25 Aug '17, 6pm

via @TheEconomist

via @TheEconomist

Research by Margaret McMillan, of Tufts University, and Dani Rodrik, of Harvard, investigates how far Africa has followed this pattern. They distinguish two traditions of thinking about growth. One focuses on raising labour productivity within sectors of the economy, by adding capital or improving skills and technology. The other stresses structural change, as workers move between sectors. The output of the average African manufacturing worker is five times that of his agricultural counterpart. Move people from farms to jobs in factories or high-value services and growth will follow. As a thought experiment, consider changing the sectoral distribution of African workers to match that in the advanced economies, holding everything else constant. Productivity in Ethiopia would increase sixfold; in Senegal by a factor of eleven.

Full article: https://www.economist.com/news/finance-and-economics/2172...

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