October 3, 2025 Thesis Open Access

KALKIDAN SAMUEL

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  <identifier identifierType="DOI">10.20372/nadre:19325</identifier>
  <creators>
    <creator>
      <creatorName>KALKIDAN SAMUEL</creatorName>
    </creator>
  </creators>
  <titles>
    <title>STRUCTURAL CHANGE AND ECONOMIC GROWTH IN AFRICA</title>
  </titles>
  <publisher>Zenodo</publisher>
  <publicationYear>2025</publicationYear>
  <subjects>
    <subject>Africa, Economic growth, structural change, Industry Value added, Per capita GDP growth, Panel Data.</subject>
  </subjects>
  <dates>
    <date dateType="Issued">2025-10-03</date>
  </dates>
  <language>en</language>
  <resourceType resourceTypeGeneral="Text">Thesis</resourceType>
  <alternateIdentifiers>
    <alternateIdentifier alternateIdentifierType="url">https://nadre.ethernet.edu.et/record/19325</alternateIdentifier>
  </alternateIdentifiers>
  <relatedIdentifiers>
    <relatedIdentifier relatedIdentifierType="DOI" relationType="IsVersionOf">10.20372/nadre:19324</relatedIdentifier>
    <relatedIdentifier relatedIdentifierType="URL" relationType="IsPartOf">https://nadre.ethernet.edu.et/communities/02</relatedIdentifier>
  </relatedIdentifiers>
  <version>01</version>
  <rightsList>
    <rights rightsURI="http://www.opendefinition.org/licenses/cc-by">Creative Commons Attribution</rights>
    <rights rightsURI="info:eu-repo/semantics/openAccess">Open Access</rights>
  </rightsList>
  <descriptions>
    <description descriptionType="Abstract">&lt;p&gt;Since the late 1950s and mid 1960s which is known to be the period of African independence,&lt;br&gt;
Africa&amp;rsquo;s growth performance and structural change, as indicated by the growth of the secondary&lt;br&gt;
sector, have shown a fluctuating pattern. The period between the 1950s and the mid-1970s was&lt;br&gt;
relatively of good economic performance and expansion of the manufacturing sector while the&lt;br&gt;
period after the mid-1970s to the mid-1990s is characterized by poor economic performance and&lt;br&gt;
contraction of the secondary sector. The period since the late 1990s is a period of rapid&lt;br&gt;
economic growth but declining share of the secondary sector which implies negative structural&lt;br&gt;
change in the context of this study. Given this pattern of economic growth and structural change,&lt;br&gt;
previous studies focus on the effect of structural change on economic growth of Africa.&lt;br&gt;
Accordingly, this study aims at analyzing the effect of economic growth on structural change in&lt;br&gt;
Africa.Other drivers of structural change in Africa are also studied by considering the Natural&lt;br&gt;
resource endowment hypothesis, Geography hypothesis, exchange rate policy hypothesis and&lt;br&gt;
human capital hypothesis. The effect of openness on structural change is also analyzed by&lt;br&gt;
considering the effect of trade on sectorial value added share.Secondary data for a set of 43&lt;br&gt;
African countries for the period between 1980 to 2020 is collected from the World Bank&amp;rsquo;s World&lt;br&gt;
Development Indicators Database. The countries and years of study are selected based on the&lt;br&gt;
availability of data. The fixed Generalized Least Squares (FGLS) estimation is employed to&lt;br&gt;
estimate the parameters as it addresses the problems of heterosckedasticity, autocorrelation and&lt;br&gt;
Cross-sectional dependence existing within the data. The Durbin-Hausman-Wu endogenity test&lt;br&gt;
is applied and the variables are found to be strictly exogenous. The result of the study shows that&lt;br&gt;
Economic growth has a significant negative effect on Structural change. This is consistent with&lt;br&gt;
the reality faced by African economies in the past decades for which economic growth and&lt;br&gt;
structural change move in opposite directions to each other. Particularly after the mid-1990s,&lt;br&gt;
the economy is growing faster but the industry sector&amp;rsquo;s share in output which represents&lt;br&gt;
structural change, is declining. Exchange rate depreciation has also a negative effect on&lt;br&gt;
structural change in Africa for the last four decades. On the other hand, Human Capital and&lt;br&gt;
Openness has a positive effect on structural change that more improved human capital and more&lt;br&gt;
open economy results in an increasing share of Industry Value Added thereby facilitating&lt;br&gt;
structural change. Natural resource endowment and Geography are found to be insignificant&lt;br&gt;
variables in the model estimation. Based on the result, the study recommends those policy&lt;br&gt;
designs focused on: driving the fruits of economic growth towards the expansion of the industry&lt;br&gt;
sector,increasing investment in human capital, following more liberal trade policies and well&lt;br&gt;
managed exchange rate system.&lt;/p&gt;</description>
  </descriptions>
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