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Africa's Manufacturing Puzzle: Evidence from Tanzanian and Ethiopian Firms

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dc.contributor.authorDiao, Xinshen
dc.contributor.authorEllis, Mia
dc.contributor.authorMcMillan, Margaret
dc.contributor.authorRodrik, Dani
dc.date.accessioned2025-06-18T17:39:28Z
dc.date.available2025-06-18T17:39:28Z
dc.date.issued2025-05-26
dc.description.abstractRecent growth accelerations in Africa are characterized by declining shares of the labor force employed in agriculture, increasing labor productivity in agriculture, and declining labor productivity in modern sectors such as manufacturing. To shed light on this puzzle, this study disaggregates firms in the manufacturing sector by average size, using two newly created firm-level panels covering Tanzania (2008-2016) and Ethiopia (1996-2017). The analysis identifies a dichotomy between larger firms with superior productivity performance that do not expand employment and small firms that absorb employment but do not experience much productivity growth. Large, more productive firms use highly capital-intensive techniques, in line with global technology trends, but significantly greater than what would be expected based on these countries’ income levels or relative factor endowments.en
dc.identifierhttp://documents.worldbank.org/curated/en/099155005022535017
dc.identifier.citationThe World Bank Economic Review
dc.identifier.urihttps://hdl.handle.net/10986/43353
dc.languageEnglish
dc.language.isoen_US
dc.publisherPublished by Oxford University Press on behalf of the World Bank
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectMANUFACTURING
dc.subjectSTRUCTURAL TRANSFORMATION
dc.subjectGROWTH
dc.subjectPRODUCTIVITY
dc.titleAfrica's Manufacturing Puzzle: Evidence from Tanzanian and Ethiopian Firmsen
dc.typeJournal Article
dspace.entity.typePublication
okr.associatedcontenthttps://academic.oup.com/wber/article/39/2/308/7731247 Journal website (version of record)
okr.date.disclosure2025-05-26
okr.date.lastmodified2025-05-08T08:07:15Zen
okr.doctypeJournal Article
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099155005022535017
okr.guid099155005022535017
okr.identifier.docmidIDU-b676631d-b40c-4328-919a-6743b99efdae
okr.identifier.doi10.1093/wber/lhae029
okr.identifier.externaldocumentum40010528
okr.identifier.internaldocumentum40010528
okr.identifier.report201087
okr.import.id7579
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099155005022535017/pdf/IDU-b676631d-b40c-4328-919a-6743b99efdae.pdfen
okr.peerreviewAcademic Peer Review
okr.region.administrativeEastern and Southern Africa
okr.region.countryTanzania
okr.region.countryEthiopia
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicIndustry::Industrial Economics
okr.unitDECRG - Development Research Group
okr.volume39(2)
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