Abstract:

Africa possesses potent structural factors that are significant for the successful structural transformation of its economy. However, the African manufacturing sector remains small compared those in other developing regions. This paper aims to tackle the issue of structural transformation in the African context through an analysis of the economic complexity concept. First, panel data regressions employing the random effects model have revealed a positive and significant empirical link between economic complexity and prospective economic growth. The importance of economic complexity for future growth led us to utilize an ordered Probit model. Our results showed that certain factors, such as R&D efforts, human capital via education, and government effectiveness, positively influence the likelihood of achieving an advanced complexity class.

Keywords:

Structural transformation, economic complexity, productive capacities, ordered Probit.

JEL Classification:

C23, L5, N67, O14.

How to Cite:

Sara Labrar, Lahboub Zouiri and Ibrahim Allali. Structural Transformation and Economic Growth in Africa: An Economic Complexity Approach. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a209/