale
Keyword(s):  
Structural Transformation ◽  
Productivity Growth ◽  
Service Sector ◽  
Generalized Method Of Moments ◽  
Information And Communications Technology ◽  
Sub Saharan Africa ◽  
Import Penetration ◽  
International Contact ◽  
Catch Up ◽  
Sub Saharan

Structural transformation is one of the processes of productivity growth urgently needed in Sub-Saharan Africa (SSA). This study uses the catch-up mechanism to analyze how international contacts and domestic absorptive capacity constraints are shaping the pattern of structural transformation in SSA. Using a two-step Generalized Method of Moments on 2000–2015 data for 29 SSA countries, the paper finds that SSA is undergoing a non-classical structural transformation led by the service sector instead of manufacturing. Import penetration, a key variable of international contact, has negative coefficients for both the agricultural and manufacturing shares of gross domestic product (GDP) but is positively associated with both the services shares of employment and GDP. A test of Kaldor’s third law finds that if growth in employment outside manufacturing is in services, it can also increase economy-wide productivity. Hence, it is the international constraints, such as import penetration and foreign direct investment, that are making the structural transformation of SSA non-classical. Services that involve transfer of skills and technology, such as international tourism and information and communications technology services exports, provide opportunities for structural change and productivity growth.

Growth and productivity performance of small manufacturing enterprises (SMEs)

2009 ◽  
Vol 1 (1) ◽  
pp. 39-56 ◽  
Author(s):  
S.N. Rajesh Raj ◽  
Mihir K. Mahapatra
Keyword(s):  
Total Factor Productivity ◽  
Low Income ◽  
Productivity Growth ◽  
Manufacturing Sector ◽  
Sample Survey ◽  
Annual Data ◽  
Factor Productivity ◽  
Content Type ◽  
Manufacturing Enterprises ◽  
The Government

PurposeThe purpose of this paper is to examine the performance of small manufacturing enterprises (SMEs) in India during the pre‐reforms (prior to 1991) and reforms period (1991 onwards) with focus on 15 major states from different levels of development.Design/methodology/approachIn order to capture variation across different categories of states, 15 major states in India have been classified into high‐, middle‐ and low‐income states. Further, to capture productivity growth in the sector during the pre‐reforms and reforms period, both partial factor productivity and total factor productivity method (growth accounting approach) have been adopted. The analysis is based on different rounds of nationwide survey conducted by the National Sample Survey Organization (NSSO) of the Government of India during 1978‐2001.FindingsThe findings of the study reveal erosion in growth of output in the SMEs during the reforms period as compared to the pre‐reforms period with variation across different categories of states. The decline in growth of output during the reforms period can be primarily on account of fall in growth of employment and investment. The total factor productivity growth has also declined during the reforms period suggesting the need to enhance the level of technical efficiency and skills of the labour force in the sector. This is noticed in spite of major role played by the SMEs in providing employment (80 per cent of the total manufacturing sector employment) opportunities and in generating output (contributes 60 per cent of net domestic product) in the country.Research limitations/implicationsOn account of non‐availability of annual data, the study relied on data collected by the NSSO of the Government of India periodically. In addition, the study did not examine the factors that explain decline in productivity growth in the sector.Originality/valueThere is a large body of literature on regional growth and productivity in the Indian manufacturing sector but most of the studies have considered only the organized manufacturing sector. This study contributes to the literature by analyzing the inter‐state variation in growth and productivity performance of SMEs in the pre‐reforms and reforms periods.

Employment in the Service Sector in Sub-Saharan Africa

1973 ◽  
Vol 11 (2) ◽  
pp. 201-210 ◽  
Author(s):  
Myron Frankman ◽  
Edwin Charle
Keyword(s):  
Low Income ◽  
Service Sector ◽  
Capital Intensity ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
Short Article ◽  
Industrial Activities ◽  
Urban Unemployment ◽  
Sub Saharan

One characteristic which all countries presently hold in common — whatever their level of income — is the tendency for a growing proportion of the population to be employed in the ‘service sector’ of their economies rather than in ‘secondary’ or industrial activities. The purpose of this short article is to suggest that a consideration of certain features of the expanding employment in services in low-income countries may help to evaluate two commonly identified situations. First, in regard to manufacturing activities there has been a persistent tendency towards increasing capital intensity, despite the frequent assertion that resort should be made to more labour intensive technology in order to ‘spread’ jobs more widely. Secondly, the pace of urbanisation has continued to accelerate, despite widespread concern over high rates of urban unemployment and under-employment that seem a consequence of excessive migration to the cities.

scholarly journals Structural Transformation Path Across Countries: Is It Systematic Pattern

2021 ◽  
Author(s):  
Altaf Hussain Padder ◽  
B Mathavan
Keyword(s):  
Structural Transformation ◽  
Low Income ◽  
Service Sector ◽  
Developed Countries ◽  
Industrial Sector ◽  
Low Income Countries ◽  
Economic Sectors ◽  
Middle Income ◽  
Sectoral Output ◽  
The Developed Countries

Abstract The structural transformation across the economic sectors is one of the prominent features that go together with economic development. The paper scrutinizes whether developing and low-income countries follow the similar path and pattern of structural transformation by which the developed countries are following or followed this threshold and are now experiencing a shift from the industrial sector to the service sector. The structural transformation paths of developed countries are almost identical, but the pattern of sectoral output shares varies from that of developing countries. The research reveals a fascinating finding i.e., low-income countries outperform middle-income countries and some major countries in terms of the pace of structural transformation from agriculture to service sector.

scholarly journals Productivity Performance of the Service Sectors in European Union Countries

2019 ◽  
Vol 22 (4) ◽  
pp. 7-22
Author(s):  
Joanna Wyszkowska‑Kuna
Keyword(s):  
Productivity Growth ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Factor Productivity ◽  
New Member States ◽  
Eu Countries ◽  
Tfp Growth ◽  
Service Sectors ◽  
Communications Services ◽  
The Eu

Economic development has resulted in structural transformation towards economies based on services, which has raised some concerns about the limited opportunities for sustaining productivity growth. The aim of this paper is to examine total factor productivity (TFP) growth in the service sector in comparison with total industries and the manufacturing sector, as well as within the service sector. The study is based on the data from the EU‑KLEMS database (2017), and it covers the years 1995–2015. It refers to EU countries, making it possible to carry out a comparative analysis between countries, in particular between the ‘old’ and ‘new’ member states. The study demonstrates that productivity growth in services was significantly lower than in manufacturing, but compared with total industries, the disparity was not significant. Productivity growth was usually higher in the ‘new’ EU countries than in the ‘old’ ones, except for information and communications services, which, on the whole, were the main driving force behind the productivity growth in services.

scholarly journals ANALYSIS OF STRUCTURAL TRANSFORMATION OF LABOR FROM AGRICULTURE TO NON-AGRICULTURE IN ASIA

2020 ◽  
Vol 20 (4) ◽  
pp. 335-341
Author(s):  
Emy Zahrotul Awaliyyah ◽  
Shwu-En Chen ◽  
Ratya Anindita ◽  
S Suhartini
Keyword(s):  
Structural Transformation ◽  
Productivity Growth ◽  
Service Sector ◽  
Structural Changes ◽  
Dynamic Effect ◽  
Agriculture Sector ◽  
Pattern Decomposition ◽  
Agriculture Industry ◽  
Employment Share ◽  
Static Effect

Through the dataset from APO (Asian Productivity Organization) comprising 22 countries in Asia from 1980 to 2015, this study is to investigate the growth pattern, decomposition, and determinants of structural transformation in Asia. A decomposition method measuring within-effect, between-static-effect, and between-dynamic-effect was adopted to explain the structural change within sectors of agriculture, industry, and services. The results show that the agriculture sector of all countries in Asia declines slowly. The agriculture sector is no longer the largest contributor to GDP in all Asian countries even though it still has the largest labor in Asian developing countries. Workers moving from the agriculture sector to the services sector as the productivity of the service sector is higher than agriculture. The structural changes positively contribute to productivity growth in Asia as a result of the positive static reallocation effects and negative dynamic reallocation effects. Overall, the structural changes contribute to a large part of labor productivity growth. The important determinants of structural transformation are the employment share in agriculture and trade. Final, the policy implication was proposed for structural changes.

scholarly journals Industries without Smokestacks

2018 ◽  
Keyword(s):  
East Asia ◽  
Structural Transformation ◽  
Low Income ◽  
Economies Of Scale ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
Advanced Economy ◽  
High Productivity ◽  
Average Share ◽  
Sub Saharan

Structural transformation in Africa has become a hot topic. One of the earliest stylized facts of development economics is that low-income countries have large differences in output per worker across sectors, and movement of workers from low- to high-productivity sectors—structural transformation is a key driver of economic growth. Between 1950 and 2006, about half of the catch-up by developing countries—led by East Asia—to advanced economy productivity levels was due to rising productivity within manufacturing combined with structural transformation out of agriculture. Manufacturing has the capacity to employ large numbers of unskilled workers, is capable of large productivity gains through innovation, and entails tradeable products that permit economies of scale and specialization. But manufacturing in Africa, rather than leading growth, has typically been a lagging sector. In 2014, the average share of manufacturing in GDP in sub-Saharan Africa hovered around 10 per cent, unchanged from the 1970s, leading some observers to be pessimistic about Africa’s potential to catch the wave of sustained rapid growth and rising incomes. This book challenges that view. It argues that other activities sharing the characteristics of manufacturing—including tourism, ICT, and other services as well as food processing and horticulture—are beginning to play a role analogous to the role that manufacturing played in East Asia. This reflects not only changes in the global organization of industries since the early era of rapid East Asian growth, but also advantages unique to Africa. These ‘industries without smokestacks’ offer new opportunities for Africa to grow in coming decades.

Is Structural Transformation-led Economic Growth Immiserizing or Inclusive? The Case of Indonesia

2019 ◽  
pp. 226-249 ◽  
Author(s):  
Kyunghoon Kim ◽  
Andy Sumner ◽  
Arief Anshory Yusuf
Keyword(s):  
Economic Growth ◽  
Structural Transformation ◽  
Poverty Reduction ◽  
Service Sector ◽  
Manufacturing Sector ◽  
High Growth ◽  
Growth Period ◽  
Current Form ◽  
Poverty And Inequality ◽  
The Relationship

This chapter discusses the relationship between the recent pattern of structural transformation in the Indonesian economy and poverty reduction. In the past two decades, Indonesia has become a service-centred economy while its manufacturing sector has ceased to act as the driver of structural transformation. Further, the manufacturing sector’s capacity to generate employment and to lead productivity growth has deteriorated compared to that during the two decades prior to the Asian financial crisis. Since the late 1990s, Indonesia has also experienced a slowdown in poverty reduction and a rapid increase in inequality. This chapter argues that Indonesia’s economic growth will struggle to be as dynamic as that during the high-growth period if the service sector in its current form continues to lead structural transformation. This is because Indonesia’s service subsectors with large employment absorptive capacity have low productivity compared to the industrial subsectors. Without recovering dynamism in structural transformation, Indonesia’s fight against poverty and inequality is expected to be difficult.

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